ST.

JOSEPH COLLEGE OF ENGINEERING

DEPARTMENT OF MANAGEMENT
STUDIES
LESSON PLAN

NAME

: B.ARCHANA

DEGREE

: MBA

YEAR

:I

SEMESTER : II

SUBJECT

: FINANCIAL MANAGEMENT

DEFINITION:
"Financial Management involves managing the finance related activities of an organisation.
It involves planning, directing, monitoring, organising and controlling of the monetary
resources of an organisation. Financial management involves investment decisions, financing
and dividend decisions.
OBJECTIVES:

To know the functions of the financial management.

To know the strategies used in financial management practices.

To develop knowledge on handling financial problems.

To analyze the working capital management and long term sources of finance for
industries.

To know the financial management tools for decision making.

S.NO
1
2
3
4
5
6
7
8
9
10
11
12
13

DATE PERIOD

TOPIC

UNIT

Financial Management-An overview

UNIT I
Time value of money
Introduction to the concept of risk & return of
a single asset
Introduction to the concept of risk & return of
a portfolio
Valuation of bonds
Valuation of shares
Valuation of options
Revision
Tutorial
Capital budgeting:Pricniples & techniques UNIT II
Nature of capital budgeting
Identification of relevant cash flows.
Payback evaluation techniques

T/
R
TI
TI
R2
R4
R4
R3
R5
R5
R2
R5
R5
R3
R3

14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45

Accounting rate of return techniques

Net present value & Internal rate of return
techniques
Profitability index, Comparison of DCF
techniques
Inflation & capital budgeting
Cost of capital & overall cost of capital
Capital structure
Operating leverage
Financial leverage
Designing capital structure & valuation
Dividend policy & its aspects
Dividend consideration & forms of dividend
policy
Forms of dividend
Shares splits
Revision
Principle of working capital & its concepts
Determinants & needs for working capital
Estimation of working capital
Accounts receivables management &
factoring
Inventory management
Cash management- Bank finance
Trade credit, working capital finance
Commercial paper
Revision
Indian capital & stock market
New issues market
Long term finance by way of shares &
debentures
Obtaining term loans
Leasing-Introduction
Hire purchase
Venture capital financing
Mobilising funds through private placement
of equity shares
Revision

Total No. Of Periods: 45

R3
R3
R3

UNIT III

UNIT IV

UNIT V

R5
R5
R3
T2
R1
T2
T2
R4
R6
R6
R6
R6
R7
T2
T2
R7
R2
R2
R5
R6
R7
T2
R7
R7
R7
R7
R7
T2
R6

TEXT BOOKS:
1.

I.M.Pandey, Financial Management, Vikas Publishing House Pvt ltd, 8th Edition, 2007

2.
M.Y.Khan and P.K.Jain, Financial Management Text and Problems, TMH Publishing
company, 5th Edition, 2005

REFERENCES:
1.

Aswat Damodaran, Corporate financial theory& practices, john wiley & sons, 2008.

2.
James C.Vanhorme-Fundamentals of Financial Management-PHI learning 11th Edition
2008.
3.
Brigham, Ehrhardt, Financial Management Theory & practices, 11th Edition,Cengage
learning, 2008.
4.

Prasanna Chandra, Financial Management, 7th Edition, Tata McGraw Hill, 2008.

5.

Srivatsava, Mishra, Financial Management, Oxford university press, 2008

Faculty In charge

HOD

Principal