You are on page 1of 8

DE LA SALLE UNIVERSITY

Financial Management Department


ROB-College of Business
COURSE SYLLABUS

COURSE : ADVANCED FINANCIAL MANAGEMENT (ADVAFIN)


SECTIONS :
FACULTY :

COURSE DESCRIPTION:

This course is a follow up and extension to Basic Financial Management 1 and is designed to address a variety
of advanced topics and tools that build on much of the material taken up in the aforesaid course. The students
will learn to generate new financial knowledge through interdisciplinary methods of research and most
importantly, create financial decisions across different industries.

The students will learn to create, execute and analyze working capital management strategies , financial
forecasting, understand special topics in financial management like derivatives (options, futures, swap), risk
management, multinational and hybrid financing, mergers and acquisitions, and dividends.

The course will utilize appropriate quantitative tools and comprehensive analytical approaches on the financial
concepts, issues, and practices relevant to the financial services industry and corporate finance. The course
will ensure that the students apply the basic business practices, cultural norms, and the appropriate local,
regional and international ethical standards related to business and corporate finance afterwards. Case
studies, class exercises and online tutorials will be available as this will be a very demanding course that
requires a lot of work.

LEARNING OUTCOMES:
On completion of the course, the student is expected to be able to do the following:

Expected Lasallian
Graduate Attributes LEARNING OUTCOMES (LO)
(ELGAs)
Critical and Creative LO1: Analyze financial concepts, issues, and practices relevant to
Thinkers theories and frameworks consistent with business practices through
research
Service-drive
citizen/ethical and LO2: Create financial decisions and solutions that are ethical using
socially responsible different analytic approaches and collaborating with finance
citizen practitioners through case studies at the end of every chapter.

Effective LO3: Present and discuss the different financial solutions to the case
Communicators studies in an open and constructive manner with peers to know if the
recommendations are at par with the current standard and practices of
Reflective life-long the industry
learners
LO4: Answer problems sets related to the principles and concepts of
advance finance.
1
COURSE OUTPUT:

As evidence of attaining the above learning outcomes, the student is required to do and submit the following
during the indicated dates of the term.

LEARNING OUTCOME REQUIRED OUTPUT DUE DATE


LO1: Analyze financial concepts, Submission of case studies on the following
issues, and practices relevant to theories topics:
and frameworks consistent with business 1. SKI Equipment - Working capital Week 3
practices through research management (Ch16)
2. New World Chemicals - Financial Week 4
LO2: Create financial decisions and planning & forecasting (Ch17)
solutions that are ethical using different 3. Tropical Sweets - Derivatives & risk Week 6
analytic approaches and collaborating management (Ch18)
with finance practitioners through case 4. Citrus Products - Multinational Week 9
studies at the end of every chapter. Financial Management (Ch19)
5. Fish Chips - Major Hybrid Week 11
Financing (Ch20)
6. Smitty’s Home Repair - Mergers & Week 13
Acquisitions (Ch21)
LO3: Present and discuss the different Present the case studies on the ff:
financial solutions to the case studies in 1. Working capital management Week 3
an open and constructive manner with 2. Financial planning & forecasting Week 4
peers to know if the recommendations 3. Derivatives & risk management Week 6
are at par with the current standard and 4. Multinational Financial Week 9
practices of the industry Management
5. Major Hybrid Financing Week 11
6. Mergers & Acquisitions Week 13

All groups will be submitting all case


studies. Group presentations per topic will
be randomly selected. It should include the
analysis, decisions, solutions, and
recommendations.
LO4: Answer problems sets related to * Seatwork/Class exercises End of each chapter
the principles and concepts of advance * 4 Quizzes Week 4, 9, 11, 12
finance. * Midterm exam Week 7
* Final exam Week 14

2
RUBRIC FOR ASSESSMENT:

A. Rubric for problem sets, class exercises, quizzes, and exams

CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING


4 3 2 1
Completeness All problems are All problems are Majority of the Majority of the
(80%) correctly solved solved with problems are problems are not
and solutions are minimal mistakes solved. solved.
clearly presented. due to
These show the carelessness or
logic used to lack of solution.
arrive at the final
answer.
Neatness All problems are All problems are Majority of the Majority of the
(20%) solved in an solved in an problems are problems are
orderly manner orderly manner solved in an solved
(labels solutions, and with proper orderly manner improperly.
corrects errors correction of with proper
properly, & errors. correction of
legible errors.
handwriting).
TOTAL:

