INTRODUCTION TO FINANCIAL MANAGEMENT
Scope, Objectives, Functions, Role of Financial Manager and Interface of Financial Management with Other Functional Areas, Sources of Finance: Long-Term, Short Term.
Nature and Importance of Capital Budgetary Process, Basic Principles in Estimating Costs and Benefits of Investments, Appraisal Criteria - Pay Back Period, Average Rate of Return, Net Present Value, Time Value of Money, Benefit Cost Ratio, Internal Rate of Return.
COST OF CAPITAL & CAPITAL STRUCTURE
Cost of Capital - Cost of Debt, Cost of Equity, Cost of Preferred Stock, Weighted Average Cost of Capital.
Capital Structure- Introduction, Factors Affecting Capital Structure, Capital Structure Theories: Net Income Approach, Net Operating Income Approach, Miller and Modigliani Propositions I and II. Concept of leverage - Financial, Operational and Combined.
Introduction, dividend decisions and Valuation of Firms, Determinants of Dividend policy, Dividend Theories - Relevance and Irrelevance: Walter, Gordon and MM Hypothesis, Bonus Issues, Stock Split, Buy back of Shares, Tax Issues.
WORKING CAPITAL MANAGEMENT
Concepts, Needs, Determinants, Issues and Estimation of Working Capital, Working Capital Finance: Trade Credit, Bank Finance and Commercial Paper.
Reference Book:
James C. Vanhorne –Fundamentals of Financial Management– PHI Learning, 11th Edition, 2012.
5. Prasanna Chandra, Financial Management, 9th edition, Tata McGraw Hill, 2012.
6. G.Sudersena Reddy, Financial Management- Principles & Practices, Himalaya Publishing House,
2nd Edition, 2010
7. Srivatsava, Mishra, Financial Management, Oxford University Press, 2011
8. Parasuraman.N.R, Financial Management, Cengage, 2014.
9. William R.Lasher, Financial Management, 7th Edition, Cengage, 2014 .
10. Brigham and Ehrhardt, Financial Management, 14th edition, Cengage, 2015.
Text Book:
M.Y. Khan and P.K.Jain Financial management, Text, Problems and cases Tata McGraw Hill, 6th
edition, 2011.
M. Pandey Financial Management, Vikas Publishing House Pvt. Ltd., 10th edition, 2012.