L-NU AA 30-00-01-20

LYCEUM-NORTHWSTERN UNIVERSITY
Dagupan City

COLLEGE OF BUSINESS EDUCATION

LEARNING PACKET

Course Title/Code : CAE 19 | Financial Management Part 2 Academic Year : 2020 – 2021
Name of Faculty : Judy Anne T. Ramirez, CPA Semester : Second
Instructor’s Email : [email protected] Class Schedule : TTh 2:30PM-4:00PM
Course Credit : Lecture = 3 units Contact Number : 0966-466-7513
Prerequisite : None Online Consultation Hours :
Google Classroom Code : rhaho43

Course Description:

This is a three-unit course which exposes the students to the accounting aspects of finance in order to develop appropriate financial strategies. It also includes various
ways on how to interpret the figures presented in the financial statements. The analysis of the financial statements may be under horizontal analysis, vertical analysis or ratio
analysis. The students are therefore expected to prepare financial statements and make a corresponding analysis on these prepared financial statements. It covers different
ways on how to manage the current assets and current liabilities of the business. It further includes the optimal level of cash, different policies over receivables management,
optimal level of inventory and management of discounts taken over accounts payable settlement. It takes into account the proper valuation of bonds and stocks together with the
appropriate risks that come with it. It encompasses the corresponding costs of different capital which may come from various sources, namely; (1) long-term debt, (2) preference
shares, (3) ordinary shares and (4) retained earnings. It emphasizes the computation of costs of equity capital which may be done under Gordon growth model or capital asset
pricing model. It incorporates different techniques use to analyse investment decisions, namely; (1) accounting rate of return, (2) payback period, (3) bailout period, (4) break-
even time, (5) net present value, (6) profitability index and (7) internal rate of return. The students should be able to prepare a report regarding investment decisions over
mutually exclusive projects and mutually independent projects.

This course provides the synthesis of financial policy into a grand strategy which integrates organizational purpose and goals. This course covers the nature, purpose,
scope and functions of financial management. This will include financial analysis (interpreting and analyzing financial statements for indications of business performance), cash
flows analysis, operating and financial leverage. This will also cover financial forecasting, planning and control, working capital management, capital structure issues, sources of
short-term and long-term financing. This course also focuses on the current thinking regarding valuation of the firm, investment decision processes, financing, and dividend
policy, asset management and financial strategies and portfolio theory. Finally, the course includes discussion of sharing firm wealth: dividends, share repurchase and other
payouts. This course deals with maximizing the wealth of the business entity by applying the different working capital (cash, receivables, inventory, and other short-term
resources) management methods and techniques in making short-term business decisions. This course will also deal with the identification and application of basic concepts and
tools of capital structure management for long-term financing decision.

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Program Outcomes:
1. Students will analyze the financial ratios of their chosen companies based on Lesson 1 which was financial analysis.
2. Students will create Cash Flow Statements based on Statement of Comprehensive Income and Statement of Financial Position and subsequently, interpret the results.
3. Students will create and critique the financial report based on Performance Measurements as the basis of their Strategic Management Paper.
4. Students will submit a Strategic Management Paper proposing possible Courses of Action to rectify errors in management decisions.

Course Outcomes:
1. Explain and articulate the accounting information in the financial report through the use of financial analysis to make appropriate business decisions.
2. Critique and evaluate financial reports to understand on a tactical and strategic level areas of improvement in functional areas of the company.
3. Evaluate previous financial reports and measure appropriate budgets for each functional area.
4. Create financial reports like the Statement of Comprehensive Income and Statement of Financial Position with special focus Statement of Cash Flows.
5. Evaluate and devise Performance Metrics that will guide upper management with decision making.
6. Create a Strategic Management Paper identifying possible errors in business decisions and provide suggestions to rectify company situation.
7. Create a Master Budget and Financial Projection based on evaluation on the Strategic Management Paper.

Introduction:

This learning packet for Financial Management is designed to help you understand the wide variety of uses of accounting, particularly for planning, controlling, and decision-
making. This will assist students in making better decisions – as employees, managers, investors, business owners, or directors of their personal finances – any of which roles
they will have at some point in their lives

General Guidelines:

This section tells you the general guidelines for completing this learning packet. For specific guidelines and information, kindly review your student manual or your module guide
(if applicable).

1. The class code for Google Classroom specific for this course is to be given by your instructor during the class orientation.
2. Schedule properly your reading assignments and your activity accomplishments.
3. Make sure that you do things one at a time. Read the materials and watch the videos over and over until you are able to get the point of the lesson
4. You will be assessed through formative and summative methods. Kindly see requirements section at the end of this learning packet.
5. You are expected to submit your activities/ exams on the dates indicated in this learning packet. Late submission of activities/ exams will be dealt based on classroom
policies.
6. Your scores for assignments will be notified to you throughout your period of study.
7. You can learn a great deal from discussing aspects of your learning packet with others. Opinions and insights formed while discussing with other people are no less
valuable than those you form while reading books or listening to lectures. There’s nothing wrong in discussing with your classmates but it should be done before you begin
your individual activities. But when you sit down and do individual activities you are expected to work alone and not to use the work of others (in its entirety or in part) as if
it is your own.

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8. The instructor checks your assignments against the work of other students and against internet sources and other published material. If you submit an assignment that
contains work that is not your own without proper referencing and claiming the work of other as your own, you are committing plagiarism. Plagiarism is a form of academic
dishonesty punishable by several guidelines (See student handbook).
9. If you have concerns, kindly communicate with your instructor using the contact information given in this learning packet.
10. If it is not possible to participate in an online discussion due to internet problems, just save your answers in a digitized format in a USB flash drive then send it thru courier
at Lyceum-Northwestern University College of Information and Computing Science, Tapuac District, Dagupan City, Pangasinan or drop it thru the designated drop-boxes
at the university.

Summary of Course Content:

Unit 1 – Introduction to Financial Management

Nature, Purpose and Scope of Financial Management
Relationship of Financial Objectives to Organizational Strategy and Other Financial Objectives
Functions of Financial Management
Forms of Business Organization

Unit 2 – The Framework of Financial Management

Applications of Microeconomics Theory as a Basis for Understanding the Key Economic Variables Affecting the Business
Applications of Macroeconomics Theory as a Basis for Understanding the Key Economic Variables Affecting the Business
Competition and Policies Towards Monopolies and Oligopolies, Privatization, and Deregulation

Unit 3 – Effects of the Economic Environment on Business Strategy

Understanding the Role of the Financial Market and Institutions
International Trade
The Time Value of Money

Unit 4 – Evaluating Operating and Financial Performance

Understanding Financial Statements
Analysis of Financial Statements
Cash Flow Analysis
Operating and Financial Leverage

Unit 5 – Financial Forecasting, Planning and Control

Financial Forecasting for Strategic Control
Forecasting Short-Term (Operating) Financial Requirements

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Unit 6 – Working Capital Management

Addressing the Working Capital Policies and Management of Short-Term Assets and Liabilities
Cash and Marketable Securities Management
Accounts Receivable and Inventory Management
Short-Term Sources for Financing Current Assets

Unit 7 – Asset Risks Concept and Pricing

Financial Risk Management
Estimating Risk and Return on Assets
Capital Asset Pricing Model and Modern Portfolio Theory

Unit 8 – Capital Structure Issues

Assessing Long-Term Debt, Equity and Capital Structure
Sources of Long-Term Financing
Sharing Firm Wealth: Dividends, Share Repurchase and Other Payout

Unit 9 – Long-term Investment Decisions

Calculating the Cost of Capital
Basics of Capital Budgeting
Screening and Selecting Capital Investment Proposals

Unit 10 – Other Contemporary Issues in Finance

Mergers and Acquisitions; Divestitures
International Aspects of Corporate Finance

Study Schedule (ASSURE Model)

Week Topic Learning Outcomes Activities

January 14, 2021 Class Orientation Join the online session using Google Meet
Unit I: Introduction to Financial Management
Week 1: Chapter 1: Nature, Purpose, and Scope of Financial Management
January 19, 2021 1. Describe the nature, goal and basic scope of A – Analyze the Learners
financial management. 1. Google classroom activity: Partake in the online discussion on your background and
2. Explain briefly the three major types of expectations about Nature, Purpose, and Scope of Financial Management.
decisions that the Finance Manager makes.
S – State Standards or Objectives
3. Discuss the importance or significance of
Please see topic learning outcomes
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S – Select Strategies
The following teaching strategies will be used in this topic:
1. Asynchronous online learning – participation in online discussion, answering guide questions
and viewing uploaded videos in Google Classroom
2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 3 to 9.
1. After reading your book you should be able to answer the following guide questions:
a. What is the purpose of financial management?
b. What is the difference in perspective between finance and accounting?
c. Explain the shareholder wealth maximization goal of the firm and how it can be measured.
d. What conflicts of interest can arise between managers and stockholders?
e. What are the three types of financial management decisions?
financial management. f. What goal should always motivate the action of a firm’s financial manager?
4. Describe the relationship between Financial 2. Attend the online class lecture on this topic on January 19, 2021 at 2:30PM-4:00PM using
Management and Accounting. Google Meet.
5. Describe the relationship between Financial
Management and Economics. R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 10 to 11.
b. Solutions of the chosen exercise problems will be presented on January 19, 2021, 4:00PM
using Google Classroom.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on January
19, 2021, 4:00PM.

