POSTGRADUATE INSTITURE OF MANAGEMENT

University of Sri Jayewardenepura

Master of Business Administration 2016
MBA 513 Strategic Financial Management
Term IV, 2016
Course Outline

Duration
Day of Week

- Oct 2016- Dec 2016

- Monday & Sunday

Lecturer

Ravi Edirisinghe

1. Course Description
This course is designed to analyze and understand the process of managing key strategic
financial decisions.
2. Course Objective and learning outcome
The main objective of this course is, to assist the participants, to understand how modern
business organizations gain competitive advantage through finance strategy. This
program will assist participants to develop decision-making skills in finance. The course
spans through a wide spectrum of strategic financial applications.
Key learning outcomes
01. To understand the mechanisms of key financial concepts.
02. To understand the application of key financial concepts in a pragmatic
environment.
03. To understand analytical tools which compliment decision making in financial
management.
04. To understand the application of financial concepts in non-financial
environments.

3. Course Delivery and Methodology

An interactive learning approach is adopted to deliver the course. Topics are presented in
a pragmatic manner making it simple to understand and apply in a corporate
environment. Lectures, presentations, case analysis, group presentations & discussions,
and videos are used as methods of delivery. Assignments are given on issues related to
local and global organizations, hence participants get an opportunity to apply the gained
knowledge into practical situations.
4. Course Content
Prescribed Text Book
Brealey, Richard A., and Myres, Stewart C., Principles of Corporate Finance, 9th Edition

Study Schedule
Session Topic
1
Introduction to
Finance
Strategy.

Sources of
Finance

Learning outcome
Understanding
finance strategy in
the global business
context.
Globalization of
Finance and its
implications to
businesses.

Startup capital

Key Activity
Lecture
Discussions

Readings
Core text
chapter 01, 12
and 14

Video
Presentations

Understand the
applications of
different sources of
funding.
Discuss arguments
on Risk vs. Cost of
capital of each
source of finance.

Lecture

Understand the
mechanism of
venture capital
finance.

Lecture

Discussions

Core text
chapter 15, 24
and 04

Group
Presentations

Case Analysis
Group
Presentations

Ward,
Corporate
Finance
Strategy
Chapter 1-3

Capital
Budgeting &
Investment
Decisions

Management of
Investment
Decisions

Foreign
Currency
Management

Working
Capital
Management

Capital
Structure &
Dividend Policy

Mergers and
Acquisitions
(M&A)

Analysis of relevant Presentation

costs, benefits and
Case analysis
risks of an
investment project
Group
using DCF tools.
Presentations

Understand
advanced aspects in
capital budgeting.
Identify methods to
incorporate risk
assessments in
capital budgeting

Presentation

Identify behaviors
in foreign currency
markets
Understand the
tools available to
manage FOREX
exposure.

Lecture

Evaluate and
forecast operational
cash flow patterns.
Understand tools to
fund working
capital.
Critically evaluate
Modigliani and
Miller theories.
Understand the
rationale of basic
dividend decisions.

Lecture

Methods of
financial valuations
in context of M &A

Lecture

Discussions
Group
presentations

Group
discussions

Core text
chapter 02, 03
05, 06 and 07
Levy & Sarnat,
Capital
investment and
financing
decisions, part
1 chapter 4
Core text
chapter 09, 10
and 11
Levy & Sarnat,
Capital
investment and
financing
decisions, part
3 chapter 13
&14
Core Text
Chapter 27 and
28

Group
presentations

Case Study
Group
presentations
Guest Lecture
Group
presentations

Case Analysis
Group
Presentations

Core Text
Chapter 29, 30
and 31

Core Text
Chapter 16
Levy & Sarnat,
Capital
investment and
financing, part
3 chapter 18
Core text
chapter 32 and
33

05. Scheme of Evaluation

Assessment
item

Description and detail of

the assignment

Specific requirements

Due date Weighting

(%)

Group
Presentations

A selected group to
Power point presentation From 2nd
present their findings and with a 15 min time limit. session
understanding about an
onwards
assigned topic.

25%

Group Report

Group study on a specific According PIM

topic assigned by the
presentation guidelines
lecturer. The findings to
be presented in form of a
report (min 2,000 words)

TBA

25%

Final
Examination

A comprehensive final
(written) exam.

TBA

50%

Open book exam

06. Assessment of Key Learning Outcomes

How well have you achieved the learning outcomes of this course? This table shows you
how each assignment will check your achievements against the stated learning outcomes
of the course.
Outcome
To understand the mechanisms of key financial
concepts.
To understand the application of key financial
concepts in a pragmatic environment.
To understand analytical tools which compliment
decision making in financial management.
To understand the application of financial
concepts in non-financial environments

Group
Presentation

Group
Report

Final
Examination

7. Attendance Requirement
As indicated in the PIM Student Hand Book, the participants are expected to record at
least 80% attendance of the number of sessions conducted in this course. In calculating
students attendance rate, valid evidence submitted indicating students inability to attend
lectures would be taken in to consideration. However, students attendance fall below
50% for the course, they will not be allowed to sit the final examination.

8. Supplementary Readings

1. Keith Ward , Corporate Finance Strategy

2. Haim Levy and Marshal Sarnat, Capital investment and financing decisions
3. Stephen Ross, Westerfield and Jordan, Fundamentals of Corporate Finance
4. Van Horne , James Financial managemen and Policy
5. Marshal John and Bansal Vipul , Financial Engineering
6. Reilly Robert and Schweish Robert, Valuing Intangible Assets