MBA

Programme
GraduateSchool of Business
http://www.mba.itb.ac.id
INSTITUT TEKNOLOGI BANDUNG

MM5007
Financial Management
Taufik Faturohman

YOUNG PROFESSIONAL CLASS (R51A)

January 2015

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
Contents
http://www.sbm.itb.ac.id/mba
Page 1 of 14

N
o

Description

Page

Vision and Mission of MBA ITB

........

Learning Goals of MBA ITB .

...........

Learning Goals of This Course .

.........

Learning Outcomes of This Course .

.......

The Course Structure

.........

The Course
Plan....
............

Lecturer Profile ..
.....
.....

Grading ..
........
....

10

Student Guidance
.....
....

12

1
0

13
References ..

.........
Page 2 of 14

1. Vision and Mission of MBA-ITB

MBA ITB has a vision and mission as follows:
Vision:
To be A World Class Program of Master and Business Administration that
Creates Ethical and Entrepreneurial Leaders
Mission:
To educate and develop future leaders in business
To develop the knowledge of business and management which is
relevant and applicable for business leaders in Indonesia and the
world
To develop sustainable education program for building human
resource capacity needed for enhancing industry competitiveness in
Indonesia

2. Learning Goals of MBA-ITB

In General, The MBA-ITBslearning goal is to developstudents to have the
followingcharacteristics :
Knowledgeable and competent in management of business functions
and resources such as marketing, finance, operations, human resource
and technology
Ethical and entrepreneurial business leader who has a big concern
about social and environmental issues
Understand the importance of local, national and global issues to
business operations and able to adapt the business operations to
sustain and grow in the changing business environment
Continuously learn and develop ownself using professional, humanism
and ethical manner to deal with business challenges in the future

Page 3 of 14

There are three programs at MBA ITB Bandung campus with specific
learning goals as follows:
A. Young Professional
The learning goal of this program is to build business sensitivity and
business administration knowledge and skills required to startcareer at
managerial level.
B. Creative and Cultural Entrepreneurship (CCE)
The learning goal of this program is to teach students about doing
business in creative and culture sectors and how to manage their new
business in these areas.
C. Executive MBA
The learning goal of this program to improve students agility in decision
making and to develop a holistic view of business which enables them to
lead a business project on a higher level effectively in todays business
environment.

3. Learning Goals of This Course

Learning goals cover:
- Providing of understanding and perspectives on financial
management functions, both within the corporation as well as in
relation to domestic and international economies.
- Giving illustrations on financial management practices and some
policies, processes, techniques and strategies applied in financial
management.
- Developing knowledge on different kinds and characteristics of
problems, and possibilities of these financial problems to come
about, and enhancing the capacities for dealing with the problems
through approaches and developments of reliable problem solving
strategies.
- Enhancing skills in the planning and monitoring of financial
management functions effectively, to be capable of applying the
right management strategy for dealing with corporate challenges in
order to maximize shareholder wealth.

4. Learning Outcomes of This Course

After participating in this course, students are expected to:

Page 4 of 14

1. Have the skills to read and analyze corporate financial reports

comprehensively.

2. Be capable of using different techniques to design corporate business

plans, as well as pro forma financial forecasting.

3. Understand the concepts of financial values over time, and selection of

profitable investments for the corporation through capital budgeting.

4. Comprehend the concept of an optimal capital structure, and be able to

select low-risk and flexible financial resources for the corporation.

5. Understand the concept of risks, and be capable of applying the concept

for the corporation to minimize risks through diversification of portfolios

or through derivatives.

6. Be capable of applying the concept of corporate profit sharing through paying

out of dividends as well as stock repurchasing .
7. Be capable of estimating company valuation through different methods

5. The Course Structure

6. The Course Plan

Page 5 of 14

Date

Tuesda
y,
Januar
y 20th
, 2015

Tuesda
y,
Januar
y 27th
, 2015

Tuesda
y
Februa
ry 3rd
, 2015

Outcome(s)
- Understanding and
applying knowledge
and tools in the
managerial and
strategic design
pillar related with
financial
management.
- Analyzing
information
comprehensively by
considering various
factors in the
business
environment
(internal and
external).
- Using financial data
- Understanding and
applying knowledge
and tools in the
managerial and
strategic design
pillar related with
financial
management.
- Analyzing
information
comprehensively by
considering various
factors in the
business
environment
(internal and
external).
- Using financial data
- Understanding and
applying knowledge
and tools in the
managerial and
strategic design
pillar related with
financial
management.
- Analyzing
information
comprehensively by

