Financial Management

Paper Code: 
BCP-313
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
18.00
Unit I: 

Introduction to Financial Management Function Objective and scope, Role and purpose, Financial management environment , Functions of finance executives in an organization, Financial distress and insolvency. Financial Analysis through Ratios

(a) Users, Sources

(b) Calculation and Interpretation of ratios

(c) Limitations of ratio analysis

18.00
Unit II: 

Sources of Finance

(a) Different Sources, Characteristics, Method.

(b) Different Sources of short term Finance

(c) International sources of finance

(d) Other sources of finance

Lease Financing

(a) Concept and Classification, Significance and Limitations

(b) Financial Evaluation of Leasing Decision

Cost of Capital

(a) Significance, Factors of cost of capital

(c) Measurement of costs of individual components of capital

(d) Weighted average cost of capital (WACC)

(e) Marginal cost of capital

(f) Effective Interest rate

18.00
Unit III: 

Capital Structure Decisions

(a) Significance, Determinants of capital structure

(b) Capital structure planning and designing

(c) Designing of optimum capital structure

(d) Theories of Capital Structure and value of the firm.

(f) EBIT- EPS Analysis, Breakeven- EBIT Analysis.

(g) Under/ Over Capitalisation.

Leverages (a) Types of Leverages- Operating, Financial and Combined (b) Analysis of leverages

22.00
Unit IV: 

Capital Investment Decisions

(a) Objective of capital investment decisions

(b) Methods of Investment appraisal

Adjustment of Risk and Uncertainty in Capital Budgeting Decision

(a) Probability Analysis

(b) Certainty Equivalent Method

(c) Risk Adjusted Discount Rate

(d) Monte Carlo Simulation

(e) Decision Tree Analysis

(f) Scenario Analysis

(g) Sensitivity Analysis

Dividend Decisions

(a) Basics, Forms of dividend and Determinants of dividend

(b) Relevancy and Irrelevancy of Dividend Policies- Traditional Approach, Walter’s model, Gordon’s model, Modigliani and Miller (MM) Hypothesis

22.00
Unit V: 

Management of Working Capital

(a) The management of working capital

(b) The Working capital financing decisions

(c) The working Capital Cycle (operating Cycle),

(d) Assessment of working capital requirement

(e) Management of Accounts Receivables (Debtors)

(f) Factoring and Forfaiting

(g) Management of Accounts Payables (Creditors)

(h) Management of Inventory

(i) Management of Cash, Treasury management

(j) Banking norms of working capital finance

References: 
  1. Pandey, I.M., “Financial Management”, Vikas Publications
  2. Study Material Published d by Institute of Chartered Accountants of India
  3. Bhalla, V.K., “Financial Management & Policy,” (Anmol Publications, Delhi)..
  4. Chandra, P., “Financial Management- theory and practice”, (Tata Mc Graw Hill).
  5. Rustagi, “Fundamentals of Financial Management”,( Galgotia Publishing House,Delhi)
  6. Khan M.Y- Indian Financial Management, Tata Mc Graw Hill, India
  7. Maheshwari S.N –Financial Management, Sultan Chand and Sons, New Delhi
  8. Horne, J.C. Van., “Fundamentals of Financial Management”, 9th ed. (New Delhi Prentice Hall of India 1995).
  9. Khan and Jain., “Financial Management text and problems”, 2nd ed. ( Tata Mc Graw Hill New Delhi 1992).
  10. Scanner-Arun Kumar(Suchitra Prakashan (P) Ltd)

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: 
2018-2019
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