Strategic Financial Management-I

I Financial Policy and Corporate Strategy
Strategic decision making framework,
Interface of Financial Policy and strategic management,
Balancing financial goals vis-à-vis sustainable growth.

II Project Planning and Capital Budgeting
Feasibility study,
Cash flow Projections – Impact of taxation, depreciation, inflation and working capital, Capital Budgeting Decisions - Certainty Equivalent approach, Evaluation of Risky Investment Proposals, Risk and Return analysis, Simulation and decision tree analysis, Sensitivity analysis, Capital Rationing, Adjusted Net Present Value, Replacement
decisions, Application of Real Options in capital budgeting, Impact of inflation on capital budgeting decisions,
Preparation of Project Report,
Social cost benefit analysis.

III Leasing decision including cross border leasing

IV Dividend Decisions
Dividend theories, Determinants of dividend policies.

V Indian Capital Market -including role of various primary and secondary market institutions
Capital Market Instruments
Financial derivatives – stock futures, stock options, index futures, index options
Option valuation techniques : Binomial model, Black Scholes Option Pricing Model, Greeks – Delta, Gamma, Theta, Rho and Vega
Pricing of Futures – Cost of carry model
Imbedded derivatives
Commodity derivatives
OTC derivatives -Swaps, Swaptions, Forward Rate Agreements (FRAs), Caps, Floors and Collors.