FINANCIAL MANAGEMENT-I

Paper Code: 
BCS 113
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 (COs):

 

Course

Course Outcomes

Learning and teaching strategies

Assessment

Strategies

Course Code

Course Title

BCS 113

Financial Management-I

 

 

CO 13: Explain financial management concepts and tools to the decisions faced by a manager in investment decisions.

CO 14:Analyze capital budgeting problems using different techniques, including net present value, internal rate of return and modified internal rate of return

CO 15:Evaluate capital budgeting problems in different situations of capital rationing, risk evaluation and sensitivity analysis besides learning the concept of EVA

CO 16:Appraise the risk profile of firms; specifically, estimate the costs of capital, including debt and equity capital using financial data

CO 17:Demonstrate the importance of capital structure theories while taking financing decisions

CO 18:Contribute effectively in course – specific interaction.

Approach in teaching:
Interactive Lectures, Discussion, Tutorials, Reading assignments, Interactive White Board, Incorporating technology in teaching
 

Learning activities for the students:
Self learning assignments, Effective questions

Class test, Semester end examinations, Quiz,  Assignments, Class interaction, Presentation, Case study analysis, Open ended questions, think-pair-share, Socratic seminar

 

9.00
Unit I: 
Capital Budgeting-I:

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 II: 
Capital Budgeting-II:

Economic Value Added (EVA), Capital Rationing, Risk Evaluation and Sensitivity Analysis

9.00
Unit III: 
Cost of Capital:

 

l Sources l Meaning l Factors Affecting Cost of Capital l Methods for Calculating Cost of capital l Weighted Average Cost of Capital (WACC) l Marginal Cost of Capital

9.00
Unit IV: 
Capital Structure:

l Introduction l Significance of capital structure l Determinants of capital structure l Capital structure planning and designing of optimum capital structure l Capital Structure Theories l EBIT- EPS Analysis l Breakeven - EBIT Analysis l Under / Over Capitalisation.

 

9.00
Unit V: 
Dividend Decisions-V:

l Factors determining dividend policy l Dividend Models- Relevant/ Irrelevant Theories - Walter’s Model, Gordon’s Model, M-M Model l Forms of Dividend – Cash Dividend, Stock Dividend, Stock Splits, Share repurchase

 

Essential Readings: 

Essential Readings :

Study Material Published by ICSI

 

SUGGESTED Readings:

Scanner-ArunKumar(ShuchitaPrakashans(P) Ltd)

 

References: 

     E- Content:

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

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: 
2023-2024
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