A T E N E O

D E

D A V A O

U N I V E R S I T Y

2/F Canisius Bldg., Roxas Avenue, 8016 Davao City, Philippines

Tel. No. +63 (82) 221.2411 to 14 loc. 8401/8310/8311
Telefax +63 (82) 221.8103
In Consortium with Ateneo de Zamboanga University and Xavier University
OF BUSINESS
F INANCE P ROGRAM

S CHOOL

AND

GOVERNANCE

School of Business and Governance Vision

The School of Business and Governance of Ateneo de Davao University appropriates sui
generis leadership in business and governance in Mindanao, guided by the Universitys vision and
mission and the Spirituality of St. Ignatius of Loyola.
It aspires to educate and form students to be ethical and excellent professionals in the creation and
equitable distribution of wealth as well as in the good governance of government institution and civil
sectors of the society.
School of Business and Governance Mission
The School of Business and Governance of Ateneo de Davao University, through Ignatian formation,
excellent instruction, robust research and relevant community engagement, commits to:
1. Equip students with Knowledge, Skills and Attitude to be competent;
2. Provide opportunities to faculty and staff in achieving growth and development;
3. Develop conscientious, compassionate and competent professionals who can contribute to a
socially responsible industry, government institutions and civil society;
4. Contribute in building a progressive and sustainable community addressing the issues of poverty
and environmental concerns;
5. Promote good corporate and public governance in pursuit of the common good.
Finance Program Educational Objectives
To develop among students the analytical and creative abilities with a broad perspective to think across
disciplines, geographical and political boundaries, and with a mastery of todays technology;
1. To prepare students to be professionals who will engage in financial economics study to
provide information for decision makers and investors;
2. To train and develop students to successfully pass the Financial Management and Analysis
Test;
3. To enable them to gain a broad perspective, a quickness in identifying opportunities, an
incisiveness in analyzing problems, an alertness in responding to situations and a propensity
for reflecting on their experiences to arrive at concrete and viable solutions to problems; and
4. To enable students to have a deep understanding of the high professional ethical standards
for finance managers.
COURSE INFORMATION
BASIC BUSINESS FINANCE
(FIN 202)

Course Description:
This course introduces the student to the fundamentals of business finance. The course requires an understanding
of mathematics as well as economic concepts and accounting principles. The course is corporate-oriented with
emphasis on practical applications and problem solving techniques. The primary objective is to provide the student
with the tools to understand and solve the basic financial problems confronting business today. The topics covered
include Financial Statements and Cash flows, Analysis on the Financial Statements, Financial markets, institutions,
and interest rates, risks and rates of return, the time value of money, and valuation of bonds and stocks. The
application of the topics to international markets will be made whenever possible.
Values:
Through this course, the students will experience the personal values necessary to become globally competent and
competitive person such as integrity, accountability, eye for detail, and patience in solving problems and cases.

Pre-Requisites to:
No. of Units:
Schedule:
Target Students:
Semester:

FIN 303, FIN 305.1, FIN 306

3 credit units
3 Hours per Week
2nd Year
nd
2

Main Reference:
1.

2.
3.

Principles of Managerial Finance 13th Edition 2013

By Lawrence J. Gitman and Chad J. Zutter
Pearson 2013(textbook)
Fundamentals of Financial Management
By Brigham and Houston
th
Foundations of Finance 6th edition
By Keown and Martin

Grading System:
Computation of FINAL Grade:
Major exam
Quizzes

50%
30%
10%
10%

Assignment
Seatwork
TOTAL

100%

Syllabus Revision History

arranged from the most recent to the earliest
Date of Revision:
Date of Effectivity:
Summary of Revisions:
Prepared by:
Reviewed by:
Revision Number:

November 7, 2016
School Year 2016-2017
PRE-REQUISITES
Ms. Bai Charity Pandita
Ms. Lady Margrett G. Cagape, MBA, CIS Chair, Finance Department
3

General Objectives:
This course introduces the student to the fundamentals of business finance. The course requires an understanding
of mathematics as well as economic concepts and accounting principles. The course is corporate-oriented with
emphasis on practical applications and problem solving techniques. The primary objective is to provide the student
with the tools to understand and solve the basic financial problems confronting business today. The topics covered
include Financial Statements and Cash flows, Analysis on the Financial Statements, Financial markets, institutions,
and interest rates, risks and rates of return, the time value of money, and valuation of bonds and stocks. The
application of the topics to international markets will be made whenever possible.
Course Objective/ Learning Outcomes:

Integrate herself/himself with the course by being oriented of class policies, expectations and requirements
according to the ADDU VMG vis--vis the SBG VM and the programs educational objectives (Finance,
Accountancy, Management, etc.).
Assess her/himself the relevance of the subject to her/his chosen field or course.

