FINANCE FOR MANAGERS

Programme : PGDM Batch : 2019-21

Semester : II Course Code : 204

UNIT 1 : Overview of Financial Management

 Nature & scope of financial management

 Objective of financial management
 Agency cost theory
 Emerging role of finance manager

UNIT 2 : Long Term sources of Finance

 Equity share capital

 Preference share capital
 Debentures
 Term Loans

UNIT 3 : Cost of Capital, Capital Structure & Leverage analysis

 Meaning & significance of cost of capital

 Methods of calculating cost of capital
 Weighted Average Cost of Capital [WACC]
 Meaning & significance of capital structure
 Features of optimum capital structure
 Meaning & types of leverage

UNIT 4 : Ratio Analysis

 Financial Statements as per Schedule 3 of Companies Act

 Meaning & significance of Ratio Analysis
 Different types of Ratios & their interpretation

UNIT 5 : Working Capital Management

 Meaning & significance of working capital

 Factors of working capital
 Operating Cycle
 Estimation of working capital
 Working capital finance

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UNIT 6 : Capital Budgeting

 Time value of money & its application

 Meaning & significance of capital Budgeting
 Types of Capital budgeting decisions
 Methods to evaluate capital expenditure proposals – Payback period,
Accounting Rate of Return(ARR), Discounted payback period, Net Present
Value (NPV), Profitability Index( PI)

Learning Sources

1. Financial Management - Khan & Jain(TATA Mc Graw Hill)

2. Financial Management - I. M. Pandey (Vikas Publication)
3. Corporate Finance, Theory and Practice - Aswath Damodaran (Wiley Publication)
4. Fundamentals of Financial Management - Brigham and Houston