Essentials of Financial Management

Course Description:

This course will provide a  provide systematic input of knowledge to the students with regard to Capital Investment and Financial Decisions.
Students will understand the concept of time value of money in financial decisions; Also
they will study different techniques of financial and investment decisions;
Further they will be able to understand relationship between capital structure and the value of the firm and to explore the sources of long term finance & design financial strategies. 

This course will help the students in taking better informed strategic financial decisions for self, organizations and their own businesses.

Course Curriculum:

Introduction to Financial Management :
Meaning of financial Management- Objectives of Financial Management-Scope of financial management ,Sources of Finance-Advantages & Disadvantages-Role of Finance Manager

Time Value of Money:

Concept, importance, Future value, Present value, Future value of Annuity, Present value of annuity

Financing decisions:
Capital Structure – Capital structure theories – Net income approach, Net operating income approach,
Modigliani & Miller approach, Traditional approach- factors influencing capital structure- Difference
between capital structure & financial structure.  

Investment decisions:
Capital Budgeting - Need & Importance of capital budgeting- capital budgeting process-Methods for
evaluation of Investment decisions- Lease financing – Lease Vs Buy decision – Hire Purchase and
installment decision – Hire Purchase Vs Lease Decision- Investment decisions under conditions of
uncertainty – Risk analysis in Investment decisions

Working Capital Management:

Meaning, importance, factors influencing working capital management of a firm, management of inventory, receivables, cash. Importance of operating cycle for an organization.

Dividend Decisions :

Meaning of Dividend- Types – Forms- Factors determining dividend policy- types of Dividend Policy Dividend decisions 

Financial distress :.Consequences, Issues, Bankruptcy, Credit Analysis using Altman Z score - Financial scams- case study. 

Valuation of companies and startups:

Concept, importance, methods, importance of entrepreneurship.