Financial Management

Syllabus
Christine V. Yong, CPA, CMA, CFC, MBA, CSSBB
January 18, 2025
 University Vision 2

A distinctive Christian University integrating Faith, Character and Service,

transforming Global Learners for Enlightenment, Leadership and Human
Development in the 21st Century.
 University Mission 3

Philippine Christian University, an institution related to United Methodist

Church and United Church of Christ Philippines, commits itself to deliver high
quality education imbued with the formation of Christian character,
responsive to the needs of people, and making them responsible leaders and
stewards fostering inter-faith and international goodwill and understanding.
 PCU Core Values 4

Faith, Character & Service

 PCU Quality Policy 5
To secure the position of Philippine Christian University as a premier teaching and research university in the
Philippines and to make it one of the finest universities, Philippine Christian University is guided by the
following policies:

1. Maintaining the highest national standards of teaching, research and administration;

2. Advancing the intellectual, cultural, economic and social welfare of its academic community;

3. Working with other national universities to enrich intellectual discourse, educational quality and research
activity in the national community;

4. Defending the academic freedom of its administrators, faculty, staff and students to engage in rational
inquiry and public discourse without fear or favor; and,

5. Creating a diverse, harmonious scholarly community committed to equity and merit as the fundamental
principles through which administrators, faculty, staff and students are encouraged and assisted to realize
their full potential.
 Course Learning Outcomes (CLOs) 6
1. Understand that financial managers attempt to achieve wealth maximization through daily activities such
as credit and inventory management and through longer-term decisions related to raising funds.

2. Relate to the time value of money

3. Understand public and private placement

4. Explain how to find a minimum cost of capital through varying the mix of its sources of financing

5. Recognize that cash flow rather than earnings is used in the capital budgeting decision.

6. Show how a capital budgeting decision represents a long-term investment decision.

7. Be familiar that by increasing leverage, the firm increases its profit potential, and also its risk of failure.

8. Understand business in finance perspective

 Institutional Learning Outcomes (ILOs) 7

1. Demonstrate Christian Faith

2. Engage in life long – learning
3. Exhibit 21st century skills
4. Practice servant leadership
5. Exemplify academic excellence
6. Respond to national and global needs and conditions
 Grading System 8
Graduate Students taking subjects for credit shall be graded in accordance with the following standard grading
system
Percentage Grade 5-Point Letter Grade
98 - 100 1.00 A+
95 - 97 1.25 A
92 - 94 1.50 A-
89 - 91 1.75* B+
86 - 88 2.00** B
85 - Below Failure Failure

INC Incomplete
OD Officially Dropped
UD (5.0) Unofficially Dropped

*Minimum passing mark for the doctorate program. **Minimum passing mark for the master’s program.
Grading System 9

Notation of “Incomplete”

A notation of “INC” is given to a student with passing class standing but failed to take the final
examination or failed to complete other subject requirement due to illness or other valid
reasons.

Removal of “INC” shall be done if the student meets all the requirements he or she has failed to
undertake for the subject within one (1) year immediately following the term in which the
notation of “INC” was made. If a student is unable to remove an “INC” within the given period,
he shall automatically receive a failing mark of “5.0” at the end of the one (1) year period.

A student may still complete a mark of INC that has passed the one (1) year deadline within a
grace period of two (2) months only if the instructor approves the extension. Request for
extension of “incomplete” and pays P300.00 for processing. It cannot be completed by a mere
expedience of auditing in the same subject handled by another professor in a subsequent term.
Class Policies 10

Attendance, Late Work, Mobile Devices, and Other Information

In this course. You will be doing a number of activities individually.

All assignments should be handed in during designated time, unless specified otherwise.
All tasks are requirements, not optional. If you do not submit any of the required deliverables,
you will get no grade.

Plagiarism and Cheating

Plagiarism and cheating are considered major offenses in the academic community. Penalty for
plagiarism and cheating ranges from disciplinary probation to suspension or as indicated in the
Students Manual. A plagiarized work will receive a grade of zero.
Intellectual Honesty Honor Code 11
I understand that in submitting this project / deliverable,
I am practicing my duty and responsibility to “uphold the academic integrity of the school, endeavor
to achieve academic excellence and abide by the rules and regulations governing (my) academic
responsibilities and moral integrity (Philippine Education Act of 1982);
I recognize that “dishonesty runs counter to the very essence of the Philippine Christian University as
an educational institution”; and
I recognize that “all cases involving dishonesty will be treated as major offense”
Before I submit this project, I certify that
I am turning in work that is mine;
I did not use the words and ideas of another person without properly acknowledging him or her; and
I did not ask another person to write or revise this project for me.

