Financial Management Syllabus

Course Code: MB0045

Course Title: Financial Management (4 Credits)

 

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Course Contents

 

Unit 1-Financial Management: Introduction, Meanings and Definitions, Goals of Financial Management, Finance Functions, Interface between Finance and Other Business Functions,

 

Unit 2-Financial Planning: Introduction, Objectives, Benefits, Guidelines, Steps in Financial Planning, Factors Affecting Financial Planning, Estimation of Financial Requirements of a Firm, Capitalisation

 

Unit 3-Time Value of Money: Introduction, Rationale, Future Value, Present Value,

 

Unit 4-Valuation of Bonds and Shares: Introduction, intrinsic value, book value, Valuation of Bonds, Valuation of Shares

 

Unit 5-Cost of Capital: Introduction, Meaning of Cost of Capital, Cost of Different Sources of Finance, Weighted Average Cost of Capital

 

Unit 6-Leverage: Introduction, Operating Leverage,             Application of operating leverage, Financial Leverage, Combined Leverage

 

Unit 7-Capital Structure: Introduction, Features of an Ideal Capital Structure, Factors Affecting Capital Structure, Theories of Capital Structure

 

Unit 8-Capital Budgeting: Introduction, Importance of Capital Budgeting, Complexities Involved in Capital Budgeting Decisions, Phases of Capital Expenditure Decisions, Identification of Investment Opportunities, Rationale of Capital Budgeting Proposals, Capital Budgeting Process, Investment Evaluation, Appraisal Criteria

 

Unit 9-Risk Analysis in Capital Budgeting : Introduction, Types and Sources of Risk in Capital Budgeting, Risk Adjusted Discount Rate, Certainty Equivalent Approach, Probability Distribution Approach, Sensitivity Analysis, Simulation Analysis, Decision Tree Approach

 

Unit 10-Capital Rationing: Introduction, Types, Steps Involved in Capital Rationing, Various Approaches to Capital Rationing

 

Unit 11-Working Capital Management : Introduction, Components of Current Assets and Current Liabilities, Concepts of Working Capital, Objective of Working Capital Management, Need for Working Capital, Operating Cycle, Determinants of Working Capital, Approaches for Working Capital Management, Estimation of Working Capital

 

Unit 12- Cash Management: Introduction, Meaning and Importance of Cash Management, Motives for Holding Cash, Objectives of Cash Management, Models for Determining Optimal Cash Needs, Cash Planning, Cash Forecasting and Budgeting

 

Unit 13-Inventory Management: Introduction, Role of Inventory in Working Capital, Characteristics of inventory, Purpose of Inventory, Costs Associated with Inventories, Inventory Management Techniques, Importance of Inventory Management Systems

 

Unit 14-Receivable Management: Introduction, Costs Associated with Maintaining Receivables, Credit Policy Variables, Evaluation of Credit Policy

 

Unit 15-Dividend Decisions: Introduction, Traditional Approach, Dividend Relevance Model, Miller and Modigliani Model, Stability of Dividends, Forms of Dividends, Stock Split

 

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