MODULE 1 – Part 1

Title : Orientation

Period : 30 minutes

I. Objectives:

At the end of the session, the students should be able to:

1. introduce themselves to each other;

2. express expectations of the course and the professor; and
3. discuss the class policies and the requirements for completing the course.

II. Subject Matter

1. Topics

1.1. Getting-to-know-you
1.2. Expectation setting
 1.3. Presentation and discussion of the course syllabus and class policies

2. Educational Resource(s)

Muirhead, B. (2002). E-tivities: The key to active online learning. Educational

Technology & Society, 5(4), 179-181.
Salmon, Gilly. (2002). E-tivities: The key to active online learning. London: Kogan
Page, softcover, 212 pages. ISBN: 0 7494 3686 7.

3. Materials

3.1. Course syllabus

3.2. Ballpen and markers
3.3. Bond paper and notebook
3.4. Handouts
3.5. Computer/laptop/cellphone
III.Learning Procedures and Strategies

a. Preparatory Activity

First days of the school is the perfect time to begin creating a positive learning
environment. For a variety of reasons, it is just important to establish rapport with
students; it builds trust between students and teacher, insights
confidence in students and enables a fun learning experience. Hence, it
is appropriate to implement strategies that might help students and
teacher achieve a harmonious relationship.

1.1 Activity 1. Innovative getting to know you

 1.1.1 Students will recite a three-part definition of themselves that
includes physical characteristics, personality traits, and favorite
hobbies or interests. Definitions could also include a pronunciation
key to first and last names.
1.1.2 Teachers will call the students one by one to read what they write.

1.2 Activity 2. Expectation setting

1.2.1. Teacher flash the following two questions and asks students to
answer:

● What do you want/need to learn in this course?

● What other expectations do you have, e.g. regarding the
teacher, the methodology, etc.

1.2.2. For question number 1, students have 10 minutes to think.

1.2.3. Teacher will call at least 5 students to answer.
1.2.4. Teacher will present course description, general and specific
objectives of the course, course content and informs students
whether their concerns will be covered in this course.
 1.2.5. Step No. 2 to 3 is repeated for the other expectations (output to
Question 2).

b. Lesson Proper

I. COURSE IDENTIFICATION

Title Financial Management

Credit 3 units

Prerequisite None
I. COURSE IDENTIFICATION

Course The focus of this course is in the area of financial management.

Description This will provide a discussion on cash flow and financial analysis;
the makeup of interest rates, risk and the time value of money in
financial calculations; the techniques of valuing bonds and stocks
and the associated risk with valuations; capital budgeting
techniques, cash flow estimation and risks in capital budgeting;
the components of capital , the cost of capital and leverage;
managing working capital, cash and financing ;corporate financial
planning, corporate restructuring and international finance.
II. COURSE OBJECTIVES

General At the end of the course, the students should be able to apply
Objective the theoretical concepts, principles and the basic skills in
financial management.

Specific At the end of the course, students shall be able to:

Objectives

a. Cognitive

1. define the principles and concepts used in financial

management;
2. discuss how firms meet their financial objectives
utilizing financial decision-making;
3. explain how firms make important investment and
financing decisions, and establish working capital
policies;
4. develop an understanding of the tools that are used to
value investment projects and companies;
II. COURSE OBJECTIVES

5. evaluate the financial performance of the firms using

various financial techniques; and
6. choose the best course of action among several
financial options.

b. Psychomotor

1. execute correctness in solving financial problems;

2. demonstrate analytical ability in interpreting financial
results; and
3. conduct research to apply learnings from various
financial techniques.

c. Affective

1. appreciate the vital role of financial manager in

determining the primary goal of the firm;
2. value the significance of proper utilization of financial
resources available to the firm from the perspective of
the manager; and
3. exemplify the value of honesty and integrity in the
dealings of business finances.
III – COURSE CONTENT OUTLINE

TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

PRELIMS
TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

Week 1 & 2 Classroom Policies Orientation ∙ Lecture/ Discussion ● Google

School’s Vision-Mission Statement of ∙ Lecture Notes Slides
HCDC. ● Google
∙ Brainstorming
∙ KNOW-WANT-LEARNED (KWL) Docs
∙ Think –Pair-Share ● Online
∙ Quiz/Assignment Videos
● Google
Classroom
1. Introduction to Financial

Management:

a. What is Finance?
b. What is Corporate Finance?
c. The Primary Goal of the
Firm
d. The Role and Function of
the Financial Manager
e. The importance of Ethics in
running a Business
Organization
f. Forms of business
organization
g. Career Opportunities in
Finance
TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

2.Financial Ratio Analysis

a. Review on:
▪ Liquidity Ratio,
▪ Asset Management Ratio
▪ Debt Ratio; and
▪ Profitability Ratio.
TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

Week 3 & 4 ∙ Lecture/ Discussion ● Google

∙ Lecture Notes Slides
∙ Brainstorming ● Google
∙ Think –Pair-Share Docs
∙ Quiz/Assignment ● Online
∙ Prelim exam Videos
3. Analysis of Financial Statement
● Google
Classroom

a. Uses of Financial
Analysis
b. Financial Ratio
Analysis
▪ Interpreting Financial Ratios
▪ Liquidity Ratio
▪ Asset Management Ratio
▪ Debt Management Ratio
▪ Profitability Ratio
▪ Limitations of Financial Ratio
analysis
TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

MIDTERMS

Week 5 & 6 1. Time Value of Money ∙ Lecture/ Discussion ● Google

∙ Lecture Notes Slides
∙ Brainstorming ● Google
∙ Quiz/Assignment Docs
● Online
Videos
a. Basic concepts of time value ● Google
of money Classroom
b. Time Lines
c. Future values ● Individual/ Small group
d. Simple versus Compound problem solving
Interest
e. Present Values
f. Compounding Periods and
effective Interest Rates
g. Effective Interest Rate
Calculation
h. Amortized Loans
TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

Week 7 & 8 2. Bonds and Their Valuation ● Individual/ Small group problem ● Google
solving Slides
● Article Review ● Google
Docs
● Online
Videos
a. Who issues Bonds? ● Google
b. Key Characteristics of Bonds ● Concept Application through Classroom
c. Bonds Valuation Research-based Learning
Activity

3. Stocks and Their Valuation ∙ Quiz/Assignment

● Mid-term exam

a. Stock Price versus Intrinsic

Value
b. Preferred Stocks Features
c. Common Stock features
d. Types of Common Stocks
e. Stock Valuation Models
f. Valuing Stocks
g. Factors that affect Stock Prices
TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

PRE-FINALS
TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

Week 9 & 10 1. Capital Budgeting Process ● Google

and Decision Criteria ● Lecture Method on an overview Slides
of and techniques in capital ● Google
budgeting Docs
● Online
Videos
● Google
Classroom

a.An overview of Capital

Budgeting
● Switch it Up! (Problem solving)
∙ Quiz/Assignment

b.Techniques in capital
budgeting

▪ Net Present Value ( NPV)

▪ Internal Rate of Return(IRR)
▪ Simple Payback period
▪ Discounted Payback period
TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

c. Decision Criteria used in

Practice
TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

Week 9 & 10

2. Project Cash Flows

Estimation

a. Conceptual Issues of Cash

Flow estimation
b. Analysis of an Expansion of
Project
c. Replacement Analysis
TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

Week 11 & 12 3. The Cost of Capital ● Quizzes: Problem Solving ● Google

● Graded Seatwork: Problem Slides
Solving ● Google
● Group Quiz Docs
● Online
a. Definition of Cost of Videos
Capital ● Google
b. Computing the Costs Classroom
of Capital
▪ debt
▪ preferred stock
▪ retained earnings
▪ new common equity

● Pick the Winner

( Problem Solving)

4. The Weighted Average Cost

of Capital (WACC)
● Simplified Case Study
● Semi-Final exam

FINALS
TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

Week 13 & 14 1. Working Capital ● Speed Sharing ● Google

Management ● Lecture Slides
● Small group ● Google
● Brainstorming Docs
● Research-based Learning ● Online
Activity Videos
a. Background on working ● Google
Capital Classroom
b. Current asset
Investment policies
c. Current asset
Financing Policies
d. The Cash Conversion
Cycle