Optional Task:
1. Review the source materials provided in Google Classroom.
Week 1: Chapter 2: Relationship of Financial Objectives to Organizational Strategy and Other Organizational Objectives
January 21, 2021 1. Discuss the importance of objective setting A – Analyze the Learners
in a business enterprise. 1. Google classroom activity: Partake in the online discussion about Relationship of Financial
2. Describe the primary financial objectives of a Objectives to Organizational Strategy and Other Organizational Objectives.
business firm.
S – State Standards or Objectives
3. Explain the responsibilities of a Finance
Please see topic learning outcomes
Manager to achieve the firm’s financial
objectives. S – Select Strategies
4. Understand the nature of environmental The following teaching strategies will be used in this topic:
policies and their implications for the 1. Asynchronous online learning – participation in online discussion, answering guide questions
management of the economy and firm. and viewing uploaded videos in Google Classroom
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2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 13 to 21
1. After reading your book you should be able to answer the following guide question:
a. What are some actions that stockholders can take to ensure that management’s and
stockholders’ interests are aligned?
b. Should stockholder wealth maximization be thought of as a long-term or short-term goal?
2. Attend the online class lecture on this topic on January 21, 2021 at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 22 to 24.
b. Solutions of the chosen exercise problems will be presented on January 21, 2021, 4:00PM
using Google Classroom.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on January
21, 2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 2: Chapter 3: Functions of Financial Management
January 26, 2021 1. Describe the role of Finance Manager in A – Analyze the Learners
achieving the primary goal of the firm. 1. Google classroom activity: Partake in the online discussion on your background and
2. Understand how finance fits in the expectations about Functions of Financial Management.
organizational structure of the firm.
S – State Standards or Objectives
3. Enumerate the fundamental activities of the
Please see topic learning outcomes
Treasurer and the Controller.
4. Explain how the finance function relates to S – Select Strategies
the other functional areas of a business. The following teaching strategies will be used in this topic:
5. Learn the importance of corporate 1. Asynchronous online learning – participation in online discussion, answering guide questions
governance in achieving the goals of a and viewing uploaded videos in Google Classroom
business organization. 2. Synchronous online learning – joining the online class thru Google Meet
6. Appreciate the importance of ethics in 3. Offline learning – reading and self-study of printed resources
finance.
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 26 to 30.
1. After reading your book you should be able to answer the following guide questions:
a. In a large corporation, what are the two distinct groups that report to the chief financial
officer? Which group is the focus of corporate finance?
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b. Why should effective corporate governance be in place?

c. Distinguish the role of an external auditor from the role of an internal auditor.
d. Distinguish the functions of a controller from the functions of the treasurer.
2. Attend the online class lecture on this topic on January 26, 2021 at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 31 to 33.
b. Solutions of the chosen exercise problems will be presented on January 26, 2021, 4:00PM
using Google Classroom.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on January
26, 2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 2: Chapter 4: Forms of Business Organization
January 26, 2021 1. Explain the basic legal forms of business A – Analyze the Learners
organizations such as sole proprietorship, 1. Google classroom activity: Partake in the online discussion on your background and
partnership, and corporation. expectations about Forms of Business Organization.
2. Know the advantages and disadvantages of
S – State Standards or Objectives
adopting the sole proprietorship, partnership,
Please see topic learning outcomes
and corporation.
3. Determine the form of business organization S – Select Strategies
most adaptable to an enterprise. The following teaching strategies will be used in this topic:
1. Asynchronous online learning – participation in online discussion, answering guide questions
and viewing uploaded videos in Google Classroom
2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 35 to 40.
1. After reading your book you should be able to answer the following guide questions:
a. What are the three basic forms of business ownership? What are the advantages and
disadvantages to each?
b. Between the three basic forms of business ownership, describe the ability of each form to
access capital.
c. Explain how the founder of a business can eventually lose control of the firm. How can the
founder ensure this will not happen?
d. Who owns a corporation? Describe the process whereby the owners control the firm’s
management. What is the main reason that an agency relationship exists in the corporate
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form of organization? In this context, what kinds of problems can arise?

2. Attend the online class lecture on this topic on January 26, 2021 at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 41 to 42.
b. Solutions of the chosen exercise problems will be presented on January 26, 2021, 4:00PM
using Google Classroom.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on January
26, 2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Unit II: The Framework of Financial Management
Week 2: Chapter 5: Applications of Microeconomics Theory as a Basis for Understanding the Key Economic Variables Affecting the Business
January 28, 2021 1. Understand the significance of A – Analyze the Learners
microeconomics theory as applied to 1. Google classroom activity: Partake in the online discussion on your background and
business. expectations about Application of Microeconomics Theory as a Basis for Understanding the
2. Know the nature of and the factors affecting Key Economic Variables Affecting the Business.
the demand for product other than its price.
S – State Standards or Objectives
3. Distinguish between elastic and inelastic
Please see topic learning outcomes
demand how they affect the price of goods
and services. S – Select Strategies
4. Discuss the factors affecting the supply of a The following teaching strategies will be used in this topic:
product other than its price. 1. Asynchronous online learning – participation in online discussion, answering guide questions
5. Understand the significance of market and viewing uploaded videos in Google Classroom
equilibrium and pricing. 2. Synchronous online learning – joining the online class thru Google Meet
6. Know the nature of short-run and long-run 3. Offline learning – reading and self-study of printed resources
total cost.
7. Explain the role of money in the economy U – Utilize Technology, Media and Materials
and the relationship between its supply and Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
demand. Applications, 2012-2013 Edition from pages 45 to 67.
8. Understand the nature of interest and how 1. After reading your book you should be able to answer the following guide questions:
interest rates are determined. a. What does the elasticity of demand measure in general?
b. What do the price elasticity of demand, the income elasticity of demand and the cross
elasticity of demand measure in general?
c. What factors govern the size of the coefficient of price elasticity of demand?
d. What does the price elasticity of supply measure in general?
e. How does the length of time adjustment to a change in the price of a commodity affect the
price elasticity of the supply of the commodity?
f. As a result of the high wage settlement in Metro Manila taxi strike several years ago, taxi
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owners increased taxi fares. Was this the right decision?

g. If the market demand for agricultural commodities is price inelastic, would a bad harvest
lead to an increase or a decrease in the incomes of farmers as a group? Why?
h. What are some implicit costs incurred by an entrepreneur in running his firm? How are
these implicit costs estimated? Why must they be included as part of costs of production?
i. What price does the firm pay to purchase or hire the factors it does not own?
j. State the relationship between the production functions and cost curves/
k. Are prices an accurate measure of a good’s total value? Are prices an accurate measure of
a good’s marginal value? What’s the difference? Can you think of a good that has high total
value but low marginal value? Use this concept why professional wrestlers earn more than
nurses, despite the fact that nurses probably create more total value to society.
l. “The future of our industrial strength cannot be left to chance. Somebody has to develop
notions about which industries are winners and which are losers.” Is this statement by a
newspaper columnist true? Who is this “somebody”?
m. “Production should be for people and not for profit.” Answer the following questions
concerning this statement; (a) If production is profitable, are people helped or harmed? (b)
Explain (b) Are people helped more if production results in a loss than if it leads to profit? Is
there a conflict between production for people and production for profit?
n. Do business firms operating in competitive markets have a strong incentive to serve the
interest of consumers? Are they motivated by a strong desire to help consumers? Are
“good intentions” necessary if individuals are going to engage in actions that are helpful to
others? Discuss.
2. Attend the online class lecture on this topic on January 28, 2021 at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 68 to 73.
b. Solutions of the chosen exercise problems will be presented on January 28, 2021, 4:00PM
c.
using Google Classroom.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google Classroom on January
28, 2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 2: Chapter 6: Applications of Macroeconomics Theory as a Basis for Understanding the Key Economic Variables Affecting the Business
January 28, 2021 1. Understand the significance of A – Analyze the Learners
macroeconomic theory as it impacts the 1. Google classroom activity: Partake in the online discussion on your background and
operations of a business. expectations about Applications of Macroeconomics Theory as a Basis for Understanding the
2. Explain the flow of goods and services in the Key Economic Variables Affecting the Business.
economy.
S – State Standards or Objectives
3. Know how the various measures of
Please see topic learning outcomes
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economic output, employment, inflation,

