GORDON COLLEGE

OLONGAPO CITY
COLLEGE OF BUSINESS AND ACCOUNTANCY

OUTCOMES-BASED TEACHING AND LEARNING PLAN

COURSE TITLE : Managerial Finance

COURSE CODE : FIN 302
CREDIT UNITS : 3
COURSE PRE/CO-REQUISITE : FIN 301

A. COURSE DESCRIPTION

Managerial Finance emphasizes the role that financial manager plays in businesses and the financial market environment in which firms operate.
The goal of financial managers should be to maximize the value of the firm and subsequently maximize the wealth of its owners. Financial managers
act on behalf of the firm’s owners by making operating and investment decisions whose benefits exceed their costs. The decisions being made create
wealth for shareholders.
Maximizing shareholder wealth is important because firms operate in a highly competitive financial market environment that offers shareholders
many alternatives for investing their funds. With the critical thinking of financial managers and having access to financial markets, firms will surely
survive and eventually achieve its long-term goal of maximizing the value of the firm.
Thus, this course aims to sharpened and strengthened the analytic skills of the students in planning and evaluating fund flows of short-term and
long-term investments and their funding, maximizing the attainment of the organization’s goals.

B. PROGRAM STUDENT LEARNING OUTCOMES

1. Common Program Learning Outcomes

The graduates have the ability to:

1.1 Discuss the latest developments in the specified field of practice;
1.2 Communicate effectively using both English and Filipino, orally and in writing
1.3 Work effectively and independently in multi-disciplinary and multi-cultural teams;
 1.4 Exemplify professional, social and ethical responsibility; and
1.5 Preserve and promote “Filipino historical and cultural heritage”.

2. Specific Program Learning Outcomes

Graduates of a BSBA program should be able to:

2.1 Convey ideas clearly both oral and written in English.
2.2 Prepare, analyze, and evaluate reports, proposals and concept papers.
2.3 Demonstrate the values of fairness, transparency, accountability, hard work, honesty, patience, diligence, innovativeness and risk taking.
2.4 Apply the principles of the different forms of communication.
2.5 Develop the ability to access, retrieve and disseminate information using IT.
2.6 Perform quality work.
2.7 Understand the concepts and principles of good interpersonal relations.
2.8 Develop a wholesome personality.
2.9 Participate actively in business associations and comply with their policies and obligations.
2.10 Demonstrate leadership qualities, civic-mindedness and responsible citizenship.
2.11 Conduct environmental scanning.
2.12 Conduct feasibility study and other business research/plan.
2.13 Explain the concepts, approaches, and techniques of environmental conservation.
2.14 Know and understand the country’s national development thrusts, concerns and socio-economic indicators.

C. COURSE LEARNING OUTCOMES (CILO)

Upon completion of the course, the students can:

1 Demonstrate Corporate and Social Responsibility
2 Implement the basic functions of management such as planning, organizing, staffing, directing, leading and controlling
3 Use information and communication technology (ICT) effectively and efficiently.
4 Work well with others
5 Use the proper decision tools to critically, analytically, and creatively solve problems and drive results.
 Time Frame STUDENT LEARNING TEACHING AND LEARNING
TOPIC RESOURCES ASSESSMENT TASKS
Weeks Hours OUTCOMES (SLO) ACTIVITIES/STRATEGIES
Wk 1 3  Be able to define finance and the 1.The Role of Managerial  Discussion Laptop and LCD  Written and Oral
managerial finance function. Finance  Workshop Projector Examinations
 Be able to describe the legal forms  Research Work  Reporting, etc
of business organization.  Case Study
 Describe the goal of the firm, and  Problem Solving activities
explain why maximizing the value
of the firm is an appropriate goal
for a business.
 Understand how the managerial
finance function is related to
economics and accounting.
 Be able to identify the primary
activities of the financial manager.
 Understand the nature of the
principal-agent relationship
between the owners and managers
of a corporation, and explain how
various corporate governance
mechanisms attempt to manage
agency problem.

Wk 2 3  Understand the role that financial 2.The Financial Market  Discussion Laptop and LCD  Written and Oral
institutions play in managerial Environment  Workshop Projector Examinations
finance.  Research Work  Reporting, etc
 Contrast the functions of financial  Case Study
institutions and financial markets.  Problem Solving activities
  Be able to describe the differences
between the capital markets and
the money markets.
 Understand the major regulations
and regulatory bodies that affect
financial institutions and markets.
 Be able to discuss business taxes
and their importance in financial
decisions.

