FINANCIAL MANAGEMENT
Objective: to equip the students with basic principles of Financial Management and
Techniques.
Unit- I: Nature , Scope and Objectives of Financial Management, Goals of FM-Profit
Maximization Vs Wealth Maximization – Finance Functions – Financial Planning and
Forecasting - Role of Financial Manager – Funds Flow Analysis – Cash Flow Analysis.-
Ratio Analysis.
Unit-II: Financing Decision: Financial Leverage – EPS-EBIT Analysis –Cost of Capital –
Weighted Average Cost Capital – Capital Structure – Factors Affecting Capital Structure
Theories of Capital Structure.
Unit – III: Investment Decision: Nature and Significance of Investment Decision- Estimation
of Cash Flows – Capital Budgeting Process – Techniques of Investment Appraisal: Pay Back
Period; Accounting Rate of Return, Time Value of Money- DCF Techniques –Net Present
Value, Profitability Index and Internal Rate of Return.
Unit-IV: Dividend Decision: Meaning and Significance – Theories of Dividend –
Determinants of Dividend – Dividend policy – Bonus Shares – Stock Splits.
Unit – V: Working Capital Decision: Meaning – Classification and Significance of Working
Capital – Component of Working Capital - Cash Management Models – Cash Budgeting –
Accounts Receivables – Credit Policies – Inventory Management.
(Case Study is compulsory in all Units)
Suggested Books:
Brealey,Myers,Allen and Mohanty, Principles of Fin Management, TataMcGrawhill,ND
Pandey IM - Financial Management, Vikas, New Delhi
JC Varshney, Financial Management, Wisdom, Delhi
Brigham and Houston, Fundamentals of Financial Management, Cengage, New Delhi
Banerjii, B., Fundamentals of Financial Management, PHI, New Delhi
Weston & Brigham, Managerial Finance, The Dryden Press,Illinois
James C.Van Horne -- Financial Management & Policy, Prentice Hall of India.
Khan & Jain - Financial Management, Tata McGraw Hill.
RM Srivasthava: Financial Management and Policy, Himalaya Publication. Robert F Bruner, Case Studies in Finance: Managing for Corporate Value Creation,TMH,New Delhi
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