FINANCIAL MANAGEMENT

Syllabus

Course Code: 044MAN013

Financial Management

Module-I

Introduction to Financial Management

Introduction: Meaning of Finance, Business Finance, Finance Functions, Organization structure of Finance Department; Financial Management – Goals of Financial Management, Financial Decisions-Types of Financial Decisions, Role of a Financial Manager; Financial Planning - Principles of Sound Financial Planning, Steps in Financial Planning, Factors influencing a Sound Financial Plan.

Module-II

Time Value of Money: Meaning, Need, Future Value (Single Flow, Uneven Flow & Annuity); Present Value (Single Flow – Uneven Flow & Annuity); Doubling Period; Concept of Valuation-Valuation of Bonds, Debentures and Shares (Simple Problems)

Module-III

Financing & Dividend Decisions

Financing Decision: Sources of Long-Term Finance-Meaning of Capital Structure, Factors influencing Capital Structure, Optimum Capital Structure – EBIT, EPS Analysis, Leverages - Problems.

Dividend Decision: Meaning & Determinants of Dividend Policy, Types of Dividends, Bonus Shares (Meaning only)

Module-IV

Investment Decision: Meaning and Scope of Capital Budgeting, Features & Significance, Techniques –Payback Period, Accounting Rate of Return, Net Present Value, Internal Rate of Return and Profitability Index (Problems)

Module-V

Working Capital Management: Working Capital-Concept of Working Capital, Significance of Adequate Working Capital, Types of Working Capital, Problems of Excess or Inadequate Working Capital, Determinants of Working Capital, Sources of Working Capital, Estimation of Working Capital (Simple Problems)