BBA - Financial Management Syllabus

BBA

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BBA - Financial Management SYLLABUS

Course Code: BBA502

Course Title: Financial Management (4 Credits)

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Course Contents

Units

Syllabus

1

Evolution, Scope and Functions of Finance Managers - Introduction;  Scope of Finance; Financial Management System; Finance Functions ; Role of a Finance Manager

2

Objectives of a Firm – Introduction;  Profit Maximization; Shareholders’ Wealth Maximization (SWM)

3

Financial Planning – Introduction; Meaning of Budget; Types of Budgets; Advantages of Budgeting;  Responsibility Accounting

4

Time Value of Money -  Introduction; Concept of Time Value of Money; Compounding Method; Discounting Method

5

Cost of Capital – Introduction; Cost of Capital; Cost of Debt; Cost of Preference Capital;  Cost of Equity Capital; Approaches to Derive Cost of Equity;  Weighted Average Cost of Capital and Weighted Marginal Cost of Capital

6

Financial and Operating Leverage – Introduction; Meaning of Financial Leverage;  Measures of Financial Leverage;  Calculation of Earnings Per Share (EPS) and Return on Equity (ROE); Financial and Operating Leverages

7

Capital Budgeting Decisions- Introduction; Capital Budgeting Process ; Methods to Evaluate Investment Proposals ; Capital Rationing

8

Capital Structure Theories - Introduction; Relevance of Capital Structure Theories ; Irrelevance of Capital Structure

9

Sources of Finance - Introduction;   Short-term Finance; Long-term Funds

10

Asset-Based Financing – Introduction; Lease Financing; Hire Purchase Financing; Infrastructure Project Financing

11

Dividend Policy – Introduction; Dividend Policy; Financing and Dividend Decision; Dividend Relevance: Walter’s Model

12

Working capital Management: Introduction; Concepts of Working Capital; Operating Cycle Method

13

Management of Cash – Introduction; Motives for Holding Cash; Facets of Cash Management; Cash Planning; Cash Forecasting and Budgeting; Determining the Optimum Cash Balance; Investing Surplus Cash in Marketable Securities

14

Credit Policy: Nature and Goals; Collection Procedures; Nature of Inventory

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