FINANCIAL MANAGEMENT

Paper Code: 
MIB 225
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes (COs):

Course Outcomes

Learning and teaching Strategies

Assessment Strategies

On completion of this course, the students will be able to;

CO     77:     Apply          discounting      and compounding    techniques                         to      solve practical financial problems.

CO    78:    Analyze    risk         and    return associated with a security or portfolio

CO 79: Examine Cash Management,Marketable Securities Management, Receivables Management and Inventory Management.

CO    80:    Calculate         working         capital requirements and Cost of Capital of a Company.

CO 81: Evaluate a project proposal using Capital Budgeting techniques

CO    82:   Analyze Leverage; Capital Structure and Dividend policy of a company.

Approach in teaching:

Interactive        Lectures,

Group                     Discussion, Tutorials, Case Study

 

Learning activities for the students:

Self-learning assignments, presentations

Class test, Semester end examinations, Quiz, Assignments Presentation

 

12.00
Unit I: 
Introduction-

Meaning, Nature, Scope, Importance and Objectives of Financial Management, Functions of a chief financial officer; Sources of finance- Long term and Short term; Indian financial system-structure and functions.
Time value of money-Compounding and Discounting concept and its applications

12.00
Unit II: 
Risk and Return-

Risk of a single asset, portfolio theory and risk diversification, Systematic and unsystematic risk, Capital Asset pricing model (CAPM)- Assumptions, CAPM equation, Security Market line (SML)
Cash and Marketable securities management- Meaning and Principles of cash management

12.00
Unit III: 
Management of working capital

-Meaning, Estimation of working capital requirements, Working capital financing by banks
Receivables management- Meaning and importance;
Inventory management- Meaning, objectives and techniques-Economic order quantity, Re-order point, Fixing stock levels.

12.00
Unit IV: 
Cost of Capital-

Meaning, Cost of Debt, Preference and Equity Capital, Weighted average cost of capital;

Capital Budgeting- Concept, need and objectives; Methods of Capital budgeting –Average Rate of Return, Payback period, Net present value, Internal Rate of Return, Profitability Index.

12.00
Unit V: 
Leverage

-Meaning, types of leverages and their significance
Capital Structure-Meaning, considerations in capital structure planning
Dividend Policy- Meaning, Factors affecting dividend decisions, Alternative forms of dividends, Types of dividend policies, Dividend policy models-Assumptions and criticism

Essential Readings: 

• Chandra Prassana, Financial Management, Tata McGraw Hill, 9th Edition

References: 

Suggested Readings:
• Brigham Houston, Fundamentals of Financial Management, Cengage Learning, Thirteenth Edition
• I M Pandey “Financial Management”, Vikas Publications
• Vyuptkesh Sharan, Fundamentals of Financial Management, Pearson, Third Edition
• Khan & Jain, “Financial Management”. Tata McGraw Hill, 7e
• Van Horne, Financial Management, PHI
• Rustagi R.P, Fundamentals of Financial Management, Taxmann

E-Resources:
• Theory & Problems in financial management, 2/e Khan & Jain, https://www.expresslibrary.mheducation.com/bookshelf
• Cases in Financial Management, Pandey, Ramesh Bhat, https://www.expresslibrary.mheducation.com/bookshelf

Journals:
• International Journal of Financial Management
• IUP Journal of Applied Finance

ACADEMIC YEAR: 
2022-2023
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