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
• Possess the techniques of managing finance in an organization