FINANCIAL MANAGEMENT RTMNU B.COM SIXTH SEM

Syllabus

Course Code: 6T4

Financial Management

Unit I: Financial Management: An Introduction

Meaning, Scope, Objectives, and Significance of Financial Management. Responsibilities of Financial Executives, Recent Development in the Finance Sector in India. Sources of Finance: Long, Medium, and Short-Term Sources of Finance, Equity and Preference Shares, Sweat Equity Shares, Shares with Different Rights, Debentures, and Bonds. (Theory)

Unit II: Working Capital Management

Meaning, Needs, Types, Advantages of Working Capital, Disadvantages of Excessive Working Capital, Determinants of Working Capital, Concept of Operating Cycle, Assessment of Working Capital Requirement. (Theory and Numerical)

Unit III: Debtors and Creditors Management

Debtors: Meaning of Receivables (Debtors), Cost Involve in Debtors’ Management, Determination of Optimal Credit Policy, Cash Discount Policy and Ascertainment of Cost of Cash Discount, Effective Cost of Bills Discounting. Creditors: Meaning of Creditors, Calculation of Cost of Credit. (Theory and Numerical)

Unit IV: Dividend and Retention Policy

Meaning of Dividend and Retained Earnings, Types of Dividends, Surplus and Reserve Policy, Stability of Dividends, Dividend Models: Relevance Model of Dividend Policy (Walters Model, Gordons Model), Irrelevance Model of Dividend Policy (Residual Theory, Modigliani and Miller Theory). (Theory and Numerical)