COLLEGE: RVR-COB DEPARTMENT: ACCOUNTANCY

COURSE CODE: ACFINA2 (FINANCIAL MANAGEMENT II)

CLASS DAYS AND CLASS TIME: ROOM:

name
INSTRUCTOR: contact details
consultation hours

COURSE DESCRIPTION:
This course ACFINA2, Financial Management II for BSA Students, is a basic course leading to Management
Advisory Services. It provides students with the principles, techniques and analytical tools needed in evaluating
investment opportunities and in planning long-term financing mix. It covers the complex aspects of financial
decisions such as risk & return, financial asset valuation, cost of capital, medium to long-term investments, capital
structure, dividend policy and mergers & acquisitions.

LEARNING OUTCOMES:

UNIVERSITY EXPECTED LASALLIAN LEARNING OUTCOME (LO)

GRADUATE ATTRIBUTES (ELGA) On completion of the course, the student is expected to be able to
do the following:

Critical and Creative Thinker Present a comprehensive financial analysis of a publicly-listed

Effective communicator company or assigned case analysis using learned financial
Reflective Lifelong Learner concepts.

FINAL COURSE OUTPUT:

As evidence of attaining the above learning outcomes, the student is required to do and submit the following during
the indicated dates of the term.

LEARNING OUTCOME REQUIRED OUTPUT DUE DATE

Present a comprehensive financial analysis of a publicly-listed Oral Presentation of one Weeks 13
company or assigned case analysis using learned financial (1) group term paper
concepts.

RUBRIC FOR ASSESSMENT: Oral Presentation of Group Term Paper

CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING

(97-100) (83-96) (71-82) (70 and below)
Complete and 3 or more 2 financial analysis 1 financial No financial
Accurate Financial financial applied with proper analysis applied analysis
Computations analysis applied computation with proper properly
(20%) with proper computation applied.
computation
Analysis of results Insightful Insightful Insightful No insightful
and discussion of all discussion of at discussion of at discussion of
recommendations financial least 2 financial least 1 financial financial
(30%) analysis applied analyses applied to analysis applied analysis applied.
to the selected the selected to the selected
company. company. company. Unable to
explain meaning
Able to explain Either able to Either able to of results and
meaning of explain meaning of explain meaning how it relates to
results and how results or how it of results or how other factors.
it relates to relates to other it relates to other
other factors. factors. factors.
 ACFINA2 Syllabus 1920 T1

CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING

(97-100) (83-96) (71-82) (70 and below)
Offers sound Offers moderately Offers limited No
recommendatio sound recommendation recommendatio
ns justified by 3 recommendation with no concrete ns offered.
or more justified by at least reasons provided.
concrete 1 concrete reason.
reasons.
Oral Presentation Excellent Presentation is neat Average Presentation is
(30%) presentation and and well organized presentation and not well
organization which is fairly organization that organized and
that is visually appealing is somehow not appealing.
appealing appealing
The group is fairly The group is not
The group is confident and was The group is confident and
confident and able to properly fairly confident was not able to
was able to respond to at least 3 and was able to properly
properly questions. properly respond respond to any
respond to all to at least 1 of the questions.
the questions. question.
Peer evaluation The student is The student is given The student is The student is
(20%) given an an average grade of given an average given an
average grade of 83 to 96 by his/her grade of 71 to 82 average grade
97 to 100 by peers by his/her peers 70 by his/her
his/her peers peers
TOTAL:

OTHER REQUIREMENTS AND ASSESSMENTS:

Aside from the final output, the student will be assessed during the term through the following:
• Departmental quizzes
• Departmental final examination
• Learning activities (e.g. class participation, homework, sharing, etc.)

GRADING SYSTEM
The percentage equivalent shall be arrived at as follows:

BASIS FINAL
GRADE
Departmental Quizzes 40%
Departmental Final Examination 20%
Group Term Paper and Presentation 20%
Learning activities 20%
Total 100%

Course grade requirement is at least 83% or 2.0

GRADE POINT DESCRIPTION PERCENTAGE

4.0 Excellent 97-100

3.5 Superior 94-96
3.0 Very Good 91-93
2.5 Good 87-90
2.0 Satisfactory 83-86
1.5 Fair 77-82
1.0 Pass 70-76
0.0 Fail Below 70

