BA5203

Financial Management

HBS > Professional Core > Financial Management
Course ID
BA5203
Level
Post Graduation
Semester
Semester II

OBJECTIVES:
Facilitate student to
• Understand the operational nuances of a Finance Manager
• Comprehend the technique of making decisions related to finance function

UNIT I FOUNDATIONS OF FINANCE
Introduction to finance- Financial Management – Nature, scope and functions of Finance, organization of financial functions, objectives of Financial management, Major financial decisions – Time value of money – features and valuation of shares and bonds – Concept of risk and return – single asset and of a portfolio.

UNIT II INVESTMENT DECISIONS
Capital Budgeting: Principles and techniques – Nature of capital budgeting- Identifying relevant cash flows – Evaluation Techniques: Payback, Accounting rate of return, Net Present Value, Internal Rate of Return, Profitability Index – Comparison of DCF techniques Concept and measurement of cost of capital – Specific cost and overall cost of capital.

UNIT III FINANCING AND DIVIDEND DECISION
Leverages – Operating and Financial leverage – measurement of leverages – degree of Operating & Financial leverage – Combined leverage, EBIT – EPS Analysis- Indifference point. Capital structure – Theories – Net Income Approach, Net Operating Income Approach, MM Approach – Determinants of Capital structure. Dividend decision- Issues in dividend decisions, Importance, Relevance & Irrelevance theories – Walter‟s – Model, Gordon‟s model and MM model. – Factors determining dividend policy – Types of dividend policies – forms of dividend

UNIT IV WORKING CAPITAL MANAGEMENT
Principles of working capital: Concepts, Needs, Determinants, issues and estimation of working capital – Accounts Receivables Management and factoring – Inventory management – Cash management – Working capital finance : Trade credit, Bank finance and Commercial paper.

UNIT V LONG TERM SOURCES OF FINANCE
Indian capital and stock market, New issues market Long term finance: Shares, debentures and term loans, lease, hire purchase, venture capital financing, Private Equity.

TOTAL: 45 PERIODS

OUTCOMES:
• Possess the techniques of managing finance in an organization

REFERENCES :

  1. M.Y. Khan and P.K.Jain Financial management, Text, Problems and cases Tata McGraw Hill, 6 th edition, 2011.
  2. M. Pandey Financial Management, Vikas Publishing House Pvt. Ltd., 10th edition, 2012.
  3. Aswat Damodaran, Corporate Finance Theory and practice, John Wiley & Sons, 2011.
  4. 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.