| |
Open
University of Hong Kong - B280F Introduction to Financial Management
All
relevant information on Open University of Hong Kong B280F Introduction
to Financial Management will be posted on OUHK's OLE
and here.
I
can be reached at allthomasemail@gmail.com.
Click
to go directly to: (1) Updates, (2) Course
Outline and Lecture Notes, (3) Lecture Review,
(4) Course Details, or (4) Assessment
Information.
OUHK
OLE can be accessed
here.
UPDATES:
Back
to top || Updates || Course
Outline and Lecture Notes || Lecture Review
|| Course Details || Assessment
Information
Please
check here for updates during the semester.
| Decmeber
14, 2009 |
We
will have an extra review session on Wednesday December 16, 2009
from 2pm to 4pm at Room 503. We will go through the cash float material
from Chapter 20 and look at the final exam sample format and questions.
We will also do several questions if time permits. So please make
sure that Chapter 20 slides and the exam sample format files are
printed for class. |
| |
|
| Decmeber
4, 2009 |
Powerpoint
lecture slides for Chapter 20 is available for downloading here
lecture powerpoint Ch 20, and
a final exam sample is also available for downloading here Final
exam sample format and questions. |
| |
|
| November
19, 2009 |
The
answer for Chapter 9 tutorial questions is available in the Assessment
section. |
| |
|
| November
12, 2009 |
For
our next class on Nov 16, we will do more practice questions on
cost of capital and project evaluation. Then we will start on Chapter
10 as well. |
| |
|
| November
5, 2009 |
The answer key for ALL questions in chapter 15 has just been uploaded
to the Assessment section. I have also uploaded
the cost of capital lecture slide page that we went through this
afternoon in the Course Outline and Lecture Notes
section. For our next class on November 12, we will so a few more
questions on cost of capital before we will start on Chapter 9 and
10. |
| |
|
| October
25, 2009 |
Ch
6 additional practice questions: 6.2 17607.76, 8155.80; 6.3
62593; 32 2778; 53 30723, 33795.
Ch
7 additional practice questions:
7.1 1159.71; 5 8.6%; 7 12.41%; 30 392405.6, 188445.
Ch
8 additional practice questions: 8.1 42.92, 48.30; 8.2 45.21;
4 83.33; 5 12%; 11 17.25; 16 3.50; 17 114; 21 193.27. |
| |
|
| October
23, 2009 |
I
have just posted the answer key to all the questions for chapter
12 and 13. I will post other questions for you to practice shortly. |
| |
|
| October
21, 2009 |
For
our class on October 22, we will go through previous tutorial questions
plus questions from chapter 15. |
| |
|
| October
21, 2009 |
I
have confirmed with OUHK, the quiz will be held for us in week 9
(Nov 2 to 6). The quiz will last 50 minutes. Our class for that
week will be held on Thursday, November 5 from 1pm to 5pm. Financial
calculators are allowed but subject to the calculator policy of
the university so please confirm if you are not certain. The scope
of the quiz will cover "tutorial 2 to 6." I would interpret
that as to covering the following nine chapters: 2, 3, 4, 5, 6,
7, 8, 12, 13. The cost of capital from Chapter 15 will NOT be included
in this quiz. |
| |
|
| October
21, 2009 |
The
tutorial question answer key for chapters 5, 6, 7, 8 have been on
here for some time. Tutorial questions for chapter 2, 3, and 4 are
self-test questions and answers are available within the textbook.
Tutorial question answers for chapters 12 and 13 will be posted
after our class on October 22 as we are still working through those
questions. I have also added answer key for ALL questions for chapters
5, 6, 7, and 8 in the Assessment section,
so if you are working through the other questions, you can check
the answers there. |
| |
|
| October
19, 2009 |
Our
next lecture is on Thursday, October 22. We will go through the
tutorial questions for Chapter 12, 13, and 15, please make sure
that you bring the questions, your calculator, and other things
as needed. Then we will start on Chapter 9 and 10. |
| |
|
| October
15, 2009 |
For
our next lecture on Monday, October 19, we will go through the tutorial
questions for Chapters 12 and 13. Then we will start on Chapter
15. |
| |
|
| October
15, 2009 |
Lecture
slides for Chapter 9 and Chapter 10 are available for downloading
in the Course Outline and Lecture Notes section.
