1. Nature and Scope of Financial Management:
Nature, Scope and Objectives of Financial Management;
Risk-Return and Value of the Firm;
Objectives of the firm;
Profit Maximisation vs. Wealth Maximisation;
Emerging roles of Finance Managers.
2. Capital Budgeting: Compounding and Discounting techniques- Concepts of Annuity and Perpetuity; Capital Budgeting
Process; Techniques of Capital Budgeting- Discounted and Non- Discounted Cash Flow Methods; Capital Rationing; Risk
Evaluation and Sensitivity Analysis.
3. Capital Structure:
Introduction- Meaning and Significance;
Optimal Capital Structure;
Determinants of Capital Structure;
Theories of Capital Structure;
EBIT – EPS Analysis;
EBITDA Analysis;
Risk and Leverage;
Effects of Leverage on Shareholders’
Returns.
4. Sources of raising long-term finance and Cost of Capital:
Sources, Meaning, Factors Affecting Cost of Capital;
Methods for Calculating cost of capital;
Weighted Average Cost of Capital (WACC);
Marginal Cost of Capital.
5. Project Finance: Project Planning – Preparation of Project Report, Project Appraisal under Normal Inflationary and Deflationary
Conditions;
Project Appraisal by Financial Institutions – Lending Policies and Appraisal Norms by Financial Institutions and Banks;
Project Review and Control;
Social Cost and Benefit Analysis of Project.
Term loans from Financial institutions and Banks;
Lease and Hire Purchase Finance;
Venture Capital Funds;
Private Equity;
International Finance and Syndication of Loans, Deferred Payment Arrangements; Corporate Taxation and its Impact on Corporate Financing;
Financing Cost Escalation.
6. Dividend Policy:
Introduction- Types;
Determinants and Constraints of Dividend Policy;
Forms of Dividend;
Different Dividend Theories.
7. Working Capital:
Meaning, Types, Determinants and Assessment of Working Capital Requirements, Negative Working Capital;
Operating Cycle Concept and Applications of Quantitative Techniques;
Management of Working Capital – Cash Receivables Inventories;
Financing of Working Capital;
Banking Norms and Macro Aspects;
Factoring and Forfaiting.
8. Security Analysis:
Measuring of Systematic and Unsystematic Risk;
Fundamental Analysis (Economic, Industry and Company);
Technical Analysis and Efficient Market Hypothesis.
9. Portfolio Management:
Meaning, Objectives;
Portfolio Theory -Traditional Approach;
Markowitz Portfolio Theory;
Modern Approach – CAPM Model;
Economic Value Added;
Sharpe Single & Multi Index Model;
Risk Adjusted Measure of Performance.