Course Activities:

Lecture Discussion
Case Analysis and discussion
Problem Solving
Reporting/ Research
Group Discussion
Video Presentation

Course Requirements:

Scientific Calculator
Basic Accounting knowledge

2|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

ATENEO DE DAVAO UNIVERSITY

SHOOL OF BUSINESS AND GOVERNANCE
FINANCE PROGRAM
FIN 202
BASIC BUSINESS FINANCE
WK#
Topics

Subtopics

1
Learning Outcomes

Topics
1

Introduction
to the course

Chapter 1. The
Role of
Managerial

Student Learning
Outcomes

Course
description
Course
objectives
Values

Finance
and
Business

At the end of the session, the

student is able to:
1. Integrate herself/himself
with the course by being
oriented of class policies,
expectations and
requirementsaccording to
the ADDU VMG vis--vis
the SBG VM and the
programs educational
objectives (Finance,
Accountancy,
Management, etc.).
2. Assess her/himself the
relevance of the subject
to her/his chosen field or
course.
At the end of the session, the
student is able to:
1. Define finance and the

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

Awareness of the
student of the
Universitys
Academic Policies.

The student must read

the following articles
from Chapter 1 before

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

SLO Assessment
and Personal
Evaluation

Resources

4
Activities/ Reflection

3
Activities

2
Activities
/Assessment

3,4,5
Resources

Asks the students to recall

the relevant classroom
policies from the school
handbook such as policies
regarding class attendance,
cheating, vandalism, etc.
Gives the students the
specific policy the teacher
wants to impose in her/his
own class.

Process the article assigned

- Reflection: If Zuckerberg is
expected to remain the CEO

Ask to the students to

enumerate/ list down
the possible topic of
interest that they
would like to learn after
taking the subject/
course.

Let the student answer

the Self-Test Problems
and warm-up Exercises

Conduct a Long
Test/ Quiz or
series of short

ADDU
Handbook

Chapter 1
of the
textbook

3|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

WK#

Topics

Subtopics

Student Learning
Outcomes

1
Learning Outcomes

Topics
Finance

Goal of the
Firm
Managerial
Finance
Function
Governanc
e and
Agency
Career
Opportunit
ies in
Finance

2.

3.

4.

5.

6.

managerial finance
function in the financial
services.
Distinguish the
advantages and
disadvantages of
alternative forms of
business organization by
providing examples of
local businesses on how
they operate based on
their form of business.
Describe the goal of the
firm, and explain why
maximizing the value of
the firm is an appropriate
goal for a business.
Describe how the
managerial finance
function is related to
economics and
accounting.
Identify the primary
activities of the financial
manager.
Compare the career
opportunities available
within the three

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

attending the class:

Why this Chapter
Matters to you- In
Your Professional
Life (Accounting,
Information
Systems,
Management,
Marketing and
Operations) and
Personal Life.
Facebook: In No
Hurry to Go
Public.
Will Google Live Up
to Its Motto? (on
business ethics)
Assignment
(optional):
require the
students to
answer some or
all the Review
Questions after
every topic in the
chapter.

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

SLO Assessment
and Personal
Evaluation

Resources

4
Activities/ Reflection

3
Activities

2
Activities
/Assessment
quizzes
The students will
be assessed based
on the following
exercises/ problem
solving (provided
in the Instructional
Resources):
Answer
problems
similar to the
warm-up
Exercises and
problem
solving from
chapter 1
Managerial costbenefit
analysis and
the goal of the
firm
Identify agency
problems, cost
and
resolutions
Ethics problem
and exercises.

