University of the Immaculate Conception

MASTER IN BUSINESS ADMINISTRATION PROGRAM

Course Code : BA 309

Course Title : Financial Management
Credit units : 3
Class Schedule :
Course Description : This course discusses how the business manages its assets,
liabilities and financial structure by using the financial analysis
techniques. It includes financial policy formulation, methods of capital
allocation, risk and return evaluation, working capital management,
expenditures budget preparation, investment and dividend policy,
long-term and short-term financing planning, decision making in
relation to business expansion and merger

COURSE OUTCOMES :

CO 1. demonstrate working knowledge on the tools that are used to value investment projects
and companies.
CO 2. examine issues concerning raising capital and financing for long-term and short-term
assets and other investments
CO 3. evaluate how investment and financing decisions are related

COURSE OUTLINE :

Topics Page
Introduction to Financial Management
1. Overview of Financial Management
Fundamental Concepts in Financial Management
1. Financial Statements, Cash Flows and Taxes
2. Analysis of Financial Statements
3. Time Value of Money
Financial Assets
1. Risk and Returns

Investing in Long-Term Assets

1. The Cost of Capital
2. The Basics of Capital Budgeting

Capital Structure and Dividend Policy

MBA BA206- Financial Management A.Y. 2020-2021 Page 1 of 21

 1. Capital Structure and Leverage
2. Dividends and Dividend Policy

Short-term Decisions
1. Working Capital Management

COURSE EVALUATION
𝑛
∑ 𝐶𝑂𝑖
𝑇𝑒𝑟𝑚𝑖𝑛𝑎𝑙 𝐺𝑟𝑎𝑑𝑒 = 70%⎛ 𝑖=1𝑛 ⎞ + 30%𝐸𝑥𝑎𝑚
⎝ ⎠
𝑘 𝑚
𝐶𝑂𝑖 = 70% ∑ 𝐴𝑇𝑗 + 30% ∑ 𝑇𝐿𝐴𝑧
𝑗=1 𝑧=1
Where
1. AT = Assessment Task
2. CO = Course Outcome
3. TLA = Teaching Learning Activities (e.g. Quiz, Recitation, Laboratory Activity, etc.)

TOPIC 1
Overview of Financial Management
LEARNING OBJECTIVES:
At the end of the lesson, the student will be able to:
a. discuss the role of finance and financial managers.
INTRODUCTION
Read “Striking the Balance” on page 3 of the reference material and share your insights to the class.

Time allotment/ duration: 1.5 hours

Core-Related values and Biblical Reflection:
Excellence: Competence
2 Timothy 2:15: Do your best to present yourself to God as one approved, a worker who has no need to
be ashamed, rightly handling the word of truth. (ESV)

LEARNING CONTENT
Topic Content:

Open and Read Chapter 1 of the reference material.

Students assigned will present the topic.

LEARNING EVALUATION
Teaching-Learning Activities

TLA1: Research-Based Assignment

Expected Output: Write-up in Google Docs.
Instruction: Edmund Enterprises recently made a large investment to upgrade its technology. Although these
improvements won’t have much effect on performance in the short run, they are expected to reduce future costs
significantly. What effect will this investment have on Edmund Enterprises’ earnings per share this year? What
effect might this investment have on the company’s intrinsic value and stock price?

ASSESSMENTS
AT1. Critical Thinking Case.

MBA BA206- Financial Management A.Y. 2020-2021 Page 2 of 21

 Expected Output: Google Docs
Instruction: Who owns a corporation? Describe the process whereby the owners control the firm’s management.
What is the main reason that an agency relationship exists in the corporate form of organization? In this context,
what problems can arise?

ASSIGNMENTS
Assignment for the next meeting:
Instruction: Open and Read Chapter 2 of the reference material.

RUBRICS FOR GRADING

A. Presentation
No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categories 0 2 points 3 points 4 points 5 points
point
Quality of Minimal No apparent Apparent point Sharp, distinct
Output/conten Evidence of point but made about a controlling
t the topic evidence of the single topic point made
The single specific topic with sufficient about a single
controlling point awareness of topic with
made with an task evident
awareness of awareness of
tasks about a task.
specific topic
Delivery Too fast Little bit fast and Good pace Excellent pace
The fluency and delivery and shows little with good with great
pace of lack of enthusiasm. enthusiasm enthusiasm.
presentation. enthusiasm
Responsivenes Does not Rarely answers Answers Answers
s answers questions in a questions questions
The ability to effectively and sufficient and adequately effectively and
answer questions adequately effective manner smoothly.
effectively and
smoothly.

