MANAGEMENT OF FINANCES(MGT206)
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
5.Weighted Average cost of capital using book value weights and market value weights.
6.Capital Budgeting: meaning, importance, Risk and uncertainty
7.Discounting and non-discounting techniques of Capital Budgeting
8.Concept of Capital Rationing
9.Capital Structure Decision: Understanding debt and equity, theories of Capital Structure, Optimum Capital Structure.
10.Leverage: Operating, Financial Leverage and combined leverage, indifferent point.
11.Dividend decisions: Dividend Policy; Forms of dividend, Theories of dividend,
12.Factors affecting dividend decisions.
13.Working Capital – Concept, operating and cash cycle, Determinants working capital requirements
14.Overview of management of cash, inventory and receivables.
15.Capital Markets and Financial Institutions
16.Introduction to Financial and Operational Hedging
17.Introduction to Mergers and Acquisitions
Text Book(s):
Chandra Prasanna, Financial Management: Theory and Practice, Tata McGraw Hill. 7th ed.
Additional Readings:
Pandey I M, Financial Management, Vikas Publishing House.
Khan, M Y and P K Jain, Financial Management, Tata McGraw Hill.