3,4,5
Resources

of Facebook after the IPO,

Why would he be worried

about going public?

Point out in class the
advantages and
disadvantages of going
public vis--vis of remaining
a private corporation.

Explain to the students why

maximizing the value of the
firm is an appropriate goal
for a business.
Share examples on how the
managerial finance function
is related to economics and
accounting.
Share examples on the
primary activities of the
financial manager.
Ask the student their dream
job and give some input on
how they can reach that
goal and how they can make
a difference to the country
specially Mindanao.
Reflection: Ask the student
this question: as a graduate
of her/his chosen

from chapter 1
Short Quiz/ Activity
(optional): quiz the
students with questions
taken from Review
Questions after every
topic in the chapter
Let the students answer
exercises/ problem
solving related to:
1. Managerial costbenefit analysis and
the goal of the firm
2. Identify agency
problems, cost and
resolutions
3. Ethics problem and
exercises.

and other
book
references

4|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

WK#

Topics

Subtopics

Student Learning
Outcomes

1
Learning Outcomes

Topics

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

interrelated areas of
finance.

2-3

Chapter 2: The
Financial
Market
Environment

Financial
Institutions
and
Markets
The
Financial
Crisis
Regulation
of Financial
Institutions
Business
Taxes

At the end of the session, the

student is able to:
1. Understand the role that
financial institutions play
in managerial finance.
2. Contrast the functions of
financial institutions and
financial markets.
3. Point out the differences
between the capital
markets and the money
markets.
4. Explain the root causes
and subsequent effects of
the 2008 financial crisis
and recession.
5. Understand the major
regulations and
regulatory bodies that
affect financial
institutions and markets.
6. Discuss business taxes
and their importance in

The student must read

the following articles
from Chapter 2 before
coming to class:
Why this Chapter
Matters to you- In
Your Professional
Life (Accounting,
Information
Systems,
Management,
Marketing and
Operations) and
Personal Life.
JP Morgan Chase
& Co.: Cut to the
Chase.
Have the students
research on the
following:
1. 2008 financial
crisis and
recession and its

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

SLO Assessment
and Personal
Evaluation

Resources

4
Activities/ Reflection

3
Activities

2
Activities
/Assessment

3,4,5
Resources

Let the student answer

the Self-Test Problems
and warm-up Exercises
from chapter 2
Short Quiz/ Activity
(optional): quiz the
students with questions
taken from Review
Questions after every
topic in the chapter

answer exercises/
problem solving related
to:
1. Corporate Taxes
2.interest versus
dividend expense
3. interest versus
dividend income
4. capital gains
5. Capital gains tax.
Ask the students to
answer ethics
problem.

Conduct a Long
Test/ Quiz or
series of short
quizzes
The students will
be assessed based
on the following
exercises/ problem
solving (provided
in the Instructional
Resources):
Answer
problems
similar to the
warm-up
Exercises and
problem
solving from
chapter 2.
1. Corporate
Taxes
2.interest
versus

profession, how will she/she

apply the Ignatian values
taught by the university
when she/he
practicesher/his profession?
Process the article assignedIn the article you read about
JP Morgans tumultuous
ride through the 2008
financial crisis, and in the
chapter itself you learned
about capital market
inefficiency. What role do
you think market efficiency
(or inefficiency) played in
the 10% fall of JP Morgans
share price in a single day?
Draw or map out the
process of financial
transactions of different
types of financial markets.
Point out the differences
between the capital
markets and the money
markets.
Process in the class when
the students discuss the
root causes and subsequent

Chapter 2
of the
textbook
and other
book
references

Internet

5|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

WK#

Topics

Subtopics

Student Learning
Outcomes

1
Learning Outcomes

Topics

financial decisions.