Wk 3 3  Review the contents of the 3.Financial Statements and  Discussion Laptop and LCD  Written and Oral
stockholders’ report and the Ratio Analysis  Workshop Projector Examinations
procedures for consolidating  Research Work  Reporting, etc
international financial statements.  Case Study
 Understand who uses financial  Problem Solving activities
ratios and how.
 Be able to use ratios to analyze a
firm’s liquidity and activity.
 Discuss the relationship between
debt and financial leverage and the
ratios used to analyze a firm’s
debt.
 Be able to use ratios to analyze a
firm’s profitability and its market
value.
 Be able to use a summary of
financial ratios and the Dupont
system of analysis to perform a
complete ratio analysis.

Wk 4 3  Understand tax depreciation 4.Cash Flow and Financial  Discussion Laptop and LCD  Written and Oral
procedures and the effect of Planning  Workshop Projector Examinations
depreciation on the firm’s cash  Research Work  Reporting, etc
flows.  Case Study .
 Problem Solving activities
  Discuss the firm’s statement of
cash flows, operating cash flow,
and free cash flow.
 Understand the financial planning
process, including long-term
(strategic) financial plans and
short-term (operating) financial
plans.
 Be able to discuss the cash-
planning process and the
preparation, evaluation, and use of
the cash budget.
 Explain the simplified procedures
used to prepare and evaluate the
pro forma income statement and
the pro forma balance sheet.
 Be able to evaluate the simplified
approaches to pro forma financial
statement preparation and the
common uses of pro forma
statements.

Wk 5 3  Be able to discuss the role of time 5.Time Value of Money  Discussion Laptop and LCD  Written and Oral
value in finance, the use of  Workshop Projector Examinations
computational tools, and the basic  Research Work  Reporting, etc
patterns of cash flow.  Case Study
 Understand the concepts of future  Problem Solving activities
value and present value, their
calculation for single amounts, and
the relationship between them.
 Understand the future value and
the present value of both an
ordinary annuity and an annuity
due, and find the present value of a
perpetuity.
  Calculate both the future value and
the present value of a mixed
stream of cash flows.
 Understand the effect that
compounding interest more
frequently than annually has on
future value and on the effective
annual rate of interest.
 Describe the procedures involved
in (1) determining deposits needed
to accumulate a future sum, (2)
loan amortization, (3) finding
interest or growth rates, and (4)
finding an unknown number of
periods.
Wk 6 3  Be able to describe interest rate 6. Interest Rates and Bond  Discussion Laptop and LCD  Written and Oral
fundamentals, the term structure of Valuation  Workshop Projector Examinations
interest rates, and risk premiums.  Research Work  Reporting, etc
 Review the legal aspects of bond  Case Study
financing and bond cost.  Problem Solving activities
 Be able to discuss the general
features, yields, prices, ratings,
popular types, and international
issues of corporate bonds.
 Understand the key inputs and
basic model used in the bond
valuation process.
 Be able to apply the basic
valuation model to bonds, and
describe the impact of required
return and time to maturity on
bond values.
 Explain yield to maturity (YTM),
its calculation, and the procedure
 used to value bonds that pay
interest semiannually.

Wk 7 3  Differentiate between debt and 7.Stock Valuation  Discussion Laptop and LCD  Written and Oral
equity.  Workshop Projector Examinations
 Be able to discuss the features of  Research Work  Reporting, etc
both common and preferred stock.  Case Study
 Be able to describe the process of  Problem Solving activities
issuing common stock, including
venture capital, going public, and
the investment banker.
 Understand the concept of market
efficiency and basic stock
valuation using zero-growth,
constant-growth, and the variable-
growth models.
 Discuss the free cash flow
valuation model and the book
value, liquidation value, and
price/earnings (P/E) multiple
approaches.
 Explain the relationships among
financial decisions, return, risk and
the firm’s value.

Wk 8 3 8. MIDTERM EXAM Laptop and LCD  Written Examination

Projector
Wk 9 3  Understand the meaning and 9. Risk and Return  Discussion Laptop and LCD  Written and Oral
fundamentals of risk, return, and  Workshop Projector Examinations
risk preferences.  Research Work  Reporting, etc
 Be able to describe procedures for  Problem Solving activities
assessing and measuring the risk of
a single asset.
 Discuss the measurement of return
and standard deviation for a
portfolio and the concept of
correlation.
 Understand the risk and return
characteristics of a portfolio in
terms of correlation and
diversification and the impact of
international assets on a portfolio.
 To review the two types of risk
and the derivation and the role of
beta in measuring the relevant risk
of both a security and a portfolio.
 To explain the capital asset pricing
model (CAPM), its relationship to
the security market line (SML),
and the major forces causing shifts
in the SML.

Wk 10 3  To understand the basic concept 10. The Cost of Capital  Discussion Laptop and LCD  Written and Oral
and sources of capital associated  Workshop Projector Examinations
with the cost of capital.  Research Work  Reporting, etc
 Be able to explain what is meant  Problem Solving activities
by the marginal cost of capital.
 To determine the cost of long-term
debt, and explain why the after-tax
cost of debt is the relevant cost of
debt.
  To determine the cost of preferred
stock.
 To calculate the cost of common
stock equity, and convert it into the
cost of retained earnings and the
cost of new issues of common
stock.
 To calculate the weighted average
cost of capital (WACC), and
discuss alternative weighting
schemes.

