bangladesh university of professionals (bup...

BANGLADESH UNIVERSITY OF PROFESSIONALS (BUP)

SEMESTER OUTLINE (MBA 2015, Major In Finance)

PREFACE

1. General. This tentative Semester Outline is the overall pen picture of the academic curriculum blended with series of learning events from social activities and numerous enjoyable events for an effective learning to be fit in the competitive world. Its core theme is to provide a panoramic view of the course curriculum for the initial mental set up of the students and to give guidelines for teachers for innovative and research oriented learning. This comprehensive Semester Outline includes a column each for the Day/Date, Class Timing, Name of the Section Location (Classroom Number), Course Code, Topic/Event, Teacher/Faculty Member and Remarks/Discussion Points. The Semester Outline is also a basic guideline indicating the modes of conduct of the course curriculum. It accommodates all relevant information required for the whole semester including all central events (e.g. sports, games or cultural competitions, National Day(s) celebrations, seminars, cultural programs, etc.). In a nutshell, this Semester Outline is the ready reckoner to all your questions regarding the program.

2. Semester Starting and Finishing Dates. The semester starts on 19 June 2016 and finishes on 08 December 2016.

3. Timing and Conduct of Classes. The academic week starts on Sunday and finishes on Thursday, making it a five-day working week. Each Section shall have about two classes per day. So, there will be total ten classes per week for each Section. Each class shall be of 90 minutes duration, of which 60 minutes shall be dedicated for lecture, and the rest 30 minutes shall be spent for discussions by the students. The mode and conduct of discussions shall be designed by the class-teacher as per the ‘Remarks/Discussion’ column given in the following pages. Apart from the planned classes, makeup classes and industrial visits will be conducted on Saturdays as per plan of the Department. 4. Names of Courses with Codes. The names of courses with course code have been stated below:

Serial Name of Course Code

1. Strategic Management MGT 6405

2. Financial Institutions and Markets FIN-6402

3. Corporate Finance FIN-6403

4. International Financial Management FIN-6406

5. Working Capital management Fin-6407

5. Assessment System. The assessment system is as under:

Events Weightage

Semester Final Exam 35%

Midterm Exam 15%

Date Day

Time Sec Loc Course Code

Topic Faculty Rmks/Points of

Discussion

2

Class Tests (Total Six) 12%

Term Paper (Individual) Including Presentation 10%

Assignments and Case Studies (Individual/Group) Including Presentation 10%

Regular Class Participation and Presentation 05%

Class Attendance 10%

Attitude/Conduct/Manners 03%

Total 100%

6. Conclusion. This Semester Outline, with its all information and instructions, welcomes the students to be a proud member of BUP. It sets the tone and describes the general academic environment of the University for the 2nd Semester of the year 2016. In fact, it is a complete guideline for the students for the Semester, so that there is no room for any confusion on anyone’s part. It also gives a clear picture of what BUP wan ts to impart to the students as well as what is expected out of the students. Disciplinary aspects are also mentioned enabling the students to have a prior understanding of the culture and discipline of BUP. It is expected that students shall take all instructions and information by heart and follow the same with utmost sincerity. It is worth mentioning that curriculum of BUP is not only a bundle of strict routines and their observances, but also a place where students shall learn to be a good and knowledgeable citizen with excellent presentation skill. The Semester is full of fun and frolics apart from the pure academic curriculum, which the students shall come across as the Semester unfolds with passage of time. We hope, gradually, all students shall successfully complete the Semester with praiseworthy results. Welcome to BUP once again.

Date Day



Discussion

3

SEMESTER OUTLINE-2016

MBA-2015, Major FIN 2

ndYear 2

ndSemester

Date Day



Discussion

Sun 19 Jun

1130-1230

MBA 15 FIN

CR-404

FIN 6407 Orientation with Students and introducing the course outline

Dr. Bayzid Ali

1. Concept and meaning working capital management

2. Working capital terminology

3. Scope of working capital management

1400-1500

MBA 15 FIN

CR-603

FIN 6402

What is Overview of financial markets-Types of financial markets- Securities traded in financial markets

Dr. Jannatul Ferdaous

1. What is financial market? 2

2. Different types of financial market and

3. characteristics, 4. Types of securities

traded in financial market.

Mon 20 Jun

1015-1145

MBA 15 FIN

CR-303

MGT 6405

Meaning of strategy and strategic management (sm) Why is it important for organizational management? Elements of strategy, Strategic management process Strategic decision making

Dr. Abu Taher

1. Strategy & SM 2. Elements of strategy 3. SM process 4. Strategic decision

making

Tue 21 Jun

1015-1145

MBA 15 FIN

CR-604

MGT 6405

Meaning of strategy and strategic management (sm) Why is it important for organizational management? Elements of strategy, Strategic management process Strategic decision making

Dr. Abu Taher

1. Strategy & SM 2. Elements of strategy 3. SM process 4. Strategic decision

making

1130-1230

MBA 15 FIN

CR-603

FIN 6402 Role of financial institutions in financial markets- Financial market regulations


1. Use of information to make investment decisions,

2. Financial market efficiency,

3. Why govt. regulation? 4. Financial market

globalization

Date Day



Discussion

4

Wed 22 Jun

1015-1145

MBA 15 FIN

CR-604

FIN 6407 Orientation with Students and introducing the course outline Dr. Bayzid Ali

1. Working capital needs of different types of business

2. Internal and external factors that affect working capital need

3. Cash conversion cycle

1245-1345

MBA 15 FIN

CR-404

FIN 6403 Introducing course outline Dr. Abu Mishir

1. Finance 2. Financial manager 3. Corporate firms

4. Goals of the corporate firms

1400-1500

MBA 15 FIN

North Porch

FIN 6406 International Trade Theory and Policy Dr. Abu Mishir

1. Absolute Advantage 2. Comparative

Advantage 3. Heckscher-Ohlin (H-O)

Theory 4. International Trade

versus Inter-regional Trade

Thu 23 Jun

1400-1500

MBA 15 FIN

North Porch

FIN 6406 International Business Methods Dr. Abu Mishir

1. International trade 2. Licensing and

Franchising 3. Joint venture and

Acquisition of existing operations

4. Establishing new foreign subsidiaries

Fri 24 Jun

---------------

Sat 25 Jun

---------------

Sun 26 Jun

Ramadan Leave (26 June to 30 June 2016)

Fri 01 Jul

Jumatul Bida

Sat 02 Jul

---------------

Date Day



Discussion

5

Sun 03 Jul

Eid Fitre Leave (03 July to 07 July 2016)

Fri 08 Jul

Sat 09 Jul

Sun1

10 Jul

1200-1330

MBA 15 FIN

CR-404


1. Techniques adopted by firms to cut down their operating cycle

2. Working capital management

3. Managing current assets

4. Risk return trade-off from investing in current assets

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Depository financial institutions-Non depository financial institutions Dr. Jannatul

Ferdaous

1. Role of depository and non depository financial institutions,

2. types of depository and non depository financial institutions,

3. major sources and 4. uses of fund

Mon 11 Jul

1015-1145

MBA 15 FIN

CR-303

MGT 6405

Hierarchy of strategic intent. Developing Vision, Mission, Goals and Objectives, Forms of strategy, Formulating strategy Matching strategy to a situation

Dr. Abu Taher

1. Hierarchy 2. Vision, 3. Mission 4. Goals

Tue 12 Jul

1015-1145

MBA 15 FIN

CR-604

MGT 6405

Hierarchy of strategic intent. Developing Vision, Mission, Goals and Objectives, Forms of strategy, Formulating strategy Matching strategy to a situation

Dr. Abu Taher

1. Hierarchy 2. Vision, 3. Mission 4. Goals

1 Assign Term Paper

Date Day



Discussion

6

1200-1330

MBA 15 FIN

CR-603

FIN 6402 Depository financial institutions-Non depository financial institutions Dr. Jannatul

Ferdaous




Wed 13 Jul

1015-1145

MBA 15 FIN

CR-604


1. Managing current liabilities

2. Advantage and disadvantage of current liabilities

3. Risk return trade-off from using current liabilities

4. Working capital policy

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Introducing course outline

Dr. Abu Mishir

1. Goals and objectives of financial manager

2. Financial assets 3. Financial markets 4. Financial instruments

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Gains from trade and derivation of equilibrium rate of terms of trade Dr. Abu Mishir

1. Two-country-two-commodity model

2. Production Possibility Curves (PPC)

3. Indifference curves 4. Gains from trade:

Before-trade and After-trade situation

Thu 14 Jul

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Aspects of Corporate Finance

Dr. Abu Mishir

1. Working capital management

2. Financing decisions 3. Investment decisions 4. Balance sheet model

1545-1715

MBA 15 FIN

North Porch

FIN 6406 An Overview Dr. Abu Mishir

1. Agency problem 2. Direct Foreign

Investment 3. Investment

Opportunities 4. International Risk

Exposure

Date Day



Discussion

7

Fri 15 Jul

---------------

Sat 16 Jul

---------------

Sun 17 Jul

1200-1330

MBA 15 FIN

CR-404


1. Working capital investment policy

2. Working capital financing policy

3. Estimation of working capital requirement

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Loanable fund theory-Demand for loanable fund-Supply of loanable fund Dr. Jannatul

Ferdaous

1. Demand for and supply of household,

2. business, 3. government and 4. foreign sectors

Mon 18 Jul

1015-1145

MBA 15 FIN

CR-303

MGT 6405 General approach to case presentation Characteristics of strategic management case – Detailed directions for addressing cases

Dr. Abu Taher

1. Case study and presentation

2. Features of SM cases 3. Addressing case

Tue 19 Jul

1015-1145

MBA 15 FIN

CR-604

MGT 6405

Overview of internal analysis, Competitive advantage, Value creation, Low cost and differentiation, Core competencies, The value chain model-Sustaining competitive advantage, Methods of Assessing Internal strengths and weaknesses Case study.

