Objectives and functions of Financial Management – Role of Financial Management in the Organization - Risk Return Relationship – Time Value of Money Concepts – Financial Markets in India - Primary and Secondary Market and their Characteristics. Sources of Long Tern Finance - Role of SEBI in Capital Issues. Concepts of Derivatives - Forwards, Futures and Options - Simple Cases for the exercise of Future and Options Rights

Cost of capital – Computation for each Source of Finance and Weighted Average - Cost of Capital – EBIT - EPS analysis – Operating Leverage – Financial Leverage – Problems / case.

Capital budgeting – Conflict in Criteria for Evaluation – Capital Rationing – Risk Analysis in Capital Budgeting – Problems/Case

Capital Structure Theory – Net Income Approach – Net Operating Income Approach – MM Approach – Dividend Policy – Types of Dividend Policy – Dividend Policy and Share Valuation – CAPM

Concepts of Working Capital – Nature - Meaning – Objectives – Needs – Trade off between Profitability and Risk – Financing Mix – Hedging and Conservative Approach Working Capital – Factors Affecting Working Capital Requirements – Working Capital Estimates / Cases. Note: Distribution of Marks between problems and theory shall be 40% and 60%.