Strategic Financial Management | MBA 4th Sem | JNTUK

Syllabus

EF-404: Strategic Financial Management

Unit-1

Financial Goals and Strategy – Shareholder Value Creation (SCV): Market Value Added (MVA) – Market-to-Book Value (M/BV) – Economic Value Added (EVA) – Managerial Implications of Shareholder Value Creation.

Unit-II

Financial Strategy for Capital Structure: Leverage Effect and Shareholder’s Risk – Capital Structure Planning and Policy – Financial Options and Value of the Firm – Dividend Policy and Value of the Firm.

Unit-III

Investment Strategy – Techniques of Investment Appraisal Under Risk and Uncertainty – Risk Adjusted Net Present Value – Risk Adjusted Internal Rate of Return – Capital Rationing – Decision Tree Approach for Investment Decisions – Evaluation of Lease vs Borrowing Decision.

Unit-IV

Merger Strategy – Theories of Mergers – Horizontal and Conglomerate Mergers – Merger Procedure – Valuation of Firm – Financial Impact of Merger – Merge and Dilution Effect on Earnings Per Share – Merger and Dilution Effect on Business Control.

Unit-V

Takeover Strategy – Types of Takeovers – Negotiated and Hostile Bids – Takeover Procedure – Takeover Defenses – Takeover Regulations of SEBI – Distress Restructuring Strategy – Sell Offs – Spin Offs – Leveraged Buyouts.