City of Malabon University Date Last Revised:

Feb 12, 2021

College of Business and Accountancy Revision Date:
May 18, 2021
BS Accountancy Semester Adopted:
AY 2021-2022

Vision
The City of Malabon University College of
Business and Accountancy is committed to
produce Trustworthy and Competent
Professionals in the World of Business.
Mission
College of Business and Accountancy of the City
of Malabon University aims to provide life-long
learning with relevant experiences; rooted upon
Ethical and Standard in Business Industries.

College Goals

C.B.A.-C.M.U. generally anchored to the following objectives; to wit:

To keep the students updated with the latest information through in-house seminars and training.

To actualize the theoretical knowledge and application through on-the-job training, case analysis and
management research for economic decision making.

Program Outcomes

A graduate of BS in Management Accountancy should be able to:

1. Resolve business issues and problems, with a global and strategic perspective using knowledge
and technical proficiency in the areas of financial accounting and reporting, cost accounting and
management, accounting and control, taxation, and accounting information systems;

2. Conduct accountancy research through independent studies of relevant literature and

appropriate use of accounting theories and methodologies;

3. Employ technology as a business tool in capturing financial and non-financial information,

generating reports and making decisions;
4. Apply knowledge and skills to successfully respond to various types of; and Confidently maintain
a commitment to good corporate citizenship, social responsibility and ethical practice in
performing functions as an accountant. (including professional licensure and certifications as
Certified Public Accountant)

Course Information
Course Name Course Code
FINANCIAL MANAGEMENT CAE 125
Pre-Requisite Subject Course Credit
3 units
None
Course Requirements

Grading System
% Scale Rating Numerical Rating Remarks
98-100 1.00 Excellent
95-97 1.25 Excellent
92-94 1.50 Very Good
89-91 1.75 Very Good
86-88 2.00 Good
83-85 2.25 Good
80-82 2.50 Satisfactory
77-79 2.75 Satisfactory
75-76 3.00 Passed
Below 75 5.00 Failed
INC Incomplete
DO Dropped Officially
DU (5.00) Dropped Unofficially

Course Description

This course focuses on Financial and capital Market Theory, its efficiency and implications. It
establishes coherence with the rest of financial institutions within financial environment. The course
also deals with the relationship of the financial market with the government and how the latter
stands a powerful influential tool. The course likewise attempts to develop analytical ability of the
students through various financial case presentations.

Course Outcomes

1. Explain the goals and functions of financial management.

2. Prepare and present Cash Flow statements.
3. Analyze financial statements and describe the economic health of a company.
4. Explain the benefits of financial forecasting and prepare proforma financial statements.
5. Calculate and explain operating and financial leverage.
6. Decide the form and amount of short term financing that best suits a given corporate need, based on
historical and projected analysis.
7. Recommend techniques for managing working capital effectively.

Time Learning Outcomes Content Teaching Activity Assessment

Week 1 Setting expectation on Orientation to the Course Discussion Online discussion
the course
Week 2 Explain the role of finance Overview of Financial  Lecture  Online
and the different types of  Discussion discussion
jobs in finance. Management
 Home
activity to
Identify the advantages be given at
and disadvantages of the end of
different forms of business online
organization. class.
 Giving
 Explain the links between online quiz
stock price, intrinsic value,
and executive
compensation.

Discuss the importance of

business ethics and the
consequences of
unethical
behavior.

Identify the potential

conflicts that arise within
the firm between
stockholders
and managers and
between stockholders and
bondholders and discuss
the techniques that firms
can use to mitigate these
potential conflicts.
Week 3 Financial Markets and  Lecture  Online
 Discussion discussion
Institutions
Identify the different types  Home
of financial markets and activity to
financial institutions and be given at
explain how these the end of
markets and institutions online
enhance capital allocation. class.
 Giving
Explain how the stock online quiz
market operates and list
the distinctions between
the different types of
stock markets.

Explain how the stock

market has performed in
recent years.

Discuss the importance of

market efficiency and
explain why some markets
are more efficient than
others.
Week 4 Financial Statements,  Lecture  Online
List each of the key  Discussion discussion
Cash Flow, and Taxes
financial statements and  Home
identify the kinds of activity to
information they provide to be given at
corporate managers and the end of
investors. online
class.
Estimate a firm’s free cash  Giving
flow and explain why free online quiz
cash flow has such an
important effect on firm
value.