2. Managing Short-Term
assets

a. Cash management
b. The Cash budget
c. Cash management
Technique
d. Accounts Receivable
Management
e. Inventory Management
TIMEFRAME CONTENT/ TOPIC TASK / ACTIVITY ONLINE TOOL

Week 15 & 16 1. Corporate Restructuring ∙ Lecture/ Discussion ● Google

∙ Lecture Notes Slides
● Research-based Learning ● Google
Activity Docs
● Final exam ● Online
a. Mergers Videos
b. Types of Mergers Google Classroom
c. Form of Merger
Transactions
d. Antitakeover measures
e. Leveraged Buyouts
f. Divestitures and
Restructuring
g. Reasons for Mergers

IV – GOOGLE CLASSROOM POLICIES

1. Use only your PREMIUM HCDC EMAIL ACCOUNT for your joining in this Google
class.
2. Use Proper Full Name for ease of identification
3. Regularly check Google classroom for classwork updates during our scheduled class
time.
4. Scheduled quizzes and video meetings will be posted earlier.
5. All examinations will be taken during our class schedule.
6. Submission of quizzes, assignments & projects shall be within the period prescribed
by the teacher.
7. All your queries must be sent through my e-mail (E-mail is accessible than private
message in the Google classroom).
8. Comments should always be respectful to everyone in the class. Avoid discriminative
comments.

Submission of Classwork
1. Submit your assignment in Microsoft Word or Google Docs. No other file types will be
accepted (except instructed). Please notify me if you have submitted a different file
type.
2. Please ensure that you have checked your CALENDAR for the due date for every
classwork given.

Late Submission of Classwork

1. Late submission: Up to 3 days extension only. No deduction of points.
2. Valid Reasons: No internet connection or sick
3. Don’t hesitate to message me, send me an e-mail, if you experience problems in
submitting your classwork within the allowable grace period.

Guidelines for Classroom meetings

1. Scheduled classroom meetings every TTH.
2. Be on time for our class.
3. Be informed that our class will start and end with a prayer.
4. Be mindful of your attire (no wearing of sando, sleeveless blouses).
5. Be prepared with supplies (ball pens, notebook, and other needed materials
whenever there will be discussions, etc.)
6. Pay attention to the Professor or your classmates during discussions, consultations
or recitations.
7. Be polite in giving comments or opinions.
8. Always raise your hand whenever you feel the need to leave the classroom.

Gentle Reminder:
● All your queries about our class/subject should be sent through e-mail. We will
maximize the use of this platform and learn together.
V. Grading System

Prelim Grade

Quizzes, Recitation, Journal, Assignment etc. 50%

Prelim Exam 25%
Midterm Exam 25%
100%

Tentative Final Grade

Quizzes, Recitation, Assignment etc. 50%

Semi Final Exam 25%
Final Exam 25%
100%

Midterm Grade + Tentative Final Grade

2______________________
MODULE 1 – Part 2

Title : Fundamentals of financial management

Period : 1 hour

I. Objectives:

At the end of the period, the students should be able to:

1. define finance;
2. discuss firm’s goal;
3. outline the various roles played by finance managers;
4. discuss the financial management function;
5. enumerate the forms of business organizations; and
6. state the career opportunities in finance.

