Introduction to financial management, objectivesof financial management – profit maximization and wealth maximization.Changing role of finance managers. Interface of Financial Management withother functional areas. Indian financial system – Primary market, Secondarymarket – stocks & commodities market, Money market, Forex markets.(Theory Only)
Shares, Debentures, Term loans, Lease financing,Hybrid financing, Venture capital investing, Warrants. Angel investingPrivate equity, Warrants and convertibles (Theory Only)
Future value of single cash flow & annuity, presentvalue of single cash flow, annuity & perpetuity. Simple interest &Compound interest, Capital recovery & loan amortization.
Cost of capital – basic concepts. Cost of debenture capital,cost of preferential capital, cost of term loans, cost of equity capital(Dividend discounting and CAPM model ). Cost of retained earnings.Determination of Weighted average cost of capital (WACC) and Marginalcost of capital.
Investment evaluation techniques – Net presentvalue, Internal rate of return, Modified internal rate of return, Profitabilityindex, Payback period, Discounted pay back period , Accounting rate ofreturn. Estimation of cash flow for new project, replacement projects.
factors influencing working capitalrequirements. Current asset policy and current asset finance policy.Determination of operating cycle and cash cycle. Estimation of workingcapital requirements of a firm.(Does not include Cash, Inventory &Receivables Management)
Planning the capital structure.(No capital structure theories to be covered) Leverages – Determination ofoperating leverage, financial leverage and total leverage. Dividend policy –Factors affecting the dividend policy - dividend policies- stable dividend,stable payout. (No dividend theories to be covered).
Derivatives, Mergers andAcquisitions, Behavioral Finance, Financial Modelling, Financialengineering, risk management. (Theory Only).