Dr. Abu Taher

1. Internal Analysis 2. Competitive advantage 3. Value chain 4. Sustainability

1200-1330

MBA 15 FIN

CR-603

FIN 6402 Equilibrium interest rates- Economic forces that affect interest rates Dr. Jannatul

Ferdaous

1. How to determine the equilibrium interest rates?

2. Disequilibrium situation, 3. economic growth, 4. inflation

Wed 20 Jul

1015-1145

MBA 15 FIN

CR-604

FIN 6407 Cash Management Dr. Bayzid Ali

1. Basic concept of cash management

2. Motives for holding cash

3. Cash flow process and its relevance

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Financial decisions

Dr. Abu Mishir

1. Agency costs 2. Agency problem 3. Sources of finance 4. Financial environment

Date Day



Discussion

8

1545-1715

MBA 15 FIN

North Porch

FIN 6406 MNC’s Cash Flows Dr. Abu Mishir

1. Concept of MNC 2. Domestic model 3. MNC Valuation model 4. Global Competition

Thu 21 Jul

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Forecasting financing

Dr. Abu Mishir

1. Financial environment 2. Cash planning

3. Profit planning 4. Budgeting

1545-1715

MBA 15 FIN

North Porch

FIN 6406 History of foreign exchange: Gold standard and gold exchange standard, Bretton Woods Agreement and collapse of the system

Dr. Abu Mishir

1. Theories of exchange rate dertmination

2. Gold standard theory 3. Purchasing power

parity (PPP) theory 4. Balance of

payment(BoP) theory

Fri 22 Jul

---------------

Sat 23 Jul

---------------

Sun2

24 Jul

1200-1330

MBA 15 FIN

CR-404


1. Principles of cash management

2. Collection and disbursements management

3. Collection float and its impact on profitability

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Economic forces that affect interest rates- Forecasting interest rates Dr. Jannatul

Ferdaous

1. Money supply, 2. budget deficit, 3. flow of foreign funds, 4. Forecasting interest

rates

Mon 25 Jul

1015-1145

MBA 15 FIN

CR-303

MGT 6405


Dr. Abu Taher


Tue 26

0830-1000

2 Assign Case Study

Date Day



Discussion

9

Jul

1015-1145

MBA 15 FIN

CR-604

MGT 6405


Dr. Abu Taher


1200-1330

MBA 15 FIN

CR-603

FIN 6402 Characteristics of Debt securities that cause their yield to vary-

Estimating the appropriate yield Dr. Jannatul

Ferdaous

1. Default risk (also called

Credit Risk),

2. Liquidity,

3. Tax status,

4. Term to maturity,

Special contract

provisions such as

embedded options

Wed 27 Jul

1015-1145

MBA 15 FIN

CR-604

FIN 6407 Cash Management Dr. Bayzid Ali 1. Forecasting short term

cash flows 2. Preparing cash budget

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Ratio Analysis Dr. Abu Mishir

1. Concept of financial statements

2. Common-size financial statement analysis

3. Du Pont Analysis 4. Market ratios

1545-1715

MBA 15 FIN

North Porch

FIN 6406

Meaning and Concepts Features Participants Settlement of Transactions

Dr. Abu Mishir

1. Ready exchange rate 2. Spot exchange rate 3. Forward exchange rate 4. Forward margin/Swap

point

Thu 28 Jul

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Ratio Analysis Dr. Abu Mishir

1. Liquidity ratios 2. Asset utilization ratios

3. Debt ratios 4. Profitability ratios,

Market ratios

1545-1715

MBA 15 FIN

North Porch

FIN 6406

Meaning and Concepts Features Participants Settlement of Transactions

Dr. Abu Mishir

1. Fixed exchange rate 2. Floating exchange rate 3. Flexible exchange rate 4. LIBOR

Fri 29 Jul

---------------

Sat 30 Jul

---------------

Date Day



Discussion

10

Sun 31 Jul

1200-1330

MBA 15 FIN

CR-404


1. Principles of cash management

2. Collection and disbursements management

3. Collection float and its impact on profitability

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Economic forces that affect interest rates- Forecasting interest rates Dr. Jannatul

Ferdaous

1. Money supply, 2. budget deficit, 3. flow of foreign funds, 4. Forecasting interest

rates

Mon 01

Aug

1015-1145

MBA 15 FIN

CR-303

MGT 6405

Overview of external analysis, Industry structure and competitive analysis, Porter’s five forces model – Macro environment analysis (PESTELD), Process for analyzing the external environment, How the external environment shapes strategy? The industry lifecycle mode- Case study.

Dr. Abu Taher

1. External analysis 2. Five forces model 3. PESTELD 4. Industry life cycle

model

Tue 02

Aug

1015-1145

MBA 15 FIN

CR-604

MGT 6405


Dr. Abu Taher


model

1200-1330

MBA 15 FIN

CR-603

FIN 6402 A closer look at the term structure Dr. Jannatul

Ferdaous

1. Term structure of interest rates.

2. Pure expectations theory,

3. liquidity premium theory, 4. segmented market

theory.

Wed 03

Aug

1015-1145

MBA 15 FIN

CR-604


1. Cash vs marketable securities

2. Models to determine optimal working balance

3. Baumol’s model

1400-1530

MBA 15 FIN

CR-404

FIN 6403 Factors of value of money Dr. Abu Mishir

1. Concepts 2. Importance of time

value of money 3. Present value factor 4. Future value factor

Date Day



Discussion

11

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Foreign exchange quotation Dr. Abu Mishir

1. Direct quotation 2. Indirect quotation 3. Cross exchange rate 4. Depreciation and

Appreciation of currency

Thu 04

Aug

1400-1530

MBA 15 FIN

CR-404

FIN 6403 Compounding and discounting Dr. Abu Mishir

1. Present value 2. Future value 3. Compounding 4. Discounting

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Exchange Rate Determination Dr. Abu Mishir

1. Exchange rate equilibrium

2. Composition of demand and supply

3. Factors influencing exchange rates

4. Relative inflation rates

Fri 05

Aug ---------------

Sat 06

Aug ---------------

Sun3

07 Aug

1200-1330

MBA 15 FIN

CR-404


1. Miller-Orr model 2. Investing short term

funds 3. Fund investment

strategies

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Mechanics of monetary policy Dr. Jannatul Ferdaous

1. Quantity theory, 2. Classical theory, 3. Keynesian theory,

correcting week economy, correcting inflation, rational

4. expectations theory, lags in monetary policy

Mon 08

Aug

1015-1145

MBA 15 FIN

CR-303

MGT 6405


Dr. Abu Taher


model

3 Case Study Submission

Date Day



Discussion

12

Tue 09

Aug

1015-1145

MBA 15 FIN

CR-604

MGT 6405


Dr. Abu Taher


model

1200-1330

MBA 15 FIN

CR-603

FIN 6402 Trade off in monetary policy -Economic indicators monitored by central

bank- How monetary policy affects all sectors Dr. Jannatul

Ferdaous

1. Trade off faced by the central bank,

2. indicators monitored by central bank,

3. assessing the impact of monetary policy,

4. integrating monetary and fiscal policy

Wed 10

Aug

1015-1145

MBA 15 FIN

CR-604


1. Cash management techniques

2. Cash flow synchronization

1400-1530

MBA 15 FIN

CR-404

FIN 6403 Valuation of money Dr. Abu Mishir

1. Simple compounding 2. Multiple compounding 3. Annuity present value 4. Annuity future value

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Exchange Rate Determination Dr. Abu Mishir

1. Relative interest rates 2. Relative income level 3. Government controls,

expectations, interaction of factors

4. Financial market perspective: Speculating on anticipated exchange rates.

Thu 11

Aug

1400-1530

MBA 15 FIN

CR-404

FIN 6403 Introducing capital budgeting

Dr. Abu Mishir

1. Concept and meaning of capital budgeting

2. Importance of capital budgeting

3. Steps in capital budgeting

4. Capital budgeting techniques

Date Day



Discussion

13

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Derivative Instruments in Foreign Exchange Markets Dr. Abu Mishir

1. Forward contracts 2. Non-deliverable forward

contract 3. Currency Futures

Contracts 4. Speculation with

Currency Futures

Fri 12

Aug ---------------

Sat 13

Aug ---------------

Sun 14

Aug

1200-1330

MBA 15 FIN

CR-404

FIN 6407 Cash Management Dr. Bayzid Ali 1. Check-clearing process 2. Using float

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Trade off in monetary policy -Economic indicators monitored by central

bank- Dr. Jannatul

Ferdaous

1. Trade off faced by the central bank,

2. indicators monitored by central bank,

3. assessing the impact of monetary policy,

Mon 15

Aug National Mourning Day

Tue 16

Aug

1015-1145

MBA 15 FIN

CR-604

MGT 6405

Meaning of functional level strategy Production and efficiency – Marketing and efficiency – R.D. strategy and efficiency – HR strategy and efficiency and Infrastructure and efficiency – Achieving superior quality – TOM and CPR Guidelines for managing TOM and CPR Achieving superior innovation Achieving superior customer responsiveness Best practices in three primary core processes. Case study

Dr. Abu Taher

1. Strategic role of areas 2. TQM 3. CPP 4. Achieving superior

Efficiency, Quality, Innovation and customer responsiveness

1200-1330

MBA 15 FIN

CR-603

FIN 6402 How monetary policy affects all sectors Dr. Jannatul Ferdaous

1. integrating monetary and

2. fiscal policy

Wed 17

Aug

1015-1145

MBA 15 FIN

CR-604

FIN 6407 Cash Management Dr. Bayzid Ali 1. Acceleration of receipt 2. Disbursement control

Date Day



Discussion

14

1400-1530

MBA 15 FIN

CR-404

FIN 6403 Methods and Application Dr. Abu Mishir

1. Pay-back period 2. Discounted pay-back

period

3. Net present value 4. Internal rate of return

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Understanding Balance of Payments Dr. Abu Mishir

1. Meaning and Concepts 2. Balance of Trade 3. Balance of Payments 4. Balance of Payment

Accounting

Thu4

18 Aug

1400-1530

MBA 15 FIN

CR-404

FIN 6403 Introducing return and risk

Dr. Abu Mishir

1. Concept of risk and return

2. Connotations of risk 3. Expected return 4. Actual return

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Components of Balance of Payments Dr. Abu Mishir

1. Components of Balance of Payments

2. Current Accounts 3. Capital Accounts 4. Official Reserve

Accounts.