II. Subject Matter

1. Topics

1.1.Meaning of finance
1.2.The firm’s goal
1.3.The role of financial manager
1.4.Financial management function
1.5.Forms of business organizations
1.6.Career opportunities in finance

2. Educational Resources

R1 Anastacio, M., Dacanay, R.C. & Aliling, L.E. (2016). Fundamentals of financial
management (with industry based perspective. Manila, Philippines: Rex Book
Store, Inc.
R2 Brealey, R.A., Myers, S.C., & Marcus, A.J.(2018) Fundamentals of corporate
finance ( 9th ed.). New York: McGraw-Hill Education.
R3 Lasher, W.R. (2017). Practical financial management (8th ed.). Boston:
Cengage Learning.
R4 Moyer, R.C. , Mcguigan, J.R., Rao, R.P. (2018). Contemporary financial
management. (14th ed.). Boston: Cengage Learning.
R5 Ross, S. A. , Westerfield, R.W. , Jaffe, J.F. & Jordan, B. D. (2018). Corporate
finance; core principles & applications. New York: McGraw-Hill Education.
R6 "CFO Special - Interview: 'A Modern CFO is a Driver and Executor of Business
Strategy'." Dalal Street Investment Journal, 21 Aug. 2017. Infotrac
Newsstand, Retrieved from
 http://link.galegroup.com/apps/doc/A501285393/GPS?
u=phhcdc&sid=GPS&xid=d2ef2592.
R7 "Investors' Perceptions and Valuation Approaches Towards Financial
Statements/Reports." Journal of Business Strategies [Karachi], 30 June
2016, p. 109. AcademicOneFile, Retrieved from
http://link.galegroup.com/apps/doc/A461211497/GPS?
u=phhcdc&sid=GPS&xid=4c2ee6c4.

3. Materials

3.1. Bond paper and notebook

3.2. Ballpen and markers
3.3. Course syllabus
3.4. Computer/laptop/cellphones

4. Values Focus

Academically competent, Practice communicating in both written and spoken

forms as part of an interdisciplinary discipline.
III.Learning Procedures and Strategies

a. Preparatory Activity

Before we begin, students will watch an 8 minutes engaging video on financial

literacy at https://www.youtube.com/watch?v=VviHidotvoo. After watching,
students will be given 10 minutes to prepare their reflections, and 5 minutes to
share to the class.

b. Lesson Proper

1.1. Now let us take a closer look on what finance is.

1.1.1. Finance is the art and science of managing money (Mejorada, 2006).

It is an art because managing money requires certain skills. When we

use the money we see to it that it will go into where we want it to be.

It is a science because it has an organized body of knowledge which

contains certain universal truth. We started with the use of barter, no
application yet of the so called “money and its denominations”. From
barter a lot of changes took place regarding the facet of money. Now we
are in the New Generation Currency.

1.1.2. Finance is the study of how people and businesses evaluate investments
and raise capital to fund them (Titman, Keown & Martin, 2010).

In the use of money we want to put our money in an investment that can
make our money more than we have invested.
1. 2. The firms goal

What is the goal of a firm?

In finance, the goal of a firm is always described as “maximization of

shareholders’ wealth”.

Maximization of Shareholders’ Wealth

The goal is to maximize the shareholders' wealth for whom it is being

operated. It being measured by the share price of the stock, which in turn is
based on the timing of returns, the amount of the returns and the risk or
uncertainty of the returns.

It also means maximizing the total market value of the existing

shareholders' common stock. All financial decisions will affect the
achievement of this goal. Shareholders' wealth maximization can be
achieved by considering the present and potential future earnings per
share, timing of returns, dividend policy and other factors that affect the
market price of the company's stock.

The most widely accepted objective of the firm is to maximize the value of
the firm for its owners. That is to maximize shareholder wealth.
1.2. The role of finance managers

Business financial activities are considered as one of the most significant yet
complicated activities within the company. Given the complexities of financial
activities, the company needs to have a well-rounded financial manager who
can take care of all the important financial functions of an organization.
Among the most important functions of the finance managers are:

a. Raising of Funds

Finance manager ensures that the company meets the obligation and
required funds needed for the business. It is important to have a constant
monitoring of company’s liquidity, solvency and profitability by way of
establishing prudent financial procedures and policies.

b. Proper Allocation of Financial Resources

 Once the funds are raised through different channels the next important
function is to allocate the funds. The funds should be allocated in such a
manner that they are optimally used. In order to allocate funds in the best
possible manner the following point must be considered:
▪ The size of the firm and its growth capability
▪ Status of assets whether they are long-term or short-term
▪ Mode by which the funds are raised

c. Profit Planning

Being able to generate profit is one of the most desired outcomes of any
business organization. Profit is important for survival and sustenance of
any organization. Profit planning refers to proper usage of the profit
generated by the firm. As such, profit planning requires tremendous
amount of rational forecasting of revenues and management of cost and
expenses.

d. Knowledge of Capital Markets

The finance manager should be able to have an in-depth knowledge and a

clear understanding of capital market. Capital market is where securities or
company shares are traded and this would involve a high amount of risk.
 Therefore, a finance manager should be able to make strong calculation
and analysis of the various risks involved in the trading of shares and
securities.

