Business Finance 10Th by Nenita Mejorada

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					                                                               Colegio de San Juan de Letran
                                                                    Intramuros, Manila

                                                College of Business Administration and Accountancy
                                                             Financial Management Area
                                                        First Semester, School Year 2007-2008

I.     Course Code            : MGMT 110

II.    Course Title           : INVESTMENT MANAGEMENT

III.   Course Credit          : 3 Units

IV.    Course Description     :

                                  The course seeks to orient the students on the basis of corporate and personal investment, leading to intermediate and
                                  advances studies on the subject. It deals on the different areas into which a corporation can invest its resources
                                  including application and techniques in investing wisely and profitably. The course emphasizes on four major investment
                                  arenas namely: Stocks, Bank account and Credit Securities, Mutual Funds and Real Assets.

V.     Course Rationale       :
                                  The course serves as an important tool in the management of available resources of any business entity. It provides
                                  adequate know-how on the allocation of the best investment arena in which investable funds can be utilized effectively
                                  for profit. Provided that the students will be working under any business enterprise, the course provides expertise in the
                                  management of funds through investment. It can also aid the students in managing personal finance and investment,
                                  thus, applying what they will learn on a personal basis.
VI.    Course Objectives      :
       A. General Objective   :
                                  To instill to the students the analytical and systematic approach of investing funds,to awaken their knowledge on the
                                  different structures of each investment arena, use the strategies on investing as a tool in solving fund allocation issues
                                  and improve their decision-making skills.
B. Specific Objectives   :
     1. Cognitive        :
                             Know and distinguish the various strategies, techniques and decision-making in Investment Management together with
                             the structures of the investment arenas.
      2. Affective       :
                             Appreciate the importance of the subject in managing funds and allocating resources.
     3. Psychomotor      :
                             To be acquainted with the computing of the different formulas aimed to discover the best strategies, techniques to be
                             applied in Investment Management
VII. Course Outline

  Specific Objectives           Subject Matter             Values            Teaching       Instructional    Evaluation     Time        Expected
                                                         Integrated           Method          Materials                    Frame         Output

To identify the basic      I. Introduction / Basic      To be diligent   Lectures           Handouts or     Recitation    1st and    Identified basic
concepts and function of      Concept                   and honest       Class discussion   books           Assignment    2nd week   concepts on
Investment Management      a. Investment                                                    OHP             Seatwork                 Investment
                           Management                                                                       Quizzes                  Management
                            - Definition and goals of
                            - Forms of Investment /
                                Investment Portfolio
                            - Factors in allocating
                                Investable Funds
                            - Concepts on Financial
                            - Common Investing

To be refreshed on         b. Financial Statement       To analyze       Lectures           Handouts or     Recitation    3rd week   Reviewed
topics involving the major    Analysis                  before taking    Class discussion   books           Assignment               Financial
financial statements and    - The major financial       action                              OHP             Seatwork                 Statement
the use of ratios               statements                                                                  Quizzes                  analysis and
                            - Ratio Analysis                                                                                         use the different
                            - Uses of Ratios                                                                                         ration analysis
To identify and explain      c. Bank Accounts and           Thriftiness   Lectures           Handouts or   Recitation   4th week   Identified
the concepts on Banks           Credit Securities                         Class Discussion   books         Assignment              concepts on
Account and Credit            - Current and Savings                       Case Studies       OHP           Seatwork                Bank Accounts
Securities, and learn the         Account                                 Application                      Quizzes                 and Credit
computations involving        - Time Deposits / Trust                     problems                                                 securities and
Bonds, etc                        Investments                                                                                      compute for
                              - Market Securities and                                                                              investment in
                                  Credit securities                                                                                credit securities
                              - Bonds Investments
                                  (Short-term and Long

To identify in depth the     d. Investment in Stocks        Prudence in   Lecture            Handouts or   Recitation   5th, and   Identified
classification of Stocks;     - Classification of           making        Class Discussion   books         Assignment   6th week   concepts on
to compute transaction            Stocks based on           decision by   Application        OHP           Seatwork                Stocks and
Cost and break-even             a. Rights of                using data    problems                         Quizzes                 compute for
Price involving stocks; to          Stockholders                          Case Studies                                             Transaction
learn the exchange              b. Nature of Business                                                                              Cost, BEP,
composite index and             c. Risk and potential for                                                                          Learned the
learn techniques to solve           earnings                                                                                       exchange
and trade on margin,            d. Market Capitalization                                                                           composite index
down averaging; Market          e. Marketability                                                                                   and how to
price per share, stock          f. Citizenship of                                                                                  trade on
splits and know the ways            investor                                                                                       margins, down
to minimize risk in           - Transaction Cost and                                                                               averaging, price
investing in stocks               Break Even Price                                                                                 averaging, and
                              - The Exchange                                                                                       the market price
                                  Composite Index                                                                                  per share.
                              - The Price Band and                                                                                 Identified and
                                  the Domino effect                                                                                computed Stock
                              - Trading on Margin                                                                                  splits and how
                              - Down Averaging and                                                                                 to minimize risk
                             Price Averaging
                         -   Stock dividend on
                             Market price per share
                         -   Stock Splits
                         -   Minimizing risk in
                             Stock Investments
To identify the concepts e. Investment in Mutual   Prudence in      Lecture/discussion Handouts or   Recitation   7th and     Identified
related to Mutual funds,    Funds                  decision by      Application        books         Assignment   8th week    concepts and
and solve for NAVPS,      - Open-end and close-    using data       problems           OHP           Seatwork                 computed
Cost of Transaction,         end companies                          Case studies                     Quizzes                  NAVPS,
Offering and Redemption - Mutual funds and                                                                                    transaction cost,
prices                       common trust funds                                                                               offering and
                          - Classifications,                                                                                  redemption
                             advantages and safety
                          - Net asset value per
                             share of mutual fund

