Business Finance

Unit

Topics

No. of Lectures  Total =30

I

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

Investment Decisions: Capital Budgeting-Payback, NPV, IRR and ARR Methods and their Practical Applications.

10

II

Financing Decision: Capitalization Concept, Basis of Capitalization, Consequences and Remedies of Over and Under Capitalization, Cost of Capital, WACC, Determinants of Capital Structure, Capital Structure Theories.

7

III

Dividend Decision: Concept & Relevance of Dividend Decision, Dividend Models-Walter’s, Gordon’s and MM Hypothesis, Dividend Policy-Determinants of Dividend Policy.

7

IV

Management of Working Capital: Concepts of Working Capital, Approaches to the Financing of Current Assets, Management of Different Components of Working Capital.

6