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FINANCIAL MANAGEMENT
Course Outcomes (COs):
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Course Outcomes |
Learning and teaching strategies |
Assessment Strategies |
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On completion of this course, the students will be able to;
CO 77: Apply discounting and compounding techniques to solve practical financial problems. CO 78:Analyze risk and return associated with a security or portfolio CO 79: Examine Cash Management, Marketable Securities Management, Receivables Management and Inventory Management. CO 80: Calculate working capital requirements and Cost of Capital of a Company. CO 81: Evaluate a project proposal using Capital Budgeting techniques CO 82:Analyze Leverage; Capital Structure and Dividend policy of a company. |
Approach in teaching: Interactive Lectures, Group Discussion, Tutorials, Case Study
Learning activities for the students: Self-learning assignments, presentations |
Class test, Semester end examinations, Quiz, Assignments, Presentation |
Meaning, Nature, Scope, Importance and Objectives of Financial Management
Functions of a chief financial officer; Sources of finance- Long term and Short term; Indian financial system-structure and functions.
Time value of money-Compounding and Discounting concept and its applications
Risk and Return
Risk of a single asset, portfolio theory and risk diversification, Systematic and unsystematic risk, Capital Asset pricing model (CAPM)- Assumptions, CAPM equation, Security Market line (SML)
Cash and Marketable securities management- Meaning and Principles of cash management;
Management of working capital
Meaning, Estimation of working capital requirements, Working capital financing by banks;
Receivables management- Meaning and importance;
Inventory management- Meaning, objectives and techniques-Economic order quantity, Re-order point, Fixing stock levels.
Cost of Capital
Meaning, Cost of Debt, Preference and Equity Capital, Weighted average cost of capital;
Capital Budgeting: Concept, need and objectives; Methods of Capital budgeting –Average Rate of Return, Payback period, Net present value, Internal Rate of Return, Profitability Index.
Leverage: Meaning, types of leverages and their significance
Capital Structure-Meaning, considerations in capital structure planning, value of firm and capital structure;
Dividend Policy- Meaning, Factors affecting dividend decisions, Alternative forms of dividends, Types of dividend policies, Dividend policy models-Assumptions and criticism
- Chandra Prassana, Financial Management, Tata McGraw Hill, 9th Edition
Suggested Readings:
- Brigham Houston, Fundamentals of Financial Management, Cengage Learning, Thirteenth Edition
- I M Pandey “Financial Management”, Vikas Publications
- VyuptkeshSharan, Fundamentals of Financial Management, Pearson, Third Edition
- Khan & Jain, “Financial Management”. Tata McGraw Hill, 7e
- Van Horne, Financial Management, PHI
- Rustagi R.P, Fundamentals of Financial Management, Taxmann
E-Resources:
- Theory & Problems in financial management, 2/e Khan & Jain, https://www.expresslibrary.mheducation.com/bookshelf
- Cases in Financial Management, Pandey, Ramesh Bhat, https://www.expresslibrary.mheducation.com/bookshelf
Journals:
- International Journal of Financial Management
- IUP Journal of Applied Finance