Name of the student:

Signature and Date:

 LEARNING PLAN 12
Course Content / Desired Learning Textbooks / References / Teaching and Learning
Subject Matter Outcomes / Learning Modules / Activities (TLAs)
Topic
Topic Learning Outcomes Link to Online Learning
1
Materials
Goals and Activities of Understand that financial Basic Financial J&J credo and current
Financial Management managers attempt to Management – Pineda financial statements
achieve wealth
maximization through
daily activities such as Foundations of Financial
credit and inventory Management – Block, Hirt,
management and through Danielsen;
longer-term decisions
related to raising funds. Essentials of Financial
Management – Brigham,
et al.
 LEARNING PLAN 13
Course Content / Desired Learning Textbooks / References Teaching and Learning
Subject Matter Outcomes / Topic / Learning Modules / Activities (TLAs)
Topic
Learning Outcomes / Link to Online Learning
2
Materials
Statement of Cash Flow Use statement of cash Basic Financial Answer Intel Corporation
flow to evaluate Management – Pineda vs AMD cash based
company measures

Managerial Accounting –
Weygandt, Kieso,
Kimmel;

Essentials of Financial
Management – Brigham,
et al.
 LEARNING PLAN 14
Course Content / Desired Learning Textbooks / References Teaching and Learning
Subject Matter Outcomes / Topic / Learning Modules / Activities (TLAs)
Topic Learning Outcomes / Link to Online Learning
3
Materials
Financial Statement Identify and compute Basic Financial United Airlines, Inc.
Analysis ratios used in analysing Management – Pineda financial analysis
a company’s solvency
and profitability.
Managerial Accounting –
Weygandt, Kieso,
Kimmel;

Essentials of Financial
Management – Brigham,
et al.
 LEARNING PLAN 15

Course Content / Desired Learning Textbooks / References Teaching and Learning

Subject Matter Outcomes / Topic / Learning Modules / Activities (TLAs)
Topic Learning Outcomes /
4 Link to Online Learning
Materials
Time Value of Money Compute present value in Basic Financial Value of Rockefeller
needed decisions like Management – Pineda today
capital budgeting Managerial Accounting –
situations Weygandt, Kieso,
Kimmel;
Essentials of Financial
Management – Brigham,
et al.
 LEARNING PLAN 16
Course Content / Desired Learning Outcomes / Textbooks / References / Teaching and Learning
Subject Matter Topic Learning Outcomes / Learning Modules / Activities (TLAs)
Topic Link to Online Learning
5
Materials
Long Term Financing Explain how a firm attempts to Basic Financial Case Study:
find a minimum cost of capital Management – Pineda Facebook cases, its
through varying the mix of its profitability and ability to
sources of financing release cash dividend.
Foundations of Financial
Show how a capital budgeting Management – Block, Hirt,
decision represents a long- Danielsen;
term investment decision.
Be familiar that by increasing
leverage, the firm not only Essentials of Financial
increases its profit potential, Management – Brigham,
but also its risk of failure. et al.
 LEARNING PLAN 17
Course Content / Desired Learning Outcomes / Textbooks / References / Teaching and Learning
Subject Matter Topic Learning Outcomes / Learning Modules / Activities (TLAs)
Topic Link to Online Learning
6 Materials
Cost of Capital Explain how a firm attempts to Basic Financial Exercise:
find a minimum cost of capital Management – Pineda
through varying the mix of its
sources of financing Intel’s Stockholders’
Foundations of Financial Equity (pg288_AFM)
Management – Block,
Hirt, Danielsen;

Essentials of Financial
Management – Brigham,
et al.
 LEARNING PLAN 18
Course Content / Desired Learning Outcomes / Textbooks / References / Teaching and Learning
Subject Matter Topic Learning Outcomes / Learning Modules / Activities (TLAs)
Topic Link to Online Learning
7
Materials
Capital Investments Recognize that cash flow Basic Financial Case Study:
rather than earnings is used in Management – Pineda 1. problem on Taylor Corp
the capital budgeting decision. NPV
Foundations of Financial
Management – Block, Hirt,
Danielsen;

Essentials of Financial
Management – Brigham,
et al.
 LEARNING PLAN 19
Course Content / Desired Learning Outcomes / Textbooks / References / Teaching and Learning
Subject Matter Topic Learning Outcomes / Learning Modules / Activities (TLAs)
Topic Link to Online Learning
8
Materials
Working Capital Risk as well as profitability Basic Financial Exercise:
Management determines the financing Management – Pineda Edwards Corporation
planfor current assets,

