Financial Management–I

Paper Code: 
24BCS211
Credits: 
03
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

This course will enable the students to gain conceptual clarity and practical aspects of financial management so as to develop skills in taking financial and investment decisions and in business strategies.

 

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

Title

 

24BCS211

 

Financial Management I (Theory)

CO 1: Explain financial management concepts and tools to the decisions faced by a manager in investment decisions.

CO 2:Analyze capital budgeting problems using different techniques, including net present value, internal rate of return and modified internal rate of return

CO 3:Evaluate capital budgeting problems in different situations of capital rationing, risk evaluation and sensitivity analysis besides learning the concept of EVA

CO 4:Appraise the risk profile of firms; specifically, estimate the costs of capital, including debt and equity capital using financial data

CO 5:Demonstrate the importance of capital structure theories while taking financing decisions

CO 6:Contribute effectively in course – specific interaction.

Approach in

teaching: Interactive Lectures, Discussions, Tutorials, Problem solving sessions, Presentations

 

 

Learning activities for the students: Self-learning assignments, Case Study Analysis, Presentations, Group Discussions

 

Continuous Assessment Test, Semester End Examinations, Quiz, Solving Numerical Problems, Assignments, Class Presentations, Individual and group projects.
 

 

9.00
Unit I: 
: Foundations of Financial Management and significance of time value of money

Financial Management

  • Nature, Scope & Objectives of Financial Management,
  • Profit Maximization vs. Wealth Maximization.

Time Value of Money

  • Introduction,
  • Concept of Time Value of Money–The power of compounding,
  • Significance and application of Time Value of money,
  • Concept of Annuity,
  • Understanding and application of Table used in Time value of money.

 

9.00
Unit II: 
Capital Budgeting: Exploring techniques and methods

·Compounding and Discounting techniques –

·Capital Budgeting Process,

·Techniques of Capital Budgeting - Discounted and Non- Discounted Cash Flow Methods,

·NPV, Payback,

·Profitability Index, IRR.

 

 

9.00
Unit III: 
Capital Budgeting : Optimising economic value with risk management
  • Economic Value Added (EVA),
  • Capital Rationing,
  • Risk Evaluation and Sensitivity Analysis

 

9.00
Unit IV: 
: Cost of Capital

·Sources, Meaning,

·Factors Affecting Cost of Capital Methods for Calculating Cost of capital,

·Weighted Average Cost of Capital (WACC) Marginal Cost of Capital

 

9.00
Unit V: 
Capital Structure
  • Introduction, Significance of capital structure,
  • Determinants of capital structure,
  • Capital structure planning and designing of optimum capital structure,
  • Capital Structure Theories, EBIT- EPS Analysis,
  • Breakeven-EBIT Analysis, Under /Over Capitalisation.

 

Essential Readings: 

Essential Readings:

  • Study Material Published by ICSI
References: 

Suggested Readings:

  1. Scanner-ArunKumar (ShuchitaPrakashans(P)Ltd
  2. Financial Management Theory and Practice-Prasanna Chandra
  3. Financial Management – M Pandey
  4. Financial Management: Text, problems and Cases M. Y. Khan

E- Content:

  1. https://www.icsi.edu/student-n/new-syllabus-2022/studymaterial2023/executive-program/
  2. https://www.icsi.edu/e-journals/

 

Note-The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless

 

 

 

Academic Year: 
2024-2025
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