B. Case Analysis and Other Essays

No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categorie 0 2 points 3 points 4 points 5 points
s point
Focus Minimal No apparent Apparent point Sharp, distinct
The single Evidence of point but made about a controlling
controlling the topic evidence of the single topic point made
point made specific topic with sufficient about a single
with an awareness of topic with
awareness of task evident
tasks about a awareness of
specific topic task.
Content Superficial Limited content Sufficiently Substantial,
The presence and/ minimal with inadequate developed specific and/
of ideas content elaboration or content with illustrative
developed explanation adequate content
through facts, elaboration demonstrating
examples, and strong
anecdotes, explanation development
statistics, and
reasons and/ sophisticated
explanations ideas

MBA BA206- Financial Management A.Y. 2020-2021 Page 3 of 21

 Organization Minimal control Confused or Functional Sophisticated
The order of content inconsistent arrangement arrangement
developed and arrangement arrangement of of content that of content with
sustained content with or sustains a evident/ subtle
within and without attempts logical order transitions.
across at transition with some
paragraphs and evidence of
proper inclusion transitions
of introduction
and conclusion.

REFERENCES

Required Readings:

Brigham, Eugene et. al. (2017). Fundamentals of Financial Management: Concise. Textbook. Cengage Learning

TOPIC 2
Financial Statements, Cash Flows and Taxes
LEARNING OBJECTIVES:
At the end of the lesson, the student will be able to:
a. identify financial statements and its elements
b. discuss the presentation and preparation of financial statements
INTRODUCTION
Watch this video.
https://www.youtube.com/watch?v=Fw14qE_9B-A

? Describe how important the financial statement relative to the role of financial
manager. ☺

Time allotment/ duration: 3 hours

Core-Related values and Biblical Reflection:
Excellence: Competence
2 Timothy 2:15: That the man of God may be competent, equipped for every good work (ESV)

LEARNING CONTENT
Topic Content:

Open and Read Chapter 3 of the reference material.

Students assigned will present the topic

LEARNING EVALUATION
Teaching-Learning Activities

TLA3: Individual Activity

Expected Output: Personal Financial Statements
Instruction: Develop your personal financial statements covering one month period. Present your output in the
google docs provided.

ASSESSMENTS
AT3. Problem-Set
Expected Output: Solutions in the google sheet

MBA BA206- Financial Management A.Y. 2020-2021 Page 4 of 21

 Instruction: On page 95 of the reference material, read “problem 3-19” and provide a solution to all
requirements in the google sheet. Turn-in your output on or before the prescribed due date.

ASSIGNMENTS
Assignment for the next meeting:
Instruction: Open and Read Chapter 4 of the reference material.

RUBRICS FOR GRADING

A. Presentation
No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categories 0 2 points 3 points 4 points 5 points
point
Quality of Minimal No apparent Apparent point Sharp, distinct
Output/conten Evidence of point but made about a controlling
t the topic evidence of the single topic point made
The single specific topic with sufficient about a single
controlling point awareness of topic with
made with an task evident
awareness of awareness of
tasks about a task.
specific topic
Delivery Too fast Little bit fast and Good pace Excellent pace
The fluency and delivery and shows little with good with great
pace of lack of enthusiasm. enthusiasm enthusiasm.
presentation. enthusiasm
Responsivenes Does not Rarely answers Answers Answers
s answers questions in a questions questions
The ability to effectively and sufficient and adequately effectively and
answer questions adequately effective manner smoothly.
effectively and
smoothly.

B. Case Analysis and Other Essays

No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categorie 0 2 points 3 points 4 points 5 points
s point
Focus Minimal No apparent Apparent point Sharp, distinct
The single Evidence of point but made about a controlling
controlling the topic evidence of the single topic point made
point made specific topic with sufficient about a single
with an awareness of topic with
awareness of task evident
tasks about a awareness of
specific topic task.
Content Superficial Limited content Sufficiently Substantial,
The presence and/ minimal with inadequate developed specific and/
of ideas content elaboration or content with illustrative
developed explanation adequate content
through facts, elaboration demonstrating
examples, and strong
anecdotes, explanation development
statistics, and
reasons and/ sophisticated
explanations ideas
Organization Minimal control Confused or Functional Sophisticated
The order of content inconsistent arrangement arrangement
developed and arrangement arrangement of of content that of content with
sustained content with or sustains a

MBA BA206- Financial Management A.Y. 2020-2021 Page 5 of 21

 within and without attempts logical order evident/ subtle
across at transition with some transitions.
paragraphs and evidence of
proper inclusion transitions
of introduction
and conclusion.

