COLLEGE: COLLEGE OF BUSINESS DEPARTMENT: FMD

COURSE CODE: BASIC FINANCIAL MANAGEMENT (BASFIN1)

CLASS DAYS AND CLASS TIME: ROOM:
PROFESSOR:

COURSE DESCRIPTION:

The course covers complex aspects of financial decisions such as medium to long term investments, capital
budgeting, debt versus equity financing, cost of capital, and valuation. It will also provide the students with a
review of the basic principles, techniques, and analytical tools needed in conducting financial analysis using
commonly-used financial statements in evaluating and forecasting a business firm’s financial performance (cash
flows and ratio analysis). Risk and rates of return, including valuation of bonds and stocks will also be
discussed. These concepts are applied to financial and non-financial enterprises.

LEARNING OUTCOMES (LO):

On completion of the course, the student is expected to be able to do the following:

ELGA LEARNING OUTCOME

Critical and creative thinker
 Understand the role of time value of money and
appreciate its applications.
 Describe the key inputs-cash flows (returns),
timing and required rate of return (risk) basic
model used in the valuation process
 Understand the meaning and fundamentals of
risk, return and risk preferences
o Appraise capital investment projects
using the non-discounted and discounted
cash flow techniques
o Identify an optimal capital structure in
relation to the objective of maximizing
the value of the firm.
o Evaluate and distinguish the various
sources of long-term financing
o Relate current developments in the
financial environment to the course

Reflective lifelong learner  Develop an attitude of keeping abreast of the

Service-drive citizen/ethical and socially
responsible citizen
current developments in the financial
environment in the financial areas
 Be conscious of his/her social responsibility in
the application of his/her knowledge to financial
management decisions
 Maximize owners’ wealth with due respect to
the rights of others.

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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

 Appreciate Financial Statement Analysis  Final Exam Deadlines are announced
 Understand the role of time value of money  Quizzes during the term
and appreciate its applications.  Assignments and End
 Describe the key inputs-cash flows (returns), Chapter exercises
timing and required rate of return (risk) basic  Seatwork
model used in the valuation process
 Understand the meaning and fundamentals of
risk, return and risk preferences
o Appraise capital investment projects
using the non-discounted and
discounted cash flow techniques
o Identify an optimal capital structure in
relation to the objective of maximizing
the value of the firm.
o Evaluate and distinguish the various
sources of long-term financing
o Relate current developments in the
financial environment to the course

 Develop an attitude of keeping abreast of the

current developments in the financial
environment in the financial areas
 Be conscious of his/her social responsibility in
the application of his/her knowledge to
financial management decisions
 Maximize owners’ wealth with due respect to
the rights of others.

RUBRIC FOR ASSESSMENT:

:
CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
4 3 2 1
Correct The final answer The final answer The final answer The student does
computations/ is correct and has some shows some not understand
solutions to solutions clearly mistakes due to understanding to what
mathematical show the train of some the problem but mathematical
problems thought followed carelessness with the solution is method to use or
to arrive at the regards to the lacking to arrive how to apply the
final answer. computations at the correct mathematical
final answer. models.
Quality/ The submitted The submitted The submitted The submitted
Substance for work manifests work manifests the work partially work does not
Term Paper qualities which go required qualities. manifests the manifest any of the
beyond the required qualities. requirements.
requirements. Certain aspects are
either incomplete
or incorrect.
TOTAL:

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OTHER REQUIREMENTS AND ASSESSMENTS:
Aside from the final output, the student will be assessed at other times during the term by the following:
 Recitation
 Board work
 Assignments/activities

GRADING SYSTEM:
The student will be graded according to the following:
Mid-term Grade Final Grade
Quizzes 90% Quizzes 65%
Class Participation 10% Class Participation 17.5%
------- Final Exam 17.5%
100% --------
==== 100%

Passing Grade: 70%

LEARNING PLAN:

LEARNING TOPIC WEEK NO. LEARNING

OUTCOME ACTIVITIES
Explain the I. Class Orientation, Introduction to Wk 1-4 (10.5 hrs) - Quizzes
principles of Financial Management, Review of - Board Work
finance Financial Statements, and Financial - Assignment
Statement Analysis - Graded
Quiz # 1 Recitation
- Seatwork
Understand the II. Time Value of Money Wk 4,5 (4 hrs) - Lectures
principles of time - Discussions
value of money - Research
Understand the III. Risk and Rate of Return Wk 5-8 (9 hrs)
- Group work
different valuation Quiz # 2
and pricing models Valuation and Characteristics of Bonds
Stock Valuation
IV. Cost of Capital Wk 8,9 (3 hrs)
Quiz # 3
Know the concepts V. Capital Budgeting Decision Criteria Wk 9-12 (10.5 hrs)
of project Cash Flow in Capital Budgeting
evaluation Quiz # 4
Capital Budgeting and Risk Analysis
Understand Capital VI. Capital Structure Policy Wk 13 (3 hrs)
Structure
FINAL EXAMINATION Wk 14 (2 hrs)

TEXTBOOK:

Brigham, E. & Houston, J. (2013). Fundamentals of Financial Management. (13th Ed.). Cengage Learning

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REFERENCES:

Berk, J., DeMarzo, P., & Harford, J. (2013). Fundamentals of Corporate Finance. (2nd Ed.). Boston:
Pearson/Prentice Hall
McGuigan, J.R., Moyer, R.C., Rao, R. &, Kretlow, W.J. (2012). Contemporary Corporate Finance. (12th Ed.).
Cengage Learning
Smart, S.B. & Graham, J.R. (2012). Introduction to Financial Management. (3rd Ed.) Cengage Learning
Titman, S., Keown, A.J., & Martin, J.D. (2011). Financial Management: Principles and Applications. (11th Ed.).
Boston: Pearson/Prentice Hall

CLASS POLICIES:

1. Attendance
Students are expected to attend their classes and shall to adhere to the university policy regarding the
maximum allowable absences.

2. Conduct
Students are expected to demonstrate respect to their professor and classmates. Cellular phone should be
turned off or placed in silent mode. Laptops are not allowed, unless specified that it is part of the activity
to be used in class. All students are expected to partake in meaningful discussions with the class. Any
misconduct will be reported to the Discipline Office.

3. Required Materials and Learning Resources

The required texts are given above. Other reference materials will be provided by the professor, if
applicable.

4. Submission of requirements
ABSOLUTELY NO LATE SUBMISSION WILL BE ALLOWED. No make up exam for any submitted
work (seatwork, assignment, quiz, final exam) unless duly approved as provided in the Student’s
handbook. .

5. Policy on Cheating
A student caught cheating in any assignment, seatwork, quiz, or final exam shall automatically get a 0.0
for the course.

6. Group Work
The student will have to work with his/her chosen group mates for the exercises and assignments.