|
| |
|
| October
15, 2009 |
There
are two sets of lecture slides that you can download. The Chapter
13 lecture slides has been updated so it is different from the original
set from several weeks ago. There is also another set of slides
which are used for the tutorial session review. They are both available
under Lecture 6, October 15 in the Course Outline
and Lecture Notes section. |
| |
|
| October
11, 2009 |
In
the October 5 class, I distributed additional tutorial questions
for you to do. Here are the answer. |
| |
- Ch
5 additional practice questions: 5.1 30043; 5.2 730090;
5.3 18.92%; 5.4 21 years and 30 years; 9 103 years; 11 37.68895
million; 13 8.87% and 17691451; 15 -4.668%; 18 7039988 and 3386355;
19 1713824 for 11 years and 2158925 for 13 years; 20 23 years.
- Ch
6 additional practice questions:
6.1 9.42 million; 6.2 9527 and 3673; 6.3 19963.55; 6.4 7.1859%;
6.5 31898.74; 6.6 21579 and 5.1162% and 517627; 2 231652 and
253784 and 92746 and 132137; 4 30723 and 47135 and 49991 and
50000; 12 12.55% and 10.47% and 16.13% and 10.52%; 32 3139.38;
42 16750597; 53 8052 and 8696.
- Ch
8 additional practice questions: 8.1 103 and 119.405; 8.2
99.59; 4 1428.57; 5 8%; 11 49.855; 16 3.8835; 17 2479.34; 21
56.2445.
|
| |
|
| October
11, 2009 |
I
have send out an email last night about the exact dates of the classes.
Please make sure that you mark the dates on your calendar. There
will be no class on Monday, October 12, and the next class will
be held on Thursday, October 15 from 1pm to 5pm. We
will continue on with Chapter 12 and Chapter 13 in that class. |
| |
|
| October
8, 2009 |
I
have just got a reply from OUHK. For the final exam or the quiz,
NO formula sheet will be allowed.
The PV and annuity table would be similar to the ones in your textbook. |
| |
|
| October
8, 2009 |
I
have checked with OLE tech support and they have confirmed that
you should have access to the class material on OLE. If you have
difficulties accessing, please contact the OLE tech support. |
| |
|
| October
5, 2009 |
We
will continue with Chapter 13 in our next class. We will also look
at the Chapter 6 tutorial questions from October 5 so please bring
the questions with you. |
| |
|
| September
28, 2009 |
Regarding
having our next class on Monday September 28 from 2pm to 6pm, I
have not heard back so I will check with Lisa on Monday morning
and I will be around CITA that afternoon. |
| |
|
| September
26, 2009 |
I
have just posted the answers to the tutorial questions to Chapter
7. |
| |
|
| September
24, 2009 |
Check
this out: look under "UIC" on the left menu, go to "Finl
Mgmt 09" and check out the "Course Outline and Lecture
Notes" section. I will have Chapter 6 on their within the next
few days. |
| |
|
| September
21, 2009 |
Our
next class will be TETENTIVELY set on Monday, September 28 from
2pm to 6pm. Please check back here to confirm before class time.
|
| |
|
| September
11, 2009 |
Please
note that our class on Thursday September 24, 2009 from 1pm to 5pm
has been moved to Monday September 21, 2009 from 2pm to 6pm (an
hour after your marketing course). |
| |
|
| September
11, 2009 |
These
are three tables which provides the present
value interest factor, annuity
factor, and standard distribution
for our class. Please print and bring to class to use as reference.
|
| |
|
| September
11, 2009 |
Please
note that for the assignment that is due on December 4, 2009, you
must submit on or before the deadline in order to receive your marks.