4-5

Chapter 3:
Financial
Statements
and Ratio
Analysis

The
Stockholde
rs Report
Using
Financial
Ratios
Liquidity
Ratios
Activity

At the end of the session, the

student is able to:
1. Review the contents of
the stockholders report
and the procedures for
consolidating
international financial
statements.
2. Understand who uses

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

impact to the
Asian financial
markets.
2. Major
regulations and
regulatory bodies
that affect
financial
institutions and
markets.
Assignment
(optional):
require the
students to
answer some or
all the Review
Questions after
every topic in the
chapter
The student must read
the following articles
from Chapter 3 before
coming to class:
Why this Chapter
Matters to you- In
Your Professional
Life (Accounting,
Information

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

4
Activities/ Reflection

3
Activities

effects of the 2008 financial

crisis and recession.
Discuss the major
regulations and regulatory
bodies that affect financial
institutions and markets.
Reflection: Ask the student
this question: as a graduate
of her/his chosen
profession, how will she/she
apply the ignatian values
taught by the university
when she/he practices
her/his profession and
when confronted by ethical
conundrum such as (the
teacher may provide any
situation)?
Present all the Financial
Ratios, its formula and
purpose
Process the assigned article
Abercrombie & Fitch: The
Value of Casual Luxury by
asking based on what you
have learned about financial
ratios and its uses, the

Let the student answer the

Self-Test Problems and
warm-up Exercises from
chapter 3
Short Quiz/ Activity
(optional): quiz the
students with questions
taken from Review
Questions after every

SLO Assessment
and Personal
Evaluation

Resources

2
Activities
/Assessment
dividend
expense
3. interest
versus
dividend
income
4. capital gains
5. capital gains
tax.

Conduct a Long
Test/ Quiz or
series of short
quizzes
The students will
be assessed based
on the following
exercises/ problem
solving (provided

3,4,5
Resources

Chapter 3
of the
textbook
and other
book
references

6|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

WK#

Topics

Subtopics

Student Learning
Outcomes

1
Learning Outcomes

Topics

ratios
Debt
Ratios
Profitabilit
y Ratios
Market
Ratios
A
Complete
Ratio
Analysis

3.

4.

5.

6.

financial ratios and how.

Use ratios to 7nalyse a
firms liquidity and
activity.
Discuss the relationship
between debt and
financial leverage and the
ratios used to analyze a
firms debt.
Use ratios to analyze a
firms profitability and its
market value.
Create a summary of
financial ratios and the
DuPont system of analysis
to perform a complete
ratio analysis.

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

Systems,
Management,
Marketing and
Operations) and
Personal Life.
Abercrombie &
Fitch: The Value of
Casual Luxury
Assignment
(optional): require
the students to
answer some or all
the Review
Questions after
every topic in the
chapter

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

SLO Assessment
and Personal
Evaluation

Resources

4
Activities/ Reflection

3
Activities

2
Activities
/Assessment
in the Instructional
Resources):
Answer
problems
similar to the
warm-up
Exercises and
problem
solving from
chapter 3.
1. reviewing
basic financial
statements
2.financial
statement
account
identification
3. income
statement
preparation
4. Calculation of
EPS and
Retained
Earnings
5. Balance
Sheet
Preparation
6. Ratio

3,4,5
Resources

financial analysts gave

Abercrombie & Fitch a
relatively appositive
outlook, do you agree with
the analysts assessment?
Explain why or why not?
Reflection: focus on ethics
(Taking Earnings Reports at Face
Value)
- Why might financial managers
be tempted to manage earnings?
-Is it unethical for managers to
manage earnings if they disclose
their activities to investors?

topic in the chapter.

Let the students answer
exercises/ problem solving
related to:
1. reviewing basic financial
statements
2.financial statement
account identification
3. income statement
preparation
4. Calculation of EPS and
Retained Earnings
5. Balance Sheet
Preparation
6. Ratio Comparison
7. Liquidity, AR, Debt
Analysis and
Management
8. Financial Statement
Analysis and Du Pont
System of Analysis
Ask the students to
answer ethics problem.
For Submission/ Class
presentation:
A group student (at least
with 4 members) must pick

7|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

WK#

Topics

Subtopics

Student Learning
Outcomes

1
Learning Outcomes

Topics

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

SLO Assessment
and Personal
Evaluation

Resources

4
Activities/ Reflection

3
Activities

2
Activities
/Assessment
Comparison
7. Liquidity, AR,
Debt Analysis
and
Management
8. Financial
Statement
Analysis and Du
Pont System of
Analysis
Written
Examination

3,4,5
Resources

a company listed at the

Philippine stock Exchange
and download the latest
Annual Report. Each group
must produce a Ratio
Analysis and Interpretation
of the Financial Reports.

PRELIM EXAM

7-8

Chapter 5:
Time Value of
Money

Coverage:
Chapter 1,2 and 3

The Role of
Time Value
in Finance
Single
Amounts
Annuities
Mixed
Streams
Compound
ing Interest
More
Frequently
Special
Application

At the end of the session, the

student is able to:
1. Appreciate the role of
time value in finance, the
use of computational
tools, and the basic
patterns of cash flow.
2. Use the Financial
Calculator/ scientific
calculator in computing
for the Time value of
money problems.
3. Understand and compute
the concepts of future

The student must read

the following articles
from Chapter 5 before
coming to class:
Why this Chapter
Matters to you- In
Your Professional
Life (Accounting,
Information
Systems,
Management,
Marketing and
Operations) and
Personal Life.

Process the assigned article

Eli Lily and Company: Riding
the Pipeline
Demonstrate using formula
(long hand process) and the
financial calculator the
process of solving the Time
Value of Money concepts
Present Value, Future Value,
Annuities, Solving for time
and interest
Give examples on how to
construct a schedule or
table applying the

Let the student answer

the Self-Test Problems
and warm-up Exercises
from chapter 5
Short Quiz/ Activity
(optional): quiz the
students with questions
taken from Review
Questions after every
topic in the chapter
Let the students answer
exercises/ problem
solving related to:
TVM using a time line.

Conduct a Long
Test/ Quiz or
series of short
quizzes
The students will
be assessed based
on the following
exercises/ problem
solving (provided
in the Instructional
Resources):
Answer
problems
similar to the

Chapter 5
of the
textbook
and other
book
references

internet

8|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

WK#

Topics

Subtopics

Student Learning
Outcomes

1
Learning Outcomes

Topics
of Time
Value

4.

5.

6.

7.

value and present value,

their calculation for single
amounts, and the
relationship between
them as applied in
financial transactions in
banks, lending firms and
other financial
institutions.
Find the future value and
the present value of both
an ordinary annuity and
an annuity due, and find
the present value of a
perpetuity.
Calculate both the future
value and the present
value of a mixed stream
of cash flows.
Point out the effect that
compounding interest
more frequently than
annually has on future
value and the effective
annual rate of interest.
Construct a schedule or
table applying the
procedures involved in (1)

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

Eli Lily and

Company: Riding
the Pipeline
Have the
studentresearch on
5-6 money
lenders or
informal money
lenders in the
Philippines.
Assignment
(optional): require
the students to
answer some or all
the Review
Questions after
every topic in the
chapter

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

SLO Assessment
and Personal
Evaluation

Resources

4
Activities/ Reflection

3
Activities

2
Activities
/Assessment
warm-up
Exercises and
problem
solving from
chapter 5.
For Submission/
Class presentation:
Group Project:
Each group will be
hypothetically
given 100,000.00
pesos as initial
capital. Another
assumption is, they
are to invest it in 5
year period. The
group will have full
digression on
where to put the
money (savings in
a bank, lending
business,stock
market, mutual
funds, retirement
fund, etc.) They
will have to
present to the
class the real facts

3,4,5
Resources

procedures involved in (1)

determining deposits
needed to accumulate a
future sum, (2) loan
amortization, (3) finding
interest or growth rates,
and (4) finding an unknown
number of periods.
Provide students with cases
to analyze for them to
practice what they have
learned about TVM for
them to be able to choose
the best investment/
borrowing options.
Reflection: focus onpractice
and ethics: On 5-6 money
lenders or informal money
lenders in the Philippines, is
it advisable or not to
borrow money to support
and finance the business?