B. Rubric for case study submissions

CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING


4 3 2 1
Quality of Complete Proper Proper Incomplete
documentation, documentation of documentation of documentation of documentation of
supporting information which information as information as information.
evidence and go beyond the stated by the stated by the Materials are not
use of requirements requirements. requirement. Not used in the analysis
information provided. All Materials are used all materials are of the paper.
(30%) materials are used to support the used to support the
to support the analysis of the analysis of the
analysis of the paper. paper.
paper.
Organization of All information and Information and Information and Organization
ideas topics are in logical topics are in topics are in not unclear; paragraph
(20%) order. All main logical order. consistently structure poor;
ideas are supported Some of the main organized. Some transitions poor;
by well-explained ideas are supported of the main ideas the paper is hard to
evidence and by explanation and are supported by follow.
analysis. analysis. Overall, explanation and
Connections the content and analysis. The
between paragraphs flow of the paper content and flow
and ideas are clear. should be clear. of the paper is not
Overall, the content that clear.
and flow of the
paper should be
clear.
3
Proper analysis, All problems are All problems are Majority of the Majority of the
computations, correctly solved solved with problems are problems are not
and solutions and minimal solved. solved.
(30%) solutions/action mistakes. Action
plans are clearly plans/solutions
presented. The are presented.
above shows the Logic is used to
logic used to provide financial
provide financial solutions.
solutions.
Neatness of Proper spacing and Consistent use of Consistent use of Inconsistent use of
paper format indentation. Proper spacing and spacing and spacing and
(10%) use of tables and indentation. Few indentation. No indentation.
graphs to make the tables and graphs. tables and graphs.
paper reader-
friendly
Grammar No errors in Few errors in Many errors in Incorrect grammar
(10%) grammar grammar grammar all throughout the
paper.
TOTAL:

C. Rubric for case study presentations

CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING


4 3 2 1
Content and All information and Information and Information and Organization
organization of topics are in logical topics are in logical topics are in not unclear; paragraph
presentation order. All main order. Some of the consistently structure poor;
(20%) ideas are supported main ideas are organized. Some transitions poor;
by well-explained supported by of the main ideas the paper is hard to
evidence and explanation and are supported by follow.
analysis. analysis. Overall, explanation and
Connections the content and analysis. The
between paragraphs flow of the paper content and flow
and ideas are clear. should be clear. of the paper is not
Overall, the content that clear.
and flow of the
paper should be
clear.
Concreteness, All main topics of All topics of the Few topics of the Incomplete topics
clarity, and the report should report were report were were discussed
conciseness of be discussed and adequately discussed and and summarized.
the presentation summarized. discussed and summarized. Analysis and
(20%)
Analysis and summarized. Incomplete or no insights not
insights should be Analysis and analysis and included in the
included in the insights were insights were presentation
presentation sufficiently included in the within the allotted
within the allotted included in the presentation time.
time. presentation within the
within the allotted allotted time.
time.
Language Correct use of Occasional lapse Many incorrect Wrong grammar,
(20%)
4
grammar, good in grammar. use of grammar poor vocabulary,
command of and improper inappropriate
English, and choice of words word choice
appropriate word
choice
Audience Establish rapport Generally able to Sometimes loses No rapport was
Impact through direct eye establish rapport the attention of established. No
(20%) contact, confident with the audience, the audience. eye contact. Bad
and natural body project their Gets easily body language.
language, and voices well, show distracted. Did not arouse
sustain audience some confidence Occasionally the interest of the
interest. Proper and mastery. peaks softly. audience. Soft
voice projection. Lacks voice projection.
Mastery of the confidence. No mastery of the
topic. topic. No
confidence.
Visual and Adequate, Aids are Aids are No visual aids at
Audiovisual aids appropriate, and streamlined/clean. cluttered and all. Too technical.
(20%) skillful use of Generally easy to difficult to Disorganized and
media follow and follow. Texts and not used properly.
enhance the graphics are not
presentation appropriate and
can be distracting
TOTAL:

OTHER REQUIREMENTS AND ASSESSMENTS:


Aside from the final output, the student will be assessed at other times during the term by the following:
 Recitation, Board work, Attendance

GRADING SYSTEM:

Requirements Percentage(Weight)
LO1 & LO2 – Submission of six case studies highlighting the analysis, LO1 (Analysis) – 25%
financial decisions and solutions done.
OUTPUTS: Case studies on the ff: LO2 (Decision &
1. SKI Equipment - Working capital management (Ch16) Solutions) – 15%
2. New World Chemicals - Financial planning & forecasting (Ch17)
3. Tropical Sweets - Derivatives & risk management (Ch18)
4. Citrus Products - Multinational Financial Management (Ch19)
5. Fish Chips - Major Hybrid Financing (Ch20)
6. Smitty’s Home Repair - Mergers & Acquisitions (Ch21)
LO3 – Group presentations on the case studies 10%
LO4 - Answer problems sets related to the principles and concepts of
advance finance.
1. Skill-building class exercises & assignments 5%
2. Four quizzes 10%
3. Midterm Exam 15%
4. Final Exam 20%
TOTAL 100%
*Note: passing grade is 75%

5
LEARNING PLAN:

LEARNING TOPIC READINGS LEARNING ACTIVITIES WEEK


OUTCOME NO.

LO4 I. Working Capital Management Ch 16 Class exercises & Wk: 1-4


1.1 Current Asset Investment and assignments (12 hrs)
Financing Policies
1.2 Cash Conversion Cycle
1.3 Cash Budget
1.4 Cash and Marketable
Securities
1.5 Accounts Receivables Mgmt.
1.6 Inventories Management
1.7 Accounts Payable(Trade
Credit)
1.8 Bank Loans
1.9 Commercial Papers
1.10 Accruals
1.11 Use of Security in Short Term
Financing
LO1, LO2, Integrated Case: SKI
LO3 Equipment Inc.

