BUSINESS FINANCE

Teacher: Mr. Ale L. Morillo

Business of the Day:

• Daily Routine

• Drills

• Recall/Motivation Prayer
• Essential Question

• Lesson Proper Checking of Attendance

• Evaluation/Activity

• Wrap-Up/
Valuing/Assignment

• Daily Routine
 DRILLS
Business of the Day:
“Complete Me”
• Daily Routine

1. _ _l_ _e_a_
Drills:

• Recall/Motivation

• Essential Question

2. _a_h Di_burs_m_nt
• Lesson Proper

• Evaluation/Activity

3. _ _ _ac_t_
• Wrap-Up/
Valuing/Assignment

• Daily Routine
 MOTIVATION
Ordinary Shares Preferred Shares
Business of the Day: Commercial Paper Bonds
• Daily Routine Retained Earnings Trade Credit
• Drills:

• Recall/Motivation
Debt Financing Equity Financing
•

•
Essential Question

Lesson Proper
1. 1.
•

•
Evaluation/Activity

Wrap-Up/
2. 2.
•
Valuing/Assignment

Daily Routine
3. 3.
 LEARNING OBJECTIVES
Business of the Day:

• Daily Routine At the end of the lesson students should be able

• Drills to:
• Recall/Motivation

• Essential Question
• distinguish debt and equity financing;
• Lesson Proper:
Introduction to
• identify the advantages and disadvantages of
Financial
Management
using debt and equity financing; and,
• Evaluation/Activity • distinguish the different sources and uses of
• Wrap-Up/ funds available in the Philippines.
Valuing/Assignment

• Daily Routine
 CHAPTER 3. Sources and Uses of Short-term
and Long-term Funds
Lesson 1: Debt and Equity Financing
Business of the Day:
What is Debt Financing?
• Daily Routine

• Drills

• Recall/Motivation

• Essential Question
Debt financing can in the form of
• Lesson Proper: borrowing from banks or other lending
•

•
Evaluation/Activity

Wrap-Up/
institutions or issuance of debt security
•
Valuing/Assignment

Daily Routine
like commercial papers and bonds.
 CHAPTER 3. Sources and Uses of Short-term
and Long-term Funds
Lesson 1: Debt and Equity Financing
Business of the Day: Benefits of Debt Financing
• Daily Routine

• Drills

• Recall/Motivation 1. Interest expense is tax deductible.

• Essential Question

• Lesson Proper:
2. Debt financing allows the company to grow
• Evaluation/Activity
without diluting the interest of existing
• Wrap-Up/ stockholders.
Valuing/Assignment

• Daily Routine
3. Creditors generally do not intervene in the
decisions of the management.
 CHAPTER 3. Sources and Uses of Short-term
and Long-term Funds
Lesson 1: Debt and Equity Financing
Business of the Day:
What is Equity Financing?
• Daily Routine

• Drills

• Recall/Motivation

• Essential Question
Equity financing issuance of new
• Lesson Proper: shares of stocks and retained earnings
•

•
Evaluation/Activity

Wrap-Up/
plowed back into the operation of the
•
Valuing/Assignment

Daily Routine
company.
 CHAPTER 3. Sources and Uses of Short-term
and Long-term Funds
Lesson 1: Debt and Equity Financing
Business of the Day:

• Daily Routine
Disadvantages of Equity Financing
• Drills

• Recall/Motivation
1. Cash dividends are not tax-deductible.
• Essential Question

• Lesson Proper:
2. Offering new shares to other investor may
• Evaluation/Activity
dilute the ownership stake, in terms of
• Wrap-Up/ existing percentage of the existing
Valuing/Assignment
stockholders.
• Daily Routine
3. It is the most expensive source of financing.
 CHAPTER 3. Sources and Uses of Short-term
and Long-term Funds
Lesson 1: Debt and Equity Financing
Business of the Day:
Sources and Uses of Short-term Funds
• Daily Routine

• Drills

• Recall/Motivation
Short-term funds are normally used to
• Essential Question
finance the day to day operations of the
• Lesson Proper: company. It is used for working capital
• Evaluation/Activity requirements such as accounts receivable and
• Wrap-Up/
Valuing/Assignment
inventories.
• Daily Routine
 CHAPTER 3. Sources and Uses of Short-term
and Long-term Funds
Lesson 1: Debt and Equity Financing
Sources and Uses of Short-term Funds
Business of the Day:

• Daily Routine

• Drills 1. Suppliers credit.

• Recall/Motivation 2. Advances from stockholders.
• Essential Question
3. Credit cooperatives.
• Lesson Proper:

• Evaluation/Activity
4. Bank loans.
• Wrap-Up/ 5. Credit card
Valuing/Assignment

• Daily Routine
6. Lending companies
7. Pawnshops
8. Informal lending sources such as "5-6"
 CHAPTER 3. Sources and Uses of Short-term
and Long-term Funds
Lesson 1: Debt and Equity Financing
Business of the Day:
Sources and Uses of Long-term Funds
• Daily Routine

• Drills

• Recall/Motivation
1. Equity.
• Essential Question 2. Internally generated funds.
• Lesson Proper:
3. Banks.
• Evaluation/Activity

• Wrap-Up/ 4. Bond Market.

Valuing/Assignment

• Daily Routine 5. Lending companies.

 ACTIVITY NO. 4
Directions: Identify three sources of Short-term and Long-
Business of the Day: term funds explain each briefly.
• Daily Routine SHORT-TERM FUNDS
• Drills 1.
• Recall/Motivation 2.
3.
• Essential Question

• Lesson Proper
LONG-TERM FUNDS
• Evaluation/Activity
1.
• Wrap-Up/
2.
Valuing/Assignment
3.
• Daily Routine

Good Luck!
Business of the Day:

•
Daily Routine

Drills
Why is it important to
•

•
Recall/Motivation

Essential Question utilize the fund of the

•

•
Lesson Proper

Evaluation/Activity business?
• Wrap-Up/
Valuing/Assignment

• Daily Routine
Business of the Day:

• Daily Routine

• Drills

• Recall/Motivation
PRAYER
• Essential Question

• Lesson Proper

• Evaluation/Activity

• Wrap-Up/
Valuing/Assignment

• Daily Routine