NMIMS – SBM : Teaching Plan

Financial Management
Academic Year: 2017-18
Course Code
Course Title Financial Management
Course Dr. Chandan Dasgupta : chandan.dasgupta@nmims.edu
Instructor/s Dr. Mayank Joshipura : mayank.joshipura@nmims.edu
Dr. Smita Mazumdar : smita.mazumdar@nmims.edu
Dr. Sachin Mathur : sachin.mathur@nmims.edu
Dr. Sangeeta Wats : sangeeta.wats@nmims.edu
Credit Value 3 credits ( 100 marks paper )
Programme MBA Year I Trim III
& Trimester
Pre-requisite NA
Learning 1. Apply analytical techniques / models/ framework to reflect critically on
Objectives / financial decisions (PLO 2b)
Outcomes 2. Integrate functional areas of business to facilitate financial decisions
(PLO 3b)

Session Plan Session Details:

1 Introduction to Corporate Finance: Revision of Corporate Balance sheet and
relevant decision areas; Objectives- profit maximization Vs Shareholder wealth
maximization
Reading: Chapter 1 (RWJ) : Introduction to Corporate Finance (Pg. 1-213-22)

2,3,4 Working Capital Management : Working capital planning, Operating and cash
cycle, Receivables management, Cash Management and budgeting
Reading: Chapter 26 (RWJ) : Short-Term Finance and Planning, (Pg. 891-
914847-879)
Chapter 27 (RWJ) : Cash Management (Pg. 926-944880-902)
Chapter 28 (RWJ) : Credit and Inventory Management (Pg. 951-
980903-919)
Case: Butler Lumber Company (HBS 9-292-013)
5 Long term decisions – Time Value of money
Reading: Chapter 4 (RWJ) : Discounted Cash Flow Valuation (Pg. 110-
146101-136)
6,7 Valuing Bonds and stocks
Reading: Chapter 8 (RWJ) : Interest Rates and Bond Valuation(Pg. 266-
297253-282)
Chapter 9 (RWJ) : Stock Valuation(Pg. 305-332290-312)
8, 9, 10 Long term Decision -Investment in long term assets - Discounting and Non
discounting methods (PB, ARR, NPV, IRR, PI, MIRR), Computation of Cash
flows
Reading: Chapter 5 (RWJ): Net Present Value and Other Investment Rules
(Pg. 159-183150-174)
 Chapter 6 (RWJ): Making Capital Investment Decisions
(Pg. 195-220186-210)
Case: Reto S. A. (HBS 9-197-102)
MID TERM

11,12 Risk analysis in Capital Budgeting

Case: New Heritage Doll Company (HBS 4212)

13, 14, 15 Cost of Capital – Weighted Average Cost of Capital, levered beta, CAPM
Reading: Chapter 13 (RWJ): Risk, Cost of Capital, and Valuation
(Pg. 447-476422-449)
Case: Marriott Corporation.: The Cost of Capital (HBS 9-298-101)
16 Capital structure theory- Irrelevance theory, static trade-off, agency costs,
pecking order hypothesis
Reading: Chapter 16 (RWJ): Capital Structure- Basic Concepts, (Pg. 547-
572518-543)
Chapter 17 (RWJ): Capital structure- Limits to the Use of
Debt(Pg.580-609550-576)
17 Leverage- operating, financial, combined; EBIT –EPS analysis; indifference
point
Reading:
http://www.cengage.com/resource_uploads/downloads/0324594690_163047.pdf

18, 19 Dividend decision and payout policy- cash dividends, stock repurchase, split
Reading: Chapter 19 (RWJ) : Dividends and Other Payouts(Pg. 640-675605-
639)
Case: Blaine Kitchenware, Inc.: Capital Structure ( HBS 4040)
20 Long term sources of finance – Different forms of debt, equity and hybrid
instruments
Reading: Chapter 15 (RWJ): Long-Term Financing: An Introduction
(Pg. 525-543498-514)
Chapter 20 (RWJ): Raising capital(Pg. 686-718649-679)
Chapter 21 (RWJ): Leasing(Pg. 726-748686-692)
Pedagogy Conceptual understanding through problem solving
Case discussion
Assessment
methods in Specific assessment methods/tasks % 1 2
Alignment weighting
with
Intended Class Participation 10%
learning
outcomes
Mid Term 25% √
Surprise Quiz 15% √
Final exam 50% √ √
 Reading List Text :
and Ross, S.A., Westerfield, R. W., Jaffe, J., Kakani, R. K. (20142018). Corporate
References Finance 10 11th Edition. Tata McGraw Hill Education (RWJ)
Reference:
Brealey, R. A., Myers, S. C., & Allen, F (2011). Principles of Corporate
Finance. 10th Edition, Mc Graw Hill Education

Prepared by Faculty Recommended by Area Chairperson / Prog Chairperson

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Approved By Dean SBM

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