Fri 19

Aug ---------------

Sat 20

Aug ---------------

Sun 21

Aug

1200-1330

MBA 15 FIN

CR-404

FIN 6407 Receivable Management Dr. Bayzid Ali

1. Meaning and importance of accounts receivables

2. Key elements trade credit granting process

3. Impact of credit policy 4. Components of credit

policy

4 Issue Team Assign

Date Day



Discussion

15

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Money market securities Dr. Jannatul

Ferdaous

1. Features of money market securities,

2. Treasury bills, Commercial paper,

3. Negotiable certificates of deposit NCDs,

4. Repurchase agreements

Mon 22

Aug

1015-1145

MBA 15 FIN

CR-303

MGT 6405


Dr. Abu Taher



Tue 23

Aug

1015-1145

MBA 15 FIN

CR-604

MGT 6405


Dr. Abu Taher



1200-1330

MBA 15 FIN

CR-603

FIN 6402 Institutional use of money markets- Dr. Jannatul Ferdaous

1. Call Money,

2. Banker’s acceptances,

3. Valuation of money

markets securities

Wed 24

Aug

1015-1145

MBA 15 FIN

CR-604


1. Components of credit policy

2. Determining the credit limit

3. Evaluating account receivable management

Date Day



Discussion

16

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Elements of Risk

Dr. Abu Mishir

1. Sources of risk 2. Business risk and

financial risk 3. Variance 4. Covariance.

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Balance of Payments Accounting Dr. Abu Mishir

1. Debit side and credit site of BOPs

2. Concepts of deficit and the balance of crisis

3. Autonomous and Accommodating transactions

4. Role of government: import restriction and foreign aid.

Thu 25

Aug Jonmasthami

Fri 26

Aug ---------------

Sat 27

Aug ---------------

Sun 28

Aug

1200-1330

MBA 15 FIN

CR-404


1. Receivable monitoring 2. Days-sales-outstanding

(DSO) 3. Accounts receivable

aging schedule

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Valuation of money markets securities Dr. Jannatul

Ferdaous

1. Treasury bills, 2. Commercial paper, 3. Process of Valuation of

money markets securities

Date Day



Discussion

17

Mon 29

Aug

1015-1145

MBA 15 FIN

CR-303

MGT 6405


Dr. Abu Taher



Tue 30

Aug

1015-1145

MBA 15 FIN

CR-604

MGT 6405

What is Business level strategy, Choosing a generic – business level strategy : cost leadership, product differentiation and focus strategies- Types of competitive advantage, Competitive advantage across the market life cycle; Strategic group analysis, Ingredients of successful turnaround process

Dr. Abu Taher

1. Business level strategy 2. Cost leadership 3. Product differentiation 4. Focus strategies

1200-1330

MBA 15 FIN

CR-603

FIN 6402 Background on bonds- Treasury and agency bonds


1. Background on bonds, 2. bond yields, 3. types of treasury and 4. agency bonds

Wed 31

Aug

1015-1145

MBA 15 FIN

CR-604

FIN 6407 Receivable Management Dr. Bayzid Ali 1. Analyzing proposed

changes in credit policy

1015-1145

MBA 15 FIN

CR-604


1. Components of credit policy

2. Determining the credit limit

3. Evaluating account receivable anagement

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Elements of Risk

Dr. Abu Mishir

1. Sources of risk 2. Business risk and

financial risk 3. Variance 4. Covariance.

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Balance of Payments Accounting Dr. Abu Mishir

1. Debit side and credit site of BOPs

2. Concepts of deficit and the balance of crisis

3. Autonomous and Accommodating transactions

4. Role of government: import restriction and foreign aid.

Date Day



Discussion

18

Thu5

01 Sep

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Measuring risk

Dr. Abu Mishir

1. Standard deviation 2. Coefficient of variation 3. Correlation coefficient

Coefficient 4. Beta factor and Capital

Asset Pricing Model (CAPM).

1545-1715

MBA 15 FIN

North Porch

FIN 6406

Inflation National Income Government restrictions Exchange rates

Dr. Abu Mishir

1. Import Controls 2. Tariffs and Quotas 3. Import Restrictions 4. Trade Sanctions

Fri 02

Sep ---------------

Sat 03

Sep ---------------

Sun 04

Sep

1200-1330

MBA 15 FIN

CR-404

FIN 6407 Inventory management Dr. Bayzid Ali

1. Meaning of inventory 2. Motives for holding

inventory 3. Purpose of inventory 4. Significance of

inventory management

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Municipal bonds-

Corporate bonds


1. Trading process of corporate bond,

2. bond indenture, 3. characteristics of

corporate bonds,

Mon 05

Sep

1015-1145

MBA 15 FIN

CR-303

MGT 6405


Dr. Abu Taher

1. Business level strategy 2. Cost leadership 3. Product differentiation 4. Focus strategies 5. Market life cycle 6. Successful turnaround

process.

Tue 06

Sep

1015-1145

MBA 15 FIN

CR-604

MGT 6405


Dr. Abu Taher

1. Business level strategy 2. Cost leadership 3. Product differentiation 4. Focus strategies

5 Debate Competition Final

Date Day



Discussion

19

1200-1330

MBA 15 FIN

CR-603

FIN 6402 Corporate bonds (contd.) Dr. Jannatul

Ferdaous

1. characteristics of corporate bonds,

2. junk bond

Wed 07

Sep

1015-1145

MBA 15 FIN

CR-604


1. Types of inventory 2. Inventory costs 3. Optimal inventory

levels 4. Economic order

quantity (EOQ) model

1400-1530

MBA 15 FIN

CR-404

FIN 6403 Cost of sources of capital Dr. Abu Mishir

1. Concept of cost 2. Assumptions of cost of

capital 3. Investors’ required rate

of returns 4. Fixed costs and

Variable costs.

1545-1715

MBA 15 FIN

North Porch

FIN 6406 International Arbitrage Dr. Abu Mishir

1. Locational Arbitrage 2. Triangular Arbitrage 3. Covered Interest

Arbitrage 4. Interest Rate Parity

Thu 08

Sep

1400-1530

MBA 15 FIN

CR-404

FIN 6403 Elements of cost of capital Dr. Abu Mishir

1. Cost of debt 2. Cost of internal equity 3. Cost of external equity

4. Cost of preferred stock

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Relationship among Exchange Rates, Inflation, and Interest Rates Dr. Abu Mishir

1. Purchasing Power Parity

2. Country Inflation Rates 3. Inflation and Exchange

Rates 4. Impact of Purchasing

Power Parity on MNCs

Fri 09

Sep

Sat 10

Sep

Sun 11

Sep Eid-Ul Azha (11 September to 17 September 2016)

Date Day



Discussion

20

Sun 18

Sep

1200-1330

MBA 15 FIN

CR-404


1. Economic order quantity (EOQ) model extension

2. Assumptions of EOQ model

3. Deciding when to reorder

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Private equity


1. Background of common stock,

2. Background of preferred stock,

Mon 19

Sep

1015-1145

MBA 15 FIN

CR-303

MGT 6405


Dr. Abu Taher

1. Business level strategy 2. Cost leadership 3. Product differentiation 4. Focus strategies 5. Market life cycle 6. Successful turnaround

process.

Tue 20

Sep

1015-1145

MBA 15 FIN

CR-604

MGT 6405

Strategies in Fragmented industries Strategies in growth/emerging industries Strategy in mature industries Strategies to manage rivalry in mature industries Four nonprice competitive strategies Strategies in declining industries A harvest strategy

Dr. Abu Taher

1. Fragmented industries 2. Mature industries 3. Declining industries 4. Non-price competitive

strategy’s

1200-1330

MBA 15 FIN

CR-603

FIN 6402 Private equity


1. Private placement of stocks

2. Venture capital

Wed 21

Sep

1015-1145

MBA 15 FIN

CR-604


1. Analysis of investment in inventory

2. Inventory monitoring and control

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Cost of funds

Dr. Abu Mishir

1. Marginal Cost of Capital

2. Bankruptcy Cost 3. Weighted average cost

of capital 4. Cost of capital and

value of the firm

Date Day



Discussion

21

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Managing foreign exchange rates Dr. Abu Mishir

1. Government influence on exchange rates

2. Exchange rate systems 3. Fixed exchange rate

system 4. Freely floating exchange

rates

Thu 22

Sep

1400-1530

MBA 15 FIN

CR-404

FIN 6403 Fundamentals of valuation Dr. Abu Mishir

1. Importance of valuation 2. Purpose of valuation 3. Factors Affecting the

value of the firm 4. Problems of valuation

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Managing foreign exchange rates Dr. Abu Mishir

1. Pegged exchange rates 2. Financial markets

perspective 3. A single European

currency, exchange rate target zone

4. Asian currency crisis and government intervention. Fri

23 Sep

---------------

Sat 24

Sep ---------------

Sun 25

Sep

1200-1330

MBA 15 FIN

CR-404

FIN 6407 Inventory management Dr. Bayzid Ali 1. Techniques of inventory control

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Public equity Dr. Jannatul

Ferdaous

1. Public placement of stocks,

2. initial public offerings(IPOs)

Mon 26

Sep

1015-1145

MBA 15 FIN

CR-303

MGT 6405


Dr. Abu Taher


strategy’s

Date Day



Discussion

22

Tue 27

Sep

1015-1145

MBA 15 FIN

CR-604

MGT 6405


Dr. Abu Taher


strategy’s

1200-1330

MBA 15 FIN

CR-603

FIN 6402 Public equity (contd.) Dr. Jannatul

Ferdaous

1. Public placement of stocks,

2. initial public offerings(IPOs)

