PHILIPPINE CHRISTIAN UNIVERISTY Course No.

Course Title Dean’s Information

1648 Taft Ave cor Pedro Gil St. GS-MBA 230 Financial Management 1
Malate Manila 1004 Tel: (+63)02-8523-2372
Website: www.manila.pcu.edu.ph
General Objectives
Financial Management 1 present the basic financial tools and analytical methods for
managerial decision-marking. It is designed to help graduate students understand how firms
meet their financial objectives utilizing financial decision-making.
References &
Topics Enrichment Activities Case Studies Assessment Tools Time Frame
Educational Materials
1. The Finance Function Lecture
a. Profit or Wealth Maximization;
b. EPS Maximization; Individual Recitation and
PowerPoint Presentation Graded Recitation Forty eight hours
c. Overview of Managerial Finance Function;
Books References online classes
d. Time value of money;
Team teaching Oral Presentation Platform: Zoom
i. Present value of money;
ii. Future value of money; and
e. The basic valuation models. Visual Aids
2. Investment decisions: Nature of Capital Budgeting
decisions
a. Techniques of capital budgeting Lecture
b. Payback method
c. Average rate of return and time-adjusted Individual Recitation
Graded Recitation
methods
PowerPoint Presentation Book References
i. IRR
Oral Presentation
ii. NPV Team Teaching
iii. Profitability index
iv. Excess present value index Visual Aids
d. Advance problems and cases in capital
budgeting
3. Cost of Capital Lecture Book References Graded Recitation
a. Concept and measurement of cost of capital
b. Debt vs Equity Individual Recitation Oral Presentation
 c. Cost of Equity
d. Preference shares
PowerPoint Presentation
e. Equity capital and retained earnings
f. Weighted average cost of capital and marginal
Team Teaching
cost of capital
g. Importance of cost capital in capital budgeting Visual Aids
decisions.
4. Capital structure Decisions: Capital structure vs
Financial Structure Lecture
a. Capitalization
b. Financial leverage Individual Recitation
c. Operating leverage and composite leverage Graded Recitation
d. EBIT-EPS Analysis PowerPoint Presentation Book References
e. Indifference Point/Break even analysis of Oral Presentation
financial leverage Team Teaching
f. Capital structure theories
i. The Modigliani Miller Theory Visual Aids
ii. A critical appraisal
5. Dividend Decisions: Dividends and value of the
firm
a. Relevance of dividends Lecture
i. The MM hypothesis
ii. Factors determining Dividend Policy Individual Recitation
Graded Recitation
1. Dividends and valuation of the firm
PowerPoint Presentation Book References
b. The basic models
Oral Presentation
i. Declaration and payment of dividends; Team Teaching
ii. Bonus shares;
iii. Rights issue, share-splits; Visual Aids
iv. Walter Model and
v. Gordon Model
6. Working Capital Management Lecture Book References Graded Recitation
a. Components of working capital
b. Gross vs net Working Capital Individual Recitation Oral Presentation
 c. Determinants of working capital needs
d. The operating cycle approach PowerPoint Presentation
e. Planning of working Capital
f. Financing of working capital through Bank Team Teaching
Finance and Trade Credit
Visual Aids
7. Management of current assets I: Management of Lecture
cash
a. Basic strategies for cash management Individual Recitation
i. Cash budget Graded Recitation
ii. Cash management techniques/processes PowerPoint Presentation Book References
b. Marketable securities Oral Presentation
i. Characteristics Team Teaching
ii. Selection criterion
c. Marketable security alternatives Visual Aids
8. Management of current assets II: Management of
receivables
a. Objectives Lecture
b. Credit policies
c. Credit Terms Individual Recitation
Graded Recitation
d. Collection policies
PowerPoint Presentation Book References
e. Management of inventory objectives
Oral Presentation
f. Techniques of inventory Team Teaching
management
g. The importance of current assets Visual Aids
management in working capital
planning.
BOOK REFERENCES GRADING POLICY REQUIRED PAPERS
 My Khan and PK Jain: Financial Management-Text and Problems, Tata
McGraw-Hill, New Delhi.2007
 Chandra Bose D, Fundamentals of Financial Management, PHI-2006
 James C Van Horne: Financial Management and Policy, Pearson Education,
2006.
 I.M. Pandey- Financial Management, 9/e Vikas Publishing, 2007
 Chakraborty, Bhattacharya, Rao and Sen – Financial Management and control.
Macmillan India Ltd, 2007
 S.N.Maheswari, Financial Management, Vikas Publishers, New Delhi, 2007
 Michael C Ehrhardt Eugene F Brigham, Corporate Finance, A focused
Approach Thomson. Chennai, 2006.
 Richard A brealey, Stewart C Myers, Franklin Allen, Pitabas Mohanty-
Principles of Corporate Finance. TMH, 8th edition, 2007
 Besley and Brigham: Essentials of Managerial Finance, 13/3 Thomson, 2006
 Sudhindra Bhat, Financial Management Principles and Practice, First Edition,
Excel Books, New Delhi, 2007 Tenth Edition, New Delhi,2006
 Prasanna Chandra, Financial Management, 5/e, Tata McGraw-Hill,2006