Activity(ies)

Prepara
tion

Session 1
(08.00-09.30):
Introduction
to Corporate
Finance
(Lecture and
Class
Discussion)

Read RWJ
Ch. 1

Evaluation

Facilita
tor

TF

Break
Session 2
(09.45-11.15):
Financial
Statements
and Cash Flow
(Lecture and
Class
Discussion)

Read RWJ
Ch. 2

TF

Session 1
(08.00-09.30):
Financial
Statements
Analysis and
Financial
Models
(Lecture and
Class
Discussion)

Read RWJ
Ch. 3

TF

Break
Session 2
(09.45-11.15):
Class
Discussion

Read RWJ
Ch. 3

Session 1
(08.00-09.30):
Cash
Management
and Credit and
Inventory
Management
(Lecture and
Class
Discussion)

Read RWJ
Ch. 27
and 28

Case Study:
Maria
Hernandez
and
Associates,
HBS

TF

TF

Break

Page 6 of 14

considering various
factors in the
business
environment
(internal and

Tuesda
y,
Februa
ry 10th
, 2015

Tuesda
y,
Februa
ry 17th
, 2015

- Understanding and
applying knowledge
and tools in the
managerial and
strategic design
pillar related with
financial
management.
- Analyzing
information
comprehensively by
considering various
factors in the
business
environment
(internal and
external).
- Using financial data

- Understanding and
applying knowledge
and tools in the
managerial and
strategic design
pillar related with
financial
management.
- Analyzing
information
comprehensively by
considering various
factors in the
business
environment
(internal and
external).
- Using financial data

Session 2
(09.45-11.15):
Class
Disussion

Session 1
(08.00-09.30):
Discounted
Cash Flow
Valuation
(Lecture and
Class
Discussion)

Session 2
(09.45-11.15):
Class
Discussion

Session 1
(08.00-09.30):
Net Present
Value and
Other
Investment
Rules and
Making
Capital
Investment
Decisions
(Lecture and
Class
Discussion)
Session 2
(09.45-11.15):
Class
Discussion

Read RWJ
Ch. 27
and 28

End of
chapter
problems:
9.Evaluating
Credit Policy
and 10.
Credit Policy
Evaluation
RWJ page
872

Read RWJ
Ch. 4

TF

TF

Break
End of
Chapter
problems:
65.
Calculating
Annuity
Payments,
Read RWJ
RWJ page
Ch. 4
131 72
Ordinary
Annuities
and
Annuities
Due, Ross
page 132

TF

Read RWJ
Ch. 5 and
6

Break
Read RWJ Case Study:
Ch. 5 and Valuing
6
Capital
Investment

Page 7 of 14

Projects,
HBS

Tuesda
y,
Februa
ry 24th
, 2015

- Understanding and
applying knowledge
and tools in the
managerial and
strategic design
pillar related with
financial
management.
- Analyzing
information
comprehensively by
considering various
factors in the
business
environment
(internal and
external).
- Using financial data

Tuesda
y,
March
3rd ,
2015

Session 1
(08.00-09.30):
Risk Analysis,
Real Options,
and Capital
Budgeting
(Lecture and
Class
Discussion)

Read RWJ
Ch. 7

Break
End of
chapter
problems:
11. BreakEven
Intuition.
Ross page
228 and
30.Financial
Breakeven,
Ross page
232

Session 2
(09.45-11.15):
Class
Discussion

Mid Test

Tuesda
y,
March
10th ,
2015

- Understanding and
applying knowledge
and tools in the
managerial and
strategic design
pillar related with
financial
management.
- Analyzing
information
comprehensively by
considering various
factors in the
business
environment
(internal and
external).
- Using financial data

Tuesda
y,
March
17th ,

- Understanding and
applying knowledge
and tools in the
managerial and

Session 1
(08.00-09.30):
Interest Rates
and Bond
Valuation and
Stock
Valuation
(Lecture and
Class
Discussion)

Session 2
(09.45-11.15):
Class
Discussion

Session 1
(08.00-09.30):
Returns and
Risk and an

Read RWJ
Ch. 8 and
9

Break
End of
chapter
problem:
Read RWJ Stock
Ch. 8 and Valuation at
9
Ragan
Engines, RWJ
page 298
299
Read RWJ
Ch. 11
and 12

Page 8 of 14

2015

Tuesda
y,
March
24th ,
2015

Tuesda
y,
March
31th ,
2015

strategic design
pillar related with
financial
management.
Analyzing
information
comprehensively by
considering various
factors in the
business
environment
(internal and
external).
Using financial data.
Understanding
rational and nonrational behavior of
people in order to
purpose business
solution.
Understanding and
applying knowledge
and tools in the
managerial and
strategic design
pillar related with
financial
management.
Analyzing
information
comprehensively by
considering various
factors in the
business
environment
(internal and
external).
Using financial data
Understanding and
applying knowledge
and tools in the
managerial and
strategic design
pillar related with
financial
management.
Analyzing
information
comprehensively by
considering various
factors in the
business
environment
(internal and
external).