S – Select Strategies
trade surpluses/deficits impact the major
The following teaching strategies will be used in this topic:
segments of the economy such as the
1. Asynchronous online learning – participation in online discussion, answering guide questions
consumers, business and government.
and viewing uploaded videos in Google Classroom
4. Explain aggregate demand and supply as
2. Synchronous online learning – joining the online class thru Google Meet
they affect GDP.
3. Offline learning – reading and self-study of printed resources
5. Understand the inputs of production namely
labor, capital, land, intermediate inputs and U – Utilize Technology, Media and Materials
business know-how. Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
6. Understand the nature of monetary policies Applications, 2012-2013 Edition from pages 75 to 96.
and their effect on the economy. 1. After reading your book you should be able to answer the following guide questions:
7. Enumerate the various monetary policy tools a. What are the five broad classifications of factors of production? Give two examples of each.
that the BSP can use to achieve its b. Describe a mixed economy.
objectives. c. What is meant by scarcity? Why does the existence of scarcity mean that we must make
choices and why will cooperation not eliminate scarcity?
d. Explain the difference between wants and demands.
e. List three events that would likely cause an increase in the demand for peanut butter. What
effect would such an increase in demand have on the price of peanut butter and the
quantity traded?
f. Explain how a fall in price eliminates a surplus.
g. The price of personal computers has continued to fail even in the face of increasing
demand. Explain.
h. A tax on crude oil would raise the cost of the primary resource used in the production of
gasoline. A proponent of such tax has claimed that it will not raise the price of gasoline
using the following argument: While the price of gasoline may rise initially, the price
increase will cause the demand for gasoline to decrease which will push the price back
down. What is wrong with this argument?
i. What is meant by the value of money? Why does the value of money fall when there is
inflation?
j. Consider borrowers and lenders. Who benefits and who is hurt when the rate of inflation is
less than anticipated? Explain.
k. In the aggregate economy, why does income equal expenditure?
l. What is meant by the macroeconomic equilibrium?
m. What are the most important factors in explaining the steady and persistent increases in
the price level over time in the Philippines?
n. What is meant when we say that money serves as a unit of account?
o. How do financial intermediaries create liquidity?
p. What are the three main monetary policy tools of the Central Bank?
q. How does an open market purchase of government securities lead to an increase in the
monetary base?
r. What are the three main motives for holding money?
s. Explain how an increase in the money supply leads to an increase in aggregate planned
expenditure via the exchange rate effect.
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2. Attend the online class lecture on this topic on September 21, 2020 at 4:00PM-5:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 97 to 108.
b. Solutions of the chosen exercise problems will be presented on January 28, 2021, 4:00PM
c.
using Google Classroom.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google Classroom on January
28, 2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 3: Chapter 7: Competition and Policies Toward Monopolies and Oligopolies, Privatization, and Deregulation
February 2, 2021 1. Understand the nature and significance of A – Analyze the Learners
competition in a market economy. 1. Google classroom activity: Partake in the online discussion on your background and
2. Distinguish between price takers and price expectations about Competition and Policies Toward Monopolies and Oligopolies, Privatization,
searchers. and Deregulation.
3. Explain economic inequality and how it
S – State Standards or Objectives
contributes to poverty.
Please see topic learning outcomes
4. Know the factors that make it difficult for
potential competitors enter a market. S – Select Strategies
5. Describe a “monopolistic market” and The following teaching strategies will be used in this topic:
distinguish it from the oligopolistic market. 1. Asynchronous online learning – participation in online discussion, answering guide questions
6. Understand the fundamentals of financial and viewing uploaded videos in Google Classroom
management in public sector enterprises. 2. Synchronous online learning – joining the online class thru Google Meet
7. Realize the causes of ineffectiveness, 3. Offline learning – reading and self-study of printed resources
inefficiency and corruption in public sector U – Utilize Technology, Media and Materials
enterprises. Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
8. Identify the ways to reform public sector Applications, 2012-2013 Edition from pages 110 to 123.
enterprises. 1. After reading your book you should be able to answer the following guide questions:
9. Know the objectives of privatization and a. Define monopoly. What is the difference between pure monopoly and perfect monopoly?
disinvestment in public sector enterprises. b. What are the conditions that give rise to monopoly?
c. Define monopolistic competition and give few examples. Identify the competitive and the
monopoly elements. Why is it difficult or impossible to define the industry?
2. Attend the online class lecture on this topic on February 2, 2021 at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 124 to 128.
b. Solutions of the chosen exercise problems will be presented on February 2, 2021, 4:00PM
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using Google Classroom.

E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on February
2, 2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.

Answer the 60-item exam that will be posted in the Google Classroom
February 4, 2021 Prelim Exam Start Time: 2:30 PM | Due Time: 4:00 PM
Unit III: Effects of the Economic Environment on Business Strategy
Week 4: Chapter 8: Understanding the Role of the Financial Market and Institutions
February 9, 2021 1. Define financial markets. A – Analyze the Learners
2. Identify the participants in the financial 1. Google classroom activity: Partake in the online discussion on your background and
markets. expectations about Understanding the Role of the Financial Market and Institutions.
3. Appreciate the importance of financial
S – State Standards or Objectives
markets as providers of funds to business
Please see topic learning outcomes
establishments.
4. Enumerate and distinguish the types of S – Select Strategies
markets. The following teaching strategies will be used in this topic:
5. Familiar with the categories of financial 1. Asynchronous online learning – participation in online discussion, answering guide questions
institutions. and viewing uploaded videos in Google Classroom
6. Understand the role of the stock market. 2. Synchronous online learning – joining the online class thru Google Meet
7. Know the kinds of stock market. 3. Offline learning – reading and self-study of printed resources
8. Explain the reasons for transactions in stock
market. U – Utilize Technology, Media and Materials
9. Discuss the role and operation of a stock Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
exchange. Applications, 2012-2013 Edition from pages 131 to 141.
10. Know how securities are listed on the stock 1. After reading your book you should be able to answer the following guide questions:
exchange. a. Describe the different ways in which capital can be transferred from suppliers of capital to
those who are demanding capital.
b. What would happen to a country’s standard of living if people lost faith in the safety of the
financial institution? Explain.
c. What types of changes have financial markets experienced during the last two decades?
d. In terms of the life of the securities offered, what is the difference between money and
capital markets?
2. Attend the online class lecture on this topic on February 9, 2021 at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 142 to 145.
b. Solutions of the chosen exercise problems will be presented on February 9, 2021, 4:00PM
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using Google Meet.

E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on February
9, 2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 4: Chapter 9: International Trade
February 11, 2021 1. Learn the historical perspective of A – Analyze the Learners
International Free Trade. 1. Google classroom activity: Partake in the online discussion on your background and
2. Know the gains that countries generate from expectations about International Trade.
international trade.
S – State Standards or Objectives
3. Understand the obstacles to free trade.
Please see topic learning outcomes
4. Explain how foreign exchange rates affect
business operations. S – Select Strategies
5. Enumerate and explain the factors The following teaching strategies will be used in this topic:
influencing exchange rates. 1. Asynchronous online learning – participation in online discussion, answering guide questions
6. Discuss the interaction in foreign currency and viewing uploaded videos in Google Classroom
markets. 2. Synchronous online learning – joining the online class thru Google Meet
7. Distinguish between spot rates, forward 3. Offline learning – reading and self-study of printed resources
rates and cross rates.
8. Understand how foreign exchange risk is U – Utilize Technology, Media and Materials
managed and minimized. Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
9. Know how foreign investment decisions are Applications, 2012-2013 Edition from pages 147 to 161.
made and funded. 1. After reading your book you should be able to answer the following guide questions:
10. Explain balance of payments. a. Explain how exports and imports tend to influence the value of currency.
11. Understand the role of international b. Differentiate between the spot exchange rate and the forward exchange rate.
institutions agreement. c. What is meant by translation exposure in terms of foreign exchange risk?
d. What procedure(s) would you recommend for a multinational company in studying
exposure to political risk? What actual strategies can be used to guard against such risk?
e. What is LIBOR? How does it compare to the U.S. prime rate?
2. Attend the online class lecture on this topic on February 11, 2021 at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 162 to 168.
b. Solutions of the chosen exercise problems will be presented on February 11, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on February
11, 2021, 4:00PM.

