Financial Management I is one of the courses offered by the OUM Business School at Open University Malaysia (OUM). This course is offered to all students taking the Bachelor of Business Administration programme. This module aims to impart an overview of currency risk in international economic activities.
Episode 1- Introduction to Finance
Episode 1 introduces the topic of finance, the role of the finance manager in companies as well as the main objective of companies to maximise the shareholders' wealth. Besides that, the types of business entities, agency problems and financial institutions will also be discussed. This topic also discusses the main financial market, that is the money market and capital market.
Episode 2 - Analysis of Financial Statements
Episode 2 discusses the usage of financial ratio analysis such as the liquidity ratio, asset management, leverage, profitability, and market value ratio. Besides that, this topic also discusses on the DuPont analysis and the overall financial analysis.
Episode 3 - Time Value of Money
Episode 3 exposes students to the basic concept for time value of money, which is the concept of present value and future value. You will learn the application and formula for the time value of money for single cash flow and net cash flow, annuity, perpetuity and derivation cash flow. The discussion will also include compounding and discounting methods that occur more than once a year and compounding and discounting that occurs continuously.
Episode 4 - Valuation of Securities
Episode 4 discusses the valuation of bonds and the valuation of ordinary shares. The topic of discussion will touch on the characteristics of bonds, ratings of bonds, types of bonds, valuation of bonds, yield upon maturity and the connection between the value and yield upon maturity. The discussion topic will also focus on characteristics of ordinary shares, dividend valuation models in ordinary shares, characteristics of preference shares and valuation of preferences shares.
Episode 5 - Risk Analysis
Episode 5 introduces you to the relationship between the risk and return from the financial theories perspective. The discussion comprises the definition of risk and return from the investors' perspective, the usage of statistics in ascertaining the level of risk and return and the measurement of risk and return. The basic principles of systematic and unsystematic risks and the CAPM Model (model that explains the relationship between risk and return) are also discussed.
Episode 6 - Criteria of Capital Budgeting
Episode 6 discusses the four techniques of capital budgeting, which are the payback period, net present value, profitability index and internal rate of return.