REFERENCES

Required Readings:

Brigham, Eugene et. al. (2017). Fundamentals of Financial Management: Concise. Textbook. Cengage Learning

TOPIC 3
Analysis of Financial Statements
LEARNING OBJECTIVES:
At the end of the lesson, the student will be able to:
a. analyze financial statements using various analysis techniques.
INTRODUCTION
Watch this video.
https://www.youtube.com/watch?v=8DmChanpSmw

? What are the FS analysis techniques describe in the video?. ☺

Time allotment/ duration: 3 hours

Core-Related values and Biblical Reflection:
Excellence: Competence

2 Corinthians 3:4-5 : Such is the confidence that we have through Christ toward God. Not that we are
sufficient in ourselves to claim anything as coming from us, but our sufficiency is from God (ESV)

LEARNING CONTENT
Topic Content:
Open and Read Chapter 4 of the reference material.
Students assigned will present the topic

LEARNING EVALUATION
Teaching-Learning Activities

TLA4: Research-Based Assignment

Expected Output: Google Sheet
Instruction: Analyze the financial statement of a chosen company operating in Davao City. Use the tools presented
in this topic. In a separate document, write your observation/conclusion about the financial health of the company
on the basis of FS analysis conducted.

ASSESSMENTS
AT4. Problem Set.
Expected Output: Solutions in Google Sheet
Instruction: On page 136 of the reference material, read the comprehensive problem and write your solution in
the google sheet provided. Turn-in your output on or before the prescribed due date.
ASSIGNMENTS

MBA BA206- Financial Management A.Y. 2020-2021 Page 6 of 21

 Assignment for the next meeting:
Instruction: Open and Read Chapter 5 of the reference material.

RUBRICS FOR GRADING

A. Presentation
No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categories 0 2 points 3 points 4 points 5 points
point
Quality of Minimal No apparent Apparent point Sharp, distinct
Output/conten Evidence of point but made about a controlling
t the topic evidence of the single topic point made
The single specific topic with sufficient about a single
controlling point awareness of topic with
made with an task evident
awareness of awareness of
tasks about a task.
specific topic
Delivery Too fast Little bit fast and Good pace Excellent pace
The fluency and delivery and shows little with good with great
pace of lack of enthusiasm. enthusiasm enthusiasm.
presentation. enthusiasm
Responsivenes Does not Rarely answers Answers Answers
s answers questions in a questions questions
The ability to effectively and sufficient and adequately effectively and
answer questions adequately effective manner smoothly.
effectively and
smoothly.

B. Case Analysis and Other Essays

No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categorie 0 2 points 3 points 4 points 5 points
s point
Focus Minimal No apparent Apparent point Sharp, distinct
The single Evidence of point but made about a controlling
controlling the topic evidence of the single topic point made
point made specific topic with sufficient about a single
with an awareness of topic with
awareness of task evident
tasks about a awareness of
specific topic task.
Content Superficial Limited content Sufficiently Substantial,
The presence and/ minimal with inadequate developed specific and/
of ideas content elaboration or content with illustrative
developed explanation adequate content
through facts, elaboration demonstrating
examples, and strong
anecdotes, explanation development
statistics, and
reasons and/ sophisticated
explanations ideas
Organization Minimal control Confused or Functional Sophisticated
The order of content inconsistent arrangement arrangement
developed and arrangement arrangement of of content that of content with
sustained content with or sustains a evident/ subtle
within and without attempts logical order transitions.
across at transition with some
paragraphs and evidence of
proper inclusion transitions

MBA BA206- Financial Management A.Y. 2020-2021 Page 7 of 21

 of introduction
and conclusion.

REFERENCES

Required Readings:

Brigham, Eugene et. al. (2017). Fundamentals of Financial Management: Concise. Textbook. Cengage Learning

TOPIC 4
Time Value of Money
LEARNING OBJECTIVES:
At the end of the lesson, the student will be able to:
a. Apply the concept of TVM in problem solving.
INTRODUCTION
Watch this video.
https://www.youtube.com/watch?v=MdK-A1VQJls

? Reflect on how the time value of money concept affects your financial decisions. ☺

Time allotment/ duration: 1.5 hours

Core-Related values and Biblical Reflection:
Excellence: Competence
Matthew 7:7: Ask, and it will be given to you; seek and you will find; knock, and it be opened to you
(ESV)

LEARNING CONTENT
Topic Content:
Open and Read Chapter 5 of the reference material.
Students assigned will present the topic

LEARNING EVALUATION
Teaching-Learning Activities

TLA5: Team Activity

Expected Output: Solutions in Google Sheet .
Instruction: Find a study partner and refer to page 178 of the reference material, answer problems 5-1, 5-2, 5-6
& 5-7.

ASSESSMENTS
AT5. Team Activity.
Expected Output: Problem Set
Instruction: Find a study partner and on page 179 of the reference material, answer problem 5-14 & 5-15.
ASSIGNMENTS
Assignment for the next meeting:
Instruction: Open and Read Chapter 6 of the reference material.

