Advanced Financial Management

Syllabus

BCOP 512-18

ADVANCED FINANCIAL MANAGEMENT

UNIT-I

Role and Responsibility of the Senior Financial Adviser, Financial Strategy Formulation: Ratio Analysis and Strategy, Gearing Considerations.

Sources of Finance: Equity, Debt, Hybrids, Lease Finance, Venture Capital, Business Angel Finance, Private Equity, Asset Securitization.

UNIT-II

Risk and Return: Identifying Risk and Return, Business Risk and Financial Risk Including Operational, Reputational, Political, Economic, Regulatory and Fiscal Risk, Risk Return Trade-Off.

Ethical and Governance Issues: Fundamental Principles, Ethical Issues in Financial Management, Agency Relationship, Transaction Cost Theory, Governance Structures and Policies, Social and Environmental Issues, Purpose and Content of an Integrated Report.

UNIT-III

Advanced Investment Appraisal: Capital Rationing: Single Period, Types, Capital Rationing and Divisible Projects, Capital Rationing and Indivisible Projects, Capital Rationing & Multi-Period, Risk and Uncertainty in Investment Appraisal Including Sensitivity Analysis, Use of a Risk Adjusted Discount Factor, Simulation, Probability Analysis and Scenario Analysis.

Valuation and the Use of Free Cash Flows: Valuations – Introduction, Market Capitalisation, Asset Based Valuations, Using PE Ratio, Earnings Yield, Dividend Valuation, Discounted Cash Flows, Discounted Free Cash Flow Basis, Free Cash Flows, Free Cash Flow to Equity.

UNIT-IV

Corporate Reconstruction and Re-Organisation: Financial Reconstruction, Capital Reconstruction Schemes. Acquisitions and Mergers: Reasons for and Against Acquisitions, Mergers and Divestments (Corporate Expansion, High Failure Rate of Acquisitions, Synergy and Others), Legal and Procedural Aspect, Process, Financing and Valuation of Mergers and Acquisitions, Reverse Takeovers, Overview of Mergers and Takeover in India.

Business Re-Organisation: Unbundling, Divestment, Spin-Offs/Demergers, Sell-Offs, Management Buy-Out (MBO) and Buy-In, Share Repurchase, Going Private.