Financial Decision Making (MGT256)
1.Meaning, Objectives and Scope of Financial Management; Finance Functions-Investment, Financing, Liquidity and Dividend Decisions.
2.Source of Finance- Evaluation of Short term and long term source of finance.
3.Concept of Time Value of Money.
4.Cost of Capital: Concept and its significance, measurement of cost of capital of various sources of funds, Weighted Average cost of capital using book value weights and market value weights, CAPM.
5.Capital Budgeting: meaning, importance, Risk and uncertainty, Discounting and non-discounting techniques of Capital Budgeting.
6.Concept of Capital Rationing.
7.Capital Structure Decision: Understanding debt and equity, theories of Capital Structure, Optimum Capital Structure.
8.Leverage: Operating, Financial Leverage and combined leverage, importance and factors affecting leverage, indifferent point.
9.Dividend decisions: Dividend Policy; Forms of dividend, Theories of dividend, Factors affecting dividend decisions.
10.Working Capital – Concept, operating and cash cycle, Determinants working capital requirements, Overview of management of cash, inventory and receivables.
11.Merger & Acquisition Decision.
12.Leasing Decision, Types of Lease, Financial evaluation of Leasing.
Text Book(s):
1. Chandra Prasanna, Financial Management: Theory and Practice, Tata McGraw Hill.
Additional Readings:
1. Pandey I M, Financial Management, Vikas Publishing House. (1,2,4,5,7,8,9,10,11,12)*
2 James C . Van Horne & John M. Wachowicz, Jr, Fundamentals of Financial
Management,Prentice Hall.
3.Khan & Jain, Financial Management, (3,5,7,12)*