Principles of Finance

The University of Jordan

Faculty of Business Administration

Department of Finance

Faculty : Faculty of Business Administration

Department : Department of Finance

Course Title Principles of managerial Finance Course Code 1603201

Credits 3 Pre-requisite (s) Principles of Accounting

Duration of the Course 16 weeks, 3 hours per week

OBJECTIVES:

The main objectives of the course are:

1. Describe the managerial finance function and the goal of the firm.

2. Understand and prepare the financial statements.

3. Discuss the role of time value in finance, and apply the time value calculations in solving problems.

4. Understand the fundamentals of risk, return and risk preference, explain the CAPM and its relationship to the SML.

5. Determine the relevant cash flows in capital budgeting.

6. Calculate, interpret and evaluate the payback period, NPV and IRR, and discuss NPV and IRR in terms of

conflicting rankings.

ASSESSMENT:

Mid-Term Exam: 30%, Monday 4/4/2011.

Second Exam: 20%, Sunday, 8/5/2011.

Final Exam: 50%, Tuesday, 31/5/2011.

Indicative Basic Reading List/ Related websites:

Main Text: Principles of Managerial Finance (2009), Lawrence J. Gitman, International Edition, Irwin/ McGraw-Hill.

Other References:

Brealey, A. Richard., and Myers, C. Stewart., Principles of Corporate Finance, Last ed., McGraw-Hill, Inc.

Weston, J. Fred., Besley, Scott., and Brigham, F. Eugene., Essentials of Managerial Finance, 11th ed.,

The Dryden Press, 1996.

فايز حداد. الإدارة المالية، 2007، الطبعة الأولى، المركز الأكاديمي للكتب الجامعية، عمان، الأردن.

Topic

Ch1: Introduction to managerial Finance:

- Finance and Business

- The managerial finance function

- Goal of the firm

- Financial