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 ACFINA2 Syllabus 1920 T1

LEARNING PLAN:
LEARNING WEEK LEARNING
OUTCOMES CONTENT NO. ACTIVITIES

I. VALUATION OF FINANCIAL ASSETS

LO1: Discuss the 1.1 Risk and Rates of Return Read: Brigham et. al. Ch. 8
meaning of risk and 1.1.1 Risk and Return Fundamentals (1.1), Ch. 9 (1.2) & Ch.10
return, how they 1.1.2 Different types of return (1.3)
affect the cost of 1.1.3 Risk and Return of a Single Asset 1 Lecture
capital and valuation 1.1.4 Risk and Return of Portfolio At least five (5) in-class
of assets, and 1.1.5 Correlation, diversification problem solving
valuation of 1.1.6 Capital Asset Pricing Model (CAPM) and Student sharing
securities; make Security Market Line (SML)
decisions based on QUIZ 1 (1.1 to 1.3)
1.1.7 Efficient Market Hypothesis
professional ethical
principles and practice 1.2 Valuation and Characteristics of Bond
standards. 1.2.1 Valuation: The Basic Process
1.2.2 Types of Bonds
1.2.3 Bond Valuation 2-3
1.2.4 Bond Yields
1.2.5 Convertible Bond

1.3 Stock Valuation

1.3.1 Features and Types of Preferred Stock
1.3.2 Preferred Stock Valuation
1.3.3 Characteristics of Common Stock 3-4
1.3.4 Common Stock Valuation
1.3.5 Growth rate calculation
1.3.6 Convertible preferred stock
1.3.7 Stock purchase warrants
II. INVESTMENT IN LONG-TERM ASSETS
LO2: Explain the 2.1 Cost of Capital Read: Brigham et. al., Ch.
steps in the capital 2.1.1 An Overview of the Cost of Capital 11 (2.1) & Ch. 13 (2.2)
budgeting process and 2.1.2 The Cost of Long-term Debt (Bonds) Lecture
apply non-discounted 2.1.3 The Cost of Preferred Stock At least five (5) in-class
and discounted cash 2.1.4 The Cost of Common Stock problem solving
flow techniques in 2.1.5 Weighted Average Cost of Capital (WACC) 5 Student sharing
evaluating 2.1.6 Marginal Cost and Investment Decisions
investments; make 2.1.6.1 Finding the Breakpoints QUIZ 2 (2.1 to 2.2)
decisions based on 2.1.6.2 Weighted Marginal Cost of Capital
professional ethical 2.1.6.3 Investment Opportunities Schedule (IOS)
principles and practice 2.1.6.4 Making Financing/Investment Decisions
standards.
2.2 Capital Budgeting and Cash Flow Principles
2.2.1 The Capital Budgeting Decision Process
2.2.2 The Relevant Cash Flow
2.2.2.1 Relevant and non-relevant costs
2.2.2.2 Nominal vs. real cash flow
6
2.2.3 Project Cash Flow
2.2.3.1 Initial investment
2.2.3.2 Operating Cash Flow
2.2.3.3 Terminal Cash Flow
2.2.4.4 Replacement vs. expansion projects
2.3 Capital Budgeting Techniques Read: Brigham et. al., Ch.
2.3.1 Non-discounted Cash Flow Techniques 12 & 13 (2.3) & Ch. 13 &
2.3.1.1 Payback Period 14 (2.4)
2.3.1.2 Accounting Rate of Return Lecture
2.3.1.3 Payback Reciprocal At least five (5) in-class
2.3.1.4 Bailout Payback problem solving
2.3.2 Discounted Cash Flow Techniques Student sharing
7-8
2.3.2.1 Net Present Value (NPV)
2.3.2.2 Present Value Index QUIZ 3 (2.3 to 2.4)
2.3.2.3 Discounted Payback Period
2.3.2.4 Internal Rate of Return (IRR)
2.3.2.5 Modified IRR (MIRR)
2.3.3 NPV-IRR Relationship