FV, PV and Annuities

calculation
Single-Payment loan
repayment
Retirement Planning
Perpetuities
Value of Mixed Stream
Funding budget short
falls
Changing compounding
frequency
Comparing
compounding periods
Creating a retirement
fund
Inflation, TV and annual
deposits
Loan amortization
schedule
Loan payment
Loan interest
deductions
Rate of return
Rate of return and
investment choice
Choosing the best
annuity

9|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

WK#

Topics

Subtopics

1
Learning Outcomes

Topics

9-10

Chapter 6
Interest Rates
and Bond
Valuation

Student Learning
Outcomes

determining deposits
needed to accumulate a
future sum, (2) loan
amortization, (3) finding
interest or growth rates,
and (4) finding an
unknown number of
periods.
8. Choose among
investment options which
investment that
maximizes financial
benefits and minimizes all
costs.
Interest
At the end of the session, the
Rates and
student is able to:
Required
1. Describe interest rate
Returns
fundamentals, the term
Corporate
structure of interest rates,
Bonds
and risk premiums.
Valuation
2. Review the legal aspects
Fundament
of bond financing and
als
bond cost.
Bond
3. Discuss the general
Valuation
features, yields, prices,
popular types, and
international issues of
corporate bonds.

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

SLO Assessment
and Personal
Evaluation

Resources

4
Activities/ Reflection

3
Activities

2
Activities
/Assessment
and information of
their investment
option and show
the computation of
the rate of return
of the chosen
investment option
in cash and
interest rate.

3,4,5
Resources

The student must read

the following articles
from Chapter 6 before
coming to class:
Why this Chapter
Matters to you- In
Your Professional
Life (Accounting,
Information
Systems,
Management,
Marketing and
Operations) and
Personal Life.

Process the assigned article

The Federal Debt: A huge
Appetite for Money
Describe interest rate
fundamentals, the term
structure of interest rates,
and risk premiums as how it
is being used in the
Philippine financial markets.
Emphasize the different
characteristics of a bond,
general features, yields,
prices, popular types, and
international issues of

Loan rates of interest

Time to repay
instalment loans
Time to accumulate a
given sum

Let the student answer the

Self-Test Problems and
warm-up Exercises from
chapter 6
Short Quiz/ Activity
(optional): quiz the
students with questions
taken from Review
Questions after every
topic in the chapter
Let the students answer
exercises/ problem solving
related to:
Interest rate

Conduct a Long
Test/ Quiz or
series of short
quizzes
The students will
be assessed based
on the following
exercises/ problem
solving (provided
in the Instructional
Resources):
Answer
problems
similar to the

Chapter 6
of the
textbook
and other
book
references

10|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

WK#

Topics

Subtopics

Student Learning
Outcomes

1
Learning Outcomes

Topics
4.

5.

6.

11

12-13

MIDTERM
EXAM
Chapter 7
Stock
Valuation

Understand the key

inputs and basic model
used in the valuation
process.
Apply the basic valuation
model to bonds and
describe the impact of
required return and time
to maturity on bond
values.
Explain yield to maturity
(YTM), its calculation, and
the procedure used to
value bonds that pay
interest semiannually.

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

The Federal Debt: A

huge Appetite for
Money
Have the student
research about
Treasury Bills and
Treasure Bonds of
the Philippine
Government.
Assignment
(optional): require
the students to
answer some or all
the Review
Questions after
every topic in the
chapter

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

SLO Assessment
and Personal
Evaluation

Resources

4
Activities/ Reflection

3
Activities

2
Activities
/Assessment
warm-up
Exercises and
problem
solving from
chapter 6.

3,4,5
Resources

corporate bonds.
Show the valuation formula
and models to bonds and
describe the impact of
required return and time to
maturity on bond values.
After teaching them the basic
valuation for bonds, ask the
student to demonstrate what
is yield to maturity (YTM), its
calculation, and the
procedure used to value
bonds that pay interest
semiannually.

fundamentals
Real rate of interest
Real and nominal rate
of interest
Yield curve
Term structure of
interest rates
Risk-Free rate and risk
premiums
Bond Prices and Yields
Valuation
Fundamentals
Valuation of assets.
Basic Bond Valuation
Bond Value
Yield to maturity

Coverage:
Chapter 4,5 and 6

The
Difference
between
Debt and
Equity
Additional

At the end of the session, the

student is able to:
1. Differentiate between
debt and equity.
2. Explain what is the role
and function of Philippine

For Submission/
Class presentation
(optional):
Spread sheet
Exercises:
The case can be
found at the end of
the chapter.