You will receive a mark of zero once you are late (due to OUHK regulations),
you will NOT get a 10% deduction for each day that you are late. |
| |
|
| September
10, 2009 |
As
the textbook and access to OLE are not readily available yet, the
tutorial questions for Ross Chapter
2 and Ross Chapter 5 are
available here. |
| |
|
| September
4, 2009 |
The
list of tutorial questions that we will do in class can be downloaded
here. |
| |
|
| August
28, 2009 |
Our first day of class will be on Thursday, September 10, 2009 at
CITA Room 501. Course outline can be downloaded
here. There is a test for this course in the 9th week (week
of November 16, 2009, exact dates to be confirmed), and an assignment
due on December 4, 2009. Please see Assessment
section for more details. |
| |
|
| August
13, 2009 |
Course
material and other information will be distributed on the first
day of class.
|
Back
to top || Updates || Course
Outline and Lecture Notes || Lecture Review
|| Course Details || Assessment
Information
ASSESSMENT
Back
to top || Updates || Course
Outline and Lecture Notes || Lecture Review
|| Course Details || Assessment
Information
Course
outline can be downloaded here.
The
list of tutorial questions for this course can be downloaded
here.
Answers
to ALL questions: Chapter
5, Chapter 6, Chapter
7, Chapter 8, Chapter
12, Chapter 13, Chapter
15, Chapter 9, Chapter
10, Chapter 18, Chapter
19, Chapter 21
The
assessment of this course is based on:
|
Test (during week of November 2, 2009) |
15
% |
| Assignment
(due December 4, 2009) |
15
% |
| Final
exmination |
70
% |
| |
100
% * |
| *
Passing of both the course score and of the final examination is
required |
|
Continuous
assessment. The continuous assessment is make up of one test
during the week of November 2, 2009 and an assignment which is due on
December 4, 2009 at 17:00. Please note that for the assignment, you
must submit on or before the deadline in order to receive your marks.
You will receive a mark of zero once you are late (due to OUHK regulations),
you will NOT get a 10% deduction for each day that you are late.
DOWNLOAD:
Assignment
Final
examination. The 3 hour final examination will make up for
70% of the total assessment of this course. For the final examination,
NO FORMULA SHEET will be allowed. The PV and annuity table will be similar
to what you can find in the textbook.
Back
to top || Updates || Course
Outline and Lecture Notes || Lecture Review
|| Course Details || Assessment
Information
LECTURE
REVIEW Back
to top || Updates || Course
Outline and Lecture Notes || Lecture Review
|| Course Details || Assessment
Information
A summary
of our discussion during the lecture is provided here for your reivew.
| September
10, 2009 |
In
our first lecture, we discussed the following topics: |
| |
- quick
review of the financial statements,
- purposes
and goals of corporate finance,
- goals
of finance managers,
- agency
problem,
- average
versus marginal tax rate, and
- time
value of money.
|
| |
|
| September
17, 2009 |
Today
we discussed: |
| |
- multiple
cash flows,
- annuity
and annuity due,
- effective
annual rate (EAR) and annual percentage rate (APR).
|
| |
|
| September
21, 2009 |
We
went through the following today: |
| |
- notes
Chapter 4 long term financial planning,
- construction
of pro forma financial statements,
- calculate
internal growth rate,
- calculate
sustainable growth rate,
- notes
on Chapter 7 bond valuation,
- valuation
of bonds,
- bond
risk in terms of interest rate risk and reinvestment risk, and
- comparison
of exposure to risk with respect to maturity and coupon level.
|
| |
|
| September
28, 2009 |
We
looked at the following topics in Chapter 8 and Chapter 12: |
| |
-
the dividend discount model to value a share,
- contant
dividend model, constrant dividend growth model, super-growth
dividend model, and
- calculation
of variance and standard deviation.
|
| |
|
| October
5, 2009 |
We
did the following today: |
| |
- started
on the capital asset pricing model (CAPM) and securities market
line (SML),
- worked
through questions on present value calculations, and
- worked
through questions on annuity calculations.
|
| |
|
| October
15, 2009 |
The
following topics were discussed today: |
| |
- revision
of Chapter 7 bond valuation,
- revision
of Chapter 8 equity valuation,
- worked
on several non-constant growth dividend discount model questions,
and
- Chapter
13 risk and return, SML, beta, and CAPM.
|
| |
|
| October
19, 2009 |
We
worked on the following topics during our class: |
| |
- review
of financial management funcation,
- worked
on several questions on standard deviation and CAPM calculation,
- went
through Chapter 15 cost of capital lecture slides, and
- worked
on a few sample cost of capital questions.
