Financial Management

Syllabus

Course Code: MS-104

Financial Management

Unit I

Financial Objectives; Impact of Financial and Economic Environment on Financial Management; Time Value of Money, Computation of EMI, Annuity, Annuity Due, Funds Flow Analysis, Cash Flow Statement and its Interpretation (AS-3)        (10 Hours)

Unit II

Capital Structure: Net Income Approach, Net Operating Income Approach, Traditional Approach and MM Approach, Cost of Capital: Leverage Analysis, Operating Leverage, Financial Leverage, Combined Leveraged. EBIT - EPS Analysis, Capital Gearing.                                                                                                                                       (10 Hours)

Unit III

Capital Budgeting, Conventional and DCF Methods, Risk Analysis-Certainty Equivalent Factor, Risk Adjusted Discounting Rate, Decision Tree, Independent and Dependent Risk Analysis, Replacement Decisions, Sensitivity Analysis. (10 Hours)

Unit IV

Dividend Policy: Walter Model, Gordon Model, MM Approach, Lintner Model; Working Capital Management: Approaches, Estimation; Management of Inventories; Management of Cash (Various Theoretical Models); Management of Receivables and Marketing Securities.                                                                                                                    (12 Hours)