Wed6

28 Sep

1015-1145

MBA 15 FIN

CR-604

FIN 6407 Marketable securities management Dr. Bayzid Ali

1. Meaning of marketable securities

2. Rationale for holding marketable securities

3. Characteristics of marketable securities

4. Types of marketable securities

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Dividend policies

Dr. Abu Mishir

1. Concept of Dividends 2. Types of dividends

3. Stock Dividends and stock splits

4. Dividend payment procedure

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Financing International Business Dr. Abu Mishir

1. Meaning and Concepts 2. Packing Credit

Advances 3. Pre-shipment Credit in

Foreign Currency 4. Post-shipment

Financing

Thu 29

Sep

1200-1330

Seminar-8 1400-1530

1545-1715

6 Team Assign Submission

Date Day



Discussion

23

Fri 30

Sep ---------------

Sat 01 Oct

---------------

Sun 02 Oct

1200-1330

MBA 15 FIN

CR-404

FIN 6407 Managing short term liabilities (financing) Dr. Bayzid Ali

1. Meaning of short term liabilities/financing

2. Accruals 3. Accounts payables

(trade-credit) 4. Guidelines for effective

management of accounts payables

5. The economics of taking a trade discount

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Secondary stock offerings -Stock exchanges- Dr. Jannatul Ferdaous

1. Secondary stock offerings ,

2. types of markets of stock trading

Mon 03 Oct

1015-1145

MBA 15 FIN

CR-303

MGT 6405

Nature of corporate level strategy - Integration strategies – Corporate diversification strategies, Means of diversification Evaluating the benefits of diversification Corporate strategic alliances BCG matrix Case study

Dr. Abu Taher

1. Integration 2. Diversification 3. Corporate strategic

alliances 4. BCG matrix

Tue 04 Oct

1015-1145

MBA 15 FIN

CR-604

MGT 6405


Dr. Abu Taher



1200-1330

MBA 15 FIN

CR-603

FIN 6402 Stock market regulations Dr. Jannatul

Ferdaous

1. Regulation of Trading

on Stock Exchanges,

Wed 05 Oct

1015-1145

MBA 15 FIN

CR-604


1. Measuring the cost of trade credit

2. Components of trade credit

3. Evaluating accounts payables management

Date Day



Discussion

24

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Dividend theories

Dr. Abu Mishir

1. Corporate pay-out policy

2. Dividend theories,

3. Issues of dividend policy

4. Dividend relevance and irrelevance argument

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Understanding International Trade Finance Dr. Abu Mishir

1. Collection of Export Bills

2. Payment for Import Bills

3. Methods of settling international trade

4. Letter of credit- mechanism

Thu 06 Oct

1400-1530

MBA 15 FIN

CR-404

FIN 6403 Practices of Dividends Dr. Abu Mishir

1. Dividend and the value of the firm

2. Some models 3. Empirical Analysis of

Dividends

4. Dividend Practices of Firms

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Understanding International Trade Finance Dr. Abu Mishir

1. Operation of Letter of Credit

2. Acceptance and Negotiation Credits

3. Deferred Payment Credits

4. Revocable and Irrevocable Credits

Fri 07 Oct

---------------

Sat 08 Oct

---------------

Sun 09 Oct

1200-1330

MBA 15 FIN

CR-404


1. Short term bank loan 2. Managing short term

financing 3. Short term bank loan

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Monitoring of Firms in the Stock Market Dr. Jannatul

Ferdaous

1. Investors monitoring, 2. monitoring by financial

managers

Date Day



Discussion

25

Mon 10 Oct

1015-1145

MBA 15 FIN

CR-303

MGT 6405


Dr. Abu Taher



Tue 11 Oct

Durga Puja

Wed 12 Oct

Ashura

Thu 13 Oct

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Financing from external sources

Dr. Abu Mishir

1. Concept of fixed income securities

2. Coupon Interest rate and required rate of return

3. Effective rate of return 4. Bond fundamental.

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Necessity of the Documents In International Finance Dr. Abu Mishir

1. Meaning and Concepts 2. Bill of Exchange 3. Bill of Lading 4. Stamp Duty.

Fri 14 Oct

Sat7

15 Oct

Sun8

16 Oct

1200-1330

MBA 15 FIN

CR-404

FIN 6407 Managing short term liabilities (financing) Dr. Bayzid Ali 1. Measuring the cost of

bank loan 2. Choosing a bank

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Monitoring of Firms in the Stock Market Dr. Jannatul

Ferdaous

1. corporate monitoring, 2. market for corporate

control

7 Cultural Competition

8 Term Paper Submission

Date Day



Discussion

26

Mon 17 Oct

1015-1145

MBA 15 FIN

CR-303

MGT 6405

Profiting from global expansion Pressures for cost reduction and local responsiveness Four basic strategies : merits and demerits – Advantages and disadvantages of different entry modes – Global strategic alliances – Managing the alliance.

Dr. Abu Taher

1. Global expansion 2. Strategic choice 3. choice of entry mode 4. Global strategic

alliances

Tue 18 Oct

1015-1145

MBA 15 FIN

CR-604

MGT 6405


Dr. Abu Taher


alliances

1200-1330

MBA 15 FIN

CR-603

FIN 6402 Residential mortgage characteristics Dr. Jannatul

Ferdaous

1. Types of residential mortgages,

2. creative mortgage financing

Wed 19 Oct

1015-1145

MBA 15 FIN

CR-604


1. Concept of commercial paper

2. Computing the cost of commercial paper

3. Use of security in short term financing

1400-1530

MBA 15 FIN

CR-404

FIN 6403 Valuation of Bonds and Debentures Dr. Abu Mishir

1. Different values of Bonds

2. Bonds vs. Debentures 3. Structure of Interest

Rates 4. Determinants of

Interest Rates

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Management of Foreign Exchange Risk Dr. Abu Mishir

1. Meaning and Classifications

2. Exchange Exposure and Exchange Risk in international finance

3. Transaction Exposure 4. External and Internal

Hedge

Thu 20 Oct

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Bonds and Debentures

Dr. Abu Mishir

1. Current Yield 2. Yield to Call 3. Yield to Maturity 4. Bond Duration

Date Day



Discussion

27

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Sources of Financing Multinational Corporations Dr. Abu Mishir

1. Concept of Cost of Capital

2. MNC Cost of Capital 3. Sources of Capital 4. Comparing the Cost of

Equity and Debt

Fri 21 Oct

---------------

Sat 22 Oct

---------------

Sun 23 Oct

1200-1330

MBA 15 FIN

CR-404


1. Accounts receivables financing

2. Procedure for factoring accounts receivable

1545-1715

MBA 15 FIN

CR-603

FIN 6402 Activities in mortgage market Dr. Jannatul

Ferdaous

1. How the secondary

market facilitates

mortgage

2. activities? Institutional

use of mortgage

market

Mon 24 Oct

1015-1145

MBA 15 FIN

CR-303

MGT 6405


Dr. Abu Taher


alliances

Tue 25 Oct

1015-1145

MBA 15 FIN

CR-604

MGT 6405


Dr. Abu Taher


alliances

1200-1330

MBA 15 FIN

CR-603

FIN 6402 Valuation of mortgages , Risk From Investing In Mortgages Dr. Jannatul

Ferdaous

1. Market price of

mortgages is present

value of cash flows,

2. types of risks,

3. mortgage backed

securities,

4. globalization of

mortgage market

Date Day



Discussion

28

Wed 26 Oct

1015-1145

MBA 15 FIN

CR-604


1. Concept of Inventory financing

2. Types of inventory financing

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Internal source of Capital

Dr. Abu Mishir

1. Concepts of Stocks and shares

2. Types of stocks 3. Issuance of Common

shares 4. Issuance of Preferred

share

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Sources of Financing Multinational Corporations Dr. Abu Mishir

1. Cost of Equity 2. Cost of Debt 3. Combining the Cost of

Debt and Equity 4. Estimating the Cost of

Capital of MNCs

Thu 27 Oct

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Valuation of Equity

Dr. Abu Mishir

1. Types of preferred share

2. Returns from shares 3. Values of Common

stock 4. Dividend discount

model

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Valuation of Multinational Corporations Dr. Abu Mishir

1. Deriving Net Present Value Based on the Weighted Average Cost of Capital

2. Deriving Net Present Value of Equity Investment

3. MNC’s Capital Structure Decision

4. Capital Structure Regulations

Fri 28 Oct

---------------

Sat 29 Oct

---------------

Date Day



Discussion

29

Sun 30 Oct

1200-1330

MBA 15 FIN

CR-404




1545-1715

MBA 15 FIN

CR-603

FIN 6402

Background on Financial Futures, Explaining price movements of bond

future contracts


1. Definitions of financial futures,

2. speculate, 3. hedge

Mon 31 Oct

1015-1145

MBA 15 FIN

CR-303

MGT 6405


Dr. Abu Taher


alliances

Tue9

01 Nov

1015-1145

MBA 15 FIN

CR-604

MGT 6405

Meaning of strategy through implementation, Implementing strategy organization structure, budget and support system, Implementing strategy through organization commitment, culture and leadership Strategic control Case study

Dr. Abu Taher

1. Commitment 2. Culture 3. Leadership 4. Support system &

budget 5. Strategic control.