|
| |
|
| October
22, 2009 |
We
worked through tutorial questions on Chapters 6, 7, 8, 12, and 13. |
| |
|
| November
5, 2009 |
We
had the quiz in the first part of today's session. Then we went
through Chapter 15 briefly before going through all the Chapter
15 tutorial questions. The answer key to ALL the questions to Chapter
15 has been posted. |
| |
|
| November
12, 2009 |
We
worked through the following topics today: |
| |
- started
our discussion on approaches to project evaluation in Chapter
9, including NPV, IRR, payback period, discount payback period,
and profitability index,
- what
can be used if there is limited resources (capital rationing),
mutually exclusive projects, and how to structure a cash flow
table for evaluation, and
- worked
through two practice problems on cost of capital.
|
| |
|
| November
16, 2009 |
Today
we worked on: |
| |
- review
of the NPV format,
- reiew
of the approaches to project evaluation,
- worked
through tutorial questions on Chapter 9, and
- finished
going through the lecture slides for Chapter 9.
|
| |
|
| November
23, 2009 |
We
worked on the following topics today: |
| |
- discuss
Chapter 10 and did 2 exercise questions on Chapter 10, and
- brief
discussion of Chapter 17 on capital structure theories.
|
| |
|
| November
30, 2009 |
Today
we worked on the following topics: |
| |
- review
of capital structure theories and the optimal capital structure,
- went
through dividend policies and their implications, and
- went
through tutorial questions from Chapter 18.
|
| |
|
| December
30, 2009 |
We
started on Unit 5 of the lecture and discussed the operating and
cash cycle, sources of short term financing, and cash budgets. |
Back
to top || Updates || Course
Outline and Lecture Notes || Lecture Review
|| Course Details || Assessment
Information
COURSE
OUTLINE AND LECTURE NOTES Back
to top || Updates || Course
Outline and Lecture Notes || Lecture Review
|| Course Details || Assessment
Information
Course
outline can be downloaded here.
| Lecture
1 |
Scope
of Financial Management, Review of Financial Statements,
Time Value of Money |
| September
10, 2009 |
Reading:
Ross Chapter 2 and 5 |
| |
[Download:
lecture powerpoint Ch 2, lecture
powerpoint Ch 5, tutorial question
list, assignment] |
| |
[Download:
Ross Chapter 2 Tutorial Questions
and Ross Chapter 5 Tutorial Questions] |
| |
[Download:
Ross Chapter 2 Tutorial Questions and Ross
Chapter 5 Tutorial Questions Answers] |
| |
[Download:
Present Value Table, Annuity
Table, and Standard Distribution
Table] |
| |
[Download:
lecture powerpoint Ch 5 marked] |
| |
|
| Lecture
2 |
Scope
of Financial Management, Working with Financial
Statements, Discounted Cash Flow |
| September
17, 2009 |
Reading:
Ross Chapter 3 and 6 |
| |
[Download:
lecture powerpoint Ch 3, lecture
powerpoint Ch 6] |
| |
[Download:
lecture powerpoint marked] |
| |
[Download:
Ross Chapter 6 Tutorial Questions
Answers] |
| |
|
| Lecture
3 |
Scope
of Financial Management |
| September
21, 2009 |
Reading:
Ross Chapter 4 and 7 |
|
[Download:
lecture powerpoint Ch 4, lecture
powerpoint Ch 7] |
| |
[Download:
Ross Chapter 7 Tutorial Questions
Answers] |
| |
|
| Lecture
4 |
Valuation
of Financial Assets |
| September
28, 2009 |
Reading:
Ross Chapter 8 and 12 |
| |
[Download:
lecture powerpoint Ch 8, lecture
powerpoint Ch 12] |
| |
[Download:
Questions marked on slides,
Ross Chapter 8 Tutorial Questions
Answers] |
| |
|
| Lecture
5 |
Valuation
of Financial Assets |
| October
5, 2009 |
Reading:
Ross Chapter 13 |
| |
[Download:
lecture powerpoint Ch 13] |
| |
|
| Lecture
6 |
Valuation
of Financial Assets |
| October
15, 2009 |
Reading:
