Republic of the Philippines

Province of Tarlac
Tarlac City
United School of Science and Technology, Inc
Tibag, Tarlac City

COURSE OUTLINE

Course Code: FM 8
Course Title: Special Topics in Financial Management
I. Course Description:
This course provides students with a comprehensive understanding of the Special Topics in Financial
Management. Students will explore special considerations in International Financial Management. Through group
research, discussions, and practical examples, students will develop the analytical and critical thinking skill necessary to
navigate the complexities of Special Topics in Financial Management.

II. Course Intended Learning Outcome (CILO):

At the end of the course, students should be able to:
By the end of this course, students should have a solid foundation in Financial Management, specifically in Financial
Strategy and Financial Planning, enabling them to evaluate Budgeting Process, Sales Forecasting and Financial Risk
Management.

III. Essential Learning:

Week Topic Intended Learning Outcome Assessment Task

1-2 Forms of Business Enterprises Demonstrate an understanding of the
 Sole proprietorships Forms of Business Enterprises
 Partnerships
 Corporation Explain the Economic Profit vs.
3-4  The Objective of Financial Accounting Profit: Share Price vs.
Management Earnings Per Share
 The Measure of Owner’s
Economic Well-Being Define prices and efficient markets Recitation
Essay
 Economic Profit vs.
Analyze the problems with the Group Task
Accounting Profit: Share Price
Agency Relationship Quiz
vs. Earnings Per Share
Exam
 Share Prices and Efficient
Evaluate the shareholder Wealth
Markets
Maximization and Social
 Financial Management and the Responsibility
Maximization of Owners’
Wealth
 The agency relationship
 Problems with the Agency
Relationship
 Costs of the Agency
Relationship
 Motivating Managers:
Executive Compensation
 Shareholder Wealth
Maximization and Social
Responsibility
PRELIM
 Republic of the Philippines
Province of Tarlac
Tarlac City
United School of Science and Technology, Inc
Tibag, Tarlac City

5-6 Dividend and dividend Define the dividend policies

policies
 Dividend Reinvestment Plans Analyze the Stock Distributions
 Stock Distributions
 Dividend Policy Assess the Corporate Income Tax
 The Dividend Irrelevance Rates
Theory
 The “Bird in the Hand” Evaluate the exchange rates in
Theory different countries Recitation
 The Tax-Preference Collaborative task
Explanation Quiz
Reflection
 The Signaling Explanation
Major exam
 The Agency Explanation
 Summing Up: To Pay
Dividends or Not
 Stock Repurchases
7-8  Special Considerations in
International Financial
Management
 Multinational Firms
 Foreign Currency
 Exchange Rates
 Purchasing Power Parity
 Tax Considerations
 Establishing a Business Entity
 Corporate Income Tax Rates
 Determining Taxable Income
 Interest Expense
 Intercompany Transactions
and Transfer Prices

Midterm
9 – 10 Identify and analyze the financial
Financial Strategy and Financial strategy and financial planning Recitation
Planning Essay
Analyze comparative and Group work
Strategy and Value competitive advantages Quiz
Major exam
Comparative and Competitive
Advantages Analyze Forecasting with Regression
Analysis
Strategy and Adding Value
Evaluate management forecast
Financial planning and budgeting
Importance of Financial Planning
Budgeting process
Sales Forecasting
Forecasting with Regression
Analysis
Market Surveys
Management Forecasts
 Republic of the Philippines
Province of Tarlac
Tarlac City
United School of Science and Technology, Inc
Tibag, Tarlac City

Seasonal Considerations

11 - 12 Identify and analyze the Economic

Performance Evaluation Value Added
Economic Value Added Analyze Balanced Scorecard
Economic Profit/Economic Value
Added Evaluate the Sources of Value
Creation
Market Value Added
Balanced Scorecard
The Process
The Measures
Sources of Value Creation

Pre-Final
13 - 14 Analyze the financial risk that arise Portfollio/ Reflection
Financial Risk Management in a company. paper
Sustainability Risk Class participation
Enterprise Risk Management Analyze ERM process and discussions
Definitions of ERM Final examination
ERM Process Apply knowledge of Managing Risk
Themes of ERM
Specifying the Firm’s Risk Policy
Managing Risk
Retained Risk and Risk Finance
Risk Neutralization

15 - 18 Risk Transfer Communication Skills: Final examination

Traditional Insurance
Derivatives
Alternative Risk Transfer
Insurance-Linked Notes
Captives
Finite Insurance
Multiline Insurance
Contingent Insurance
Effectively search the insurance Recitation
companies and communicate how Quiz
they manage the risks. Portfollio
Group presentation
Develop critical thinking skills to
evaluate how insurance companies
manage the risks that arises in their
business.

Final

IV. Course Requirements:

 Grading System:
o Class Standing - 60%
 Attendance, Quizzes, Activity/ Recitation, Formative and Summative Assessment
o 2 Major Examinations - 40%
 Midterm, Final

 Final Output: Video Compilations

V. References:
 Republic of the Philippines
Province of Tarlac
Tarlac City
United School of Science and Technology, Inc
Tibag, Tarlac City

Financial Services Authority. (2002). Hedge Funds and the FSA, Discussion Paper 16. Neave, E. (2009). Modern
Financial Markets and Institutions: Theory and Applications.. Hoboken, NJ: John Wiley & Sons. Soros, G. (2000). Open
Society: Reforming Global Capitalism. New York: Publish Affairs.
Banks, E. (2004). Alternative Risk Transfer: Integrated Risk Management Through In surance, Reinsurance and the
Capital Markets. Hoboken, NJ: John Wiley & Sons. Culp, C. L. (2006). Structured Finance and Insurance: The ART of
Managing Capital and Risk. Hoboken, NJ: John Wiley & Sons. Field, A. R. (2007). Rating risk practices. Treasury & Risk
(December-January). Katz, D. M. (2005). Finite insurance: Beyond the scandals. CFO.com (April 14). Markowitz, H. M.
(1952). Portfolio selection. Journal of Finance 7, no. 1: 77–91. Outreville, J. F. (1998). Theory and Practice of Insurance.
Boston: Kluwer. Veasey, N. (2000). The role of the judiciary in corporate law, corporate gov ernance and economics
goals. In Company Law Reform in OECD Countries: A Comparative Outlook of Current Trends (pp. 26–27). (Paris:
Organisation for Economic Co-operation and Development)

Prepared by:

Ricah Joy A. Balecha

Instructor

cc:
VPAA