Financial Management

Paper Code: 
EMP 224
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

To familiarize the students with the financial aspects of managerial decisions and to develop the skills to determine capital structure and other financial policies.

12.00
Unit I: 

Introduction: Meaning, importance and objectives of Financial Management, Time Value of Money, Risk and Return- overview of Capital Market Theory. Management of Working Capital.

12.00
Unit II: 

Capital Structure
Basic Issues, Irrelevance Approach, Relevance of Capital Structure Determination of Optimal Capital Structure, Features of Sound capital Structure, Planning the Capital Structure
Cost of Capital
Significance, Computation, Composite, Overall, Weighted Average and Marginal cost of capital
 

12.00
Unit III: 

Dividend Policy:
Meaning, Concepts, Types of Dividend Policy, Dividend Models.
Management of Inventory
 

12.00
Unit IV: 

Business Valuation
Conceptual Framework of Valuation, Approaches and Methods of Valuation- Asset-Based Approach to Valuation, Earnings Based Approach to Valuation, Market Value Based Approach to Valuation, Other Approaches to Value Measurement
 

12.00
Unit V: 

Leverage
Meaning of Leverage, Operating Leverage, Financial Leverage, EBIT- EPS Analysis, Indifference Point, Combined Leverage
 

 

* A minimum of one case study will be discussed per unit of the syllabi.

References: 
  1. Prasad G. Godbole, Mergers, Acquisitions. And Corporate Restructuring, Vikas Publication Private Limited, 2009
  2. Prasanna Chandra, Financial Management, Tata McGraw Hill, 2007
  3. Paresh P. Shah, Financial Management, Biztantra Publication, 2007
  4. Khan and Jain, Financial Management, Tata Mc Graw Hill, 2007

Suggested Readings:

 

  1. Kothari & Dutta, Contemporary Financial Management, Machanilan India Ltd, 2008
  2. Mukherjee and Hanif, Corporate Accounting, Tata McGraw Hill,2006
  3. Stephen A Ross, Fundamentals of Corporate Finance, 2007
  4. Kester, Case Problems in Finance, Tata McGraw Hill, 12th  Edition, 2008