TOMAS DEL ROSARIO COLLEGE

Balanga City

Syllabus In Management 11
FINANCIAL MANAGEMENT
Pre-requisite: Finance 2, Acctg. 4, BM 4
Second Semester SY 2008 - 2009

I. COURSE DESCRIPTION:

This course focuses on the basics of corporate finance that is built upon both accounting and economics. Accounting provides the input data on which decision making is
based and economics that provides much of the theory that underlies various techniques. The course is divided into two parts: The first is to deal with the management of assets.
Focus is made on the management of inventory, receivables, money position, and fixed assets. Discussion also covers such planning tools as ratio analysis, cash budgeting and
capital budgeting. The second part deals with the management of long-term funds. It covers security-risk analysis involving bond, common stock and preferred stock, leasing
arrangements and dividends policies and capital budgeting.

II. COURSE GOALS:

The course aims to:

1. Provide a conceptual framework which the students as future financial officers can utilize in performing decision-making functions in a given business environment.
2. Make reasoned decisions in the area of financial management and be able to adapt to changes in factors affecting those decisions.
3. Enable the students to obtain a comprehensive understanding of financial management crafted around the ten (10) basic principles of financial management.
4. Equip the students with the ability to apply the lattest analytical techniques to a variety of problems in financial management.
5. Appreciate the values of social responsibilty and ethical behavior in financial management.

III. CREDIT : 3 Units

TIME ALLOTMENT : 54 Hours ( 18 Weeks )

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IV. COURSE CONTENT:

TIME LEARNING
LEARNING OBJECTIVES LEARNING CONTENTS ALLOTMENT LEARNING ACTIVITIES ASSESSMENT
Preliminary
Students must be able to: An Introduction To Financial Management: Period Lecture / Discussion Recitation
1. Define Financial Management 1. What is Financial Management Debate: Quiz
2. Explain The Goal Of The Firm 2. Goal Of The Firm Weeks 1 & 2 Ethical Issues In Business - Case Analysis
3. Enumerate And Be Able To Explain The 3. Legal Forms Of Business Organization Right vs Wrong but Popular
Ten(10) Principles Of Financial Mgmt. 4. Ten Principles That Form The Basics Of Financial
Management

Understanding Financial Statements: Research: Board Work

1. Compute A Company's Profit As Reflected 1. Income Statement - Measuring A Company's Profit Weeks 3 & 4 Be able to identify each
By An Income Statement. 2. Balance Sheet - Measuring A Firm's Book Value account that appers in the Quiz
2. Determin A Firm's Accounting Book Value 3. Measuring Free Cash Flows financial statements.
As Presented In A Balance Sheet a) Asset Perspective
3. Measure A Company's Free Cash Flows b) Financing Perspective

Evaluating A Firm's Financial Performance: Computation and Analysis

1. Calculate A Comprehensive Set Of 1. Financial Ratio Analysis Weeks 5 & 6 Internet Activity: Seatwork
Financial Ratios And Use Them To a) Liquidity Ratios Surf the internet and look for FS of
Evaluate The Financial Condition Of A Firm b) Turn-Over Ratios any company. Be able to analyze Quiz
2. Explain The Limitations Of Ratio Analysis c) Profitability Ratios the company's financial status
d) Leverage Ratios using financial ratios discussed.

Ref. Van Horne, Financial Management Annd Policy ( pp. 691 - 712 )
Mid-Term
The Time Value Of Money: Period Lecture / Discussion Seatwork
1. Explain The Mechanics Of Compounding: 1. Compound Interest And Future Value
How Money Grows Overtime When It Is 2. Compound Interest With Non-Annual Periods Week 1 Computations Quiz
Invested 3. Present Value
2. Determine The Future Or Present Value Assignments
Of A Sum When There Are Non-Annual
Compounding Period
3. Discuss Compounding (Future Value) And
Bringing Money Back To The Present
(Present Value) Ref. Van Horne, Financial Management Annd Policy ( pp. 9 - 16 )

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TIME LEARNING
 LEARNING OBJECTIVES LEARNING CONTENTS ALLOTMENT LEARNING ACTIVITIES ASSESSMENT
Students must be able to:
1. Define And Measure Risk, Expected Return Risk And Rates Of Return: Week 2 Lecture / Discussion Recitation
2. Explain The Relationship Between Risk And 1. Rates Of Return In The Financial Markets
The Rate Of Return 2. Effects Of Inflation On Rates Of Return And Fisher Effect Assignments
3. Define And Measure The Riskiness Of An 3. The Term Structure Of Interest Rates
Individual Investment 4. Expected Return
4. Define And Understand Diversification 5. Risk

