Course Code: YFINMA 1
Course Name: Introduction to Managerial Finance Part I Instructors: Almario, Lerit and Salas
Required Text: Moyer, Charles, McGuigan, James and Rao, Ramesh 2005;
Contemporary Financial Management Fundamentals, Thomson
Course Description: This course deals with the analysis, planning, implementation and control of financial activities. It will also deals with long term financing aspect of the corporation.
The course also touches the three major decision making areas of financial management: the investment, financing and asset management decisions.
Topic Outline Estimated
Contact Hours
Introduction to Managerial Finance
1. The role and objective of Financial Management a. Primary goal of the firm
b. Determinants of Value
c the Financial Management Function d. Career opportunities on Finance
3
The Business Environment
a. Aspects of Business Environment b. Financial Markets and Market Efficiency c. Holding Period Return
3
Review of Financial Statements a. The Accounting function b. The Annual Report
c. The major Financial statements
3
Evaluation of Firm Performance a. Purpose of Financial ratios
b. Basic categories of Financial ratios
3
Evaluation of Firm Performance c. Trend Analysis
d. Analysis of Profitability
6
Time Value of Money
a. Concepts of interest, Future value and present Value
3
Time Value of Money
b. Concepts of single cash flow and Annuities and uneven cash flows
c. Concepts of annuity due and ordinary annuity.
d. Concept of perpetuity
3
Time Value of Money
e. Effect of compounding periods f. Effective rate of return
g. applications of Present values and Future Values to special applications
3
Analysis of Risk and Return
a. Financial Market Historical Return b. The meaning of Risk
3
Analysis of Risk and Return
c. Risk measurement for an individual asset
3
Analysis of Risk and Return
d. Risk of an asset in a Portfolio context e. Relationship between Required rate of
return and risk
3
Characteristics and Valuation of Bonds
a. Definition of long-term debts and bonds b. Types and features of long-term bonds
3
Characteristics and Valuation of Bonds c. Bond Valuation
d. Bond pricing principles
e. Yield to Maturity and determinants of bond yields
3
Characteristics and Valuation Of Common Stocks and Preferred stocks
a. Features and characteristics of common stocks
b. Valuation of Common Stocks (constant growth dividends valuation model and other models of valuation)
3
Characteristics and Valuation Of Common Stocks and Preferred stocks
b. Features of Preferred Stocks c. Valuation of Preferred Stocks
3
Working Capital Policy and Management of Currents Assets
a. Operating cycle
b. Management of Cash, Marketable Securities
3
Working Capital Policy and Management of Currents Assets
c. Accounts receivables management d. Inventory Management
3
Total Session Expressed as Contact Hours 54
Recap
Estimated Identification of CPC Topics Covered in this Course: Contact Hours*
Accounting 7
Marketing 1
Finance 54
Management 12
Organizational Behavior 2
Human Resource Management 1
Operations Management 1
Economics 2
Business Ethics 4
Information System 3
Quantitative Methods/Statistics 6
Capstone 5
Total (estimate of contact hours) 98