RUBRICS FOR GRADING

A. Presentation

MBA BA206- Financial Management A.Y. 2020-2021 Page 8 of 21

 No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categories 0 2 points 3 points 4 points 5 points
point
Quality of Minimal No apparent Apparent point Sharp, distinct
Output/conten Evidence of point but made about a controlling
t the topic evidence of the single topic point made
The single specific topic with sufficient about a single
controlling point awareness of topic with
made with an task evident
awareness of awareness of
tasks about a task.
specific topic
Delivery Too fast Little bit fast and Good pace Excellent pace
The fluency and delivery and shows little with good with great
pace of lack of enthusiasm. enthusiasm enthusiasm.
presentation. enthusiasm
Responsivenes Does not Rarely answers Answers Answers
s answers questions in a questions questions
The ability to effectively and sufficient and adequately effectively and
answer questions adequately effective manner smoothly.
effectively and
smoothly.

B. Case Analysis and Other Essays

No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categorie 0 2 points 3 points 4 points 5 points
s point
Focus Minimal No apparent Apparent point Sharp, distinct
The single Evidence of point but made about a controlling
controlling the topic evidence of the single topic point made
point made specific topic with sufficient about a single
with an awareness of topic with
awareness of task evident
tasks about a awareness of
specific topic task.
Content Superficial Limited content Sufficiently Substantial,
The presence and/ minimal with inadequate developed specific and/
of ideas content elaboration or content with illustrative
developed explanation adequate content
through facts, elaboration demonstrating
examples, and strong
anecdotes, explanation development
statistics, and
reasons and/ sophisticated
explanations ideas
Organization Minimal control Confused or Functional Sophisticated
The order of content inconsistent arrangement arrangement
developed and arrangement arrangement of of content that of content with
sustained content with or sustains a evident/ subtle
within and without attempts logical order transitions.
across at transition with some
paragraphs and evidence of
proper inclusion transitions
of introduction
and conclusion.

REFERENCES

Required Readings:

MBA BA206- Financial Management A.Y. 2020-2021 Page 9 of 21

 Brigham, Eugene et. al. (2017). Fundamentals of Financial Management: Concise. Textbook. Cengage Learning

TOPIC 5
Risk and Returns
LEARNING OBJECTIVES:
At the end of the lesson, the student will be able to:
a. Differentiate CAPM and SML and apply the concept in a problem solving.

INTRODUCTION
Watch this video.
https://www.youtube.com/watch?v=4KGvoy_Ke9Y

? Explain the statement “ the higher the risk, the higher the return”. ☺

Time allotment/ duration: 1.5 hours

Core-Related values and Biblical Reflection:
Excellence: Competence
Proverbs 3:21: My son, do not lose sight of these— keep sound wisdom and discretion (ESV)

LEARNING CONTENT

Open and Read Chapter 8 of the reference material.

Students assigned will present the topic

LEARNING EVALUATION
Teaching-Learning Activities

TLA7: Exercises
Expected Output: Solution in google docs
Instruction: Suppose you owned a portfolio consisting of P250,000 of long-term P.H government bonds.
1. Would your portfolio be riskless? Explain.
2. Now suppose the portfolio consists of P250,000 of 30-day Treasury bills. Every 30 days your bills mature,
and you will reinvest the principal (P250,000) in a new batch of bills. You plan to live on the investment
income from your portfolio, and you want to maintain a constant standard of living. Is the T-bill portfolio
truly riskless? Explain.
3. What is the least risky security you can think of? Explain.

ASSESSMENTS
AT7. Problem set
Expected Output: Solutions in google sheet
Instruction: Assume that the risk-free rate is 3.5% and the market risk premium is 4%. What is the required
return for the overall stock market? What is the required rate of return on a stock with a beta of 0.8?
ASSIGNMENTS
None

RUBRICS FOR GRADING

A. Presentation

MBA BA206- Financial Management A.Y. 2020-2021 Page 10 of 21

 No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categories 0 2 points 3 points 4 points 5 points
point
Quality of Minimal No apparent Apparent point Sharp, distinct
Output/conten Evidence of point but made about a controlling
t the topic evidence of the single topic point made
The single specific topic with sufficient about a single
controlling point awareness of topic with
made with an task evident
awareness of awareness of
tasks about a task.
specific topic
Delivery Too fast Little bit fast and Good pace Excellent pace
The fluency and delivery and shows little with good with great
pace of lack of enthusiasm. enthusiasm enthusiasm.
presentation. enthusiasm
Responsivenes Does not Rarely answers Answers Answers
s answers questions in a questions questions
The ability to effectively and sufficient and adequately effectively and
answer questions adequately effective manner smoothly.
effectively and
smoothly.

B. Case Analysis and Other Essays

No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categorie 0 2 points 3 points 4 points 5 points
s point
Focus Minimal No apparent Apparent point Sharp, distinct
The single Evidence of point but made about a controlling
controlling the topic evidence of the single topic point made
point made specific topic with sufficient about a single
with an awareness of topic with
awareness of task evident
tasks about a awareness of
specific topic task.
Content Superficial Limited content Sufficiently Substantial,
The presence and/ minimal with inadequate developed specific and/
of ideas content elaboration or content with illustrative
developed explanation adequate content
through facts, elaboration demonstrating
examples, and strong
anecdotes, explanation development
statistics, and
reasons and/ sophisticated
explanations ideas
Organization Minimal control Confused or Functional Sophisticated
The order of content inconsistent arrangement arrangement
developed and arrangement arrangement of of content that of content with
sustained content with or sustains a evident/ subtle
within and without attempts logical order transitions.
across at transition with some
paragraphs and evidence of
proper inclusion transitions
of introduction
and conclusion.