Foundations of Financial
Management – Block,
Hirt, Danielsen;

Essentials of Financial
Management – Brigham,
et al.
 LEARNING PLAN 20
Course Content / Desired Learning Outcomes / Textbooks / References / Teaching and Learning
Subject Matter Topic Learning Outcomes / Learning Modules / Activities (TLAs)
Topic Link to Online Learning
9 Materials
Corporate Financial Corporate Financial Planning Basic Financial Case Study:
Planning Management – Pineda 1. Rappa Port (CMA2T10)

Foundations of Financial
Management – Block,
Hirt, Danielsen;

Essentials of Financial
Management – Brigham,
et al.
Teaching and Learning Activities (TLAs) 21

Topic 1: J&J credo and current financial statements

Instructions:
1. Find J&J Credo from the net or its web site at www.jnj.com. Write a brief summary of the credo.
2. In the jnj portal, under the investors tab select the recent form SEC filings 10-Q. Is J&J growing by more or less than
10% per year in alignment with its:
a. Sales to customers
b. Net earnings
c. Net earnings per share
3. Provide a reaction with regards to J&J credo, effect of the cases against J&J, and its financial performance.
Teaching and Learning Activities (TLAs) 22

Topic 2: Intel Corporation is the leading producer of computer chips for personal computers. Its primary competitor is AMD.

Instructions:
1. Calculate the following cash-based measures for Intel (see next slide for details), and compare them with those for
AMD.
a. Free cash flow
b. Current cash debt coverage ratio
c. Cash debt coverage ratio

2. Here are the comparative data for AMD:

a. Free cash flow ($275 M )
b. Current cash debt coverage ratio 0.21 times
c. Cash debt coverage ratio 0.08 times
 Teaching and Learning Activities (TLAs) 23

INTEL CORPORATION INTEL CORPORATION

Balance Sheets Income Statements
December 31, 20YY and 20XX For the Years Ended December 31, 20YY and 20XX
(in millions $) (in millions $)

Assets 2023 2024 2023 2024

Current assets 22, 882 18,925 Net revenues 30,141 26,764

Noncurrent assets 24,261 25,299 Expenses 24,500 23,647

Net Income 5,641 3,117
Total assets 47,143 44,224

Liabilities and Stockholders’ Equity INTEL CORPORATION

Current Liabilities 6,879 6,595 Statement of Cash Flows
For the Years Ended December 31, 20YY and 20XX
Long-term Liabilities 2,418 2,161 (in millions $)
Total Liabilities 9,297 8,756 2023 2024
Stockholders’ equity 37,846 35,468 Net cash provided by operating activities 11,515 9,129
Total Liabilities and 47,143 44,224 Net cash used for investing activities (7,090) (5,765)
Stockholders’ equity
Net cash used for financing activities (3,8580 (3,930)

Net increase (decrease) in cash and cash equivalents 567 (566)

Teaching and Learning Activities (TLAs) 24

Topic 3: United Airlines, Inc.

Instructions:
1. Go to finance.yahoo.com. Enter “UAL” for United Airlines, Inc. in the search bar and click enter.
2. Click on “Profile” under the stock price and to the right of “Summary.” Write a on-paragraph description of the
company.
3. Click on “Financials.” Look at the Income Statement and describe the pattern of change for “Total Revenue”
and “Operating Income or Loss” in one paragraph.
4. Go to “Balance Sheet.” In one sentence, describe the pattern of change in stockholders’ equity and indicate
whether this does or does not appear to be a matter of concern.
5. Click on “Analysis.” Do UAL’s earnings estimates appear to be more or less promising for the future?
Teaching and Learning Activities (TLAs) 25

Topic 4: Value of Rockefeller today from his estimated worth of $1.4B in May 1937

Instructions:
1. As you have seen in this chapter, a dollar today does not have the same value as a dollar in the future or a
dollar received in the past. At the time of this death in May 1937, John D. Rockefeller was estimated to be
worth $1.4B.
Go to the Bureau of Labor Statistics at www.bls.gov. Expand “Data Tools” at the top of the page, and select “Top Picks, One Screen, Multi-Screen, Maps,
and Calculators” in the drop-down menu. Then click the link for “Calculators.” Click the calculator icon next to “Inflation.” Enter “1.4” to see how much
Rockefeller’s fortune would be worth in today’s dollars?