1200-1330

MBA 15 FIN

CR-603

FIN 6402 Valuation of financial futures Dr. Jannatul Ferdaous

1. Valuations, 2. bond futures 3. contract price moves, 4. speculating with

interest rates futures,

Wed 02

Nov

1015-1145

MBA 15 FIN

CR-604




1400-1530

MBA 15 FIN

CR-404

FIN 6403

Valuation of Equity

Dr. Abu Mishir

1. Zero-growth model 2. Constant-growth model 3. Multiple-growth model

4. P/E Ratio

9 Cricket Final

Date Day



Discussion

30

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Financing through International Financial Institutions Dr. Abu Mishir

1. Concepts of International Financial Institutions

2. Objectives functions of International Monetary Funds (IMF)

3. Structure and Resources

4. Instruments and Special Drawing Rights.

Thu 03

Nov

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Consolidation of firms

Dr. Abu Mishir

1. Concepts

2. Forms of acquisitions 3. Accounting for

acquisitions

4. Synergy

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Financing through International Financial Institutions Dr. Abu Mishir

1. Objectives and functions of International Bank for Reconstruction and Development (IBRD)

2. International Finance Corporation (IFC)

3. International Development Association (IDA)

4. Asian Development Bank (ADB)

Fri 04

Nov ---------------

Sat 05

Nov ---------------

Sun 06

Nov

1200-1330

MBA 15 FIN

CR-404




1545-1715

MBA 15 FIN

CR-603

FIN 6402 Valuation of financial futures Dr. Jannatul Ferdaous

5. Valuations, 6. bond futures 7. contract price moves, 8. speculating with

interest rates futures,

Date Day



Discussion

31

Mon 07

Nov

1015-1145

MBA 15 FIN

CR-303

MGT 6405


Dr. Abu Taher



Tue 08

Nov

1015-1145

MBA 15 FIN

CR-604

MGT 6405


Dr. Abu Taher



1200-1330

MBA 15 FIN

CR-603

FIN 6402 Closing out the futures positions , Risk of Trading Futures Contracts Dr. Jannatul

Ferdaous

1. Closing out the futures 2. positions , 3. hedging with interest

rates futures, 4. types of risk in the

financial futures

Wed 09

Nov

1015-1145

MBA 15 FIN

CR-604

FIN 6407 Working capital management practices in Bangladesh Dr. Bayzid Ali

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Effects of Merger and Acquisition

Dr. Abu Mishir

1. Gains from acquisition 2. Effect of acquisition 3. Cost of acquisition 4. NPV of Acquisition

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Sources of External Finance Dr. Abu Mishir

1. Sources; Residents; Non-residents

2. Non-resident Deposit Accounts

3. Non-resident Foreign Currency Accounts

4. Investment by Non-residents

Thu10

10

Nov

1400-1530

MBA 15 FIN

CR-404

FIN 6403

Financial Engineering

Dr. Abu Mishir

1. Concepts 2. Options 3. Put options, call

options 4. American option and

European option

10

Class End

Date Day



Discussion

32

1545-1715

MBA 15 FIN

North Porch

FIN 6406 Understanding and Application of Incoterms Dr. Abu Mishir

1. Scope 2. The terms 3. Sea and Inland

waterway 4. All modes including

multimodal

Sat 12

Nov ---------------

Fri 11

Nov ---------------

Sun 13

Nov

1130-1230

MBA 15 FIN

CR-404

FIN 6407 Presentation Dr. Bayzid Ali

1400-1500

MBA 15 FIN

CR-603

FIN 6402 Presentation Dr. Jannatul

Ferdaous

Mon 14

Nov

1015-1145

MBA 15 FIN

CR-303

MGT 6405 Presentation Dr. Abu Taher

Tue 15

Nov

1015-1145

MBA 15 FIN

CR-604


1200-1330

MBA 15 FIN

CR-603


Ferdaous

Wed 16

Nov

1015-1145

MBA 15 FIN

CR-604


1400-1530

MBA 15 FIN

CR-404

FIN 6403 Presentation Dr. Abu Mishir

1545-1715

MBA 15 FIN

North Porch


Thu11

17

Nov

11

Indoor Game

Date Day



Discussion

33

Fri 18

Nov

---------------

Sat 19

Nov

---------------

Sun 20

Nov

1130-1230

MBA 15 FIN

CR-404

FIN 6407 Dr. Bayzid Ali

1400-1500

MBA 15 FIN

CR-603

FIN 6402 Dr. Jannatul

Ferdaous

Mon 21

Nov

1015-1145

MBA 15 FIN

CR-303


Tue 22

Nov

1015-1145

MBA 15 FIN

CR-604


1200-1330

MBA 15 FIN

CR-603


Ferdaous

Wed 23

Nov

1015-1145

MBA 15 FIN

CR-604


1400-1530

MBA 15 FIN

CR-404


1545-1715

MBA 15 FIN

North Porch


Thu 24

Nov

1400-1530

MBA 15 FIN

CR-404


1545-1715

MBA 15 FIN

North Porch


Fri 25

Nov

---------------

Sat 26

Nov

---------------

Date Day



Discussion

34

Sun 27

Nov

0900-1200

MBA 15 FIN

MGT 6405 Semester Final Exam (Strategic Management)

Wed 30

Nov

0900-1200

FIN-6402 Semester Final Exam (Financial Institutions and Markets)

Fri 02

Dec

0900-1200

FIN-6403 Semester Final Exam (Corporate Finance)

Sun 04

Dec

0900-1200

FIN-6406 Semester Final Exam (International Financial Management)

Tue 06

Dec

0900-1200

FIN-6407 Semester Final Exam (Working Capital management)

Fri 09

Dec

---------------

Sat 10

Dec

---------------

Sun 11

Dec

Semester Leave (11 December to 29 December 2016)

Fri 30

Dec

---------------

Sat 31

Dec

---------------

Date Day



Discussion

35

Distribution of Weight:

Numerical Grade Letter Grade Grade Point

80% and above A+ (A Plus) 4.00

75% to < 80% A (A Regular) 3.75

70% to < 75% A- (A Minus) 3.50

65% to < 70% B+ (B Plus) 3.25

60% to < 65% B (B Regular) 3.00

55% to < 60% B- (B Minus) 2.75

50% to < 55% C+ (C Plus) 2.50

45% to < 50% C (C Regular) 2.25

40% to < 45% D 2.00

< 40% F 0.00

--------------------- I Incomplete

--------------------- W Withdrawn

Corporate Finance

Course Content:

Weeks Period/Class Name of the Chapter Topics Discussion Points

1 1 Introduction to Corporate Finance Introducing course outline 5. Finance

6. Financial manager

7. Corporate firms

8. Goals of the corporate firms

2 Introduction to Corporate Finance

Introducing course outline

5. Goals and objectives of financial manager

6. Financial assets

7. Financial markets

8. Financial instruments

2 3 Corporate Finance Aspects of Corporate Finance

5. Working capital management 6. Financing decisions

7. Investment decisions

8. Balance sheet model

Class test-1

4 Corporate Finance

Financial decisions

5. Agency costs

6. Agency problem

7. Sources of finance

8. Financial environment

3 5 Financial Planning and Forecasting

Forecasting financing 5. Financial environment

6. Cash planning

Date Day



Discussion

36


7. Profit planning

8. Budgeting

6 Financial Statements Analysis

Ratio Analysis

5. Concept of financial statements

6. Common-size financial statement analysis

7. Du Pont Analysis

8. Market ratios

Class test-2

4 7 Financial Statements Analysis

Ratio Analysis

5. Liquidity ratios

6. Asset utilization ratios

7. Debt ratios

8. Profitability ratios, Market ratios

8 Time Value of Money Factors of value of money 5. Concepts

6. Importance of time value of money 7. Present value factor

8. Future value factor

5

9 Time Value of Money Compounding and discounting

5. Present value 6. Future value

7. Compounding

8. Discounting

Class test-3

10 Time Value of Money Valuation of money 5. Simple compounding

6. Multiple compounding

7. Annuity present value 8. Annuity future value

6 11 Capital Budgeting Introducing capital budgeting

5. Concept and meaning of capital budgeting

6. Importance of capital budgeting 7. Steps in capital budgeting

8. Capital budgeting techniques

12 Capital Budgeting Methods and Application 5. Pay-back period

6. Discounted pay-back period

7. Net present value

8. Internal rate of return

Mid-1

Date Day



Discussion

37


7 13 Risk and Return

Introducing return and risk

5. Concept of risk and return

6. Connotations of risk

7. Expected return 8. Actual return

14 Risk and Return:

Elements of Risk

5. Sources of risk 6. Business risk and financial risk

7. Variance

8. Covariance.

8 15 Risk and Return:

Measuring risk

5. Standard deviation

6. Coefficient of variation

7. Correlation coefficient Coefficient 8. Beta factor and Capital Asset Pricing Model (CAPM).

Class test-4

8 16 Cost of Capital Cost of sources of capital 5. Concept of cost 6. Assumptions of cost of capital

7. Investors’ required rate of returns

8. Fixed costs and Variable costs.

9 17 Cost of Capital Elements of cost of capital 5. Cost of debt

6. Cost of internal equity

7. Cost of external equity

8. Cost of preferred stock

18 Cost of Capital

Cost of funds

5. Marginal Cost of Capital

6. Bankruptcy Cost 7. Weighted average cost of capital

8. Cost of capital and value of the firm

10

19 Valuation of Firm Fundamentals of valuation 5. Importance of valuation

6. Purpose of valuation

7. Factors Affecting the value of the firm

8. Problems of valuation

20 Dividend Policy Theories and Practices

Dividend policies

5. Concept of Dividends

6. Types of dividends

7. Stock Dividends and stock splits

8. Dividend payment procedure

Class Test-5

11 21 Dividend Policy Theories and Practices

Dividend theories

5. Corporate pay-out policy

6. Dividend theories,

7. Issues of dividend policy

8. Dividend relevance and irrelevance argument

Date Day



Discussion

38


22 Dividend Policy Theories and Practices Practices of Dividends 5. Dividend and the value of the firm

6. Some models

7. Empirical Analysis of Dividends

8. Dividend Practices of Firms

12 23 Valuation of Fixed Income Securities

Financing from external sources

5. Concept of fixed income securities

6. Coupon Interest rate and required rate of return

7. Effective rate of return

8. Bond fundamental.

24 Valuation of Fixed Income Securities Valuation of Bonds and Debentures 5. Different values of Bonds 6. Bonds vs. Debentures