REFERENCES

Required Readings:

MBA BA206- Financial Management A.Y. 2020-2021 Page 11 of 21

 Brigham, Eugene et. al. (2017). Fundamentals of Financial Management: Concise. Textbook. Cengage Learning

TOPIC 6
Cost of Capital
LEARNING OBJECTIVES:
At the end of the lesson, the student will be able to:
a. Explain why the weighted average cost of capital (WACC) is used in capital budgeting.

INTRODUCTION
Watch this video.
https://www.youtube.com/watch?v=Wz6Dwbp2XiI

? Is there a “right” WACC for a company? ☺

Time allotment/ duration: 1.5 hours

Core-Related values and Biblical Reflection:
Excellence: Competence
Proverbs 3:21: My son, do not lose sight of these— keep sound wisdom and discretion (ESV)

LEARNING CONTENT

Open and Read Chapter 10 of the reference material.

Students assigned will present the topic

LEARNING EVALUATION
Teaching-Learning Activities

TLA8: Short- Exercise

Expected Output: Solution in google sheet
Instruction: Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts
at an interest rate of rd 9% as long as it finances at its target capital structure, which calls for 35% debt and
65% common equity. Its last dividend D0 was $2.20, its expected constant growth rate is 6%, and its common
stock sells for $26. EEC’s tax rate is 40%. Two projects are available: Project A has a rate of return of 12%, and
Project B’s return is 11%. These two projects are equally risky and about as risky as the firm’s existing assets.
a. What is its cost of common equity?
b. What is the WACC?
c. Which projects should Empire accept? Explain.

ASSESSMENTS
AT8. Problem set
Expected Output: Solutions in google sheet
Instruction: Refer to page 373 of the reference material, provide solution to each requirement.
ASSIGNMENTS
None

RUBRICS FOR GRADING

A. Presentation
No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s s

MBA BA206- Financial Management A.Y. 2020-2021 Page 12 of 21

 Standard Standard
s s
Categories 0 2 points 3 points 4 points 5 points
point
Quality of Minimal No apparent Apparent point Sharp, distinct
Output/conten Evidence of point but made about a controlling
t the topic evidence of the single topic point made
The single specific topic with sufficient about a single
controlling point awareness of topic with
made with an task evident
awareness of awareness of
tasks about a task.
specific topic
Delivery Too fast Little bit fast and Good pace Excellent pace
The fluency and delivery and shows little with good with great
pace of lack of enthusiasm. enthusiasm enthusiasm.
presentation. enthusiasm
Responsivenes Does not Rarely answers Answers Answers
s answers questions in a questions questions
The ability to effectively and sufficient and adequately effectively and
answer questions adequately effective manner smoothly.
effectively and
smoothly.

B. Case Analysis and Other Essays

No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categorie 0 2 points 3 points 4 points 5 points
s point
Focus Minimal No apparent Apparent point Sharp, distinct
The single Evidence of point but made about a controlling
controlling the topic evidence of the single topic point made
point made specific topic with sufficient about a single
with an awareness of topic with
awareness of task evident
tasks about a awareness of
specific topic task.
Content Superficial Limited content Sufficiently Substantial,
The presence and/ minimal with inadequate developed specific and/
of ideas content elaboration or content with illustrative
developed explanation adequate content
through facts, elaboration demonstrating
examples, and strong
anecdotes, explanation development
statistics, and
reasons and/ sophisticated
explanations ideas
Organization Minimal control Confused or Functional Sophisticated
The order of content inconsistent arrangement arrangement
developed and arrangement arrangement of of content that of content with
sustained content with or sustains a evident/ subtle
within and without attempts logical order transitions.
across at transition with some
paragraphs and evidence of
proper inclusion transitions
of introduction
and conclusion.

REFERENCES
Required Readings:

Brigham, Eugene et. al. (2017). Fundamentals of Financial Management: Concise. Textbook. Cengage Learning

MBA BA206- Financial Management A.Y. 2020-2021 Page 13 of 21

 TOPIC 7
The Basics of Capital Budgeting
LEARNING OBJECTIVES:
At the end of the lesson, the student will be able to:
a. discuss capital budgeting.
b. calculate and use the major capital budgeting decision criteria, which are NPV, IRR, MIRR, and payback.
c. explain why NPV is the best criterion and how it overcomes problems inherent in the other methods.