Alternative
View of Risk
and Return

Session 2
(09.45-11.15):
Class
Discussion

Session 1
(08.00-09.30):
Risk, Cost of
Capital and
Capital
Budgeting
(Lecture and
Class
Discussion)

Break
Read RWJ End of
Ch. 11
chapter
and 12
problem: 24.
Project
Evaluation
RWJ page 425

Read RWJ
Ch. 13

Break
Session 2
(09.45-11.15):
Class
Discussion

Session 1
(08.00-09.30):
Long Term
Financing and
Capital
Structure,
Basic
Concepts

Session 2
(09.45-11.15):
Class
Discussion

Read RWJ
Ch. 13

Case Study:
Nike Cost of
Capital, HBS

Read RWJ
Ch. 15
and 16

Break
Read RWJ Case study:
Ch. 15
California
and 16
Pizza
Kitchen,
Shumadine

Page 9 of 14

Tuesda
y,
April
7th ,
2015

Tuesda
y April
14th
, 2015

- Using financial data

- Understanding and
applying knowledge
and tools in the
managerial and
strategic design
pillar related with
financial
management.
- Analyzing
information
comprehensively by
considering various
factors in the
business
environment
(internal and
external).
- Using financial data
- Understanding and
applying knowledge
and tools in the
managerial and
strategic design
pillar related with
financial
management.
- Analyzing
information
comprehensively by
considering various
factors in the
business
environment
(internal and
external).
- Using financial data

Tuesda
y, 21st
, April
2015

Session 1
(08.00-09.30):
Capital
Structure,
Limits to the
Use of Debt

Read RWJ
Ch. 17

Break

Session 2
(09.45-11.15):
Class
Discussion

Read RWJ
Ch. 17

Session 1
(08.00-09.30):
Leasing
(Lecture and
Class
Discussion)

Read RWJ
Ch. 21

End of
Chapter
problem:
McKenzie
Corporation'
s Capital
Budgeting,
RWJ page
552

Break

Session 2
(09.45-11.15):
Class
Discussion

Read RWJ
Ch. 21

End of
chapter
problem:
The Decision
to Lease or
Buy at Warf
Computers,
Ross page
675

Final Test

7.Lecturer Profile
Name

: Taufik Faturohman, PhD

Phone

: 022-2531923 ext 314 (office);

Page 10 of 14

081224456965 (mobile)
E-mail

: taufik.f@sbm-itb.ac.id;
taffy_foreman@yahoo.com

Office

: 314 SBM Building

Status

: Full time Lecturer

About me:
Taufik Faturohman is currently lecturer at the School of Business and
Management Institute of Technology Bandung (SBM ITB). He received a PhD
in Economics and Finance from Curtin Business School, Curtin University of
Technology Western Australia. The title of his dissertations is An Examination
of the Growth of Islamic Banking in Indonesia from 2003-2010. Taufik
obtained his MBA from ITB, and graduated with honor (cum laude). He earned
a Bachelor degree in Materials Engineering, also from ITB. Taufiks research
interests are Islamic banking, Islamic finance, corporate finance, business risk
management and economics.

8. Grading
A. Assessment criteria
The assessment of students attainments uses the following criteria:
1. Be capable of comprehending the concepts, theories, and ideas that
develop during lectures.
2. Be capable of applying the concepts on examples of corporate life, both
through case studies as well as the students own experiences.
3. Be capable of convincing other people, and be capable of leading debates
in case discussions.

A. Assessment methods
Performance of students in this course will be evaluated using several
methods/media, particularly that concern with:
1. Quantity and quality of participation during case discussions in class.
2. Presentation, including quality of substance and how they are presented.
3. Quality of answers in quizzes, mid-semester exam, as well as endsemester exam.
4. Quality of team working and leadership in presentations and case
discussions.