Wk 11 3  Be able to understand the key 11. Capital Budgeting  Discussion Laptop and LCD  Written and Oral
elements of the capital budgeting Techniques  Workshop Projector Examinations
process.  Research Work  Reporting, etc
 Calculate, interpret, and evaluate  Problem Solving activities
the payback period.
 Calculate, interpret, and evaluate
the net present value (NPV) and
economic value added (EVA).
 Calculate, interpret, and evaluate
the internal rate of return (IRR).
 Use net present value profiles to
compare NPV and IRR techniques.
 Discuss NPV and IRR in terms of
conflicting rankings and the
theoretical and practical strengths
of each approach.

Wk 12 3  To discuss the three major 12. Capital Budgeting Cash  Discussion Laptop and LCD  Written and Oral
cash flow components. Flows  Workshop Projector Examinations
 To discuss relevant cash flows.  Research Work  Reporting, etc
Expansion versus replacement  Problem Solving activities
decisions, sunk costs and
 opportunity costs, and
international capital budgeting.
 Calculate the initial investment
associated with a proposed
capital expenditure.
 Discuss the tax implications
associated with the sale of an
old asset.
Wk 13 3  To understand the importance 13. Risk and Refinements  Discussion Laptop and LCD  Written and Oral
of recognizing risk in the in Capital Budgeting  Workshop Projector Examinations
analysis of capital budgeting  Research Work  Reporting, etc
projects.  Problem Solving activities
 Discuss risk and cash inflows,
scenario analysis, and
simulation as behavioral
approaches for dealing with
risk.
 To review the unique risks that
multinational companies face.
 Describe the determination
and use of risk-adjusted
discount rates (RADRs),
portfolio effects, and the
practical aspects of RADRs.
Wk 14 3  Discuss leverage, capital 14. Leverage and Capital  Discussion Laptop and LCD  Written and Oral
structure, breakeven analysis, Structure  Workshop Projector Examinations
the operating breakeven point,  Research Work  Reporting, etc
and the effect of changing  Problem Solving activities
costs on the breakeven point.
 To understand operating,
financial, and total leverage
and the relationships among
them.
 Explain the optimal capital
structure using a graphical
 view of the firm’s cost-of-
capital functions and the zero-
growth valuation model.
Wk 15 3  Understand cash payout 15. Payout Policy  Discussion Laptop and LCD  Written and Oral
procedures, their tax treatment,  Workshop Projector Examinations
and the role of dividend  Research Work  Reporting, etc
reinvestment plans.  Problem Solving activities
 Describe the residual theory of
dividends and the key
arguments with regard to
dividend irrelevance and
relevance.
 To discuss the key factors
involved in establishing a
dividend policy.
 Review and evaluate the three
basic types of dividend
policies.
 To explain stock splits and the
firm’s motivation for
undertaking them.
Wk 16 3  To understand working capital 16. Working Capital and  Discussion Laptop and LCD  Written and Oral
management, net working Current Assets  Workshop Projector Examinations
capital, and the related trade- Management  Research Work  Reporting, etc
off between profitability and  Problem Solving activities
risk.
 Describe the cash conversion
cycle, its funding
requirements, and the key
strategies for managing it.
 Discuss inventory
management: differing views,
common techniques, and
international concerns.
  Explain the credit selection
process and the quantitatively
procedure for evaluating
changes in credit standards.
 To understand the
management of receipts and
disbursements, including float,
speeding up collections,
slowing down payments, cash
concentration, zero-balance
accounts, and investing in
marketable securities.

Wk 17 3  To review accounts payable, 17. Current Liabilities Laptop and LCD  Written and Oral
the key components of credit Management Projector Examinations
terms, and the procedures for  Reporting, etc
analyzing those terms.
 Understand the effects of
stretching accounts payable on
their cost and the use of
accruals.
 Describe the interest rates and
basic types of unsecured bank
sources of short-term loans.
 Discuss the basic features of
commercial paper and the key
aspects of international short-
term loans.
 Explain the characteristics of
secured short-term loans and
the use of accounts receivable
as short-term loan collateral.
 Describe the various ways in
which inventory can be used
as short-term collateral.
Wk 18 3 18. FINAL EXAM Laptop and LCD  Written Examination
Projector

PREPARED BY: APPROVED BY:

NERISSA Q. MAGPAYO-NIBOT, MM GLORIA K. DIMEN, CPA DARWIN P. PAGUIO, Ph.D.

Instructor II CBA Dean VP for Academic Affairs