Written
Examination
The student must read
the following articles
from Chapter 6 before
coming to class:
Why this Chapter
Matters to you- In

Process the assigned article

A123 Systems Inc. : Going
Green to Find Value
Show the Video on
Introduction to PSE (10 mins)
as a summary of the role and

Let the student answer the

Self-Test Problems and
warm-up Exercises from
chapter 7.
Short Quiz/ Activity
(optional): quiz the

Conduct a Long
Test/ Quiz or
series of short
quizzes
The students will
be assessed based

Chapter 7
of the
textbook
and other
book
references

11|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

WK#

Topics

Subtopics

Student Learning
Outcomes

1
Learning Outcomes

Topics

Topic: The
Philippine
Stock
Market
Common
and
Preferred
Stock
Common
Stock
Valuation
Decision
Making
and
Common
Stock
Valuation

3.

4.

5.

6.

7.

Stock Exchange as an
equity market in the
country.
Distinguish the features
of both common and
preferred stock.
Describe the process of
issuing common stock,
including venture capital,
going public, and the
investment banker.
Explain the concept of
market efficiency and
basic stock valuation
using zero-growth,
constant-growth, and
variable-growth models.
Calculate the free cash
flow valuation model and
the book value,
liquidation value, and
price/earnings (P/E)
multiple approaches.
Explain the relationships
among financial decisions,
return, risk, and the firms
value.

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

Your Professional
Life (Accounting,
Information
Systems,

Management,
Marketing and
Operations) and
Personal Life.
A123 Systems Inc. :

Going Green to
Find Value
Have the student
research about the
following:
Philippine Stock

Market and
Philippine Stock
Exchange, its
history, role,
function, location,
PSE index and
listed companies
How to invest in the
stock market
Assignment
(optional): require
the students to
answer some or all

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

SLO Assessment
and Personal
Evaluation

Resources

4
Activities/ Reflection

3
Activities

2
Activities
/Assessment
on the following
exercises/ problem
solving (provided
in the Instructional
Resources):
Answer
problems
similar to the
warm-up
Exercises and
problem
solving from
chapter 7.

3,4,5
Resources

function of Philippine Stock

Exchange as an equity
market in the country.
Illustrate the process of
issuing common stock,
including venture capital,
going public, and the
investment banker.
Show how to compute free
cash flow valuation model
and the book value,
liquidation value, and
price/earnings (P/E)
multiple approaches.
Discuss with the students the
relationships among financial
decisions, return, risk, and
the firms value.

students with questions

taken from Review
Questions after every
topic in the chapter
Let the students answer
exercises/ problem solving
related to:
Authorized an d
available shares.
Preferred dividends
Convertible preferred
stocks
Common stock
valuation
Preferred stock
valuation
Free cash flow
valuation
Pricing IPO

internet

For Submission/ Class

presentation:
Group Project:
Integrative Case 3: Encore
International

12|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

WK#

Topics

Subtopics

Student Learning
Outcomes

1
Learning Outcomes

Topics

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

SLO Assessment
and Personal
Evaluation

Resources

4
Activities/ Reflection

3
Activities

2
Activities
/Assessment

3,4,5
Resources

Process the assigned article

Mutual Funds: Funds Returns
Not Even Close to Average
Reflection: focus on Ethics
Read articles:
-If It Seems Too Good To Be
True Then It Probably Is.
Question: What are some
hazards of allowing investors
to pursue claims based on
their most recent account
statements?
- the Top 5 [Investment]
Scams in the Philippines
(Aman Futures, Legacy
Group, PDAF Scam, Multitel
Group and PIPC) . How to
spot an investment scam.
Question: Risk is a major
concern of almost all
investors. When
shareholders invest their
money in a firm, they expect

Let the student answer the

Self-Test Problems and
warm-up Exercises from
chapter 7.
Short Quiz/ Activity
(optional): quiz the
students with questions
taken from Review
Questions after every
topic in the chapter
Let the students answer
exercises/ problem solving
related to:
Rate of Return
Return calculations
Risk preferences
Risk analysis
Risk and probability
Bar chart and risk
Coefficient of variation
Standard deviation
Portfolio return and

Conduct a Long
Test/ Quiz or
series of short
quizzes
The students will
be assessed based
on the following
exercises/ problem
solving (provided
in the Instructional
Resources):
Answer
problems
similar to the
warm-up
Exercises and
problem
solving from
chapter 8.