7. Structure of Interest Rates

8. Determinants of Interest Rates

13 25 Valuation of Fixed Income Securities

Bonds and Debentures

5. Current Yield

6. Yield to Call

7. Yield to Maturity 8. Bond Duration

26 Stock Valuation

Internal source of Capital

5. Concepts of Stocks and shares

6. Types of stocks

7. Issuance of Common shares

8. Issuance of Preferred share

Class Test-6

14

27 Stock Valuation

Valuation of Equity

5. Types of preferred share

6. Returns from shares

7. Values of Common stock

8. Dividend discount model

28 Stock Valuation

Valuation of Equity

5. Zero-growth model

6. Constant-growth model

7. Multiple-growth model

8. P/E Ratio

15 29 Merger and Acquisition 5. Concepts

Date Day



Discussion

39


Consolidation of firms

6. Forms of acquisitions

7. Accounting for acquisitions

8. Synergy

30 Merger and Acquisition

Effects of Merger and Acquisition

5. Gains from acquisition

6. Effect of acquisition

7. Cost of acquisition

8. NPV of Acquisition

16 31 Derivatives

Financial Engineering

5. Concepts

6. Options

7. Put options, call options

8. American option and European option

32 Derivatives

Financial Instruments

1. Warrants

2. Forwards

3. Futures contracts

4. Convertibles

17 33 Presentation

34 Presentation

18 35 Presentation

36 Presentation

Basic Text: 1. Corporate Finance – By Stephen A. Ross, Randolph W. Westerfield and Jeffrey Jaffe Reference Books: 1. Fundamental of Corporate Finance – By Stephen A. Ross, Randolph W. Westerfield and Bradford D. Jordan 2. Principles of Corporate Finance - By Richard A Brealey, Stewart C Myers, Franklin Allen and Pitabas Mohanty

Date Day



Discussion

40

BANGLADESH UNIVERSITY OF PROFESSIONALS

Faculty of Business Studies

COURSE OUTLINE

COURSE TITLE: Financial Institutions and Markets COURSE CODE: FIN 6402 BATCH & SECTION: MBA 2015 SEMESTER & YEAR: 2st Year 2nd Semester DURATION: ---------------------------------------------

COURSE TEACHER: Dr. Jannatul Ferdaous Email: [email protected] Cell No: 01769021740

COURSE DESCRIPTION: This course covers a broad array of financial markets and institutions that makeup our global financial system. Although many of the major markets will be covered throughout the course, in particular debt and equity markets will be examined closely in this course. Also closely studied in this course will be the determinant of interest rates, interest rate structure, and the analysis of monetary policy. LEARNING OBJECTIVES: In particular at the end of this course you should understand the following objectives: 1. Understand the role of financial markets and institutions in our economy. 2. Describe the impact of interest rate changes on various segments of the economy. 3. Examine the yield curve and discuss why the yield curve changes over time. 4. Describe the structure of the Federal Reserve and its policies. 5. Discuss the real estate and mortgage / debt markets and their impact on the economy. 6. Discuss equity markets focusing on initial public offers. 9. Be aware of current events related to financial institutions and markets 10. Recognize and discuss ethical issues of financial institutions

DISTRIBUTION OF WEIGHTAGE:

Remarks Distribution

Final Exam 35%

One Mid-term 15%

Six Class Tests 12%

Term Paper (Individual) including Presentation 10%

Assignments and Case Studies (Individual/Group) including Presentation 10%


Class attendance 10%

Date Day



Discussion

41

Attitude/Conduct/Manner 3%

Total: 100%

GRADING:



75% to < 80% A (A Regular) 3.75

70% to < 75% A- (A Minus) 3.50

65% to < 70% B+ (B Plus) 3.25

60% to < 65% B (B Regular) 3.00

55% to < 60% B- (B Minus) 2.75

50% to < 55% C+ (C Plus) 2.50

45% to < 50% C (C Regular) 2.25

40% to < 45% D - 2.00

< 40% F - 0.00

--------------------- I - Incomplete

--------------------- W - Withdrawal/Withdrawn

REFERENCES:

International Standard Book no. Title Author Publisher Approval

Financial Markets and Institutions (Latest Edition) Jeff Madhura Thomson, South -Western.

Financial Markets and Institutions

Peter Howells, Keith Bain. Prentice Hall

LECTURE PLAN


1 1 Role of financial markets and institutions

What is Overview of financial markets-Types of financial markets- Securities traded in financial markets

5. What is financial market? 2 6. Different types of financial market and 7. characteristics, 8. Types of securities traded in financial

market.

2 Role of financial markets and institutions

Role of financial institutions in financial markets- Financial market regulations

5. Use of information to make investment decisions,

6. Financial market efficiency,

Date Day



Discussion

42


7. Why govt. regulation? 8. Financial market globalization

2 3 Role of financial markets and

institutions

Depository financial institutions-Non depository financial institutions




4 Determinations of interest rates Loanable fund theory-Demand for loanable fund-Supply of loanable fund

5. Demand for and supply of household, 6. business, 7. government and 8. foreign sectors

3 5 Determinations of interest rates Equilibrium interest rates- Economic forces that affect interest rates

5. How to determine the equilibrium interest rates? 6. Disequilibrium situation, 7. economic growth, 8. inflation

6 Determinations of interest rates Economic forces that affect interest rates- Forecasting interest rates

5. Money supply, 6. budget deficit, 7. flow of foreign funds, 8. Forecasting interest rates

CT-02

4 7 Structure of interest rates Characteristics of Debt securities that cause their

yield to vary-Estimating the appropriate yield

5. Default risk (also called Credit Risk),

6. Liquidity,

7. Tax status,

8. Term to maturity, Special contract

provisions such as embedded options

8 Structure of interest rates A closer look at the term structure 5. Term structure of interest rates. 6. Pure expectations theory, 7. liquidity premium theory, 8. segmented market theory.

5 9 Monetary policy Mechanics of monetary policy 5. Quantity theory, 6. Classical theory, 7. Keynesian theory, correcting week

economy, correcting inflation, rational 8. expectations theory, lags in monetary policy

10 Monetary policy Trade off in monetary policy -Economic indicators

monitored by central bank- How monetary policy

affects all sectors

5. Trade off faced by the central bank, 6. indicators monitored by central bank, 7. assessing the impact of monetary policy, 8. integrating monetary and fiscal policy

CT-03

Date Day



Discussion

43


6 11 Monetary policy Trade off in monetary policy -Economic indicators

monitored by central bank-

4. Trade off faced by the central bank, 5. indicators monitored by central bank, 6. assessing the impact of monetary policy,

12 Monetary policy How monetary policy affects all sectors 3. integrating monetary and 4. fiscal policy

MID

7 13 Money markets Money market securities 5. Features of money market securities, 6. Treasury bills, Commercial paper, 7. Negotiable certificates of deposit NCDs, 8. Repurchase agreements

14 Money markets Institutional use of money markets- 4. Call Money,

5. Banker’s acceptances,

6. Valuation of money markets securities

8

15 Money markets Valuation of money markets securities 4. Treasury bills, 5. Commercial paper, 6. Process of Valuation of money markets

securities

16 Bond markets Background on bonds- Treasury and agency

bonds

5. Background on bonds, 6. bond yields, 7. types of treasury and 8. agency bonds

9 17 Bond markets Municipal bonds-

Corporate bonds

4. Trading process of corporate bond, 5. bond indenture, 6. characteristics of corporate bonds,

18 Bond markets Corporate bonds (contd.) 3. characteristics of corporate bonds, 4. junk bond

10 19 Stock offerings and investor

monitoring

Private equity

3. Background of common stock, 4. Background of preferred stock,

20 Stock offerings and investor

monitoring

Private equity

3. Private placement of stocks 4. Venture capital

11 21 Stock offerings and investor

monitoring

Public equity 3. Public placement of stocks, 4. initial public offerings(IPOs)


monitoring

Public equity (contd.) 3. Public placement of stocks, 4. initial public offerings(IPOs)

Date Day



Discussion

44


12 23- Stock offerings and investor monitoring

Secondary stock offerings -Stock exchanges- 1. Secondary stock offerings ,

2. types of markets of stock trading


monitoring

Stock market regulations 2. Regulation of Trading on Stock Exchanges,

13 25 Stock offerings and investor monitoring

Monitoring of Firms in the Stock Market 3. Investors monitoring, 4. monitoring by financial managers

26 Stock offerings and investor monitoring

Monitoring of Firms in the Stock Market 3. corporate monitoring, 4. market for corporate control

CT-05

14 27 Mortgage market Residential mortgage characteristics 3. Types of residential mortgages, 4. creative mortgage financing

28 Mortgage market Activities in mortgage market 3. How the secondary market facilitates

mortgage

4. activities? Institutional use of mortgage

market

15 29 Mortgage market Valuation of mortgages , Risk From Investing In Mortgages

5. Market price of mortgages is present value

of cash flows,

6. types of risks,

7. mortgage backed securities,

8. globalization of mortgage market

CT-06

30 Financial Futures Market (Derivative

Security markets)

Background on Financial Futures, Explaining

price movements of bond future contracts

4. Definitions of financial futures, 5. speculate, 6. hedge

16

31

Financial Futures Market (Derivative

Security markets)

Valuation of financial futures 9. Valuations, 10. bond futures 11. contract price moves, 12. speculating with interest rates futures,

32 Closing out the futures positions , Risk of Trading Futures Contracts

5. Closing out the futures 6. positions , 7. hedging with interest rates futures, 8. types of risk in the financial futures

18 33-34 Presentation

19 35-36 Presentation

Date Day



Discussion

45

Special Instructions If Any:

Conclusion:

------------------------------------------- ------------------------------------------------------------- ------------------------------- Signature of the Course Teacher Signature of the Concerned Department Head Signature of the Dean