1.3. Financial management function

This is usually headed by the Vice-President of Finance or Chief Financial

Officer (CFO), the treasurer and the Controller.

1.3.1. Vice-President of Finance or Chief Financial Officer (CFO) - reports to

the President. The responsibilities/duties are the following:

● oversee the accounting, treasury, tax and audit functions;

● communicate effectively with the investment community concerning
the financial performance of the company; and
● distributes the financial management responsibilities between the
Controller and the Treasurer.
1.3.2. Treasurer – normally concerned with the acquisition, custody and
expenditure of funds. Duties often include:

● cash and marketable securities management – monitors the firm’s

short term finances- forecasting its cash needs, obtaining funds from
bankers and other sources when needed, and investing any excess
funds in short-term interest-learning securities;
● capital budgeting analysis – is responsible for analyzing capital
expenditures – that is, the purchase of long-term assets like new
facilities and equipment;
● financial planning – is responsible for analyzing the alternative sources
of long-term funds, such as the issuance of bonds or common stock,
that the firm will need to maintain and expand its operations;
● credit analysis – responsible for determining the amount of credit that
the firm will extend to each of its customers;
● investor relations – responsible for working with institutional investors;
and
● pension fund management – is responsible for the investment of
employee pension fund contributions.

1.3.3. Controller- normally has responsibility for all accounting-related activities.

These include:

● financial accounting – this function involves the preparation of the

financial statements for the firm;
 ● cost accounting – this department often has responsibility for
preparing the firm’s operating budgets and monitoring the performance
of the departments and divisions within the firm;
● taxes – this unit prepares the reports that the company must file with
the various government agencies; and
● data processing – given its responsibilities involving corporate
accounting and payroll activities, the controller may also have
management responsibility for the company’s data-processing
operations;

1.4. Forms of business organizations

Sole/Single Proprietorship- a business owned by one person and generally

small. Examples: retail trade, service, construction, and agriculture
industries.

Advantages:
Easy and inexpensive to form
Subject to less government regulations
Lower income taxes
All profits are subject to the owner

Disadvantages:
Unlimited personal liability
Limited lifetime of business
Difficult to raise capital

Partnership- an association of two or more persons who bind themselves

to contribute money, property or industry to a common fund with the
intention of dividing profits among themselves (Civil Code, Articles 1767-
1867).

Advantages:

Inexpensive to establish, formal or informal.

Shared resources provides more capital for the business

Each partner shares the total profits of the company

Disadvantages:
Unlimited personal liability
Selling the business is difficult
Partnership ends when any partner decides to end it.

Corporation- an artificial being created by operation of law having the right

of succession and the powers, attributes and properties expressly
authorized by law or incident to its existence (Corporation Code of the
Philippines).

Money contributed to start a corporation is called Capital Stock and

divided into shares

The owners of the corporation are called Stockholders or Shareholders. It

may either be stock (stockholders) or non-stock (shareholders); public or
private.

Advantages:
 Limited liability
Easy to transfer the ownership
Unlimited lifetime of business
Easy to raise capital

Disadvantages:
Double taxation (at both corporate and individual levels)
Cost of reporting
Costly to establish

1.5. Career opportunities in Finance

Finance offers a number of exciting career opportunities.

● Finance function encompasses a WIDE RANGE of activities involves
with acquisition and expenditure of the firm’s resources.
● Available in the financial services sector – such as commercial banks,
securities brokers, investment banks, mutual funds, pension funds, real
estate companies, and insurance companies.