Page 11 of 14

The final mark will be determined based on weighting of marks, for example,
as follows:
Class participation

Individual

Group presentation

Group

15%

Peer assessment

Individual

10%

Mid-semester exam

Individual

35%

End-semester exam

Individual

35%

TOTAL

5%

100%

C. Participation and contributions in team works

Participation in the class is a vital part in developing the students
competences in this financial management course. All students are
expected their active participation in sharing their knowledge and ideas,
actively conveying their opinions or argumentations, so that other people
could grasp and understand what the student is thinking about.
During lectures, the students are expected to show and develop
MANAGERIAL DECISION MAKING SKILLS IN THE FIELD OF FINANCIAL
MANAGEMENT. To be more specific, the students are expected to be
capable of:
1. Identifying, analyzing, and finding solutions for problems in the field of
financial management.
2. Communicating their ideas.
3. Applying relevant concepts and methods in managing corporate finances.
4. Developing creative ideas in managing corporate finances.
Students participation in the class will also affect the quality of group
discussions or even the class as well. The level of a students role in the
group or class reflects the students level of contribution in the learning
process during case discussions or group assignments. The greater the
contribution of each participant in the group or class, the more meaningful
and deeper is the progressing learning process. It is important to note here
that students have to put more importance on quality rather than quantity.
The following is a description on quality of a students contribution:
Page 12 of 14

1. Excellent contributor. The student has carefully planned the materials

for contribution in the class. The ideas that the student suggests are
substantial ideas that concern the topic of discussion.
2. Good contributor. The student delivers his or her argumentation
properly with relevant reasoning. The students argumentations could
encourage other participants to improvise.
3. Fair contributor. The student prepares his or her materials fairly. The
ideas the student suggests are useful for problem solving, however, they
are sometimes not relevant to the main concern in the discussion. When
the student is not a member of the discussion group, the quality of that
group discussion will be dwindling.
4. Inadequate contributor. The contributor has not prepared his or her
materials properly. Sometimes, the ideas the student puts forward are
quite important, however, not relevant to the topic of discussion. This
student does not think further about the topic and contributes little for the
team.
5. Not participating. The student is passive and does not say anything in
class discussion. Such students are just free-riders who will only take
advantage from team discussions.

D. Quiz
Quizzes will be regularly conducted without any notice beforehand. This is to
test the extent of the students comprehension of the course materials.

E. Mid-semester and the end-of semester exams

Both exams comprise of short cases or problems and a number of questions. Mid
exam will be conducted as per schedule attached.
For the students considerations, their performances will be assessed and
graded accordingly, as follows:
1. To identify and analysis of problems / main issues.
2. To identification of key assumptions from the students answers.
3. Use of appropriate instruments for analysis.
4. Accepting or rejecting certain alternatives using consistent arguments in
accordance
to
the
students
assumptions,
calculations,
and
interpretations that are relevant to information about the case.
5. Proposing appropriate plans and consistent actions in line with the
students analyses.
6. Recommending best solution for the case or questions, also the students
argumentations.
Page 13 of 14

F.Working hours
Students can meet the lecturers of this course at certain hours that will be
notified in the MBA ITB announcement board to discuss relevant course
materials.
Students can contact the lecturers through the e-mail address. Besides, students
can also meet the lecturers by appointment.
We will be grateful if students are active, asking questions and suggesting their
positive ideas and opinions during the course, so all of us can become the best.

9.Student Guidance
In order to succeed, students are advised to do the followings:
1.
2.
3.
4.
5.

Allocate sufficient time for self preparation

Discuss concepts and cases with their syndicate
Elaborate practical cases apart from cases given
Have a proper notes of all lecture
Contribute actively in the class

10. References
A.Mandatory Material
(RWJ) Corporate Finance Fundamentals, Stephen A. Ross, Randolph W.
Westerfield & Jeffrey Jaffe, McGraw-Hill, Eighth Edition, 2009.
B.Additional Materials
1. (RWJ), Modern Financial Management, Stephen A. Ross, Randolph W.
Westerfield & Jeffrey Jaffe, McGraw-Hill, Eighth Edition, 2009
2. (KMPS) Financial Management; Principles and Applications, Arthur J.
Keown, John D. Martin, J. William Petty & David F. Scott, Jr. Pearson Prentice
Hall, Tenth Edition, 2005.
3. (BKM) Investments, Zvi Bodie, Alex Kane & Alan J. Marcus, McGraw-Hill,
Sixth Edition, 2005.

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