Finance for Managers MDU MBA First Semester

FINANCE FOR MANAGERS

Course Code: 24IMSI201DS02

L-T-P External Marks: 70

3-1-0 Internal Marks: 30

Time: 3 Hours

Course Objectives

1. To understand the role of a financial manager in business.

2. To develop knowledge of various sources of finance.

3. To know the significance of the time value of money in decision-making.

4. To develop an ability to make certain important decisions relating to capital budgeting, cost of capital

and capital structure

Course Outcomes

After completing the course students would be able to:

1. Describe about various financial management concepts.

2. Apply the concept of time value of money.

3. Categorize and analyze different capital budgeting techniques.

4. Appraise different project proposals for decision-making.

5. Estimate cost of capital for long term source of finance.

UNIT-1

Meaning, advantages, and limitations of accounting, Recording of business transaction, Ledger, Trial balance,

Preparation of Financial accounts with adjustments

UNIT-2

Analysis of Financial Statements: Comparative Statements, Common Size Statements; Ratio analysis, Funds

flow statement and Cash flow statement.

UNIT -3

Classification of costs and cost sheet; CVP analysis; marginal costing and its application in Managerial decision

making; budgetary control.

UNIT-4

Investment Decisions: Methods of capital budgeting, ARR, PI, PBP, NPV and IRR; cost of capital.

Recommended Readings:

1. Anthony, R. N., Hawkins, D., & Merchant, K. A. (2019) “Accounting: Text and Cases” McGraw- Hill

Education India.

2. Narayanaswamy, R. (2020) Financial Accounting: A Managerial Perspective, 7th ed. PHI learning

3. Goyal, B. K., & Tiwari, H. N. (2021). Financial Accounting. Taxmann Publication, New Delhi.

4. Maheshwari, S. N., Maheshwari, S. K., & Maheshwari, S. K. (2018). Financial Accounting. Vikas

Publishing House Pvt. Ltd., New Delhi.

5. Pandey, I.M., Financial Management, Vikas Publishing House, New Delhi

6. Khan and Jain, Financial Management, Tata McGraw Hill, New Delhi

7. Thukaram Rao,M.E.,Cost and Management Accounting, NewAge Publishers

Instructions for External Examiner: The question paper shall be divided in two sections. Section A shall

comprise of seven short answer type questions from whole of the syllabus carrying two marks each, which shall

be compulsory. Answer to each question should not exceed 50 words normally. Section B shall comprise 8

questions (2 questions from each unit). The students will be required to attempt four questions selecting one

• question from each unit. All questions will carry equal marks.