INTRODUCTION
Read the case

Read “Competition in the Aircraft Industry: Airbus versus Boeing” in page

378 of the reference material

? Share your thoughts about the case. ☺

Time allotment/ duration: 1.5 hours

Core-Related values and Biblical Reflection:
Excellence: Competence
Proverbs 3:21: My son, do not lose sight of these— keep sound wisdom and discretion (ESV)

LEARNING CONTENT

Open and Read Chapter 11 of the reference material.

Students assigned will present the topic

LEARNING EVALUATION
Teaching-Learning Activities

TLA9: Short- Exercise

Expected Output: Solution in google sheet
Instruction: On page 404 of the reference material, provide solutions to problem 11-4, 11-5 and 11-6.
ASSESSMENTS
AT9. Problem set
Expected Output: Solutions in google sheet
Instruction: On page 404 of the reference material, provide solutions to problem 11-14.
ASSIGNMENTS
None

RUBRICS FOR GRADING

A. Presentation
No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categories 0 2 points 3 points 4 points 5 points
point
Quality of Minimal No apparent Apparent point Sharp, distinct
Output/conten Evidence of point but made about a controlling
t the topic evidence of the single topic point made
The single specific topic with sufficient about a single
controlling point awareness of topic with
made with an task evident

MBA BA206- Financial Management A.Y. 2020-2021 Page 14 of 21

 awareness of awareness of
tasks about a task.
specific topic
Delivery Too fast Little bit fast and Good pace Excellent pace
The fluency and delivery and shows little with good with great
pace of lack of enthusiasm. enthusiasm enthusiasm.
presentation. enthusiasm
Responsivenes Does not Rarely answers Answers Answers
s answers questions in a questions questions
The ability to effectively and sufficient and adequately effectively and
answer questions adequately effective manner smoothly.
effectively and
smoothly.

B. Case Analysis and Other Essays

No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categorie 0 2 points 3 points 4 points 5 points
s point
Focus Minimal No apparent Apparent point Sharp, distinct
The single Evidence of point but made about a controlling
controlling the topic evidence of the single topic point made
point made specific topic with sufficient about a single
with an awareness of topic with
awareness of task evident
tasks about a awareness of
specific topic task.
Content Superficial Limited content Sufficiently Substantial,
The presence and/ minimal with inadequate developed specific and/
of ideas content elaboration or content with illustrative
developed explanation adequate content
through facts, elaboration demonstrating
examples, and strong
anecdotes, explanation development
statistics, and
reasons and/ sophisticated
explanations ideas
Organization Minimal control Confused or Functional Sophisticated
The order of content inconsistent arrangement arrangement
developed and arrangement arrangement of of content that of content with
sustained content with or sustains a evident/ subtle
within and without attempts logical order transitions.
across at transition with some
paragraphs and evidence of
proper inclusion transitions
of introduction
and conclusion.

REFERENCES

Required Readings:

Brigham, Eugene et. al. (2017). Fundamentals of Financial Management: Concise. Textbook. Cengage Learning

TOPIC 8
Capital Structure and Leverage
LEARNING OBJECTIVES:
At the end of the lesson, the student will be able to:

MBA BA206- Financial Management A.Y. 2020-2021 Page 15 of 21

 a. Explain why there may be differences in a firm’s capital structure when measured on a book-value basis, a
market-value basis, or a target basis.
b. Distinguish between business risk and financial risk, and explain the effects that debt financing has on the
firm’s expected return and risk.
c. Discuss the analytical framework used when determining the optimal capital structure.
d. Discuss capital structure theory, and use it to explain why firms in different industries tend to have
different capital structures.

INTRODUCTION
Read the case
Read “Debt: Rocket Booster or Anchor? Caterpillar Inc. ” in page 452 of the
reference material
? Share your thoughts about the case. ☺

Time allotment/ duration: 1.5 hours

Core-Related values and Biblical Reflection:
Excellence: Competence
Proverbs 3:21: My son, do not lose sight of these— keep sound wisdom and discretion (ESV)

LEARNING CONTENT

Open and Read Chapter 13 of the reference material.

Students assigned will present the topic

LEARNING EVALUATION
Teaching-Learning Activities

TLA10: Short- Exercise

Expected Output: Solution in google sheet
Instruction: On page 487 of the reference material, provide solutions to problem 13-5.
ASSESSMENTS
AT10. Problem set
Expected Output: Solutions in google sheet
Instruction: Linkin Park Corporation is comparing two different capi- tal structures, an all-equity plan (Plan I) and a
levered plan (Plan II). Under Plan I, Linkin Park would have 100,000 shares of stock outstanding. Under Plan II,
there would be 50,000 shares of stock outstanding and $1.5 million in debt outstanding. The interest rate on the
debt is 10 percent and there are no taxes.

a. If EBIT is $200,000, which plan will result in the higher EPS?

b. If EBIT is $700,000, which plan will result in the higher EPS?
c. What is the break-even EBIT?

