Financial Management

Scope and Objectives of Financial Management
(a) Meaning, Importance and Objectives
(b) Conflicts in profits versus value maximization principle
(c) Role of Chief Financial Officer
Time Value of Money- Compounding and Discounting Techniques-Concepts of annuity and perpetuity

Financial Analysis and Planning
(a) Ratio Analysis for performance evaluation and financial health
(b) Application of ratio analysis in decision making
(c) Analysis of cash flow statement

IFinancial Decisions
(a) Cost of Capital- Weighted average cost of capital and marginal cost of capital
(b) Capital Structure Decisions- Capital Structure Patterns, Designing Optimum Capital Structure, Constraints, Various Capital Structure Theories
Business Risk and Financial Risk- Operating and Financial Leverage, Trading on Equity
Types of Financing
(a) Different sources of finance
(b) Project Financing- Intermediate and long term financing
(c) Negotiating term loans with banks and financial institutions and appraisal thereof
(d) Introduction to lease financing
(e) Venture Capital Finance

Investment Decisions
(a) Purpose, Objectives, Process
(b) Understanding different types of projects
(c) Techniques of decisions making: non-discounted and discounted cash flow approach-payback period method, accounting rate of return, net present value, internal rate of return, modified internal rate of return, discounted payback period and profitability index
(d) Ranking of competing projects ranking of projects with unequal lives

Management of Working Capital
(a) Working Capital Policies
(b) Funds Flow Analysis
(c) Inventory Management
(d) Receivables Management
(e) Payables Management
(f) Management of Cash and Marketable Securities
(g) Financing of Working Capital