MIDTERM EXAMINATION                                                                                               9th week

Cont. of Investment in   -   Mutual fund                            Lecture           Handouts or    Recitation   10th and    Cost. Computed
Mutual funds and to          transaction cost                       Discussion        books          Assignment   11th week   earnings from
learn how to measure     -   Offering and                           Application       OHP            Seatwork                 mutual funds.
the performance              redemption prices                      problems                         Quizzes                  Performance
                         -   Earnings from mutual                   Case studies                                              measured on
                             fund                                                                                             mutual funds
                         -   Mutual fund
                             performance measure

To identify concepts     f. Investment in Real        Prudence in   Lectures          Handouts or    Recitation   12th and    Identified
                                Estate (Real Assets)      making            Discussion     books         Assignment   13th week    concepts on
                            -    Definition, advantages   decision and      Application    OHP           Seatwork                  Real asset
                                 and disadvantages        in the use of     problems                     Quizzes                   investment.
                            -    Real Estate carrying     resources in      Case Studies                                           Compute for the
                                 cost                     investing on                                                             Market Value,
                            -    Factors in Real Estate   real assets                                                              Net Income and
                                 Acquisition                                                                                       ROI.
                            -    Appraisal of Real
                                 Estate (Market Value)
                            -    Real Asset Financing
                                 and Payment
                            -    Real Asset Net
                                 Income, Cash Flow
                                 and return on

To identify concepts on     g. The Portfolio              To be more        Lecture        Handouts or   Recitation   13th and     Learned
Portfolio Management           Management                 critical in the   Discussion     books         Assignment   14th week    concepts and
and learn how to find the    - Determining of             allocation of     Application    OHP           Seatwork                  techniques on
best portfolio to invest        Expected Value            resources         problems                     Quizzes                   diversifying
into with minimal risk       - The Portfolio effect                         Case studies                                           investments
                             - Developing and
                                Efficient portfolio
                             - The Optimum Portfolio
To identify concepts on     h. Personal Finance           To be thrifty,    Lecture        Handouts or   Recitation   15th, 16th   Learned
Personal Finance and         - Definition of Personal     and to be         Discussion     books OHP     Assignment   and 17th     concepts on
learn individual portfolio.     finance                   goal-oriented;    Application                  Seatwork     week         Personal
To apply the concepts on - Personal Investment            to be wise in     problems                     Quizzes                   Finance and its
a personal basis                and Finance Portfolio     spending          Case studies                                           application to
                             - Target Savings Goal        personal                                                                 personal
                             - Personal Balance           resources                                                                management of
                                   Sheet, current income                                                                                 resources
                                   analysis & current
                                   spending analysis
                               -   Individual’s sources of
                               -   Standards and
                                   limitation on Wealth

FINAL EXAMINATION                                                                                                            18th week

VIII. Grading System       :
                                   Midterm Grade:                       Pre-final Grade:
                                   Class Standing            -    30%   Class Standing       -      30%
                                   Quizzes                   -    30%   Quizzes              -      30%
                                   Mid-term Exams            -    40%   Mid-term Exams       -      40%
                                                                 100%                              100%

      Final Grade = (Mid-term Grade + Pre-Final Grade) / 2

IX.   References:
      Main References:    Foundations of Financial Management ( International Edition 10th) by Geoffrey Hirt and Stanley Block
                          Fundamentals of Investment Management ( Fifth Edition ) by Geoffrey Hirt and Stanley Block
                          Investments ( Principles, Practices and Analysis) by Douglas Bellemore and John Ritchie Jr.
                          Investment Analysis and Management ( Third edition ) by John W. Bowyer, Jr., DBA
                          Investment Management and Personal Finance ( 1st Edition ) 2001 by Nenita D. Mejorada

      Online References:

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