Hong Kong Baptist University

School of Business

Programme: Bachelor of Business Administration

Department: Accountancy, Economics and Finance
Course Code: FINE2005 Level: II
Course Title: Financial Management
Prerequisites: Nil
Medium of Instruction: English
Duration: 40 hours Units 3 (3, 3, 0)

This course is designed to provide business students with solid foundation on finance
Course Description: concepts and essential basic knowledge of financial instruments, markets and institutions.
(Aims & Objectives) It also aims to equip students the techniques for evaluating financial assets, assessing
capital investment opportunities and making long-term and short-term financial decisions.
1. Brigham, E. F. and Houston, J. F. (2021), Fundamentals of Financial Management (16th
ed.), Cengage Learning
Texts & References: 2. Zutter, C. J. and Smart, C. (2022) Principles of Managerial Finance (16th ed.). Pearson
Series in Finance
(* recommended 3. *Ross, S. A., Westerfield, R. W. and Jordan, B. D. (2022), Essentials of Corporate
textbook(s)) Finance (11th ed). International Student Edition: McGraw Hill

Upon completion of this course, students should be able to:

1. Evaluate stock and bond pricing and their risk factors and apply to the design of
appropriate bond securities;
2. Differentiate different types of long-term financing from the perspectives of firms and
Learning Outcomes: investors, especially from the view of risk and return;
3. Evaluate complicated projects considering cash-flow estimation, inflation, non-
quantifiable factors and competition;
4. Manage working capital;
5. Perform financial analysis with information obtained from Bloomberg.
Learning Outcome Learning Outcome
addressed: addressed:
1 2 3 4 5 1 2 3 4 5
Lecture      Services Learning
Guest speakers  Internship

Teaching & Learning Case Study  Field study

Activities: Role playing Company visits
Student presentation e-learning
Project  Independent study
Simulation game Others
Exercises and     
problems

BBA – FINE2005 (2023/24 AY)

9/A37
 Major Assessment

Case Study

Written examination
Role Playing

Student Presentation

Oral examination
Individual project/paper

Group project/paper

Simulation Game

Exercises & problems

Service learning

Internship

Field Study

Company visits

Learning Outcome addressed

Methods:

For each Major

Assessment Method
below, please
indicate the specific
pedagogical
/assessment
methods involved
(by putting a  in
the relevant box(es)
on the right-hand
side).
Class Participation/
  1 to 4
Discussion (5%)
Assignment(s) (10%)   3&5

Test(s) (30%)  1&2

Examination (55%)  1 to 4
Others (please
specify)
____________( %)
Course templates are available at BU eLearning (formerly called “BU Moodle”), programme
Course Web:
website and Staff Area in School website (for staff only).

Hours Learning
Outcome
no.
I. Financial Management Environment 6 1&5
A. Goal of firms
B. Financial system and various instruments
C. Information gathering with Bloomberg*
II. Fundamental Concepts 11 1
A. Rate of return
B. Measure of risk
C. Attitude towards risk
D. Correlation and portfolio theory
E. CAPM
F. Different forms of market efficiency
III. Long-Term Investment Decisions 9 3
Course Content: A. Relevant cash flows
B. Depreciation and taxation implications
C. Expansion and replacement projects
D. Making investment decisions
E. Problem of unequal lives
IV. Long-Term Financing Decisions 11 2
A. Intrinsic values of assets
B. Cost of debt and equity
C. Weighted average cost of capital
D. Term structure of interest rate and yield curve
E. Stock valuation using free cash flows
V. Working Capital Management 3 4
A. Operating cycle and cash conversion cycle
B. Current assets management
C. Current liabilities management
Total 40 hrs.

BBA – FINE2005 (2023/24 AY)

9/A38
  to cultivate academic curiosity, integrity and leadership potential
 to enhance all-rounded training
Contribution to the  to develop consciousness of values and social responsibility
Mission of the  to disseminate contemporary knowledge
School:  to foster a global vision
 to disseminate the research findings of faculty members in the School
 to develop awareness in public policy
Learning Goals (LG) of BBA Programme

 LG1: Students will have the fundamental knowledge and skills required for managing
a business.
 LG2: Students will have an in-depth understanding of an area of specialization such as
accounting, economics and data analytics, entrepreneurship and business
innovation, finance, human resources management, information systems and
business intelligence and marketing.
Contribution to the  LG3: Students will have the oral and written communication skills and information
Learning Goals of the technology skills necessary for working in a business environment.
Programme:
 LG4: Students will be analytical and critical thinkers able to solve real-world business
problems.
LG5: Students will have a solid understanding of
 (a) how business is influenced by its environment, including economic,
social-cultural, legal-political, technological, and other general conditions, as
well as by an organization’s stakeholders;
 (b) the global nature of contemporary business; and
 (c) the value of business ethics and good corporate governance.
 LG6: Students will have a broad exposure to non-business disciplines.
Course Co-ordinator: Dr. Astrophel Choo

*Guest speakers may be invited to demonstrate the use of Bloomberg and students may need to meet in
small groups.

BBA – FINE2005 (2023/24 AY)

9/A39