Date Day



Discussion

46

Course Assessment:

a. Compulsory Comprehensive Final Exam 30%

b. Midterm Examinations 15%

c. Six Class tests 12%

d. Analytical team Assignment and Presentation including field trip 10%

e. Term Paper, case studies presentation 10%

f. Two individual analytical work and Presentation 10%

g. Class Attendance(coming to class & contributing actively) 10%

h. Learning attitude/conduct/manners (VC, Dean, Dept. Heads, others) 03%

Total 100%

Distribution of Weight:



75% to < 80% A (A Regular) 3.75

70% to < 75% A- (A Minus) 3.50

65% to < 70% B+ (B Plus) 3.25

60% to < 65% B (B Regular) 3.00

55% to < 60% B- (B Minus) 2.75

50% to < 55% C+ (C Plus) 2.50

45% to < 50% C (C Regular) 2.25

40% to < 45% D 2.00

< 40% F 0.00

--------------------- I Incomplete

--------------------- W Withdrawn

Orientation with Books and Studies:

Basic Text Books: 1. Jeff Madura: International Financial Management (Latest Edition), Thomson South-Western, 2003. 2. Syed Ashraf Ali: Foreign Exchange & Risk Management, Mowla Brothers, Dhaka, Bangladesh, 2005. Reference Books: 1. Michael H. Moffett, Arthur I. Stonehill and Davis W. Eitman: Fundamentals of Multinational Finance, Pearson Education, Ind. 2003. 2. Alan C, Shapiro: Multinational Financial Management, Sixth Ed. John Wiley & Sons, Inc. 2001. 3. Dominick Salvatore: International Economics, Latest Edition. John Wiley & Sons, Inc. 2004. 4. Foreign Exchange-Practice, Concepts & Control, By C Jeevanandam, Sultan Chand & Sons, 2006

Date Day



Discussion

47

Course Content:

International Financial Management


1 1 Introduction International Trade Theory and Policy 5. Absolute Advantage 6. Comparative Advantage 7. Heckscher-Ohlin (H-O) Theory 8. International Trade versus Inter-regional Trade

2 Introduction International Business Methods 5. International trade 6. Licensing and Franchising 7. Joint venture and Acquisition of existing operations 8. Establishing new foreign subsidiaries

2 3 Introduction Gains from trade and derivation of equilibrium rate of terms of trade

5. Two-country-two-commodity model 6. Production Possibility Curves (PPC) 7. Indifference curves 8. Gains from trade: Before-trade and After-trade situation

Class test-1

4 Managing Finance in Foreign

Subsidiaries

An Overview 5. Agency problem 6. Direct Foreign Investment 7. Investment Opportunities 8. International Risk Exposure

3 5 International Flow Funds MNC’s Cash Flows 5. Concept of MNC 6. Domestic model 7. MNC Valuation model 8. Global Competition

6 International Financial Markets

History of foreign exchange: Gold standard and gold exchange standard, Bretton Woods Agreement and collapse of the system

5. Theories of exchange rate dertmination 6. Gold standard theory 7. Purchasing power parity (PPP) theory 8. Balance of payment(BoP) theory

Class test-2

4 7 Foreign Exchange Meaning and Concepts Features Participants Settlement of Transactions

5. Ready exchange rate 6. Spot exchange rate 7. Forward exchange rate 8. Forward margin/Swap point

8 International Exchange Systems Meaning and Concepts Features Participants Settlement of Transactions

5. Fixed exchange rate 6. Floating exchange rate 7. Flexible exchange rate 8. LIBOR

Date Day



Discussion

48


5

9 International Exchange Systems Foreign exchange quotation 5. Direct quotation 6. Indirect quotation 7. Cross exchange rate 8. Depreciation and Appreciation of currency

Class test-3

10 Determining Exchange Ratea Exchange Rate Determination 5. Exchange rate equilibrium 6. Composition of demand and supply 7. Factors influencing exchange rates 8. Relative inflation rates

6 11 Exchange Rate Determination 5. Relative interest rates 6. Relative income level 7. Government controls, expectations, interaction of factors 8. Financial market perspective: Speculating on anticipated

exchange rates.

12 Exchange rate Derivatives Derivative Instruments in Foreign Exchange Markets 5. Forward contracts 6. Non-deliverable forward contract 7. Currency Futures Contracts 8. Speculation with Currency Futures

Mid-1

7 13 Balance of Payments Understanding Balance of Payments 5. Meaning and Concepts 6. Balance of Trade 7. Balance of Payments 8. Balance of Payment Accounting

14 Balance of Payments Components of Balance of Payments 5. Components of Balance of Payments 6. Current Accounts 7. Capital Accounts 8. Official Reserve Accounts.

8 15 Balance of Payments Balance of Payments Accounting 5. Debit side and credit site of BOPs 6. Concepts of deficit and the balance of crisis 7. Autonomous and Accommodating transactions 8. Role of government: import restriction and foreign

aid.

Date Day



Discussion

49


Class test-4

8 16 International Trade Flow factors Inflation

National Income

Government restrictions

Exchange rates

5. Import Controls 6. Tariffs and Quotas 7. Import Restrictions 8. Trade Sanctions

9 17 Interest Rate Parity International Arbitrage 5. Locational Arbitrage 6. Triangular Arbitrage 7. Covered Interest Arbitrage 8. Interest Rate Parity

18 Exchange Rate, Inflation and Interest Rates Relationship among Exchange Rates, Inflation, and Interest Rates

5. Purchasing Power Parity 6. Country Inflation Rates 7. Inflation and Exchange Rates 8. Impact of Purchasing Power Parity on MNCs

10

19 Exchange Rate Behavior Managing foreign exchange rates 5. Government influence on exchange rates 6. Exchange rate systems 7. Fixed exchange rate system 8. Freely floating exchange rates

20 Exchange Rate Behavior Managing foreign exchange rates 5. Pegged exchange rates 6. Financial markets perspective 7. A single European currency, exchange rate target

zone 8. Asian currency crisis and government intervention.

Class Test-5

11 21 Export Financing, Import financing: Financing International Business 5. Meaning and Concepts 6. Packing Credit Advances 7. Pre-shipment Credit in Foreign Currency 8. Post-shipment Financing

22 International Trade Finance Understanding International Trade Finance 5. Collection of Export Bills 6. Payment for Import Bills 7. Methods of settling international trade 8. Letter of credit- mechanism

Date Day



Discussion

50


12 23 International Trade Finance Understanding International Trade Finance 5. Operation of Letter of Credit 6. Acceptance and Negotiation Credits 7. Deferred Payment Credits 8. Revocable and Irrevocable Credits

24 Documents In International Finance Necessity of the Documents In International Finance 5. Meaning and Concepts 6. Bill of Exchange 7. Bill of Lading 8. Stamp Duty.

13 25 Exchange Risk Management Management of Foreign Exchange Risk 5. Meaning and Classifications 6. Exchange Exposure and Exchange Risk in

international finance 7. Transaction Exposure 8. External and Internal Hedge

26 Capital Structure and Multinational Cost of

Capital

Sources of Financing Multinational Corporations 5. Concept of Cost of Capital 6. MNC Cost of Capital 7. Sources of Capital 8. Comparing the Cost of Equity and Debt

Class Test-6

14


Capital

Sources of Financing Multinational Corporations

5. Cost of Equity 6. Cost of Debt 7. Combining the Cost of Debt and Equity 8. Estimating the Cost of Capital of MNCs


Capital

Valuation of Multinational Corporations 5. Deriving Net Present Value Based on the Weighted Average Cost of Capital

6. Deriving Net Present Value of Equity Investment 7. MNC’s Capital Structure Decision 8. Capital Structure Regulations

15 29 International Financial Institutions Financing through International Financial Institutions

5. Concepts of International Financial Institutions 6. Objectives functions of International Monetary Funds

(IMF) 7. Structure and Resources 8. Instruments and Special Drawing Rights.

30 International Financial Institutions Financing through International Financial Institutions

5. Objectives and functions of International Bank for Reconstruction and Development (IBRD)

6. International Finance Corporation (IFC) 7. International Development Association (IDA) 8. Asian Development Bank (ADB)

16 31 External Financing Sources of External Finance 5. Sources; Residents; Non-residents 6. Non-resident Deposit Accounts

Date Day



Discussion

51


7. Non-resident Foreign Currency Accounts 8. Investment by Non-residents

32 Incoterms Understanding and Application of Incoterms 5. Scope 6. The terms 7. Sea and Inland waterway 8. All modes including multimodal

17 33 Presentation

34 Presentation

18 35 Presentation

36 Presentation

Date Day



Discussion

52

Bangladesh University of Professionals (BUP)

Faculty of Business Studies

Strategic Management

Summer Semester 2016

Course Instructor : Professor Md. Abu Taher, Ph. D; Post Doc. (Texas A & M University, USA)

Senior Fulbright Scholar

Treasurer, Bangladesh Open University

Email [email protected]

Day Monday and Tuesday (As per schedule time)

Consultation time Before or after lecture

Learning Objective :

The course “Strategic Management is designed to let the learners know why some organizations succeed and why other fails, why success may turn into failure and how a failing organization

can regain success. The study of this course gives the learners an opportunity to gain an understanding of the analytical techniques and skills that are necessary to identify and exploit strategies

successfully and how the decisions made by the managers affect the expected goals. How an organization’s strategies are connected with their mission and goals; how these strategies are

devised as functional, business, global, and corporate levels; and how these strategies are implemented within the organizational structure and control systems-are also the aspects a learner is

expected to know from this course.

Lecture Plan

[N.B. : Students/learners are expected to have a thorough knowledge of following areas so that they are able to answer all questions and also case study in the texts and examinations]

Topics to be discussed

Lecture Contents Discussion Points

1 & 2 Meaning of strategy and strategic management (sm) Strategy & SM

Elements of strategy

SM process

mailto:[email protected]

Date Day



Discussion

53

Why is it important for organizational management?

Elements of strategy,

Strategic management process

Strategic decision making

Strategic decision making

3 & 4 Hierarchy of strategic intent.