v. September 2019 Page 3 of 6


LEARNING
OUTCOMES
2.3.4 Capital Rationing and Project Selection
2.4 Capital Budgeting and Risk Analysis
III. LEVERAGE, CAPITAL STRUCTURE AND DIVIDEND POLICY
3.1 Leverage and Capital structure
LO3: Evaluate and
distinguish the various
sources of long-term
financing and identify
an optimal capital
structure in relation to
the objective of
maximizing the value
of the firm; make
decisions based on
professional ethical
principles and practice
standards.
LO4: Discuss the key 3.2 Dividend Policy
factors involved in
establishing a
dividend policy, the
types of dividend
policies, and explain
stock splits and stock
repurchases and the
firm’s motivation for
undertaking them;
make decisions based
on professional ethical
principles and practice
standards.
v. September 2019
ACFINA2 Syllabus 1920 T1
WEEK LEARNING
CONTENT NO. ACTIVITIES
2.3.3.1 NPV Profile
2.3.3.2 Crossover rate
2.3.4.1 Lease vs. purchase
2.3.4.2 Project ranking
2.3.4.3 Problems in project ranking
2.3.4.3.1 Size disparity
2.3.4.3.2 Time disparity
2.3.4.3.3 Unequal lives
2.3.4.3.3.1 Annualized NPV or
equivalent annual annuity
2.3.4.3.3.2 Replacement chain
2.4.1 Risk and the Investment Decision
2.4.2 Incorporating Risk into Capital Budgeting
2.4.2.1 Breakeven Cash Inflow
2.4.2.2 Risk-Adjusted Discount Rates 8-9
2.4.2.3 Certainty Equivalents
2.4.2.4 Simulation
2.4.2.5 Sensitivity and Scenario Analysis
2.4.2.6 Probability Trees
2.4.3 Real Options in Capital Budgeting
Read: Brigham et. al., Ch.
3.1.1 Business and financial risk 15 (3.1) & Ch. 16 (3.2)
3.1.2 Types of leverage Lecture
3.1.2.1 Operating leverage At least five (5) in-class
3.1.2.2 Financial leverage problem solving
3.1.2.3 Total leverage Student sharing
3.1.3 The Firms Capital Structure
3.1.4 Capital Structure Theories QUIZ 4 (3.1 to 3.2)
3.1.4.1 Modigliani and Miller (M&M)
3.1.4.2 Trade-off theory
10
3.1.4.3 Signaling theory
3.1.4.4 Pecking order hypothesis
3.1.4.5 Windows of opportunity
3.1.5 Optimal or Ideal Capital Structure
3.1.5.1 Factors affecting capital structure
decisions
3.1.5.2 WACC and capital structure
3.1.5.3 Hamada equation
3.1.5.4 EBIT-EPS approach
3.1.5.5 Share value maximization
3.2.1 Cash and noncash distribution
3.2.1.1 Cash Dividend and Stock Repurchases
3.2.1.2 Stock Dividends and Stock Splits
3.2.2 Factors Affecting dividend policy decisions
3.2.3 Relevance of dividends
3.2.4 Types of dividend policies
11
3.2.4.1 Constant Payout-Ratio Policy
3.2.4.2 Constant Nominal Payment Policy
3.2.4.3 Target Dividend Payout Ratio Policy
3.2.4.4 Low-regular-and extra policy
3.2.4.5 Residual payout policy
Page 4 of 6
 ACFINA2 Syllabus 1920 T1

LEARNING WEEK LEARNING

OUTCOMES CONTENT NO. ACTIVITIES
IV. MERGERS & ACQUISITIONS
LO5: Analyze merger 4.1 Rationale for mergers Read: Brigham et.al. Ch. 21
and acquisition 4.2 Types of mergers and level of merger activity Lecture
opportunities and 4.3 Hostile vs. Friendly takeovers At least five (5) in-class
12
apply growth 4.4 Merger analysis problem solving
strategies 4.5 Corporate Alliances and Private Equity Student sharing
Investments
4.6 Divestitures

Fourth-hour activities (total of at least 13 hours) related to the course include:

• Homework set and take home practical assessments
• Research: Group term paper, financial news
• Online sessions/ activities
• Video/film viewing
• Interviews of Professional
• Volunteer Services
• Project mentoring/ consultation
• Lectures/seminars/workshops
• Finance competitions/ quiz contests (MAS quiz bee, ICFC, etc.)
• Attendance in conferences
• Fieldtrip/ work/ activities (e.g. PSE or company visit)
• Student organized co-curricular activities
• Fora/sessions/ activities on national concern

REFERENCES:

1. Prescribed textbook
Brigham, E. et. al. (2018). Essentials of Financial Management (4th Edition). Singapore: Cengage Learning Asia.

2. Other references
Brealey, R., Myers, S. & Allen, F. (2017). Principles of Corporate Finance (12th Edition). New York: McGraw-Hill.

Brigham, E. and Houston, J. (2019). Fundamentals of Financial Management (15th Edition). Singapore: Cengage
Learning Asia.

Gitman, L. and Zutter, C. (2015). Principles of Managerial Finance (14th Edition). New York: Pearson Education,
Inc.

Ross, S., Westerfield, R., Jordan, & B., Lim, J. (2016). Fundamentals of Corporate Finance (11th Edition). New
York: McGrawHill Education (Asia).

Titman, S., Keown, A. & Martin, J. (2018). Financial Management Principles and Applications (13th Edition).
Boston: Pearson Education, Inc.

