FINANCIAL

MANAGEMENT 2
QUIZ 1

DIRECTION
The succeeding slides will present historical data, current information, and forecasts regarding a
business/company wherein you will invest into.
Your team is to invest in a company. Initially, each team has P1, 000, 000. You can decide/determine how
much you want to invest.
You may (have to) use the data to decide (sell existing investment, buy additional investment, or hold current
investment). Please remember that you may only buy additional investment when your team has excess
cash.
When the decision is sell (buy), the selling (purchase) price is at the close rate of the immediately previous
trading date.
After a decision has been made, the facilitator will show the result (actual) condition of the company. By then
you will be able to ascertain if you made a correct decision. Another set of information will then be presented
again from which another decision is to be made.
At the end of this exercise, the total amount of investment and the total amount of excess cash will be
aggregated to get the total investment value of each team.

THE ANSWER SHEET

Description/Transac
tion
1. Initial investment

2. Decision 1

Decision
BUY

HOLD

SELL

10,000

P
5,000

Cash Balance

Investment
1,000,000

500,000

3. Dividends

sume that you decided to invest the whole P1, 000, 000 representing 10, 000 shares.
2. Assume that you decided to sell half of the investment
for P550, 000
3. Assume that the company decided to distribute P10
cash dividend.

0
550,000
50,000

LETS START!??!!!

DECISION 1:

DoubleDragon Properties Corporation (formerly Injap Land Corporation and owned by Injap
Investments, Inc.) is engaged in the property sector but is mostly focused on leasing
business.
This company is headed by Jollibee Foods Corporation head Tony Tan Caktiong and Mang
Inasals founder Edgar Injap Sia II.
DD goes public and initially offered its shares at P2 per share. It has 600 million authorized
shares for IPO. The normal EPS in this kind of company is P0.25 and these types of
companies have average P/E of P4.7.

DECISION 1:

A day after the IPO, DDs market price increased by 50% and
closed at P3.

DECISION 2:
DoubleDragon recently inked a partnership deal with a local group to put up two CityMall
community malls in Zamboanga City. Its shopping mall unit, CityMall Commercial Centers Inc.
(CMCCI), ha executed an investment and shareholders agreement with Galleria Zamboanga
Inc. (GZI) to form a company that would develop a shopping mall in Tetuan and another in
the Guiwan section of Zamboanga.
The Guiwan property is located right beside the public market and is the only available
corner lot with an area of over one hectare. The Tetuan lot is right in the middle of a highly
populated residential area.
Closing Rate: P3.83

DECISION 2:

Closing price after the date was P3.97.

DECISION 3:
In the first quarter, DoubleDragons earnings surged to P21.2 million from P9.8 million in the
same period last year.
Consolidated revenues rose to P172.50 million in the January to March period from P71.3
million in 2013.
Closing rate: P5.00

DECISION 3:

Close rate is P6.76

DECISION 4:
DoubleDragon Properties Corp has acquired a commercial property north of Cebus capital
for a new shopping mall.
DoubleDragon Properties Corp has acquired 70% interest of an affordable housing developer
based in the Western Visayas by acquiring 140, 000 shares.
The BOD issued a P0.35 cash dividend.
Closing rate P9.85

DECISION 4:

Close rate is P10.00

DECISION 5:
The EPS for the quarter ending June 30 is P0.10 and the
PE is 86.50.
The BOD authorizes participation in the public
participate partnership program relating to the
construction of Laguna Lakeshore Expressway Dike.
The close price is P9.86

DECISION 5:

Close rate is P9.20

DECISION 6:
Company Disclosures:
DD invested its 30% funds in Nickel Mining Corporation.
3.73% of voting shares and 8.36% of nonvoting shares were
owned by foreign
investors.
At the end of the day, Nickels operations were put on hold by government
agencies.
Closing rate is P9.30

DECISION 6:

Close rate is P7.70

DECISION 7:

Company disclosures:
DD bought a subsidiary in China. This company is a well
know cosmetics
company. It has businesses within the
Southeast Asia.
PSALMS, a

One of its project under the power industry is in dispute with

power corporation under the Tans.

Closing rate: P6.87

DECISION 7:

Close Rate P4.75.

DECISION 8:
The company issued P1.35 dividend for all outstanding shares.
The company has outstanding of 600 million shares and income of P13Billion
for the second year.
Closing rate: P4.92

DECISION 8:

Close rate is P5.50

DECISION 9:
DDs CFO signed the companys FS stating that it has P225 million pesos of income.
However, SEC found out that there is a question as to this presentation.
The CFO was called by the prosecutors office for questioning.
Closing rate: P4.75

DECISION 9:

Close rate is P2.00

DECISION 10:
Injunction order was given in favor of the company regarding the dispute between the latter
and PSALMS.
The CFO was found to be not guilty and the FSs income was properly presented.
The cosmetics company gained worldwide recognition for quality products.
It has opened 20 new rural malls in its location out of the announced vision of opening 100
malls all over the country.
Closing rate P6.49.

DECISION 10:

Close rate is P7.80.