13
L-NU AA 30-00-01-20

Optional Task:
1. Review the source materials provided in Google Classroom.
Week 5: Chapter 10: The Time Value of Money
February 16, 2021 1. Have a good appreciation of the time value A – Analyze the Learners
of money (future and present) and how it 1. Google classroom activity: Partake in the online discussion on your background and
impacts business decisions. expectations about The Time Value of Money.
2. Compute for the future value of money when
interest is simple, compounded, uniform S – State Standards or Objectives
payments, and unequal payments. Please see topic learning outcomes
3. To know how to compute the present value S – Select Strategies
of money when stream of payments is The following teaching strategies will be used in this topic:
uniform and unequal. 1. Asynchronous online learning – participation in online discussion, answering guide questions
4. To learn how to compute the present value and viewing uploaded videos in Google Classroom
of a perpetuity and how to determine the 2. Synchronous online learning – joining the online class thru Google Meet
compound annual growths or interest rate. 3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 170 to 184.
1. After reading your book you should be able to answer the following guide questions:
a. How is the future value related to the present value of a single sum?
b. How is the present value of a single sum related to the present value of an annuity?
c. Why does money have a time value?
d. Does inflation have anything to do with making a peso today worth more than a peso
tomorrow?
e. If, as an investor, you had a choice of daily, monthly, or quarterly compounding, which
would you choose? Why?
2. Attend the online class lecture on this topic on February 16, 2021 at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 185 to 190.
b. Solutions of the chosen exercise problems will be presented on February 16, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on February
16, 2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Unit IV: Evaluating Operating and Financial Performance
14
L-NU AA 30-00-01-20

Week 5: Chapter 11: Understanding Financial Statements

February 18, 2021 1. Understand how business activities are A – Analyze the Learners
reported through the financial statements. 1. Google classroom activity: Partake in the online discussion on your background and
2. Appreciate the general objectives of financial expectations about Understanding Financial Statements.
statements.
S – State Standards or Objectives
3. Enumerate and identify the needs of various
Please see topic learning outcomes
users that demand financial accounting
information. S – Select Strategies
4. Enumerate the sources of information about The following teaching strategies will be used in this topic:
a business enterprise. 1. Asynchronous online learning – participation in online discussion, answering guide questions
5. Understand the benefits and costs of and viewing uploaded videos in Google Classroom
supplying accounting information. 2. Synchronous online learning – joining the online class thru Google Meet
6. Know the nature and significance of the 3. Offline learning – reading and self-study of printed resources
balance sheet statement, statement of
comprehensive income, statement of U – Utilize Technology, Media and Materials
stockholder’s equity, and statement of cash Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
flows. Applications, 2012-2013 Edition from pages 193 to 209.
1. After reading your book you should be able to answer the following guide questions:
a. What four financial are contained in most annual reports?
b. Who are some of the basic users of financial statements, and how do they use them?
c. Do investors need to worry about the validity of financial statements?
d. How is the income statement related to the statement of financial position?
e. Explain why the statement of cash flows provides useful information that goes beyond
income statement and statement of financial position data.
f. What are the three primary sections of the statement of cash flows? In what section would
the payment of a cash dividend be shown?
g. What is free cash flow? Why is it important to leveraged buyouts?
2. Attend the online class lecture on this topic on February 18, 2021 at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 210 to 220.
b. Solutions of the chosen exercise problems will be presented on February 18, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on February
18, 2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 6: Chapter 12: Analysis of Financial Statements
February 23, 2021 1. Define financial statements analysis. A – Analyze the Learners
15
L-NU AA 30-00-01-20

2. Understand the need to analyze the broader 1. Google classroom activity: Partake in the online discussion on your background and
business environment. expectations about Analysis of Financial Statements.
3. Know the basics of profitability analysis.
S – State Standards or Objectives
4. Realize the limitations of financial
Please see topic learning outcomes
statements analysis.
5. Analyze a business firm’s short-term S – Select Strategies
financial position, asset liquidity and The following teaching strategies will be used in this topic:
management, long-term financial position 1. Asynchronous online learning – participation in online discussion, answering guide questions
and profitability using financial ratios. and viewing uploaded videos in Google Classroom
6. Apply the Du Pont Disaggregation Analysis. 2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 222 to 256.
1. After reading your book you should be able to answer the following guide questions:
a. What is the primary emphasis of each group, and how would that emphasis affects the
ratios they focus on?
b. If a firm’s ROE is low and management wants to improve it, explain how using more debt
might help.
c. When might a reduction in operating expenses as a percentage of sales denote a short-
term gain at the cost of long-term performance?
d. What effect will disinflation following a highly inflationary period have on the reported
income of the firm?
e. Why might disinflation prove to be favorable to financial assets?
2. Attend the online class lecture on this topic on February 23, 2021, at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 257 to 271.
b. Solutions of the chosen exercise problems will be presented on February 23, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on February
23, 2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 6: Chapter 13: Cash Flow Analysis
February 25, 2021 1. Understand the usefulness of the statement A – Analyze the Learners
of cash flows as far as decision making is 1. Google classroom activity: Partake in the online discussion on your background and
concerned. expectations about Cash Flow Analysis.

16
L-NU AA 30-00-01-20

2. Know the classifications of the cash flow S – State Standards or Objectives

activities. Please see topic learning outcomes
3. Identify the various sources and applications
S – Select Strategies
of cash according to the firm’s operating,
The following teaching strategies will be used in this topic:
financing, and investing activities?
1. Asynchronous online learning – participation in online discussion, answering guide questions
4. Be familiar with the content and form of the
and viewing uploaded videos in Google Classroom
Statement of Cash Flows.
2. Synchronous online learning – joining the online class thru Google Meet
5. Calculate cash flow from operating activities
3. Offline learning – reading and self-study of printed resources
using the direct and indirect method.
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 273 to 289.
1. After reading your book you should be able to answer the following guide questions:
a. Explain how depreciation generates actual cash flows for the company.
b. What is the difference between net cash flow from operating activities, net cash flow from
investing activities and net cash flow from financing activities?
c. What are the free cash flows for a firm?
d. What does it mean when a firm’s free cash flow is negative?
e. Explain the impact of taxation on cash flows.
2. Attend the online class lecture on this topic on February 25, 2021 at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 419 to 432.
b. Solutions of the chosen exercise problems will be presented on February 25, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on February
25, 2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 7: Chapter 14: Operating and Financial Leverage
March 2, 2021 1. Understand the concept and application of A – Analyze the Learners
leverage in business. 1. Google classroom activity: Partake in the online discussion on your background and
2. Know how cost-volume-profit relationship is expectations about Operating and Financial Leverage.
applied in determining a firm’s breakeven
S – State Standards or Objectives
volume, margins of safety, and operating
Please see topic learning outcomes
outcome on changes on profit elements.
3. Understand the assumptions and limitations S – Select Strategies
of the CVP analysis. The following teaching strategies will be used in this topic:
4. Explain the meaning of operating leverage. 1. Asynchronous online learning – participation in online discussion, answering guide questions
17
L-NU AA 30-00-01-20

and viewing uploaded videos in Google Classroom

2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 301 to 319
1. After reading your book you should be able to answer the following guide questions:
a. What is meant by a product’s contribution margin ratio? How is this ratio useful in planning
business operations?
b. Often the most direct route to a business decision is an incremental analysis. What is
meant by an incremental analysis?
c. What is meant by the term operating leverage?
d. What is meant by the term break-even point?
e. What is meant by the margin of safety?
f. What is meant by contribution margin?
g. What is meant by the term sales mix? What assumption is usually made concerning sales
mix in CVP analysis?
h. Explain how a shift in the sales mix could result in both a higher break-even point and a
lower net income.
i. What factors would cause a difference in the use of financial leverage for a utility company
and an automobile company?
5. Calculate and interpret the firm’s degree of j. Explain how the break-even point and operating leverage are affected by the choice of
operating leverage. manufacturing facilities (labor intensive versus capital intensive).
6. Understand the nature of financial leverage. k. What role does depreciation play in break-even analysis based on accounting flows?
7. Calculate and interpret the firm’s degree of Based on cash flows? Which perspective is longer term in nature?
financial leverage. l. What does risk taking have to do with the use of operating and financial leverage?
8. Explain the impact of combining operating m. Explain how combined leverage brings together operating income and earnings per share.
leverage and financial leverage. n. Explain why operating leverage decreases as a company increases sales and shifts away
from the break-even point.
2. Attend the online class lecture on this topic on March 2, 2021 at 2:30PM-4:00PM using Google
Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 320 to 335.
b. Solutions of the chosen exercise problems will be presented on March 2, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on March 2,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.

