Financial Management

Paper Code: 
MIV 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: 

 

*Case studies related to entire topics are to be taught.

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
  • Vyptkesh 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:

 

Journals:

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

 

ACADEMIC YEAR: 
2022-2023
  • Printer-friendly version
  • PDF version