WHY?Financial Management

Fundamental knowledge about finance Ask a sales person who has been asked to prepare a budget

Rewarding field growing range of financial products careers in financial analysis are to grow by 23 percent, corporate finance by 14 percent, and financial

advising by 32 percent

Personal Finances Anybody- who will not earn

Job Opportunities Corporate management

International financial management

Investment Banking

Financial planning services

Brokerage firms

Insurance companies

Commercial Banking

Credit Management

Numbers- They are every where!!

Cricket Score Balance in our Savings Account Age Phone number

Think of Numbers as a Score Card !

On a serious note in business all stakeholders are interested in the score card of the business !

The THREE questions in Finance

1. Where do I get money from?

2. Where can I use this money?

3. How can put this money for day-to day use?

Unit One• Finance & its scope Financial Decisions

• Sources of Finance

• Time Value of Money

• Profit maximization vs. Wealth maximization

• Functions of Finance Manager in Modern Age

• Indian Financial System : Primary and Secondary Market

• Concept of Risk and Return

• CAPM Model

Unit Two

• Concept of Opportunity Cost

• Cost of Debenture, Preference and Equity capital, Composite

Cost of Capital

• Cash Flows v/s Profit and components of Cash Flows

• Capital Budgeting Decisions

• Calculation of NPV and IRR

• Excel Application in Analyzing Projects

Unit Three

• Capital Structure, Relevance and Irrelevancy theory • Leverage analysis and its implications

• Financial• Operating• Combined leverage

• EBIT-EPS Analysis, Point of Indifference

Unit Four

• Factors affecting Dividend Policy

• Forms of Dividends , Types of Dividend Policies

• Dividend Models

• Walter and Gordon Model

• Miller- Modigliani(MM) Hypothesis

Unit Five

• Concepts of Working Capital and its types

• Determinants of Working Capital

• Adequate Working Capital

• Working Capital Financing

What should I be prepared with?

Pre-Reading:•Financial Statements

• Balance Sheet• Profit/Loss Account

•Basic Terms of Accountancy

Books you need to refer:•Financial Management by I.M.Pandey (Vikas Publishing House)•Reference Books-

• Elements of Financial Management by Dr. R.P. Rustagi (Taxmann Publications)

• Financial Management by M.Y.Khan and P.K.Jain (Tata McGraw Hills)

Course Assessment Model

MOST IMPORTANT

Know what is/should be your reason for studying

this subject