18
L-NU AA 30-00-01-20

Unit V: Financial Forecasting, Planning and Control

Week 7: Chapter 15: Financial Forecasting for Strategic Control
March 4, 2021 1. Understand the concept and perspective of A – Analyze the Learners
financial planning. 1. Google classroom activity: Partake in the online discussion on your background and
2. Explain the benefits that can be derived from expectations about Financial Forecasting for Strategic Control.
financial planning.
S – State Standards or Objectives
3. Know the elements of a basic financial
Please see topic learning outcomes
planning model.
4. Understand the determinants of a firm’s S – Select Strategies
growth rates. The following teaching strategies will be used in this topic:
5. Know and apply financial planning process 1. Asynchronous online learning – participation in online discussion, answering guide questions
using the Projected Financial Statement and viewing uploaded videos in Google Classroom
Method (Percent of Sales Method). 2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 338 to 354.
1. After reading your book you should be able to answer the following guide questions:
a. Why do you think most long-term financial planning begins with sales forecasts? Put
differently, why are future sales the key input?
b. How would you determine if an entity would either borrow or sell common stock?
c. What is an internal growth rate?
d. Define sustainable growth rate.
e. What is a retention ratio?
2. Attend the online class lecture on this topic on March 4, 2021 at 2:30PM-4:00PM using Google
Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 355 to 363.
b. Solutions of the chosen exercise problems will be presented on March 4, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on March 4,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 8: Chapter 16: Forecasting Short-Term (Operating) Financial Requirements
March 9, 2021 1. Understand the relationship between A – Analyze the Learners
financial planning and control. 1. Google classroom activity: Partake in the online discussion on your background and
2. Know the nature, purposes and limitations of expectations about Forecasting Short-Term (Operating) Financial Requirements.
19
L-NU AA 30-00-01-20

the budget.
S – State Standards or Objectives
3. Enumerate the types of budgets.
Please see topic learning outcomes
4. Understand and apply the steps in
developing a master budget. S – Select Strategies
The following teaching strategies will be used in this topic:
1. Asynchronous online learning – participation in online discussion, answering guide questions
and viewing uploaded videos in Google Classroom
2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 365 to 381.
1. After reading your book you should be able to answer the following guide questions:
a. What are the benefits and purposes of developing pro forma statements and cash budget?
b. Explain how the collections and purchases schedules are related to the borrowing needs of
the corporation.
c. Explain the relationship between inventory turnover and purchasing needs.
d. Discuss the advantage and disadvantage of level production schedules in firms with
cyclical sales.
e. What conditions would help make a percent-of-sales forecast almost as accurate as pro
forma financial statements and cash budgets?
f. What is budget? What is budgetary control?
2. Attend the online class lecture on this topic on March 9, 2021 at 2:30PM-4:00PM using Google
Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 383 to 393.
b. Solutions of the chosen exercise problems will be presented on March 9, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on March 9,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.

Answer the 60-item exam that will be posted in the Google Classroom
March 11, 2021 Midterm Exam Start Time: 2:30 PM | Due Time: 4:00 PM
Unit VI: Working Capital Management
Week 9: Chapter 17: Addressing the Working Capital Policies and Management of Short-Term Assets and Liabilities
March 16, 2021 1. Understand the concept of working capital A – Analyze the Learners
20
L-NU AA 30-00-01-20

management. 1. Google classroom activity: Partake in the online discussion on your background and
2. Know the importance of working capital expectations about Addressing the Working Capital Policies and Management of Short-Term
management. Assets and Liabilities.
3. Identify and understand the factors affecting
S – State Standards or Objectives
the firm’s working capital policy.
Please see topic learning outcomes
4. Appreciate the need of knowing how to trace
cash movement through the firm’s operation. S – Select Strategies
5. Understand and calculate the operating The following teaching strategies will be used in this topic:
cycle and cash conversion cycle of a 1. Asynchronous online learning – participation in online discussion, answering guide questions
business firm. and viewing uploaded videos in Google Classroom
6. Know how operating cycle can be 2. Synchronous online learning – joining the online class thru Google Meet
shortened. 3. Offline learning – reading and self-study of printed resources
7. Distinguish the alternative policies as to the
amount of investment in current assets. U – Utilize Technology, Media and Materials
8. Identify and distinguish between the costs Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
relevant to investment in current assets. Applications, 2012-2013 Edition from pages 396 to 413.
9. Know the alternative policies in financing 1. After reading your book you should be able to answer the following guide questions:
investment in current assets. a. What are some of the characteristics of a firm with a long operating cycle?
b. What are some of the characteristics of a firm with a long cash cycle?
c. Describe the effect of a just-in-time (JIT) inventory system on the company’s carrying costs,
shortage costs and operating cycle.
d. Is it possible for a firm’s cash cycle to be longer than its operating cycle? Explain why or
why not.
2. Attend the online class lecture on this topic on March 16, 2021 at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 414 to 420.
b. Solutions of the chosen exercise problems will be presented on March 16, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on March 16,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 9: Chapter 18: Cash and Marketable Securities Management
March 18, 2021 1. Understand the concept of cash A – Analyze the Learners
management. 1. Google classroom activity: Partake in the online discussion on your background and
2. Learn the objectives of cash management. expectations about Cash and Marketable Securities Management.
3. Identify the reasons for holding cash
S – State Standards or Objectives
balances.
Please see topic learning outcomes
21
L-NU AA 30-00-01-20

S – Select Strategies
The following teaching strategies will be used in this topic:
1. Asynchronous online learning – participation in online discussion, answering guide questions
and viewing uploaded videos in Google Classroom
2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 422 to 441.
1. After reading your book you should be able to answer the following guide questions:
a. In the management of cash and marketable securities, why should the primary concern be
for safety and liquidity rather than maximization of profit?
b. Why does float exist and what effect would electronic funds transfer systems have on float?
c. How can a firm operate with a negative cash balance on its corporate books?
d. Why would a financial manager want to slow down disbursements?
e. Briefly explain how a corporation may use float to its advantage.
f. In the management of cash and marketable securities, why should the primary concern be
for safety and liquidity rather than maximization of profit?
g. How can a firm operate with a negative cash balance on its corporate books?
h. What are the principles to be considered while investing short-term surplus funds in
4. Know how to determine the target cash marketable securities?
balance using cash budget, cash break-even i. “Efficient cash management will aim at maximizing the availability of cash inflows by
chart, and optimal cash balance. decentralizing collections and decelerating cash outflows by centralizing disbursements”.
5. Understand the other factors that influence Discuss.
the target cash balance. j. What is meant by the cash flow process?
6. Know the cash management techniques to k. Identify the principal motives for holding cash and near-cash assets. Explain the purpose of
manage properly the cash flows of the firm. each motive.
7. Understand the objective of marketable 2. Attend the online class lecture on this topic on March 18, 2021 at 2:30PM-4:00PM using
securities management. Google Meet.
8. Realize the reason for holding marketable
R – Require Learner Participation
securities.
1. Individual activity
9. Learn the types of marketable securities.
a. Answer the exercise drills from pages 442 to 452.
b. Solutions of the chosen exercise problems will be presented on March 18, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on March 18,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 10: Chapter 19: Accounts Receivable and Inventory Management
22
L-NU AA 30-00-01-20

March 23 & 25, 2021 1. Understand the need to manage accounts A – Analyze the Learners
receivable. 1. Google classroom activity: Partake in the online discussion on your background and
2. Know the objectives of receivable expectations about Accounts Receivable and Inventory Management.
management.
S – State Standards or Objectives
3. Explain the nature of credit policy and
Please see topic learning outcomes
understand its elements.
4. Know the costs associated with the S – Select Strategies
investment in accounts receivable. The following teaching strategies will be used in this topic:
5. Understand the cost-benefit relationship in 1. Asynchronous online learning – participation in online discussion, answering guide questions
credit and collection policies. and viewing uploaded videos in Google Classroom
6. Analyze proposed changes in credit policy. 2. Synchronous online learning – joining the online class thru Google Meet
7. Understand the need to manage inventories. 3. Offline learning – reading and self-study of printed resources
8. Know the objective of inventory
management. U – Utilize Technology, Media and Materials
9. Explain the functions of inventories. Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
10. Identify the cost associated with investment Applications, 2012-2013 Edition from pages 454 to 468.
in inventory. 1. After reading your book you should be able to answer the following guide questions:
11. Learn how to determine economic order a. In the management of cash and marketable securities, why should the primary concern be
quantity (EOQ) and reorder point. for safety and liquidity rather than maximization of profit?
12. Understand the different level monitoring b. Why does float exist and what effect would electronic funds transfer systems have on float?
and inventory control systems. c. How can a firm operate with a negative cash balance on its corporate books?
d. Why would a financial manager want to slow down disbursements?
e. What are three quantitative measures that can be applied to collection policy of the firm?
f. In what form is trade credit most commonly offered? What is the credit instrument in this
case?
g. What costs are associated with carrying receivables? What costs are associated with not
granting credit? What do we call the sum of the costs for different levels of receivables?
h. What are the five of Cs of credit? Explain why each is important.
2. Attend the online class lecture on this topic on March 23 & 25, 2021 at 2:30PM-4:00PM using
Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 469 to 477.
b. Solutions of the chosen exercise problems will be presented on March 25, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on March 25,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 11: Chapter 20: Short-Term Sources for Financing Current Assets
23
L-NU AA 30-00-01-20

