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					                                                                  Financial Policy and Strategy

              C   O    U     R   S   E   S    Y   L   L   A   B   U   S

                      F IN ANCI AL P OLI CY   AND     S TR ATEGY

Course Code:           FPS
Faculty:               Professor Felixberto U. Bustos Jr.
Schedule:              Third Trimester, Second Year

Course Description

This course is designed for students who are inclined to be corporate financial
planners and strategists. It deals with ways of financing and refinancing a
business, positioning it competitively and strategically, and designing the
programs to deliver the financial policies and strategies. Financial Policy and
Strategy also deals with configuring the right financial structure, systems, staffing
and instrumentation to achieve the corporate vision, mission, goals and
objectives. The course aims to provide a framework for students to apply the
tools and techniques learned in first year Financial Management in bigger and
varied settings. The unifying theme of this course should be a realization that the
Finance Man is "not an island but a part of the whole…"

Module I of the course starts with a description of the Functions of A Financial
Executive and several frameworks that can be used in the two basic financial
functions of Financing and Investing.

                                                               Financial Policy and Strategy

Module II reviews the Capital Structure theory and goes through several
financing decision cases applying the frameworks discussed in Module I.

Similarly, Module III reviews Investment Policy theory and applies the Capital
Investment framework taken up in the first module in several cases.

Module IV covers the Optimal Dividend Policy and the Pros and Cons of Stock
Repurchases. The students will be required to come up with their own Dividend
Policy framework.

Module V covers the very timely topics of Corporate Governance, Auditing and
Accounting Systems and the Returns to Corporate Social Responsibility.

Module VI describes Financial Policies in Utilities and Government Institutions as
well as principles of privatization and deregulation.

In Module VII, the students will present their course papers. This can take two
forms.   It can be a case and a teaching note which illustrates a correct (or
incorrect!) application of any of the concepts taken up in the course. It may also
be the equivalent of the Financial Strategy portion of their Management
Research Report (MRR). As such, it should describe the industry dynamics,
including the identified Opportunities and Threats, present an internal analysis of
the company, before presenting various alternative Financial Strategies. The
chosen financial strategy should have a detailed description of the firm’s
Financing, Investment, and Dividend Policies. It should also indicate the how the
company’s financial structure, systems, staffing and instruments lead to better or
sub-optimal Corporate Governance.

An optional final examination will be conducted for students wishing to improve
their final grades.