ASSIGNMENTS
None

RUBRICS FOR GRADING

A. Presentation
No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categories 0 2 points 3 points 4 points 5 points
point

MBA BA206- Financial Management A.Y. 2020-2021 Page 16 of 21

 Quality of Minimal No apparent Apparent point Sharp, distinct
Output/conten Evidence of point but made about a controlling
t the topic evidence of the single topic point made
The single specific topic with sufficient about a single
controlling point awareness of topic with
made with an task evident
awareness of awareness of
tasks about a task.
specific topic
Delivery Too fast Little bit fast and Good pace Excellent pace
The fluency and delivery and shows little with good with great
pace of lack of enthusiasm. enthusiasm enthusiasm.
presentation. enthusiasm
Responsivenes Does not Rarely answers Answers Answers
s answers questions in a questions questions
The ability to effectively and sufficient and adequately effectively and
answer questions adequately effective manner smoothly.
effectively and
smoothly.

B. Case Analysis and Other Essays

No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categorie 0 2 points 3 points 4 points 5 points
s point
Focus Minimal No apparent Apparent point Sharp, distinct
The single Evidence of point but made about a controlling
controlling the topic evidence of the single topic point made
point made specific topic with sufficient about a single
with an awareness of topic with
awareness of task evident
tasks about a awareness of
specific topic task.
Content Superficial Limited content Sufficiently Substantial,
The presence and/ minimal with inadequate developed specific and/
of ideas content elaboration or content with illustrative
developed explanation adequate content
through facts, elaboration demonstrating
examples, and strong
anecdotes, explanation development
statistics, and
reasons and/ sophisticated
explanations ideas
Organization Minimal control Confused or Functional Sophisticated
The order of content inconsistent arrangement arrangement
developed and arrangement arrangement of of content that of content with
sustained content with or sustains a evident/ subtle
within and without attempts logical order transitions.
across at transition with some
paragraphs and evidence of
proper inclusion transitions
of introduction
and conclusion.

REFERENCES

Required Readings:

Brigham, Eugene et. al. (2017). Fundamentals of Financial Management: Concise. Textbook. Cengage Learning

MBA BA206- Financial Management A.Y. 2020-2021 Page 17 of 21

 TOPIC 9
Dividends and Dividend Policy
LEARNING OBJECTIVES:
At the end of the lesson, the student will be able to:
a. Explain why some investors like the firm to pay more dividends while other investors prefer reinvestment
and the resulting capital gains.
b. Discuss the various trade-offs that companies face when trying to establish their optimal dividend policy.
c. Differentiate between stock splits and stock dividends
d. List the advantages and disadvantages of stock repurchases vis-à-vis dividends from both investors’ and
companies’ perspectives.

INTRODUCTION
Read the case
Read “Apple Shifts Gears and Begins to Unload Part of Its Vast Cash Hoard .
” in page 495 of the reference material
? Share your thoughts about the case. ☺

Time allotment/ duration: 1.5 hours

Core-Related values and Biblical Reflection:
Excellence: Competence
Proverbs 3:21: My son, do not lose sight of these— keep sound wisdom and discretion (ESV)

LEARNING CONTENT

Open and Read Chapter 14 of the reference material.

Students assigned will present the topic

LEARNING EVALUATION
Teaching-Learning Activities

TLA11: Short- Exercise

Expected Output: Solution in google sheet
Instruction: On page 522 of the reference material, provide solutions to problem 14-6.
ASSESSMENTS
AT11. Problem set
Expected Output: Solutions in google sheet
Instruction: On page 522 of the reference material, provide solutions to problem 14-7.
ASSIGNMENTS
None

RUBRICS FOR GRADING

A. Presentation
No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categories 0 2 points 3 points 4 points 5 points
point
Quality of Minimal No apparent Apparent point Sharp, distinct
Output/conten Evidence of point but made about a controlling
t the topic evidence of the single topic point made
The single specific topic with sufficient about a single
controlling point awareness of topic with
made with an task evident
awareness of

MBA BA206- Financial Management A.Y. 2020-2021 Page 18 of 21

 tasks about a awareness of
specific topic task.
Delivery Too fast Little bit fast and Good pace Excellent pace
The fluency and delivery and shows little with good with great
pace of lack of enthusiasm. enthusiasm enthusiasm.
presentation. enthusiasm
Responsivenes Does not Rarely answers Answers Answers
s answers questions in a questions questions
The ability to effectively and sufficient and adequately effectively and
answer questions adequately effective manner smoothly.
effectively and
smoothly.