2. Now let’s consider a hypothetical situation where you are worth $1M at the end of World War II. Using the
same CPI tool, calculate how much you would need today to maintain the same purchasing power as in
December 1945.
3. Assume that the rate of inflation for the next 30 years is the same as the last 30 years. How much will you need
to have the same purchasing power as $1,000 has today?
Teaching and Learning Activities (TLAs) 26

Topic 5: Case Study: Facebook cases, its profitability and ability to release cash dividend.

Instructions:
1. Facebook is a profitable, rapid-growth social media company. This presumably justifies the firm not paying a
cash dividend.
2. Go to www.finance.yahoo.com and enter “FB (Facebook)” in the “Quote Lookup” box. Click “Financials” and
scroll down to “Income Statement.”
3. Compute the following ratios for the most recent full year.
a. Net Income/Total revenue (after tax profit margin)
b. Cost of revenue / Total revenue
c. Growth in earnings per share
d. Income tax expense / Net Income

4. Write a case study about Facebook’s profitability, sustainability and ability to pay cash dividend with the cases,
accusations and scandals against Facebook.
Teaching and Learning Activities (TLAs) 27

Topic 6: Web Exercise

Instructions:
1. Go to www.intel.com, and:
a. Scroll down and click on “Investor Relations” at the bottom of the home page.
b. Click on “Filings and Reports.”
c. Click on “Annual Reports.”
d. Download the most current annual financial statements.
2. Compute the $ change in “Total Assets” over the last two years.
3. Do the same computation for “Stockholders’ Equity.”
4. Do the same computation for “Long-Term Debt.”
5. In a brief paragraph, describe the change in long-term obligations (debt) that has taken place relative to the
changes in total assets and stockholders’ equity. Does it appear to be good or bad?
Teaching and Learning Activities (TLAs) 28
Topic 7: Taylor Corp NPV
Teaching and Learning Activities (TLAs) 29
Topic 7: Taylor Corp NPV
 Teaching and Learning Activities (TLAs) 30
Topic 8: Edward Corporation
Alternative Financing Plans Impact of Financing Plans on Earnings
Assume that:
Particulars Plan A Plan B Particulars Plan A
Under disruptive tight money conditions:
Current Assets Earnings before interest and taxes 200,000
Temporary 250,000 250,000 Interest (short-term), 6% X 500,000 30,000 1. Plan A would provide a 15,000 lower return than
Plan B because of high short-term interest rates.
Permanent 250,000 250,000 Interest (long-term), 10% X 100,000 10,000 Compute for the Expected value of return for Plan
Total Current Assets 500,000 500,000 Earnings before taxes 160,00 A vs Plan B.
Short-term Financing (6%) 500,000 150,000 Taxes (25%) 40,000
2. Plan A would provide a 50,000 lower return
Long-term Financing (10%) 0 350,000 Earnings after taxes 120,000 than Plan B.
Total 500,000 500,000 Compute for the Expected value of return for
Plan A vs Plan B.
Particulars Plan A Plan B Particulars Plan B
Fixed Assets Earnings before interest and taxes 200,000 3. What can you conclude based on the two
Long-Term Financing (10%) 100,000 100,000 scenarios?
Interest (short-term), 6% X 150,000 9,000
Total Financing Summary Plan A Plan B Interest (long-term), 10% X 450,000 45,000
Short-term (6%) 500,000 150,000 Earnings before taxes 146,000
Long-Term Financing (10%) 100,000 100,000 Taxes (25%) 36,500
Total 600,000 600,000 Earnings after taxes 109,500
Teaching and Learning Activities (TLAs) 31
Topic 9: Rappa Port

(CMA2T10)
Teaching and Learning Activities (TLAs) 32
Topic 9: Rappa Port

(CMA2T10)
Teaching and Learning Activities (TLAs) 33
Topic 9: Rappa Port

(CMA2T10)
Suggested Readings and References 34

• Block, H. D. (2023). Foundations of Financial Management.

McGraw Hill Education.
• Eugene F. Brigham, J. F.-M.-A. (2023). Essentials of Financial
Management. Cengage.
• IMA. (2021). CMA.
• Pineda. (2022). Basic Financial Management . Metro Manila.
• Weygandt, K. K. (n.d.). Management Accounting. Susan Elbe.
End 35

Be blessed and bless others as well.

We were assigned to be stewards of this world. Being a steward, we are to

manage the gifts we have and sustain all these blessings for the glory of
Almighty.

May the good Lord always bless the works of your hands in His name. Amen.

Christine Yong, CPA, MBA, CMA, CFC, CSSBB