Discuss the major

features of the federal
income tax system.

Week 5 Analysis of Financial  Lecture  Online

Explain what ratio analysis Statements  Discussion discussion
is.  Home
 activity to
List the 5 groups of ratios be given at
and identify, calculate, the end of
and interpret the key online
ratios in class.
each group. In addition,  Giving
discuss each ratio’s online quiz
relationship to the balance
sheet
and income statement.

Discuss why ROE is the

key ratio under
management’s control,
how the other
ratios affect ROE, and
explain how to use the
DuPont equation to see
how the
ROE can be improved.

Compare a firm’s ratios

with those of other firms
(benchmarking) and
analyze a
given firm’s ratios over
time (trend analysis).

Discuss the tendency of

ratios to fluctuate over
time, which may or may
not be
problematic.

Explain how they can be

influenced by accounting
practices and other factors
and why they must be
used with care.
Week 6 Explain how the time Time Value of Money  Lecture  Online
value of money works and  Discussion discussion
discuss why it is such an  Home
important concept in activity to
finance. be given at
the end of
Calculate the present online
value and future value of class.
lump sums.  Giving
online quiz
Identify the different types
of annuities and calculate
the present value and
future value of both an
ordinary annuity and an
annuity due.

Calculate the present

value and future value of
an uneven cash flow
stream.

Explain the difference

between nominal,
periodic, and effective
interest rates.

Discuss the basics of loan

amortization.
Week 7 Midterms

Week 8 Risks and Returns  Lecture  Online

 Discussion discussion
Explain the distinction  Home
between a stock’s price activity to
and its intrinsic value. be given at
the end of
Identify the two models online
that can be used to class.
estimate a stock’s intrinsic  Giving
value: the discounted online quiz
dividend model and the
corporate model.

List the key characteristics

of preferred stock and
explain how to estimate
the value of preferred
stock.
Week 9 List the various factors Interest rates  Lecture  Online
that influence the cost of  Discussion discussion
money.  Home
activity to
Discuss how market be given at
interest rates are affected the end of
by borrowers’ need for online
capital, class.
expected inflation,  Giving
different securities’ risks, online quiz
and securities’ liquidity.

Explain what the yield

curve is, what determines
its shape, and how you
can use
the yield curve to help
forecast future interest
rates.

Week 10 Bonds Valuation  Lecture  Online

Identify the different  Discussion discussion
features of corporate and  Home
government bonds. activity to
be given at
Discuss how bond prices the end of
are determined in the online
market, what the class.
relationship is between  Giving
interest rates and bond online quiz
prices, and how a bond’s
price changes over time
as it approaches maturity.

Calculate a bond’s yield to

maturity and its yield to
call if it is callable and
determine the “true” yield.

Explain the different types

of risk that bond investors
and issuers face and the
way a bond’s terms and
collateral can be changed
to affect its interest rate.
Week 11 Stocks Valuation  Lecture  Online
 Discussion discussion
 Explain the distinction  Home
between a stock’s price activity to
and its intrinsic value. be given at
the end of
Identify the two models online
that can be used to class.
estimate a stock’s intrinsic  Giving
value: the discounted online quiz
dividend model and the
corporate model.

List the key characteristics

of preferred stock and
explain how to estimate
the value of preferred
stock.
Week 12 The Cost of Capital  Lecture  Online
Explain why the weighted  Discussion discussion
average cost of capital  Home
(WACC) is used in capital activity to
budgeting. be given at
the end of
Estimate the costs of online
different capital class.
components—debt,  Giving
preferred stock, retained online quiz
earnings, and common
stock.

Combine the different

component costs to
determine the firm’s
WACC

Week 13 The Basics of Capital  Lecture  Online

Discuss capital budgeting.  Discussion discussion
Budgeting
 Home
Calculate and use the activity to
major capital budgeting be given at
decision criteria, which are the end of
NPV, IRR, MIRR, and online
payback. class.
 Giving
Explain why NPV is the online quiz
best criterion and how it
overcomes problems
inherent in the other
methods.

Week 14 Finals

Suggested Textbooks/Reference Materials:

Fundamentals of Financial Management by Eugene Brigham

Principle of Managerial Finance 10th Edition by Lawrence Gitman