Fundamentals Of Business Finance

Syllabus

6T1– Fundamentals of Business Finance

Unit –I: Mathematics of Finance – Concept of Time Value of Money, Compounding and Discounting of single cash flow, series of cash flow and annuity. Simple problems based on Time Value of Money

Unit –II: Capital Budgeting - Premises of Capital Budgeting Decisions, Tools in Capital Budgeting, Pay Back Period, Average Rate of Return on Investments, Net Present Value, IRR.

Unit –III: Dividend decision and Management of Earnings - Relevance approach of dividend valuation models, Irrelevance approach of dividend valuation models, Stability of dividend, Factors determining dividend decisions.

Unit IV: Corporate Restructuring - Reasons & drivers of corporate restructuring, Methods of restructuring- mergers (types of merger), takeovers, acquisitions (Types of Takeover/ acquisition), divesting/ demerger, spin-off, split ups