the Review
Questions after
every topic in the
chapter
14-15

Chapter 8 Risk
and Return

Risk and
return
fundament
als
Risk of a
single asset
Correlation
and
Diversificat
ion
Risk of a
portfolio
Capital
asset
pricing
model

At the end of the session, the

The student must read
student is able to:
the following articles
1. Understand the meaning
from Chapter 6 before
and fundamentals of risk, coming to class:
return, and risk
Why this Chapter
preferences in asset
Matters to you- In
evaluation.
Your Professional
2. Describe procedures for
Life (Accounting,
assessing and measuring
Information
the risk of a single asset.
Systems,
3. Calculate the
Management,
measurement of return
Marketing and
and standard deviation
Operations) and
for a portfolio and the
Personal Life.
concept of correlation.
Mutual Funds:
4. Explain the risk and return
Funds Returns Not
characteristics of a
Even Close to
portfolio in terms of
Average
correlation and
Have the student
diversification, and the
research about the
impact of international
Top 5 [Investment]
assets on a portfolio.
Scams in the
5. Relate to actual data the
Philippines (Aman

Chapter 8
of the
textbook
and other
book
references

internet

For Submission/
Class presentation
(optional):

13|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

WK#

Topics

Subtopics

Student Learning
Outcomes

1
Learning Outcomes

Topics

6.

two types of risk and the

derivation and role of
beta in measuring the
relevant risk of both a
security and a portfolio.
Explain the capital asset
pricing model (CAPM), its
relationship to the
security market line
(SML), and the major
forces causing shifts in
the SML.

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

Futures, Legacy
Group, PDAF Scam,
Multitel Group and
PIPC) and
Investment Scam
Checklist
(Securities and
Exchange
Commission)

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

SLO Assessment
and Personal
Evaluation

Resources

4
Activities/ Reflection

3
Activities

2
Activities
/Assessment

3,4,5
Resources

managers to take risks with

those funds. What do you
think are the ethical limits
that managers should
observe when taking risks
with other peoples money?

Discuss the basic

fundamentals of risk, return,
and risk preferences in asset
evaluation.
Activity: Provide an actual
data (historical stock prices
of 2 or 3 companies) to the
students that can be used in
computing for:
1. Measures of return,
2. measures of risk such as
variance, standard
deviation and Coefficient
of Variation
3. Measure of relationship
such as correlation.
4. Capital Asset Pricing
Model, SML and Beta.
-Both in single asset and
a portfolio.
5. Point out the

standard deviation
Portfolio analysis
International
investment returns
Interpreting beta
Betas and Risk rankings
Portfolio beta
Capital Asset Pricing
Model
Security Market Line

Each Pair of
students will
gather actual data
(historical stock
prices of 2 or 3
companies) that
will be used in
computing for:
1. Measures of
return,
2. measures of
risk such as
variance,
standard
deviation and
Coefficient of
Variation
3. Measure of
relationship
such as
correlation.
4. Capital Asset
Pricing Model,
SML and Beta.
-Both in single
asset and a
portfolio.

14|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance

WK#

Topics

Topics

Subtopics

Student Learning
Outcomes

1
Learning Outcomes

Pre-Lectio
Individual Preparation
of student prior to the
lesson
5

Lectio
Teaching Method with a
reflection component

Repetitio
Demonstration of the SLO

SLO Assessment
and Personal
Evaluation

Resources

4
Activities/ Reflection

3
Activities

2
Activities
/Assessment
5. Point out the
relationship
between all
the risk and
return
measurements
.
6. Let the
students
evaluate each
set of data and
ask them to
make an
analysis and
recommendati
on.
Written
Examination

3,4,5
Resources

6.

16

17

PRE-FINAL
EXAMINATIO
N

relationship between all

the risk and return
measurements.
Let the students
evaluate each set of data
and ask them to make an
analysis and
recommendation.

Coverage:
Chapter 7 and 8

UNIVERSITY EXAMINATION WEEK DEPARTMENTAL EXAM

15|17
Bai Charity Pandita, MBA
Fin 202 Basic Business Finance