Lovely Professional University,Punjab

Format For Instruction Plan [for Courses with Lectures and Tutorials

Course No MGT206

Cours Title MANAGEMENT OF FINANCES

Course Planner 14723 :: Lalit Kumar Bhardwaj

Lectures Tutorial Practical 4 1

Credits 0 5

Approved for Spring Session 2010-11

Text Book:

Pandey I M, Financial Management, Vikas Publishing House, 9 ed.,2006

Other Specific Book: 2 Gupta and Sharma, Financial Management: Theory and Practice, Kalyani Publishers, 6 ed., 2008 3 Chandra Prasanna, Financial Management: Theory and Practice, Tata McGraw Hill, 7 ed., 2008 4 Khan and Jain, Basic Financial Management, Tata McGraw Hill, 2nd ed.,2007 5 Khan and Jain, Financial Management-Text, Problems and Cases, Tata McGraw Hill, 5 ed.,2008 6 Misra and Srivastav, Financial Management, Oxford University Press, 1st ed., 2008

Approved for Spring Session 2010-11

Other Reading Sr No Jouranls atricles as compulsary readings (specific articles, Complete reference) 7 Beneda, Nancy, Lee, Jeong ( Second quarter 2002)- Cost of equity capital using constant dividend growth model, Credit and Financial Management Review http://findarticles.com/p/articles/mi_qa3857/is_ 8 Baker, H Kent, Powell, Gary E( Spring 1999)- How corporate managers view dividend policy, Quarterly Journal of Finance & Accounting http://findarticles.com/p/articles/mi_qa5466/is_199904/ai_n21444707 9 Jagannathan, Ravi, Meier, Iwan (2002)- Do we need CAPM for capital budgeting http://findarticles.com/p/articles/mi_m4130/is_4_31/ai_96904312/pg_2/ 10 TCS Bonus Issue http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1492663 11 S.Surendra, Yadav Arvind Economic Value Added(EVA):A New flexible Tool For Measuring Corporate Performance http://www.Findarticles.com/EVA 12 Finance And Economics:Goodbye, or see you again?; America's megabanks; Anonymous. The Economist. London: Dec 19, 2009. Vol. 393, Iss. 8662; pg. 128; http://proquest.umi.com/pqdweb?index=21&did=19236 13 GM's Second Great Crisis, Harvard Business Review: http://blogs.harvardbusiness.org/hbr/hbr-now/2009/05/gms-second-great- crisis.html?cm_mmc=hbd-_syndication-_-washpost-_-2009 14 The Case for 4 % Mortgages, Harvard Business Review http://blogs.harvardbusiness.org/hbr/hbreditors/2009/02/the_case_for_governmentbacked.html Relevant Websites Sr. No. (Web adress) (only if relevant to the courses) 15 http://www.investopedia.com/ 16 www.sebi.gov.in 17 http://pages.stern.nyu.edu/~adamodar/New_Home_Page/PVPrimer/pvprimer.htm 18 http://in.finance.yahoo.com/ 3 Salient Features A coprehensive collection of definitions and explainations of financial terminology, tutorials and articles. Featuring legal framework, rules, offer documents related to capital market instruments A Primer on the Time Value of Money- for Basics of Time Value of Money Features latest financial issues, discussions and analysis. Major financial data Approved for Spring Session 2010-11

and economic indicators available. 19 www.nseindia.com Featuring share prices of various companies with daily price movements

Approved for Spring Session 2010-11

Detailed Plan For Lectures

Week Number Lecture Number Lecture Topic Chapters/Sections of Textbook/other reference Homework to be Assigned Pedagogical tool to students Demonstration/case study/images/anmation ctc. planned

Part 1
Week 1 Lecture 1 Meaning, Objectives, Scope nd Goals of Financial Management , Agency Problems Liquidity and Dividend Decisions Sources of Finance; Short term sources-Trade Credit, Bank finance, commercial paper Time Value of money-Meaning, Time Lines & notation, Future value of a single amount, compound interest and simple interest Doubling period, Present Value of a single amount Present value of uneven series, Present value of annuity Present value of a perpetuity, Intra year compounding and discounting Present value of a perpetuity, Intra year compounding and discounting Excel applications if time value of money Break even analysis and Concept of Levarage Cost of capital- Meaning & Significance Measurement of cost of capital and debt Cost of Preference share capital, Various approaches for measurement of cost of equity and retained earnings ->Reference :6,Ch 3 ->Reference :1,Ch 9 ->Reference :5,Ch 11 ->Reference :1,Ch 9 ->Reference :3,Ch 14 ->Reference :4,Ch 6 Case3: Acme. Ref6:page 356 Approved for Spring Session 2010-11 Term Paper 1 Allocation Spreadsheet software Case2: Salron electronics. Ref6:page 69 ->Reference :1,Ch 2 ->Reference :2,Ch 2 ->Reference :4,Ch 2 HomeWork 1 Allocation ->Reference :1,Ch 2 ->Reference :2,Ch 2 ->Reference :4,Ch 2 ->Reference :1,Ch 1

