FINANCIAL MANAGEMENT

Paper Code: 
BCS 217
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

On completion of this course, the students will be able to;

CO 65:Apply financial management concepts and tools to the decisions faced by a manager in investment decisions.       

CO 66:Prepare a project and evaluate the sources of financing the project

CO 67:Appraise the risk profile of firms; specifically, estimate the costs of capital, including debt and equity capital using financial data

CO 68:Analyze capital budgeting problems using different techniques, including net present value, internal rate of return and modified internal rate of return

CO 69:Demonstrate the importance of working capital management and the tools to manage it

CO 70: Review and perform the security analysis and portfolio management

 

18.00

Nature and Scope of Financial Management: 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.

 

18.00

Capital Structure: 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

18.00

Project Finance: Project Planning – 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.

 

18.00

Working Capital :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 .

 

18.00

Security Analysis: 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.

 

Essential Readings: 

• Study Material Published by ICSI

References: 

SUGGESTED READINGS:

  • Scanner-Arun Kumar(ShuchitaPrakashans(P) Ltd)

e-RESOURCES:

https://www.icsi.edu/media/webmodules/FINANCIAL_AND_STRATEGIC_MANAGEMENT.pdf

JOURNALS:

https://www.icsi.edu/e-journals/

 

Academic Year: 
2022-2023
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