II. Financial Planning and Forecasting Ch 17


2.1 Strategic Planning
2.2 Sales Forecast
2.3 AFN Equation
2.4 Forecasted Financial
Statements
2.5 Analyzing the Effects of
Changing Ratios
LO1, LO2, Integrated Case: New
LO3 World Chemicals Inc.

LO4 QUIZ NO. 1

LO4 III. Derivatives Ch 18 Class exercises & Wk: 5-6


3.1 Options assignments (6 hrs)
3.2 Forward and Futures Contracts
3.3 Swaps
3.4 Commodities

IV. Risk Management

6
LO1, LO2, Integrated Case: Tropical
LO3 Sweets Inc.

LO4 MIDTERM EXAM Wk 7


(1.5 hrs)

LO4 V. Multinational Financial Mgmt. Ch 19 Class exercises & Wk: 7-9


5.1 Multinational Corporations assignments (7.5 hrs)
5.2 Multinational vs. Domestic
Financial Management
5.3 International Monetary System
5.4 Foreign Exchange Rates
5.5 Trading in Foreign Exchange
5.6 Interest Rate Parity
5.7 Purchasing Power Parity
5.8 Inflation, Interest, Forex
5.9 International Money and
Capital Markets
5.10 Investing Overseas
5.11 International Capital
Budgeting
5.12 International Capital Market
Structures
LO1, LO2, Integrated Case: Citrus
LO3 Products, Inc.

LO4 QUIZ NO. 2

LO4 VI. Major Hybrid Financing Ch 20 Class exercises & Wk:


6.1 Preferred Stock assignments 10-11
6.2 Leasing (6 hrs)
6.3 Warrants
6.4 Convertibles
LO1, LO2, Integrated Cases: Fish
LO3 Chips, Inc.

LO4 QUIZ NO. 3

LO4 VII. Mergers and Acquisitions Ch 21 Class exercises & Wk:


7.1 Rational for Mergers assignments 12-14
7.2 Types of Mergers (7 hrs)
7.3 Level of Merger Activity
7.4 Hostile vs. Friendly Takeovers
7.5 Merger Analysis
7.6 Role of Investment Bankers
7.7 Do Mergers Create Value?
7.8 Corporate Alliances
7.9 Private Equity Investments
7
7.10 Divestitures
LO1, LO2, Integrated Case: Smitty’s
LO3 Home Repair
VIII. Dividend Policy Ch 15
LO4 QUIZ NO. 4

LO4 Departmental Final Exam Wk 14


(2 hrs)

TEXTBOOK:

Brigham, E. & Houston, J. (2013). Fundamentals of Financial Management. (13th Ed.). Cengage Learning

OTHER REFERENCES:

Asquith, P. (2016). Lessons in corporate finance: a case studies approach to financial tools, financial policies,
and valuation. New Jersey: Wiley.
Berk, J., DeMarzo, P., & Harford, J. (2013). Fundamentals of Corporate Finance. (2nd Ed.). Boston:
Pearson/Prentice Hall
Brealey, R. A. (2014). Principles of corporate finance. Berkshire: McGraw-Hill. (11th ed.).
Brigham, E. (2017). Corporate finance: a focused approach. Boston: Cengage Learning. (6th Ed.).
Houston, J. F. (2017). Fundamentals of financial management. Boston: Cengage Learning. (Concise 9th Ed.).
Koh, A. (2014). Financial management: theory and practice. Singapore: Cengage Learning. (Asian Ed.).
McGuigan, J.R., Moyer, R.C., Rao, R. &, Kretlow, W.J. (2012). Contemporary Corporate Finance. (12th Ed.).
Cengage Learning
Ross, S. A. (2016). Fundamentals of corporate finance. Dubuque: McGraw-Hill. (2nd Ed.).
Smart, S.B. & Graham, J.R. (2012). Introduction to Financial Management. (3rd Ed.) Cengage Learning
Titman, S., Keown, A.J., & Martin, J.D. (2011). Financial Management: Principles and Applications. (11th Ed.).
Boston: Pearson/Prentice Hall

CLASS POLICIES:

1. Classroom Conduct
Students are expected to be professional inside the classroom. No talking in the classroom. Cellphones,
laptops, tablets and other electronic gadgets are not allowed, unless specified that it is part of the
activity to be used in class. All students are expected to partake in meaningful discussions with the
class. Students should also respect their fellow students (e.g. listening when someone else is speaking).
Any misconduct will be reported to the Discipline Office.

2. Submission of requirements
ABSOLUTELY NO LATE SUBMISSION WILL BE ALLOWED.

3. Policy on Academic Dishonesty


Academic dishonesty in any form (ex. cheating, plagiarism, fabrication of data, etc) will warrant a
final grade of 0.0 in the course and a disciplinary case.

4. Policy on exam.
Please see separate handout on exam policy.
8