Name of University: Jigjiga University
Name of College/Faculty: Business and Economic
Name of Department: Accounting and Finance Program(Regular)
Course Information
Course Number AcFn 2102
Course Title Financial Management II
Degree Program BA Degree in Accounting and Finance
Module Corporate Finance
Lecturer Abdi Mohammed
ETCTS Credits 5
Contact Hours (per 3
week)
Course Objectives & The basic objective of this course is to familiarize students with the basics
Competences to be of investment, financing and dividend decisions that are the central
Acquired thematic areas of finance profession.
Course Description This course is a continuation of Financial Management I. It emphasizes on
building and applying financial models, following the principle of financial
management, for planning and decision making purposes. It explains with
the help of the language of financial accounting, how top management
conducts systematic analysis, builds innovative plans, understands and
manages risk, and creates more profit, cash and value for the organization.
Topics included are: Introduction to a modeling approach, financial
accounting as the foundation for financial models, cash flow models for
planning, the cost of capital, capital budgeting and strategy, and
investment decisions and portfolio theory.
WEEKS Course Contents Reading
1. Dividend Policy and theory
1.1. Dividends- classification
1.2. Factors influencing dividend payments
1.3. Establishing dividend policy
1.3.1. Residual Dividend approach
1.3.2. Dividend stability
1.3.3. A Compromise
2. Principles of Working capital management
2.1. The concept of working capital
2.2. Operating and cash conversion cycle
2.3. Permanent and Variable Working Capital
2.4. Determinants of working capital management
2.5. Financing Current Assets
3. Cash and Liquidity Management
3.1. Reasons for Holding Cash
3.2. Understanding Float
3.3. Cash Collection and Concentration
3.4. Managing Cash Disbursement
3.5. Investing Ideal Cash
3.6. Determining the target cash balance
4. Receivable Management
4.1. Credit and receivables
4.2. Terms of sale
4.3. Analyzing credit policy
4.4. Credit Analysis
4.5. Collection policy
5. Inventory Management
5.1. Introduction
5.2. Meaning & Nature of inventory
5.3. Benefits & costs of Holding Inventory
5.4. Inventory management techniques
Teaching & Learning The teaching and learning methodology include lecturing, discussions,
Methods/strategy problem solving, and analysis. Take-home assignment will be given at the
end of each chapter for submission within a week. Solution to the
assignments will be given once assignments are collected. Cases with local
relevance will also be given for each chapter for group of students to
present in a class room. The full and active participation of students is
highly encouraged.
Assessment/ The evaluation scheme will be as follows:
Evaluation Test Test Test Quiz Assignment Final Total
1 2 3 1 1
10% 10% 10% 10% 10% 50% 100%
Roles of the Instructor He/she will come to the class regularly on time and deliver the lecture in
a well-organized manner. Besides, at the end of each class he/she gives
reading assignment for the next class. He/she will make sure that proper
assessments is given. He/she is also responsible to give feedback for
each assessment.
Roles of the students The success of this course depends on the students’ individual and
collective contribution to the class discussions. Students are expected to
participate voluntarily, or will be called upon, to contribute to set exercises
and problems. Students are also expected to read the assigned readings
and prepare the cases before each class so that they could contribute
effectively to class discussions. Students must attempt assignments by
their own. Proficiency in this course comes from individual knowledge and
understanding. Copying the works of others is considered as serious
offence and leads to disciplinary actions.
Text and reference Text Book:
books Ross, Westerfield&Jordan. Fundamentals of corporate finance.
9th.
Reference Books
Brigham Ehrhadt. Financial management theory and practice.
13th Ed
Khanna & Jain. Financial management.
Financial management. Pandey
