Financial Management

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

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;

Treasury Management- Meaning, Functions of Treasury department

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.

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.

Leverage: Meaning, types of leverages and their significance;

Capital Structure-Meaning, considerations in capital structure planning, value of firm and capital structure;

Dividend Policy- Meaning, Factors affecting dividend decisions, Alternative forms of dividends, Types of dividend policies, Dividend policy models-Assumptions and criticism

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