Developing Vision, Mission, Goals and Objectives,

Forms of strategy,

Formulating strategy

Matching strategy to a situation

Hierarchy

Vision,

Mission

Goals

Objectives,

Matching strategy

5 General approach to case presentation

Characteristics of strategic management case –

Detailed directions for addressing cases

Case study and presentation

Features of SM cases

Addressing case

6-8 Overview of internal analysis, Competitive advantage, Value creation, Low cost and differentiation,

Core competencies, The value chain model-Sustaining competitive advantage, Methods of

Assessing Internal strengths and weaknesses

Case study.

Internal Analysis

Competitive advantage

Value chain

Sustainability

Internal

Strengths & weaknesses

9-12 Overview of external analysis, Industry structure and competitive analysis, Porter’s five forces

model – Macro environment analysis (PESTELD), Process for analyzing the external environment,

How the external environment shapes strategy? The industry lifecycle mode-

Case study.

External analysis

Five forces model

PESTELD

Industry life cycle model

13-16 Meaning of functional level strategy Production and efficiency – Marketing and efficiency – R.D.

strategy and efficiency – HR strategy and efficiency and Infrastructure and efficiency – Achieving

superior quality – TOM and CPR

Guidelines for managing TOM and CPR

Achieving superior innovation

Achieving superior customer responsiveness

Strategic role of areas

TQM

CPP

Achieving superior Efficiency, Quality, Innovation and customer responsiveness

Date Day



Discussion

54

Best practices in three primary core processes.

Case study

17-20 What is Business level strategy, Choosing a generic – business level strategy : cost leadership,

product differentiation and focus strategies-

Types of competitive advantage, Competitive advantage across the market life cycle;

Strategic group analysis, Ingredients of successful turnaround process

Business level strategy

Cost leadership

Product differentiation

Focus strategies

Market life cycle

Successful turnaround process.

21-23 Strategies in Fragmented industries

Strategies in growth/emerging industries

Strategy in mature industries

Strategies to manage rivalry in mature industries

Four nonprice competitive strategies

Strategies in declining industries

A harvest strategy

Fragmented industries

Mature industries

Declining industries

Non-price competitive strategy’s

Harvest strategy.

24-26 Nature of corporate level strategy -

Integration strategies – Corporate diversification strategies,

Means of diversification

Evaluating the benefits of diversification

Corporate strategic alliances

BCG matrix

Case study

Integration

Diversification

Corporate strategic alliances

BCG matrix

27-29 Profiting from global expansion

Pressures for cost reduction and local responsiveness

Four basic strategies : merits and demerits – Advantages and disadvantages of different entry

modes – Global strategic alliances – Managing the alliance.

Global expansion

Strategic choice

choice of entry mode

Global strategic alliances

Date Day



Discussion

55

30-32 Meaning of strategy through implementation, Implementing strategy organization structure, budget

and support system,

Implementing strategy through organization commitment, culture and leadership

Strategic control

Case study

Commitment

Culture

Leadership

Support system & budget

Strategic control.

Basic Text : Charles W.L. Hill and Gareth R. Jones, Strategic Management : An Integrated Approach (USA: Houghton)

Reference Books :

1. Ahther A. Thompson & A. J. Strickland, Strategic Management : Concepts and Cases (Richard D.Irwin) (current edition) 2. Thomas L. Wheelen and J.D. Hunger, Strategic Management & Policy, Pearson International .

Criteria for Assessment and Grading Policy (As per BUP guidelines).

-Good Luck-

Date Day



Discussion

56

BANGLADESH UNIVERSITY OF PROFESSIONALS Faculty of Business Studies

COURSE OUTLINE

COURSE TITLE: Working Capital Management COURSE CODE: BATCH & SECTION: BBA 2014 SEMESTER & YEAR: DURATION: -------------------------------------------

COURSE TEACHER: Dr. Mohammad Bayezid Ali Email: [email protected] Cell No: 0171-5028151

COURSE DESCRIPTION: working capital management is the management of the firm’s short-term assets and liabilities, individually and in aggregate. Of all the functional areas of business financial decision making, the one that occupies the largest amount of the time and effort for practicing financial managers in the management of current assets and liabilities. This course has been designed to provide lessons that assists in making efficient practice of managing current assets and current liabilities. Different tools and techniques have been incorporated in different chapters that will help the finance major student meet the challenge of managing working capital related issues in their professional arena. LEARNING OBJECTIVES: The primary objective of the course is to study the working capital management policy and get sufficient awareness about how to manage current assets and current liabilities efficiently. The major topics will include:

Working capital policy and management techniques

Management of different types of current assets

Management of varieties of current liabilities. DISTRIBUTION OF WEIGHTAGE:

Remarks Distribution

Final Exam 35%

One Mid-term 15%

Six Class Tests 12%

Term Paper (Individual) including Presentation 10%

Assignments and Case Studies (Individual/Group) including Presentation 10%


Class attendance 10%

Attitude/Conduct/Manner 3%

Total: 100%

Date Day



Discussion

57

GRADING:



75% to < 80% A (A Regular) 3.75

70% to < 75% A- (A Minus) 3.50

65% to < 70% B+ (B Plus) 3.25

60% to < 65% B (B Regular) 3.00

55% to < 60% B- (B Minus) 2.75

50% to < 55% C+ (C Plus) 2.50

45% to < 50% C (C Regular) 2.25

40% to < 45% D - 2.00

< 40% F - 0.00

--------------------- I - Incomplete

--------------------- W - Withdrawal/Withdrawn

REFERENCES: There is no specific textbook for the course. However following books may be consulted:

a. Modern Working Capital Management, by Frederick C. Scherr Latest Edition b. Working Capital Management, Reading 39, Level 1, Volume 4, CFA Program Curriculum.

LECTURE PLAN

Week Class Chapter Name Topics Points of Discussion

1st

1 Introduction Orientation with Students and introducing the course outline

4. Concept and meaning working capital management 5. Working capital terminology 6. Scope of working capital management

2 Introduction

4. Working capital needs of different types of business 5. Internal and external factors that affect working capital

need 6. Cash conversion cycle

2nd

3 Introduction

5. Techniques adopted by firms to cut down their operating cycle

6. Working capital management 7. Managing current assets 8. Risk return trade-off from investing in current assets

4

Introduction

5. Managing current liabilities 6. Advantage and disadvantage of current liabilities 7. Risk return trade-off from using current liabilities 8. Working capital policy

3rd 5 Introduction 4. Working capital investment policy 5. Working capital financing policy 6. Estimation of working capital requirement

Date Day



Discussion

58

Class test-1

6 Cash Management

4. Basic concept of cash management 5. Motives for holding cash 6. Cash flow process and its relevance

4th 7 Cash Management

4. Principles of cash management 5. Collection and disbursements management 6. Collection float and its impact on profitability

8 Cash Management 3. Forecasting short term cash flows 4. Preparing cash budget

Class test-2

5th

9 Cash Management 4. Cash vs marketable securities 5. Models to determine optimal working balance 6. Baumol’s model

10 Cash Management 4. Miller-Orr model 5. Investing short term funds 6. Fund investment strategies

Class test-3

6th 11 Cash Management

3. Cash management techniques 4. Cash flow synchronization

12 Cash Management 3. Check-clearing process 4. Using float

s7th

13 Cash Management 3. Acceleration of receipt 4. Disbursement control

Mid-term Examination

14 Receivable Management

5. Meaning and importance of accounts receivables 6. Key elements trade credit granting process 7. Impact of credit policy 8. Components of credit policy

8th

15 Receivable Management 4. Components of credit policy 5. Determining the credit limit 6. Evaluating account receivable management

16 Receivable Management 4. Receivable monitoring 5. Days-sales-outstanding (DSO) 6. Accounts receivable aging schedule

Class test-4

9th

17 Receivable Management 2. Analyzing proposed changes in credit policy

18 Inventory management

5. Meaning of inventory 6. Motives for holding inventory 7. Purpose of inventory 8. Significance of inventory management

10th 19 Inventory management 5. Types of inventory

Date Day



Discussion

59

6. Inventory costs 7. Optimal inventory levels 8. Economic order quantity (EOQ) model

20 Inventory management 4. Economic order quantity (EOQ) model extension

5. Assumptions of EOQ model 6. Deciding when to reorder

11th 21 Inventory management

3. Analysis of investment in inventory 4. Inventory monitoring and control

22 Inventory management 1. Techniques of inventory control

Class test-5

12th

23 Marketable securities management

5. Meaning of marketable securities 6. Rationale for holding marketable securities 7. Characteristics of marketable securities 8. Types of marketable securities

24 Managing short term liabilities (financing)

6. Meaning of short term liabilities/financing 7. Accruals 8. Accounts payables (trade-credit) 9. Guidelines for effective management of accounts

payables 10. The economics of taking a trade discount

13th

25 Managing short term liabilities (financing) 4. Measuring the cost of trade credit 5. Components of trade credit 6. Evaluating accounts payables management

26 Managing short term liabilities (financing) 4. Short term bank loan 5. Managing short term financing 6. Short term bank loan

14th

27 Managing short term liabilities (financing) 3. Measuring the cost of bank loan 4. Choosing a bank

28 Managing short term liabilities (financing) 4. Concept of commercial paper 5. Computing the cost of commercial paper 6. Use of security in short term financing

Class test-6

15th

29 Managing short term liabilities (financing) 3. Accounts receivables financing 4. Procedure for factoring accounts receivable

30 Managing short term liabilities (financing) 7. Concept of Inventory financing 8. Types of inventory financing

16th 31 Managing short term liabilities (financing)

9. Concept of Inventory financing 10. Types of inventory financing

32 Working capital management practices in Bangladesh

17th 33 Presentation

34 Presentation

18th 35 Presentation

Date Day



Discussion

60

36 Presentation

------------------------------------------- -------------------------------------------------- --------------------------------------- Signature of the Course Teacher Signature of the Concerned Department Head Signature of the Dean