Valuation And Characteristics Of Bonds: Week 3 Lecture / Discussion Recitation

1. Distinguish Between Different Kinds Of 1. Types Of Bonds
Bonds. 2. Characteristics Of Bonds Assignments Quiz
2. Explain The More Popular Features Of 3. Value As Used For Several Different Purposes
Bonds. 4. Determinants Of Value
3. Estimate The Value Of A Bond 5. Bond Valuation

Stock Valuation Week 4 Lecture / Discussion Recitation

1. Identify The Basic Features Of Preferred 1. Features And Types Of Preferred Stock
And Common Stock 2. Valuing Preferred Stock Assignments
2. Value Preferred And Common Stock 3. Characteristics Of Common Stock Research:
3. Calculate A Stock's Expected Return 4. Valuing Common Stock Top 10 Corporations listed in PSE

1. Determine Whether A New Project Should
Be Accepted Using:
a) Payback Period
b) Net Present Value
c) Profitability Index
d) Internal Rate Of Return
Capital - Budgeting Decision Criteria: Weeks 5 & 6
1. Definition Of Capital Budgeting Computation and Analysis Seatwork
2. Capital Budgeting Techniques -
a) Payback Period Assignments Quiz
b) Net Present Value
c) Profitability Index
d) Internal Rate Of Return
3. Ethics In Capital Budgeting
Ref. Van Horne, Financial Management Annd Policy ( pp. 138 - 145 )

Working - Capital Management And Short-Term Financing: Final

1. Define Net Working Capital 1. Working Capital Period
2. List The Advantages And Disadvantages 2. Net Working Capital Lecture / Discussion Recitation
Of Using Current Liabilities To Finance A 3. Advantages Of Current Liabilities - The Return Weeks 1 & 2
Firm's Working Capital Requirements 4. Disadvantages Of Current Liabilities - The Risk Assignments
3. List And Describe The Basic Sources Of 5. The Hedging Principles
Short-Term Credit 6. Sources Of Short-Term Credit
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TIME LEARNING
 LEARNING OBJECTIVES LEARNING CONTENTS ALLOTMENT LEARNING ACTIVITIES ASSESSMENT
Students must be able to:
Cash And Marketable Securities Management: Weeks 3 & 4 Recitation
1. Define Liquid Assets 1. What Are Liquid Assets Lecture / Discussion
2. Explain Why A Firm Holds Cash 2. Reasons For Holding Cash Quiz
3. Determine A Prudent Composition For The 3. Cash - Management Objectives And Decisions
Firm's Marketable Securities Portfolio 4. Collection And Disbursement Procedures
5. Composition Of Marketable Securities Portfolio
Ref. Van Horne, Financial Management Annd Policy ( pp. 343 - 355 )

Accounts Receivable And Inventory Management: Weeks 5 & 6 Lecture / Discussion Recitation
1. Discuss The Determinants Of A Firm's 1. Size Of Investment In Accounts Receivable
Investment In Accounts Receivable And 2. Credit Policy Changes - The Use Of Marginal Or Quiz
How Changes In Credit Policy Are Incremental Analysis Assignments
Determined 3. Purposes and Types Of Inventory
2. Discuss The Reasons For Carrying 4. Inventory - Management Techniques
Inventory And How Inventory Management a) EOQ - Economic Order Quantity
Decisions Are Made b) JIT - Just In Time Inventory Control
Ref. Van Horne, Financial Management Annd Policy ( pp. 361 - 382 )
V. COURSE REQUIREMENTS:
1. Quizzes
2 . Recitation
3. Assignments
4. Long Exams
5. Case Analysis / Debates
VI. GRADING SYSTEM:
Grades Are Computed As Follows:
Preliminary Average = ( C.S. x 2 ) + Preliminary Exam The following formula is used on grade transmutation:
3 Raw Score x 50 + 50
Mid -Term Average = ( C.S. x 2 ) + Mid - Term Exam Number of Items
3
Final Average = ( C.S. x 2 ) + Final Exam
3
Final Grade = Prelim Average + Mid-Term Average + Final Average
3
Class Standing Is The Sum Of The All Percentage Ratings In Quizzes, Recitation, Debates, Assignments, And Case Analysis

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VII. TEXT BOOK:

 Scott, Martin, Petty and Keown, Basic Financial Management, Pearson Education Asia 2005 - BFM

VIII. REFERENCE:

James Van Horne, Financial Management And Policy, 11thEdition Simon & Schuster ( Asia ) Pte Ltd. 2002

Prepared by: Recommending Approval: Approved by:

Jefferson L. Triguero Jefferson L. Triguero Marina B. Santos Ed D

Instructor Dept. Chair - Bus. Administration College Dean

Truth and Goodness in Man and for All Others Through Education