Ross Chapter 13 |
| |
[Download:
lecture powerpoint Ch 13, Summary
Lecture Slides for Unit 2 on Chapters 7, 8, 12, 13, and 15] |
| |
|
| Lecture
7 |
Valuation
of Financial Assets and Cost of Capital |
| October
19, 2009 |
Reading:
Ross Chapter 13 and 15 |
| |
[Download:
lecture powerpoint Ch 15] |
| |
[Download:
cost of capital exercise in slides] |
| |
|
| Lecture
8 |
Cost
of Capital |
| October
22, 2009 |
Reading:
Ross Chapter 15 |
| |
|
| November
5, 2009 |
Quiz,
50 minutes, covers chapters 2, 3, 4, 5, 6, 7, 8, 12, and 13. |
| |
|
| Lecture
9 |
Cost
of Capital |
| November
5, 2009 |
Reading:
Ross Chapter 15 |
| |
[Download:
lecture powerpoint Ch 9, Summary
Lecture Slides for Unit 3 on Chapters 9 and 10] |
| |
[Download: cost
of capital page from today] |
| |
|
| Lecture
10 |
Capital
Budgeting |
| November
12, 2009 |
Reading:
Ross Chapter 9 and 10 |
| |
[Download:
lecture powerpoint Ch 10, Nov
12 notes in class] |
| |
|
| Lecture
11 |
Capital
Budgeting |
| November
16, 2009 |
Reading:
Ross Chapter 9 and 10 |
| |
[Download:
Nov 16 notes in class] |
| |
|
| Lecture
12 |
Corporate
Financing |
| November
23, 2009 |
Reading:
Ross Chapter 17 and 18 |
| |
[Download:
lecture powerpoint Ch 17, lecture
powerpoint Ch 18, Summary Lecture
Slides for Unit 4 on Chapters 17 and 18] |
| |
[Download:
sample NPV question, Nov
23 class notes] |
| |
|
| Lecture
13 |
Working
Capital Management |
| November
30, 2009 |
Reading:
Ross Chapter 19 and 21 |
| |
[Download:
lecture powerpoint Ch 19, lecture
powerpoint Ch 21, Summary Lecture
Slides for Unit 5 on Chapters 19 and 21] |
| |
[Download:
Marked Unit 4 Lecture Slides] |
| |
|
| Lecture
14 |
Working
Capital Management |
| December
3, 2009 |
Reading:
Ross Chapter 19 and 21 |
| |
[Download:
lecture powerpoint Ch 20, Final
exam sample format and questions] |
| |
|
| December
4, 2009 |
Assignment
Due at 17:00. [DOWNLOAD:
Assignment] |
| |
You
must submit the assignment on or before the deadline in order to
receive your marks. You will receive a mark of zero once you are
late (due to OUHK regulations), you will NOT get a 10% deduction
for each day that you are late. |
Back
to top || Updates || Course
Outline and Lecture Notes || Lecture Review
|| Course Details || Assessment
Information
COURSE
DETAILS Back
to top || Updates || Course
Outline and Lecture Notes || Lecture Review
|| Course Details || Assessment
Information
| Course |
B280F
Introduction to Financial Management |
| |
Course
outline can be downloaded here. |
| |
|
| Prerequisites |
|
| |
|
| Time
and Location |
CITA
Room 501, Thursdays 1pm to 5pm. |
| |
|
| Instructor |
Dr.
Thomas Wu |
| Email |
allthomasemail@gmail.com |
| Website |
http://www.drthomaswu.com
(all information for this course can be found here) |
| |
|
| Tutor |
|
| Email |
|
| Telephone |
|
| |
|
| Course
Aims and Summary |
|
| |
|
| Module
Learning Outcomes |
|
| |
|
| Essential
Reading |
Corporate
Finance Fundamentals, Ross, Westerfield, Jordan, 8th
Edition, 2008, McGraw-Hill |
| |
|
| Recommended
Reading |
|
| |
|
| Calculator
Policy |
HP12C
or Texas Instrument BAII Plus are recommended. Casio FC100V, FC200,
FC200V are not OUHK's approved models of calculators. For more details,
see refer to theOUHK Approved List. |
| |
|
| Financial
Terms |
There
are specific terms that apply to accounting and finance, and there
are various online sources that can help students understand these
terms.
Download
and print for reference:
Online
finance dictionaries:
Other
unverified sources of financial references:
|
Back
to top || Updates || Course
Outline and Lecture Notes || Lecture Review
|| Course Details || Assessment
Information
|