Lecture 2

Case1: Financial Management at Hero Honda. Ref6:page 16 Excel Application: FV of Single sum, annuity

Lecture 3

Lecture 4

Excel Application: PV of Variable Cash

Week 2

Lecture 5

Lecture 6

Lecture 7 Lecture 8 Week 3 Lecture 9

Lecture 10 5

Details of homework and case studies

Homework No. Homework 1 Topic of the Homework Time value of money 6 practical problems to be given from the topic Time Value of Money Cost of Capital 6 practical problems to be given from the topic Cost of Capital Capital Budgeting 6 practical problems to be given from the topic Capital Budgeting Working Capital 6 practical problems to be given from the topic Working Capital Nature of homework (group/individuals/field work Individual

Homework 2

Individual

Homework 3 Homework 4

Individual Individual

Scheme for CA:out of 100*

Component Homework Quiz Term Paper Frequency Out Of 3 2 1 Total :Each Marks Total Marks 4 15 15 25 55 45 30 25 100

* In ENG courses wherever the total exceeds 100, consider x best out of y components of CA, as explained in teacher's guide available on the UMS

Approved for Spring Session 2010-11

List of suggested topics for term paper[at least 15] (Student to spend about 15 hrs on any one specified term paper) Sr. No. Topic 1 Comparative study of Credit Ratings(with determining factors) of various companies in any given sector 2 Growth and prospects of Venture Capital in India 3 Impact of capital structure on the risk and return aspect of shareholders of a company for the last 5 years 4 Comparative analysis of working capital management practices of two companies in the same industry for the last 5 years 5 Analysis of Dividend Policy of a company over a period of ten years 6 Comparative analysis of inventory management practices of any two companies of two different industries for the last 5 years 7 Comparative analysis of capital structure of two companies in the same industry for the last 5 years 8 Dividend Policy- its influence on the on the value of the enterprise for the last 5 years 9 A survey of corporate leasing analysis of any two companies 10 Impact of the difference and mix of current assets of two firms on their liquidity and profitability position 11 Analysis of current asset composition of one company, each in manufacturing, food products and electronics industry in India 12 Analysis of capital structure of cement plant, software development firm and a call centre 13 Analysis of working capital management practices of a company for the last 5 years 14 Pre and Post impact of dividend announcements on share prices of any one company for the last 5 years 15 Comparative analysis of Dividend Policies of two companies in the same industry for the last 5 years

Approved for Spring Session 2010-11

Plan for Tutorial: (Please do not use these time slots for syllabus coverage)
Tutorial No. Lecture Topic Type of pedagogical tool(s) planned (case analysis,problem solving test,role play,business game etc) Case analysis,Problem solving,Doubt Clearing Problem solving,Doubt Clearing Case analysis,Doubt Clearing Test,Assignment 1 based test and Doubt Clearing Case analysis,Problem solving,Doubt Clearing Test,Assignment 2 based test and Doubt Clearing Case analysis,Problem solving

Tutorial 1 Tutorial 2 Tutorial 3 Tutorial 4 Tutorial 5 Tutorial 6 Tutorial 7

Time Value of Money Perpetuity and Annuity Cost of Capital Cost of Capital Review of Term Paper Capital Budgeting Financial Leverage

After Mid-Term
Tutorial 8 Tutorial 9 Tutorial 10 Tutorial 11 Tutorial 12 Operating Leverage & Combined Leverage Indifference Point EOQ, JIT, Safety Stock Review of Term Paper Capital Markets Case analysis,Problem solving Case analysis,Problem solving Case analysis,Problem solving,Assignment 3 based test Case analysis,Problem solving Problem solving,Assignment 4 based test

Approved for Spring Session 2010-11