ONLINE RESOURCES:
• www.pearsonhighered.com
• www.pse.com.ph

CLASS POLICIES:

1. Policies specific to the course

o Only BSA students who had obtained a final grade of at least 2.0 in the course ACFINA1 are qualified to
take this course.

o This course is a prerequisite to the course ACFINA3 and Module 3.

o Shiftees to the BSA program would have to retake this course, even if he/she had already received a
passing grade in a Financial Management course taken during his/her old degree program. For shiftees out
of the BSA program and into another business degree program, this course may be credited for a Financial
Management course, subject to the requirements of the new degree program being shifted into.

o Minimum of four (4) departmental quizzes are required in this course. There is no midterm examination.

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 ACFINA2 Syllabus 1920 T1

o The final examination is departmental and covers the entire course syllabus. This is held for three (3) hours
during the Final Examinations Week (Week 14).

o Specific class policies on attendance, make-up quizzes, academic honesty, grading system, dress code,
classroom management, and others not mentioned above, are to be discussed by the faculty member on the
first day of classes.

2. Department Policies
o An application for special final examination should be accomplished by the student if there are conflicts in
the final examination schedule, following the University policies on order of priority.

o Please observe office hours and consultation hours/schedule of the faculty member. The Accountancy
Department is located at the Faculty Center, ground floor. When inside the Department, students are
expected to observe silence, and maintain the cleanliness and orderliness of the room.

o For student concerns regarding the BSA program or the course, please set an appointment with the
Department Vice Chair. For all other inquiries, please visit the Accountancy Department. Important
announcements will be posted on the Accountancy Department bulletin board.

Prepared by: Approved by:

Ms. Michelle A. Ang Dr. Joy S. Rabo Dr. Brian C. Gozun

ACFINA Coordinator Chair, Accountancy Department Dean, RVR College of Business

v. September 2019 Page 6 of 6

Appendix – Learning Menu ACFINA2 Syllabus

Learning Activities Menu

The following is a list of potential items students could perform. Total points earned in this
learning menu will credited as 20% of the final grade. Students need to earn at least 100 pts. to
credit the full 20% to their Final Grade. Points earned less 100 pts. will be pro-rated.

Class Attendance (20 pts. possible)

Each class day attended is equivalent to 1 pt. each

Recitation (45 pts. possible)

Recite during class lecture and in solving problem demonstration (max of 15 recitations). Each correct
answer recited is worth 3 pts. each

Homework Set (40 pts. possible)

Solve and submit homework on their due date as indicated in the course calendar. Each homework set
submitted is worth 4 pts. each

Share Financial News with the Class (20 pts.)

As a means of relating leaned concepts with real world happenings, look for most recent financial news
(e.g. new financial assets, market behavior) by visiting PSE or PDS websites or reading newspaper/
journals. Aside from news, you can also relate a personal experience (e.g. personal finance) connected
to course content. Share the relevant news or personal experience in class for 2-5 minutes to obtain the
points.

Interview/s of Professional in the Field (20 pts.)

This project can be completed individually or in a group of 2-3. Interview one or more finance
professional and ask at least 2 concepts applied in his/her work. Submit a three-page report containing:
(pg1) consent form, (pg2) interviewee profile and interview details, and (pg 3-5) individual reflection
such as analysis of information provided and conclusions/ observations generated.

Video Reviews (10 pts.)

Watch course-related short videos or course-related movie. Submit a one-page written report of
evaluating the correctness of applying the course-related concepts.

Develop a learning resource (35 pts.)

This project can be completed individually or in a group of 2-3. Develop a case study, study guide or a
classroom game that will be helpful in learning the course. Case study should be at least 10 pages
including rationale, solutions and answers. Study guide are list of questions that student can answer
while reading a chapter of the book. At least 3 study guides should be prepared with at least 10
questions. Only 1 study guide to be prepared per course-related chapter. Classroom game should be
applicable to the course and include all materials to be used in the game including answers to questions,
if any. For other proposed learning resource, submit a written proposal for evaluation of your faculty.

Provide Volunteer Services (25 pts.)

This project can be completed individually or in a group of 2-5. Provide at least 5 hours of volunteer
services related to the course content (e.g. explain concepts like time value or real interest rate to a
barangay treasurer, community organization, etc.). Submit a journal with at least 5 pages composed of
the following: one-page report describing the nature of your volunteer services (with pictures) and one-
page individual reflection of the things that you’ve experienced/learned. For other proposed volunteer
service project, submit a written proposal for evaluation of your faculty. Refer to journal format.