Financial Management (Theory)

Paper Code: 
24CFSG311
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

The students will be enabled to analyze financial management techniques, conduct ratio analysis, manage working capital, evaluate capital budgeting decisions, and understand cost of capital.

 

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

Title

 

24CFSG 311

 

Financial Management

(Theory)

CO 73: Analyze financial management, financial planning, and the time value of money in business.

CO 74:Analyze a company's financial health using ratios and leverages.

CO 75:Estimate working capital requirements, break-even analysis, and inventory management for firms.

CO 76:Compare projects using capital budgeting techniques, dividend policies, and make profitable decisions.

CO 77:Compute cost of capital and determine capital structure for financing decisions.

CO 78: Contribute effectively in course-specific interaction

 

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Power point presentation.    

 Learning activities for the students:                              Self learning assignments, , Seminar presentation,  Practical problems analysis

CA test, Semester end examinations, Quiz, Assignments, Presentation.

 

12.00
Unit I: 
Financial Management, Planning and Time Value of Money

• Financial Management: Meaning, Objectives, Scope, Importance and Limitations, Techniques of financial statement analysis: Comparative financial statement, Common size financial statement, Break even analysis, Ratio analysis ,trend analysis, cash flow analysis, others .

• Financial Planning: Objectives, Significance & Factors affecting Financial Planning.
• Time value of Money : Future Value of a Single Cash Flow,Future Value of an Annuity
• Present Value of Series of Cash Flows, Present Value of an Annuity, Present Value of Uneven Cash Flows

12.00
Unit II: 
Ratio Analysis and Operating and Financial Leverages

• Ratio Analysis:
• Meaning and classification of ratio-Liquidity ratio, Activity ratios, Profitability ratios, Leverage ratios and Investment ratios.
• Operating and Financial Leverages:
• Meaning and Types of leverages- Operating, Financial and Combined leverages.

12.00
Unit III: 
Working Capital Management, Cost Volume Profit Analysis and Inventory Management

• Working Capital Management- Concepts of Working Capital, sources of short-term finance,Concept of Operating Cycle method
• Cost-Volume-Profit Analysis: Meaning and Methods of CVP Analysis: Contribution, P/V ratio, BEP, Margin of Safety
• Inventory Management: Meaning, Importance,Selective Inventory controls technique

12.00
Unit IV: 
Capital Budgeting and Dividend policy

• Capital Budgeting: Meaning, Process and Techniques of Capital Budgeting- Pay Back Period, Post Payback Profitability, ARR,NPV, Profitability Index,IRR, Terminal value method .
• Dividend and Dividend policy: Meaning, Forms of dividend, Factors effecting dividend policies. Dividend Models-Walter Model,Gorden Model,MM Model

12.00
Unit V: 
Cost of Capital, Capital Structure and Capitalisation

• Cost of capital: Concept, factors affecting cost of capital, Computation of cost of capital.
• Capital Structure and Capitalization: Meaning, concepts, Difference between capital structure and capitalization, Balanced or Optimal capital structure, essentials of sound optimal capital structure, concept of trading on equity, Factors effecting capital structure

Essential Readings: 

• Agarwal MR- “Financial Management” Garima Publication, Jaipur
• Agarwal & Agarwal "Financial Management" RBD Publication. Jaipur
• Bhalla, V.K., “Financial Management & Policy,” (Anmol Publications, Delhi)
• Chandra, P ,Financial Management : Theory & Practice, Tata McGraw-Hill Education
• Khan M.Y- Indian Financial Management, Tata Mc Graw Hill, India

References: 

Suggested Readings:

• Rustagi, “Fundamentals of Financial Management”,(Galgotia Publishing House,
Delhi)
• Maheshwari S.N –Financial Management, Sultan Chand and Sons, New Delhi
• Horne, J.C. Van., “Fundamentals of Financial Management”, 9th ed. (New Delhi Prentice Hall of India 1995).
• Khan and Jain., “Financial Management text and problems”, 2nd ed. ( Tata Mc Graw
• Hill New Delhi 1992).
• Pandey, I.M., “Financial Management”, Vikas Publications.

E- Content:
• Pearson ThinkTank Solutions (113 titles) and access to many more ebooks- http://ebookcentral.proquest.com/lib/iisuniv-ebooks/home.action
• Capitaline
• IM Pandey, Ramesh Bhat, Cases in Finaincial Management,McGraw Hill Education https://www.expresslibrary.mheducation.com/bookshelf
• World E-book Library

Reference Journals:

• International Journal of Financial Management- http://publishingindia.com
• FIIB Business Review
Note: The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless.

Academic Year: