KMBN204 - Financial Management and Corporate Finance
UNIT I (6 Hrs)
Introduction to Finance & Corporate Finance: Corporate Finance & its Scope, Corporate Governance and Agency Problem, Corporate Valuation Models: Asset Based Valuation Model, Earning based Valuation Model, Cash Flow-based Model, CAPM Model, APT, EVA Analysis, Introduction to Start-up Finance, Financial Decisions, Time Value of Money.
UNIT II (10 Hrs)
Investment and Financing Decision: Concept of Opportunity Cost, Cost of Debenture, Preference and Equity Capital, Composite Cost of Capital, Cash Flows as Profit and Components of Cash Flows, Capital Budgeting Decisions, Calculation of NPV and IRR, Excel Application in Analysing Projects.
UNIT III (10 Hrs)
Financial Decision: Capital Structure, Relevance and Irrelevancy theory, Leverage Analysis – Financial, Operating and Combined Leverage Along with its Implications, EBIT EPS Analysis, Point of Indifference.
UNIT IV (10 Hrs)
Dividend Relevance: Factors affecting Dividend Policy, Forms of Dividends, Types of Dividend Policies, Dividend Models: Walter and Gordon Model, Miller- Modigliani (MM) Hypothesis.
UNIT V (4 Hrs)
Mergers and Acquisition: Introduction, Exchange Ratio, Synergy Benefits, Post Merger EPS, Post Merger Price of Share, Required Rate of Return of Merged Company, De-Merger.