B. Case Analysis and Other Essays

No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categorie 0 2 points 3 points 4 points 5 points
s point
Focus Minimal No apparent Apparent point Sharp, distinct
The single Evidence of point but made about a controlling
controlling the topic evidence of the single topic point made
point made specific topic with sufficient about a single
with an awareness of topic with
awareness of task evident
tasks about a awareness of
specific topic task.
Content Superficial Limited content Sufficiently Substantial,
The presence and/ minimal with inadequate developed specific and/
of ideas content elaboration or content with illustrative
developed explanation adequate content
through facts, elaboration demonstrating
examples, and strong
anecdotes, explanation development
statistics, and
reasons and/ sophisticated
explanations ideas
Organization Minimal control Confused or Functional Sophisticated
The order of content inconsistent arrangement arrangement
developed and arrangement arrangement of of content that of content with
sustained content with or sustains a evident/ subtle
within and without attempts logical order transitions.
across at transition with some
paragraphs and evidence of
proper inclusion transitions
of introduction
and conclusion.

REFERENCES
Required Readings:

Brigham, Eugene et. al. (2017). Fundamentals of Financial Management: Concise. Textbook. Cengage Learning

TOPIC 10
Working Capital Management
LEARNING OBJECTIVES:
At the end of the lesson, the student will be able to:
a. Explain how different amounts of current assets and current liabilities affect firms’ profitability and thus
their stock prices.

MBA BA206- Financial Management A.Y. 2020-2021 Page 19 of 21

 b. Explain how companies decide on the proper amount of each current asset— cash, marketable securities,
accounts receivable, and inventory.
c. Discuss how the cash conversion cycle is determined, how the cash budget is constructed, and how each
is used in working capital management.
d. Discuss how companies set their credit policies, and explain the effect of credit policy on sales and profits.
e. Describe how the costs of trade credit, bank loans, and commercial paper are determined and how that
information impacts decisions for financing working capital.
f. Explain how companies use security to lower their costs of short-term credit.

INTRODUCTION
Read the case
Read “Successful Firms Efficiently Manage Their Working Capital” in page
528 of the reference material
? Share your thoughts about the case. ☺

Time allotment/ duration: 3 hours

Core-Related values and Biblical Reflection:
Excellence: Competence
Proverbs 3:21: My son, do not lose sight of these— keep sound wisdom and discretion (ESV)

LEARNING CONTENT

Open and Read Chapter 15 of the reference material.

Students assigned will present the topic

LEARNING EVALUATION
Teaching-Learning Activities

TLA12: Short- Exercise

Expected Output: Solution in google sheet
Instruction: On page 561 of the reference material, provide solutions to problems 15-1, 15-2 & 15-3.
ASSESSMENTS
AT12. Problem set
Expected Output: Solutions in google sheet
Instruction: On page 562 of the reference material, provide solutions to problem 15-6.
ASSIGNMENTS
None

RUBRICS FOR GRADING

A. Presentation
No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categories 0 2 points 3 points 4 points 5 points
point
Quality of Minimal No apparent Apparent point Sharp, distinct
Output/conten Evidence of point but made about a controlling
t the topic evidence of the single topic point made
The single specific topic with sufficient about a single
controlling point awareness of topic with
made with an task evident
awareness of awareness of
tasks about a task.
specific topic

MBA BA206- Financial Management A.Y. 2020-2021 Page 20 of 21

 Delivery Too fast Little bit fast and Good pace Excellent pace
The fluency and delivery and shows little with good with great
pace of lack of enthusiasm. enthusiasm enthusiasm.
presentation. enthusiasm
Responsivenes Does not Rarely answers Answers Answers
s answers questions in a questions questions
The ability to effectively and sufficient and adequately effectively and
answer questions adequately effective manner smoothly.
effectively and
smoothly.

B. Case Analysis and Other Essays

No/late Not Approachin Meeting Exceedin
Submission Meeting g Standards Standard g
s Standard s Standard
s s
Categorie 0 2 points 3 points 4 points 5 points
s point
Focus Minimal No apparent Apparent point Sharp, distinct
The single Evidence of point but made about a controlling
controlling the topic evidence of the single topic point made
point made specific topic with sufficient about a single
with an awareness of topic with
awareness of task evident
tasks about a awareness of
specific topic task.
Content Superficial Limited content Sufficiently Substantial,
The presence and/ minimal with inadequate developed specific and/
of ideas content elaboration or content with illustrative
developed explanation adequate content
through facts, elaboration demonstrating
examples, and strong
anecdotes, explanation development
statistics, and
reasons and/ sophisticated
explanations ideas
Organization Minimal control Confused or Functional Sophisticated
The order of content inconsistent arrangement arrangement
developed and arrangement arrangement of of content that of content with
sustained content with or sustains a evident/ subtle
within and without attempts logical order transitions.
across at transition with some
paragraphs and evidence of
proper inclusion transitions
of introduction
and conclusion.

REFERENCES

Required Readings:

Brigham, Eugene et. al. (2017). Fundamentals of Financial Management: Concise. Textbook. Cengage Learning

MBA BA206- Financial Management A.Y. 2020-2021 Page 21 of 21