Financial Management

Capital Budgeting Process, Basic Principles of Capital Expenditure Proposals, Various appraisal Methods-Average Rate of Return, Payback Period DCF Methods. NPV, IRR and Profitability Index, Merits and Demerits of Appraisal Methods, Conflicts in Decision Making, Investment Appraisal Methods in Practice. 

Basic Issues, Irrelevance Approach, Relevance of Capital Structure Determination of Optimal Capital Structure, Features of Sound capital Structure, Planning the Capital Structure, Capital Structure Theories- Net Income Approach, Net Operating Income Approach, Traditional Approach, Modigliani- Miller Approach.

Significance, Computation, Composite or Overall or Weighted Average and Marginal cost of capital

Introduction, Modigliani and Miller (MM) Hypothesis, Walter’s Model, Gordon’s Model, Determinants of Dividend Policy

Meaning of Leverage, Operating Leverage, Financial Leverage, EBIT- EPS Analysis, Indifference Point, Combined Leverage Finance software: Finacle.