Financial Decision Making

Introduction; Nature, Objectives and scope: financial decisions and types of financial decisions role of a finance manager in a firm and Agency problem Risk-Return framework for financial decision-making. Meaning of management accounting, conventions of management accounting, organization of management accounting, functions, responsibilities and qualities of a management accountant, management accounting Vs. Financial accounting, limitations of management accounting

Capital Structure: Concept; financial leverage and its impact on the valuation of firm; theories of capita) structure; optimal capita structure; determinants of capital structure.

Term Loan: Sources of Term Loan

Dividend Policy: Dividend and its form; cash dividend, right and bonus snares, and buy-back of shares; theories of dividend policy and their impact on the value of a firm: types of dividend policy- constant pay-out ratio and constant dividend amount policies: determinants of dividend policy arid some case studies.

Working Capital : Concept, factors affecting working capital requirements, ascertainment of working capital requirements. Salient features of Tandon Committee and Chore Committee reports.

Financial Analysis : Meaning, nature and importance of financial statements, techniques of financial analysis comparative statements, common size statements, trend analysis, limitations of financial statements analysis.

Ratio Analysis, Cash flow and fund flow Analysis, Cost of capital.
 

Capital expenditure decisions. Pay-back period, return on investment, discounted cash flow.

Inventory Management

Cost-Volume- Profit (CVP) Analysis- Contribution Margin; Break- Even Analysis; Multiple-Product Analysis; Optimal use of Limited Resources.

Responsibility Accounting.

Reporting to Management

Corporate re-structuring Mergers and Acquisitions

Activity Based Product Costing- Concept and uses; Emerging Costing Approaches.