Financial Management

Syllabus

MBA (2T1)

Financial Management

Module-1

Cost of Capital: Concept and Importance; Measurement of Specific Costs – Redeemable and Irredeemable Debt, Redeemable and Irredeemable Preference Shares, Equity and Retained Earnings; Computation of Overall Cost of Capital using Book Value and Market Value Weights.

Module-2

Leverage: Operating, Financial and Combined Leverage; EBIT-EPS Analysis; Indifference Level of EBIT and Financial Break-even Analysis.

Module-3

Capital Budgeting: Concept of Capital budgeting, Discounted and Non-discounted Cash Flow Techniques – NPV, IRR, PI, Discounted PBP, ARR & PBP.

Module-4

Working Capital Management: Concept of Gross and Net Working Capital, Working Capital Approaches, Estimation and Calculations of Working Capital Requirements.

Module-5

Dividend Policy: Walter’s Model; Gordon’s Model and MM Hypothesis for Dividend Policy and Firm Valuation, Determinants and Constraints of Dividend Decision.