Financial Management

Syllabus

BBA-402: Financial Management

Unit I

Introductory: Concept of Financial Management, Finance Functions, Objectives of Financial Management- Profitability vs. Shareholder Wealth Maximization. Time Value of Money- Compounding & Discounting.

Unit II

Capital Structure Planning: Capitalization Concept, basis of capitalization, consequences and remedies of over and under capitalization. Determinants of Capital structure, Capital structure theories, Financial & Operating leverage.

Unit III

Management of Fixed Capital: Cost of Capital, Nature & Scope of Capital Budgeting-Payback NPV, IRR and ARR Methods and their practical Applications. Analysis of Risk & Uncertainty.

Unit IV

Management of Working Capital: Concepts of Working Capital, Approaches to the Financing of Current Assets Determining Capital (with Numerical Problems) Management of Different Components of Working Capital.

Unit V

Management of Earning: Concept & Relevance of Dividend decision. Dividend Models - Walter, Gordon’s, MM Hypothesis. Dividend Policy-Determinants of Dividend Policy.