Financial Management: An Overview – Nature & Scope - Finance Functions - Goals of Financial Management - Financial Manager’s Role -Agency Problems, Agency Cost
Sources of finance: Long term finance -Ordinary shares, Right Issue of Equity shares, Preference Shares, Debentures, Term Loan, Asset Based Financing- Hire purchase, Leasing, Venture Capital Financing. Short term finance - Trade Credit, Bank Credit, Bill Discounting, Commercial paper
Indian financial system- Time value of money: Concept - Future Value- Present Value – Single cash flows, Annuity, Uneven cash flows, Multi Period, Continuous and Infinite -time value of money: (Applications): Bonds Valuation And Yield - Valuation of Preference Shares -Valuation of Ordinary Shares – single growth & multiple stage model. Real time applications
Cost of capital: Concept -Determining Component Cost of Capital -Weighted Average Cost of Capital -Weighted Marginal Cost of Capital-Capital Structure - Financial Leverage - Operating Leverage – combined leverage - Analyzing alternative financial plans - Concepts and Problems.-Capital Structure Theories
Investment decision: Capital Budgeting Decisions - Evaluation of Capital Budgeting -discounted & Non discounted Cash Flows Methods – Problems -DIVIDEND DECISION Dividend theories-Dividend Policy –Objectives Of Dividend Policy – Practical Consideration In Dividend Policy - Bonus issues– Stock splits – Reverse splits – Share buy-back - Right issue
Reference Book:
1. Myers Brealey, “Principles of Corporate Finance”, Eighth Edition, Tata McGraw-Hill, New Delhi,2007 2. Pandey IM, “Financial Management”, Ninth Edition, Vikas Publishing House P Ltd, 2005 3. Prasanna Chandra, “Financial Management”, Sixth Edition., Tata McGraw-Hill, New Delhi, 2004 4. Ross S.A, Westerfield R.W, Jordan B.D, “Fundamentals of Corporate Finance”, Eighth Edition, Tata McGraw-Hill, New Delhi, 2008
Text Book:
1. Khan M.Y. & Jain P.K., “Financial Management” – Text, Problem and cases, 5th edition, Tata McGraw-Hill, New Delhi, 2008. 2. Myers Brealey, “Principles of Corporate Finance”, Eighth Edition, Tata McGraw-Hill, New Delhi,2007 3. Pandey IM, “Financial Management”, Ninth Edition, Vikas Publishing House P Ltd, 2005 4. Prasanna Chandra, “Financial Management”, Sixth Edition., Tata McGraw-Hill, New Delhi, 2004 5. Ross S.A, Westerfield R.W, Jordan B.D, “Fundamentals of Corporate Finance”, Eighth Edition, Tata McGraw-Hill, New Delhi, 2008