March 30, 2021 1. Understand the need for short-term A – Analyze the Learners
financing. 1. Google classroom activity: Partake in the online discussion on your background and
Week 12: 2. Know the factors in selecting the source of expectations about Short-Term Sources for Financing Current Assets.
April 6, 2021 short-term funds.
S – State Standards or Objectives
3. Compute the estimated cost of short-term
Please see topic learning outcomes
credit.
4. Identify and understand the different sources S – Select Strategies
of short-term funds and how they can be The following teaching strategies will be used in this topic:
availed of. 1. Asynchronous online learning – participation in online discussion, answering guide questions
and viewing uploaded videos in Google Classroom
2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 479 to 497.
1. After reading your book you should be able to answer the following guide questions:
a. Under what circumstances would it be advisable to borrow money to take a cash discount?
b. What is the prime interest rate? How does the average bank customer fare in regard to the
prime interest rate?
c. A borrower is often confronted with a stated interest rate and an effective interest rate.
What is the difference, and which one should the financial manager recognize as the true
cost of borrowing?
d. Commercial paper may show up on corporate statement of financial position as either a
current asset or a current liability. Explain this statement.
e. What is the difference between pledging accounts receivable and factoring accounts
receivable?
f. Briefly discuss three types of lender control used in inventory financing.
2. Attend the online class lecture on this topic on March 30 & April 6, 2021 at 2:30PM-4:00PM
using Google Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 498 to 517.
b. Solutions of the chosen exercise problems will be presented on April 6, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on April 6,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Unit VII: Asset Risks Concept and Pricing
24
L-NU AA 30-00-01-20

Week 12: Chapter 21: Financial Risk Management

April 8, 2021 1. Explain the concept of risk management. A – Analyze the Learners
2. Know the basic principles, elements and 1. Google classroom activity: Partake in the online discussion on your background and
process of risk management. expectations about Financial Risk Management.
3. Explain the alternative potential risk
S – State Standards or Objectives
treatments.
Please see topic learning outcomes
4. Enumerate the areas of risk management.
5. Enumerate and explain the types of S – Select Strategies
investment risks. The following teaching strategies will be used in this topic:
6. Understand and apply the techniques and 1. Asynchronous online learning – participation in online discussion, answering guide questions
models commonly used in assessing and viewing uploaded videos in Google Classroom
investment alternatives under risk or 2. Synchronous online learning – joining the online class thru Google Meet
uncertainty. 3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 520 to 546.
1. After reading your book you should be able to answer the following guide questions:
a. Explain the concept of risk management.
b. Enumerate and explain the basic principles of risk management.
c. What are the steps involved in the applying risk management?
d. What are the techniques in managing identified risks? Explain briefly.
e. Give and explain the risks associated with investment in assets.
f. Describe the steps in determining the expected value of perfect information.
g. Distinguish between decision making under certainty and decision making under certainty.
h. Describe the steps in the simulation procedure.
i. Write down the advantages and disadvantages of simulation.
j. What is a decision tree? Describe briefly the basic rules for drawing a decision tree.
2. Attend the online class lecture on this topic on April 8, 2021 at 2:30PM-4:00PM using Google
Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 547 to 549.
b. Solutions of the chosen exercise problems will be presented on April 8, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on April 8,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 13: Chapter 22: Estimating Risk and Return on Assets
25
L-NU AA 30-00-01-20

April 13, 2021 1. Understand the basic risk and return A – Analyze the Learners
concept and relationship. 1. Google classroom activity: Partake in the online discussion on your background and
2. Know how to apply probability and expectations about Estimating Risk and Return on Assets.
probability distribution in determining the
S – State Standards or Objectives
expected rate of return on an investment.
Please see topic learning outcomes
3. Understand how to measure the variability of
a probability distribution using standard S – Select Strategies
deviation. The following teaching strategies will be used in this topic:
4. Explain the meaning of coefficient of variable 1. Asynchronous online learning – participation in online discussion, answering guide questions
as a tool measure risk. and viewing uploaded videos in Google Classroom
5. Know how to analyze the risk-return 2. Synchronous online learning – joining the online class thru Google Meet
relationship in a portfolio of assets. 3. Offline learning – reading and self-study of printed resources
6. Understand how portfolio risk is affected by
diversification of investment. U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 551 to 566.
1. After reading your book you should be able to answer the following guide questions:
a. What is the meaning of risk?
b. Explain the difference between objective and subjective probabilities.
c. What is the difference between a discrete and a continuous probability distribution?
d. Why does riskiness increase with time?
e. What is the meaning of the expected value of return?
2. Attend the online class lecture on this topic on April 13, 2021 at 2:30PM-4:00PM using Google
Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 567 to 575.
b. Solutions of the chosen exercise problems will be presented on April 13, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on April 13,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 13: Chapter 23: Capital Asset Pricing Model and Modern Portfolio Theory
April 15, 2021 1. Understand the concept of the Capital Asset A – Analyze the Learners
Pricing Model (CAPM). 1. Google classroom activity: Partake in the online discussion on your background and
Week 14: 2. Distinguish between diversifiable or expectations about Capital Asset Pricing Model and Modern Portfolio Theory.
April 20, 2021 systematic risk and undiversifiable or market
S – State Standards or Objectives
risk.
Please see topic learning outcomes
3. Understand how to measure the variability of
26
L-NU AA 30-00-01-20

S – Select Strategies
The following teaching strategies will be used in this topic:
1. Asynchronous online learning – participation in online discussion, answering guide questions
and viewing suggested videos in YouTube
2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 577 to 596.
1. After reading your book you should be able to answer the following guide questions:
a. What is the difference between systematic and unsystematic risk?
b. Explain how a security’s beta is computed.
c. What is the difference standard deviation and beta as risk measures?
d. In broad terms, why is some risk diversifiable? Why are some risks non-diversifiable? Does
it follow than an investor can control the level of unsystematic risk in a portfolio, but not
level of systematic risk?
e. Suppose the government announces that based on a just completed survey, the growth
a probability distribution using standard rate in the economy is likely to be 2 percent in the coming year, as compared to 5 percent
deviation. for the past year. What will happen to security prices?
4. Calculate and interpret beta coefficient for a f. Is it possible that a risky asset could have a beta of zero? Explain. Based on the CAPM,
stock. what is the expected return on such an asset?
5. Calculate and interpret the portfolio beta 2. Attend the online class lecture on this topic on April 15 & 20, 2021 at 2:30PM-4:00PM using
coefficient. Google Meet.
6. Explain the relationship between risk and R – Require Learner Participation
rate of return. 1. Individual activity
7. Understand the significance of the security a. Answer the exercise drills from pages 597 to 602.
market line. b. Solutions of the chosen exercise problems will be presented on April 20, 2021, 4:00PM
8. Know the concerns and constraint in using using Google Meet.
beta as a measure of investment risk.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on April 20,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.

Answer the 60-item exam that will be posted in the Google Classroom
April 22, 2021 Semi-Final Exam Start Time: 2:30 PM | Due Time: 4:00 PM
Unit VIII: Capital Structure Issues
Week 15: Chapter 24: Assessing Long-Term Debt, Equity and Capital Structure
April 27, 2021 1. Define capital and capital structure. A – Analyze the Learners
2. Know the reasons why capital structure 1. Google classroom activity: Partake in the online discussion on your background and
27
L-NU AA 30-00-01-20

changes over time. expectations about Assessing Long-Term Debt, Equity and Capital Structure.
3. Understand the Capital Structure Theories
S – State Standards or Objectives
such as the Traditional Approach, F
Please see topic learning outcomes
Modigliani and M Miller Approach, and
Contemporary Approach. S – Select Strategies
4. Explain the factors influencing Optimal The following teaching strategies will be used in this topic:
Capital Structure. 1. Asynchronous online learning – participation in online discussion, answering guide questions
5. Distinguish between business and financial and viewing suggested videos in YouTube
risk. 2. Synchronous online learning – joining the online class thru Google Meet
6. Know the relationship between capital 3. Offline learning – reading and self-study of printed resources
structure policy and the firm’s optimal capital
structure. U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 605 to 627.
1. After reading your book you should be able to answer the following guide questions:
a. What is capital structure?
b. What is the financial manager’s objective in making financing decisions?
c. What are the similarities and differences between the traditional, Modigliani and Miller, and
contemporary approaches to capital structure?
d. How a firm might go about determining its optimal or target capital structure?
e. What id EBIT-EPS analysis?
2. Attend the online class lecture on this topic on April 27, 2021 at 2:30PM-4:00PM using Google
Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 628 to 633.
b. Solutions of the chosen exercise problems will be presented on April 27, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on April 27,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 15: Chapter 25: Sources of Long-Term Financing
April 29, 2021 1. Know the sources of capital for business A – Analyze the Learners
firms. 1. Google classroom activity: Partake in the online discussion on your background and
2. Explain the nature of debt financing as well expectations about Sources of Long-Term Financing.
as the advantages and disadvantages of
S – State Standards or Objectives
availing such, their general terms, maturity,
Please see topic learning outcomes
collateral restructure covenants and
repayment schedule. S – Select Strategies
28
L-NU AA 30-00-01-20

