FIN160 : Financing Principles

Department

Department of Financing and Banking

Academic Program

Bachelor in Finance and banking

Type

Compulsory

Credits

03

Prerequisite

Overview

This course is concerned with introducing the student to financing and its objectives, and what are the tasks assigned to financial managers, as well as knowing the sources of financing, financial intermediaries, and sources of Islamic financing. It also explains the definition of ordinary and preferred shares, advantages and disadvantages, and determining the cost of each, It also explains the concept of bonds, long-term loans, leasing and retained earnings, and determining their costs.

Intended learning outcomes

A. Knowledge and understanding:

  • Knowledge of the concept of financing, its objectives, and the tasks assigned to financial managers.
  • The student will be familiar with the most important sources of financing, financial intermediaries, and sources of Islamic financing.
  • Introducing the concept of shares, types of shares, advantages and disadvantages of shares, and determining the cost of equity financing.
  • The student learns about bonds, their types, and long-term loans, and determines their costs.

B. Mental skills:

  • The student's mental ability to understand the basics of finance.
  • Students' ability to conduct scientific research in the field of specialization, and to express and strengthen opinions.
  • The ability to study the problems facing financing organizations, draw conclusions and make recommendations thereon.
  • Contribute to the integration of knowledge to serve the development of the field of specialization and other disciplines.

c. Scientific and professional skills:

  • Practical and professional skills to serve the labor market.
  • Using modern methods to contribute to the practical development of organizations.
  • Electronic application software and technologies.
  • Master planning, implementation, evaluation and follow-up skills.

D. General skills:

  • Teaching the student the close relationship between finance and other sciences.
  • Helping students understand and correct misconceptions about this field.
  • Communication skill and dealing with others.
  • Good listening, persuasion and negotiation.

Teaching and learning methods

  1. Study lectures.
  2. Panel discussions.
  3. Training the student to prepare a short research.

Methods of assessments

  1. Written midterm exam 20%.
  2. Activity 10%.
  3. Research paper 10%.
  4. Written final exam 40%.

Course content

Number of hours

scientific subject

Week

3

An introduction to the concept of finance, its objectives and components, and the basic principles of finance.

1

3

The relationship of funding with other sciences and the determinants of choosing between funding sources and their characteristics.

2

3

Short-term sources of financing, commercial credit and bank credit, its forms, conditions, advantages and costs.

3

3

Medium-term financing sources, leasing financing, definitions, types, justifications and disadvantages.

4

3

Long-term sources of financing, equity financing, its definition, advantages, disadvantages, and cost.

5

6

Sources of long-term financing, financing by preferred shares, the reasons for issuance, its advantages, disadvantages and cost.

6-7

3

Long-term financing sources, bond financing, its advantages and disadvantages, types of bonds, costs, and differences with stocks.

8

6

Financing with reserved profits has its advantages, disadvantages and costs, and financing with long-term loans has its advantages, disadvantages and costs.

9-10

6

Sources of Islamic financing, financing methods in Islamic financial institutions, Mudaraba, Musharaka and Murabaha.

11-12

6

Financing methods with a predetermined return and the differences between Islamic and conventional financing.

13-14