Financial Management

Paper Code: 
CBBA 405
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to –

  • Enable students to develop the understanding of financial management concepts and capitalization decisions.
  • Develop an understanding and sound knowledge among students about the adequate capital structure of an organization and identifying various sources of finances.

Course Outcomes (COs):

Course

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

Course Code

Course Title

 

CBBA 405

 

Financial Management

CO 183: The course would help the students to demonstrate the applicability of the concept of Financial Management to understand the managerial Decisions.

CO 184: Students will be able to understand the various sources of finance and the ways of managing working capital.

CO 185: Students will be able to analyze the complexities associated with management of cost of funds in the capital Structure and various dividend decisions.

CO 186: Students will be able to evaluate various projects through capital budgeting decisions.

CO 187: The course would enable students to remember various ways of managing inventory and receivables.

CO 188: Students will be able to comprehend the various ways of managing cash and adequate liquidity in the business.

Approach in teaching:

Interactive Hours using whiteboards, Questioning & Discussion, Reading assignments, Frequent or unannounced quizzes.

 

Learning activities for the students:

Self learning assignments, Effective questions,  presentation, Solving problems of unsolved questions

 

Class test, Semester end examinations, Quiz,  Assignments, Class interaction

 

12.00
Unit I: 
Nature of Financial Management

Nature of Financial Management: Finance and related disciplines; Scope of Financial Management; Profit Maximization, Wealth Maximization - Traditional and Modern Approach; Functions of finance.
Capitalization – Under Capitalization and Over Capitalization.

12.00
Unit II: 
Sources of finance

Sources of finance: Classification - Short Term and long term sources of finance. Introduction about Financial Institutions-IDBI, IFCI, ICICI Working Capital Management: Operating cycle method and Net current asset or forecasting method.

12.00
Unit III: 
Capital Structures

Capital Structures: Approaches to Capital Structure Theories - Net Income approach, Net Operating Income approach, Modigliani-Miller (MM) approach, Traditional approach.
Dividend Policy: Dividend models MM hypothesis, Walter's model, Gordon's model.
Leverage Analysis: Operating and Financial Leverage

12.00
Unit IV: 
Capital Budgeting

Capital Budgeting - Principles and Techniques; Nature and meaning of capital budgeting; Estimation of relevant cash flows and terminal value; Evaluation techniques - Accounting Rate of Return, Net Present Value, Internal Rate of Return, Net Terminal Value, Profitably Index Method.
Management of Cash and Liquidity: Motives of holding cash, cash management, Cash Planning and Forecasting.

12.00
Unit V: 
Management of Inventory

Management of Inventory: Need to hold inventory, Objectives, importance and functions of Inventory Management, Techniques of Inventory control.
Management of Receivables: Cost associated with receivables, Objective and Factors affecting Investment in receivables, Credit Evaluation.

Essential Readings: 

• M.Y. Khan & P.K. Jain: Financial Management Text Problem and Cases, Tata McGraw Hill Pubilshlng Co. Ltd.
• R. P. Rustogi: Financial Management: Theory Concepts and Practices, Taxmann Publication.
• I.M. Pandey: Financial Management: Theory and Practices, Vikas Publishing House

References: 

Suggested Readings:
• R.A. Brealey, S.C. Myers, F. Allen& P. Mohanty: Principles of Corporate Finance, McGraw Hill Higher Education
• J.V. Horne & J.M. Wachowicz: Fundamentals of Financial Management Prentice Hall

E-Resources:
https://www.expresslibrary.mheducation.com/bookshelf
• MS-109.pdf (uou.ac.in)

Journals:
http://publishingindia.com
http://www.oiirj.org
• http:// sagepub.com

Academic Year: