Course Code: BBA502 | Course Title: Financial Management (4 Credits) |
Course Contents
Unit 1: Evolution, Scope and Functions of Finance Managers- Introduction; Scope of Finance; Financial Management System; Finance Functions ; Role of a Finance Manager
Unit 2: Objectives of a Firm – Introduction; Profit Maximization; Shareholders’ Wealth Maximization (SWM)
Unit 3: Financial Planning – Introduction; Meaning of Budget; Types of Budgets; Advantages of Budgeting; Responsibility Accounting
Unit 4: Time Value of Money - Introduction; Concept of Time Value of Money; Compounding Method ; Discounting Method
Unit 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
Unit 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
Unit 7: Capital Budgeting Decisions- Introduction; Capital Budgeting Process ; Methods to Evaluate Investment Proposals ; Capital Rationing
Unit 8: Capital Structure Theories - Introduction; Relevance of Capital Structure Theories ; Irrelevance of Capital Structure
Unit 9: Sources of Finance - Introduction; Short-term Finance ;Long-term Funds
Unit 10: Asset-Based Financing – Introduction; Lease Financing; Hire Purchase Financing; Infrastructure Project Financing
Unit 11: Dividend Policy – Introduction; Dividend Policy; Financing and Dividend Decision; Dividend Relevance: Walter’s Model
Unit 12: Working capital Management: Introduction; Concepts of Working Capital ;
Operating Cycle Method
Unit 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
Unit 14: Credit Policy: Nature and Goals ;Collection Procedures ; Nature of Inventory