Coming soon
Financial Management
This course will enable the students to –
To acquire knowledge of practical and procedural aspects relating to Financial Management.
Course Outcomes (COs):
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Course |
Learning outcomes (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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Paper Code |
Paper Title |
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BCS 217 |
Financial |
CO 52:Apply financial management concepts and tools to the decisions faced by a manager in investment decisions. CO 53:Prepare a project and evaluate the sources of financing the project CO 54:Appraise the risk profile of firms; specifically, estimate the costs of capital, including debt and equity capital using financial data CO 55:Analyze capital budgeting problems using different techniques, including net present value, internal rate of return and modified internal rate of return CO 56:Demonstrate the importance of working capital management and the tools to manage it CO 57:Explain and perform the security analysis and portfolio management |
Approach in teaching: |
Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Individual projects |
• Nature, Scope and Objectives of Financial Management; Risk-Return and Value of the Firm; Objectives of the firm; Profit Maximization vs. Wealth Maximization; Emerging roles of Finance Managers.
• Capital Budgeting: Compounding and Discounting techniques- Concepts of Annuity and Perpetuity; Capital Budgeting Process; Techniques of Capital Budgeting- Discounted and Non- Discounted Cash Flow Methods; Capital Rationing; Risk Evaluation and Sensitivity Analysis.
• Introduction- Meaning and Significance; Optimal Capital Structure; Determinants of Capital Structure; Theories of Capital Structure; EBIT - EPS Analysis; EBITDA Analysis; Risk and Leverage; Effects of Leverage on Shareholders’ Returns.
• Sources of raising long-term finance and 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.
• Preparation of Project Report, Project Appraisal under Normal Inflationary and Deflationary Conditions; Project Appraisal by Financial Institutions – Lending Policies and Appraisal Norms by Financial Institutions and Banks; Project Review and Control; Social Cost and Benefit Analysis of Project. Term loans from Financial institutions and Banks; Lease and Hire Purchase Finance; Venture Capital Funds; Private Equity; International Finance and Syndication of Loans, Deferred Payment Arrangements; Corporate Taxation and its Impact on Corporate Financing; Financing Cost Escalation.
• Dividend Policy: Introduction- Types; Determinants and Constraints of Dividend Policy; Forms of Dividend; Different Dividend Theories.
• Meaning, Types, Determinants and Assessment of Working Capital Requirements, Negative Working Capital; Operating Cycle Concept and Applications of Quantitative Techniques; Management of Working Capital – Cash Receivables ,Inventories; Financing of Working Capital; Banking Norms and Macro Aspects; Factoring and Forfeiting
• Measuring of Systematic and Unsystematic Risk; Fundamental Analysis (Economic, Industry and Company); Technical Analysis and Efficient Market Hypothesis.
• Portfolio Management: Meaning, Objectives; Portfolio Theory -Traditional Approach; Markowitz Portfolio Theory; Modern Approach - CAPM Model; Economic Value Added; Sharpe Single & Multi Index Model; Risk Adjusted Measure of Performance
• Study Material Published by ICSI
• Scanner-Arun Kumar(ShuchitaPrakashans(P) Ltd)