The following teaching strategies will be used in this topic:

1. Asynchronous online learning – participation in online discussion, answering guide questions
and viewing suggested videos in YouTube
2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 635 to 680.
1. After reading your book you should be able to answer the following guide questions:
a. What are some specific features of bond agreements?
b. What method of “bond repayment” reduces debt and increases the amount of ordinary
equity share outstanding?
c. What is the purpose of serial repayments and sinking funds?
d. How does the bond rating affect the interest rate paid by a corporation on its bonds?
e. Discuss the advantages and disadvantages of debt.
f. Why might a corporation use a special category such as founders’ share in issuing ordinary
equity share?
3. Understand the nature of bonds; their g. How does the preemptive right protect shareholders from dilution?
trading process, features, and prices; credit h. If common shareholders are the owners of the company, why do they have the last claim
risk and ratings; types and methods of on assets and a residual claim to income?
retirement. 2. Attend the online class lecture on this topic on April 29, 2021 at 2:30PM-4:00PM using Google
4. Know the features, advantages and Meet.
disadvantages of issuing preferred shares.
5. Calculate the intrinsic value of preferred R – Require Learner Participation
shares. 1. Individual activity
6. Understand the nature of ordinary (common) a. Answer the exercise drills from pages 681 to 688.
equity shares, their features, advantages b. Solutions of the chosen exercise problems will be presented on April 29, 2021, 4:00PM
and disadvantages, and types. using Google Meet.
7. Calculate ordinary (common) equity shares E – Evaluate
valuation using the Finite and Infinite-Period 1. Answer a quiz assignment on this topic which will be posted in Google classroom on April 29,
valuation methods. 2021, 4:00PM.
8. Understand how leases are utilized as
source of long-term capital. Optional Task:
1. Review the source materials provided in Google Classroom.
Week 16: Chapter 26: Sharing Firm Wealth: Dividends, Share Repurchase and Other Payout
May 4, 2021 1. Define dividends and enumerate the types of A – Analyze the Learners
dividends. 1. Google classroom activity: Partake in the online discussion on your background and
2. Know the advantages and disadvantages of expectations about Sharing Firm Wealth: Dividends, Share Repurchase and Other Payout.
paying dividends and why investors favor
S – State Standards or Objectives
capital gains.
Please see topic learning outcomes
3. Explain the concept and theories of dividend
policy on dividend policy irrelevance theory, S – Select Strategies
29
L-NU AA 30-00-01-20

The following teaching strategies will be used in this topic:

1. Asynchronous online learning – participation in online discussion, answering guide questions
and viewing suggested videos in YouTube
2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 690 to 709.
1. After reading your book you should be able to answer the following guide questions:
a. How does the marginal principle of retained earnings relate to the returns that a
stockholder may make in other investments?
b. How does the stockholder, in general, feel about the relevance of dividends?
c. Explain the relationship between a company’s growth possibilities and its dividend policy.
d. Discuss how desire for control may influence a firm’s willingness to pay dividends.
e. Does it make sense for a corporation to repurchase its own stock? Explain.
f. What advantages to the corporation and the stockholder do dividend reinvestment plans
offer?
dividend policy relevance theory, and g. What is the concept of the policy?
residual theory of dividends policy. h. What are the three major arguments favoring the relevance of dividend policy?
4. Discuss the factors influencing dividend i. What is meant by the residual theory of dividends?
policy. 2. Attend the online class lecture on this topic on May 4, 2021 at 2:30PM-4:00PM using Google
5. Explain the types of dividend policies: stable Meet.
dividend policy, constant dividend payout
ratio policy, and regular dividends plus extra R – Require Learner Participation
policy. 1. Individual activity
6. Know the types of dividends (cash and a. Answer the exercise drills from pages 710 to 720.
stock). b. Solutions of the chosen exercise problems will be presented on May 4, 2021, 4:00PM using
7. Understand stock splits. Google Meet.
8. Explain stock repurchase as an alternative E – Evaluate
to cash dividends. 1. Answer a quiz assignment on this topic which will be posted in Google classroom on May 4,
9. Understand dividend reinvestment plans. 2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Unit IX: Long-term Investment Decisions
Week 16: Chapter 27: Calculating the Cost of Capital
May 6, 2021 1. Explain the need to compute the firm’s cost A – Analyze the Learners
of capital. 1. Google classroom activity: Partake in the online discussion on your background and
2. Understand the specific investor-supplied expectations about Calculating Cost of Capital.
capital such as debt, preferred shares and
S – State Standards or Objectives
ordinary equity.
Please see topic learning outcomes
3. Calculate after-tax cost of debt, cost of
30
L-NU AA 30-00-01-20

S – Select Strategies
The following teaching strategies will be used in this topic:
1. Asynchronous online learning – participation in online discussion, answering guide questions
and viewing suggested videos in YouTube
2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 723 to 744.
1. After reading your book you should be able to answer the following guide questions:
a. How do you apply cost of capital?
b. What are the sources of new capital?
c. Enumerate the approaches that can be used to estimate the cost of ordinary equity
preferred share, cost of ordinary equity 2. Attend the online class lecture on this topic on May 6, 2021 at 2:30PM-4:00PM using Google
share, and cost of retained earnings. Meet.
4. Understand when external equity should be R – Require Learner Participation
availed of. 1. Individual activity
5. Know the problems in estimating cost of a. Answer the exercise drills from pages 745 to 749.
capital. b. Solutions of the chosen exercise problems will be presented on May 6, 2021, 4:00PM using
6. Calculate weighted average cost of capital Google Meet.
using historical weights and target weights.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on May 6,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 17: Chapter 28: Basics of Capital Budgeting
May 11, 2021 1. Understand the importance of capital A – Analyze the Learners
budgeting. 1. Google classroom activity: Partake in the online discussion on your background and
2. Know the capital budgeting process. expectations about Basics of Capital Budgeting.
3. Explain how project proposals are generated
S – State Standards or Objectives
and typical budgeting proposals/decisions.
Please see topic learning outcomes
4. Distinguish between independent capital
investment projects and mutually exclusive S – Select Strategies
capital investment projects. The following teaching strategies will be used in this topic:
5. Calculate the net cash flows related to a 1. Asynchronous online learning – participation in online discussion, answering guide questions
capital investment proposal. and viewing suggested videos in YouTube
6. Understand the risks inherent to capital 2. Synchronous online learning – joining the online class thru Google Meet
budgeting and how risks are measured 3. Offline learning – reading and self-study of printed resources
using scenario analysis, sensitivity analysis,
simulation analysis, and beta estimation. U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
31
L-NU AA 30-00-01-20

Applications, 2012-2013 Edition from pages 751 to 772

1. After reading your book you should be able to answer the following guide questions:
a. Why do we focus on cash flows as opposed to net income in capital budgeting?
b. Explain why sunk costs should not be included in a capital budgeting analysis, but
opportunity costs and externalities should be included. Give an example of each.
c. Explain why net operating income working capital is included in a capital budgeting
analysis and how it is recovered at the end of a project’s life.
d. Why are interest charges not deducted when a project’s cash flows for use in a capital
budgeting analysis are calculated?
e. Most firms generate cash inflows every day, not just once at the end of the year. In capital
budgeting, should we recognize this fact by estimating daily project cash flows and then
using them in the analysis? If we do not, are our results biased?
f. What are some differences in the analysis for a replacement project versus that for a new
expansion project?
7. Explain the effect of inflation on Capital 2. Attend the online class lecture on this topic on May 11, 2021 at 2:30PM-4:00PM using Google
Budgeting analysis. Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 773 to 777.
b. Solutions of the chosen exercise problems will be presented on May 11, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on May 11,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 17: Chapter 29: Screening and Selecting Capital Investment Proposals
May 13, 2021 1. Understand the commonly used capital A – Analyze the Learners
budgeting techniques under the Discounted 1. Google classroom activity: Partake in the online discussion on your background and
Cash Flow Approach as well as the Non- expectations about Screening and Selecting Capital Investment Proposals.
Discounted Cash Flow Approach.
S – State Standards or Objectives
2. Calculate the net present value, internal rate
Please see topic learning outcomes
of return, profitability index and discounted
payback period of an investment proposal. S – Select Strategies
3. Calculate the payback period, bailout The following teaching strategies will be used in this topic:
payback period, payback reciprocal and 1. Asynchronous online learning – participation in online discussion, answering guide questions
accounting rate of return of an investment and viewing suggested videos in YouTube
proposal. 2. Synchronous online learning – joining the online class thru Google Meet
4. Recommend whether to “accept or reject” a 3. Offline learning – reading and self-study of printed resources
particular investment proposal or proposed
U – Utilize Technology, Media and Materials
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L-NU AA 30-00-01-20

Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 779 to 810.
1. After reading your book you should be able to answer the following guide questions:
a. If a project with conventional cash flows has a payback period less than the project’s life,
can you definitely state the algebraic sign of the NPV? Why or why not? If you know that
the discounted payback period is less than the project’s life, what can you say about the
NPV? Explain.
b. Suppose a project has conventional cash flows and a positive NPV, what do you know
about its payback? Its discounted payback? Its profitability index? Its IRR? Explain.
c. What is the relationship between the project’s payback and its IRR?
d. Explain why the NPV of a relatively long-term project, defined as one for which a high
percentage of its cash flows are expected in the distant future, is more sensitive to changes
in the cost of capital than is the NPV of a short-term project.
2. Attend the online class lecture on this topic on May 13, 2021 at 2:30PM-4:00PM using Google
“select” from among alternative investment Meet.
projects.
5. Understand the principle of Capital Rationing R – Require Learner Participation
and recommend an optimal cash budget. 1. Individual activity
a. Answer the exercise drills from pages 811 to 819.
b. Solutions of the chosen exercise problems will be presented on May 13, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on May 13,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Unit X: Other Contemporary Issues in Finance
Week 18: Chapter 30: Mergers and Acquisitions; Divestitures
May 18, 2021 1. Describe how restructuring affects the firm’s A – Analyze the Learners
asset mix and financial structure through 1. Google classroom activity: Partake in the online discussion on your background and
mergers and divestitures. expectations about Mergers and Acquisitions; Divestitures.
2. Explain the nature and types of mergers and
S – State Standards or Objectives
acquisitions.
Please see topic learning outcomes
3. Understand the financial as well as
nonfinancial motives of merger or S – Select Strategies
acquisition. The following teaching strategies will be used in this topic:
4. Discuss the approach in valuing a merger. 1. Asynchronous online learning – participation in online discussion, answering guide questions
5. Explain the methods of payment n merger and viewing suggested videos in YouTube
transactions. 2. Synchronous online learning – joining the online class thru Google Meet
6. Know the meaning of “tender offer” and how 3. Offline learning – reading and self-study of printed resources
management attempts to block unfriendly
U – Utilize Technology, Media and Materials
33
L-NU AA 30-00-01-20

Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 822 to 841.
1. After reading your book you should be able to answer the following guide questions:
a. What is the difference between a merger and a consolidation?
b. Why might portfolio effect of a merger provide a higher valuation for the participating firms?
c. What is the difference between horizontal integration and vertical integration? How does
antitrust policy affect the nature of mergers?
d. What is synergy? What might cause this result? Is there a tendency for management to
over or under estimate the potential synergistic benefits of a merger?
e. If a firm wish to achieve immediate appreciation in earnings per share as a result of a
merger, how can this be best accomplished in terms of exchange variables? What is a
possible drawback to this approach in terms of long-range considerations?
f. Is it possible for the post-merger P/E ratio to move in a direction opposite to that of the
immediate post-merger earnings per share? Explain why this could happen.
g. Why do management and stockholders often have divergent viewpoints about the
desirability of a takeover?
h. What are the advantages of using convertible securities as a method of financing mergers?
take-over. i. Under the base-period earn-out, the amount of future payments depends on what factors?
7. Understand the nature and the different j. Explain the different types of divestitures.
types of divestitures. 2. Attend the online class lecture on this topic on May 18, 2021 at 2:30PM-4:00PM using Google
Meet.
R – Require Learner Participation
1. Individual activity
a. Answer the exercise drills from pages 842 to 847.
b. Solutions of the chosen exercise problems will be presented on May 18, 2021, 4:00PM
using Google Meet.
E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on May 18,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.
Week 18: Chapter 31: International Aspects of Corporate Finance
May 18, 2021 1. Understand the need for the challenges of A – Analyze the Learners
multinational financial management. 1. Google classroom activity: Partake in the online discussion on your background and
2. Discuss the reasons why domestic and expectations about International Aspects of Corporate Finance.
foreign companies go “international”.
S – State Standards or Objectives
3. Know the problems that multinational
Please see topic learning outcomes
companies face.
4. Understand foreign currency exchange. S – Select Strategies
5. Distinguish between direct and indirect The following teaching strategies will be used in this topic:
quotes in the spot exchange market of 1. Asynchronous online learning – participation in online discussion, answering guide questions
34
L-NU AA 30-00-01-20

and viewing suggested videos in YouTube

2. Synchronous online learning – joining the online class thru Google Meet
3. Offline learning – reading and self-study of printed resources
U – Utilize Technology, Media and Materials
Read your main reference book Ma. Elenita Balatbat Cabrera, Financial Management Principles and
Applications, 2012-2013 Edition from pages 849 to 878.
1. After reading your book you should be able to answer the following guide questions:
a. Under the fixed exchange rate system, what was the currency against which all other
currency values were defined? Why?
b. Exchange rates fluctuate under both the fixed exchange rate and floating exchange rate
systems. What, then, is the difference between the two systems?
c. If the French franc depreciates against the US dollar, can a dollar buy more or fewer
French francs as a result?
d. If the United States imports more goods from abroad than it exports, foreigners will tend to
have a surplus of US dollars. What will this do the value of the dollar with respect to foreign
currencies? What is the corresponding effect on foreign investments in the United States?
e. Why do some Philippine corporations build manufacturing plants abroad when they could
foreign currency. build them at home?
6. Explain the meaning of cross-rates; forward f. Should firms require higher rates of return on foreign projects than on identical projects
exchange rates. located at home? Explain.
7. Understand the concept of interest rate g. Why might purchasing power parity fail to hold?
parity and purchasing power parity. 2. Attend the online class lecture on this topic on May 18, 2021 at 2:30PM-4:00PM using Google
8. Learn the interaction between inflation Meet.
interest rates and exchange rates. R – Require Learner Participation
9. Describe the international money and capital 1. Individual activity
markets. a. Answer the exercise drills from pages 879 to 888.
10. Understand the effect of political risk on the b. Solutions of the chosen exercise problems will be presented on May 18, 2021, 4:00PM
business climate of a country. using Google Meet.
11. Know how political risk affects international
capital budgeting. E – Evaluate
1. Answer a quiz assignment on this topic which will be posted in Google classroom on May 18,
2021, 4:00PM.
Optional Task:
1. Review the source materials provided in Google Classroom.

Answer the 60-item exam that will be posted in the Google Classroom
May 20, 2021 Final Exam Start Time: 2:30 PM | Due Time: 4:00 PM

COURSE REQUIREMENTS:

35
L-NU AA 30-00-01-20

Formative Assessment Methods:

Subject Portfolio about Every Activities each meeting
Activities indicated in the “Analysis” part of the module
Informal class recitations

Summative Assessment Methods:

Quizzes, Unit test, Recitation, Online Synchronous and Asynchronous Activities, Periodic Examinations
Note: Rubrics for each class work will be given by your instructor during the briefing before the activity.

GRADING SYSTEM:
Semestral Grade = (Prelim Grade*25%) + (Midterm Grade*25%) + (Semi-Final Grade*25%) + (Final Grade*25%)
For every grading period:
Periodic Exam – 40%
Student Course Work – 60% (Recitation 25%, Quizzes 25%, Requirements 20%, Attendance 10%, Assignment 20%)
In order to earn a passing grade, the student should get a transmuted grade of 75%

BIBLIOGRAPHY:

Main Reference:
Ma. Elenita Balatbat Cabrera, Financial Management Principles and Applications, 2012-2013 Edition

Prepared by: Recommended by: Approved by:

JUDY ANNE T. RAMIREZ, CPA DR. GENOVEVA Y. REYES, CPA, FRIAcc DR. MARINA O. ABELLA
Instructor Dean Vice-President, Academic Affairs

36