Financial Management

                                                                                                                                                                                Syllabus

BBA 403: FINANCIAL MANAGEMENT

Unit-I

Financial Management - Introduction: Meaning, Nature and Scope, Goals of Financial Management-Profit Maximization vs. Wealth Maximization; Finance Functions-Investment, Financing, Liquidity and Dividend Decisions. Sources of Finance- Long Term and Short Term. Concept of Time Value of Money- Present Value, Future Value, Annuity, Present Value of a Series of Payments.

Unit-II

Cost of Capital: Meaning and Significance of Cost of Capital; Cost of Equity Shares; Cost of Preference Shares; Cost of Debt, Weighted Average Cost of Capital. Form of Capital: Introduction to Capital Structure; Theories- NI Approach; NOI Approach; MM Approach; Traditional Approach, Determinants of Capital Structure. Operating and Financial Leverage: Measurement of Leverages; Financial and Operating Leverage, Combined Leverage.

Unit-III

Investment Decision Making: Meaning, Importance, Nature of Investment Decisions.  Investment Evaluation Criteria, Capital Budgeting Techniques- Non-Discounted Cash Flow- Pay Back Methods; Post Payback Period; Accounting Rate of Return Method, Discounted Cash Flow Techniques- Net Present Value Method; Internal Rate of Return Method; Profitability Index Method. 

Unit-IV

Working Capital: Meaning, Significance, Types, Approaches, Factors Affecting Working Capital Management Capital. Dividend Policies: Issues in Dividend Decisions. Forms of Dividend- Theories of Relevance and Irrelevance of Dividends.