Session Plan Financial Management

Module Module 1 No of Topics Lecture 1 Introduction to financial management A framework for financial Decision making 2 Financial Environment and changing role of finance manager 3 Objective of the firm Wealth maximization & Profit maximization 4 Why TVM is important? Time Line, Present Value, Future Value 5 Different types of Interest Rates, Annuity, Perpetuity, Amortization 6 Risk Return relationship, Tools for measuring risk Numerical problem solving Concept of leverage & its applications. Operating & Financial leverage Combine Leverage, Numerical Problem Solving 5 Marks Assessment Capital structure: Meaning, features, Optimum Capital structure, Qualities of Sound Capital Structure, Factors affecting Capital Structure, Significance of Capital Structure Approaches of Capital structure: Net income Approach, Net operating Income Approach The Traditional Approach, Modigliani and miller Approach Cost of capital: Meaning, Significance Classification of Cost, Computation of Cost Marginal Cost of Capital: Meaning and computation Introduction to Capital budgeting decision, Significance of Capital Budgeting, Nature of cash Flow, Type of Capital Budgeting decision, Process of Capital Budgeting.

Module II

7 8 Module III 9

10 11 12 13 14 Module IV 15

16

17

18 19 20 21 Module V 22 23 24 25 26 27 28 29 30 31 32

Treatment of Depreciation. Treatment of Working Capital. Requirements of good method of project appraisal. General Rule for calculation of cash flows in Capital Budgeting Decision. Steps in calculation of cash inflow, cash outflow & CFAT. Decision Criteria, Technique of evaluation Traditional Approach to appraisal of Capital Budgeting proposal Modern approach to appraisal of Capital Budgeting proposal Case Study on Capital Investment Proposal MID TERM (15 marks) Introduction to the concept of Working capital management Types of W.C; Operating Cycle, Numerical on operating Cycle, Estimation of W.C; Practical Questions of assessing the requirement Numerical on Working capital management\ Management of cash; Preparation of cash budget different methods of preparing cash budget, Optimum Cash balance model Management of marketable securities Meaning, types of Inventory Management Meaning, types of Inventory Management ABC Analysis & VED analysis Credit management: Meaning, Importance Case Study discussion on working capital management 5 Marks Assessment An introduction of dividend and related issues, Types of dividend policy, pros and cons of each type of policy Different Schools of Thoughts ,Walter model numerical questions

Module VI

33 34 35

36 37 38 39 40

Different Schools of Thoughts ,Gordon model, numerical questions Different Schools of Thoughts ,MM Hypothesis Numerical Problem Solving Case Study Discussion