Financial Management - JNTU Kakinada First Year MBA Syllabus 2009 |
UNIT-I |
The Finance Function – Objective: Profit or Wealth Maximization and EPS
Maximization, An overview of Managerial Finance functions- Time value of money. present value, future value of money and the basic valuation models.
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UNIT-II |
Investment decisions: Nature of Capital Budgeting decisions - techniques of capital budgeting: Pay back method, Average rate of return and Time-Adjusted methods: IRR and NPV, profitability index, and excess present value index. Advanced problems and cases in capital budgeting. |
UNIT – III |
Cost of Capital: Concept and measurement of cost of capital, Debt vs.Equity, cost of equity, preference shares, equity capital and retained earnings, weighted average cost of capital and marginal cost of capital. Importance of cost of capital in capital budgeting decisions. |
UNIT – IV |
Capital structure Decisions: Capital structure vs financial structure - Capitalisation, financial leverage, operating leverage and composite leverage. EBIT-EPS Analysis, Indifference Point/Break even analysis of financial leverage, Capital structure theories –The Modigliani Miller Theory –A critical appraisal. |
UNIT – V |
Dividend Decisions: Dividends and value of the firm - Relevance of dividends, the MM hypothesis, Factors determining Dividend Policy-dividends and valuation of the firm-the basic models. Declaration and payment of dividends. Bonus shares. Rights issue, share-splits, Walter Model and Gordon Model. |
UNIT – VI |
Working Capital Management, components of working capital, gross vs. net working capital, determinants of working capital needs, the operating cycle approach. Planning of working capital, .Financing of working capital through Bank finance and Trade Credit. |
UNIT – VII |
Management of current assets –I: Management of cash,– Basic strategies for cash management, cash budget, cash management techniques/processes. Marketable securities: characteristics, selection criterion, Marketable security alternatives. Management of receivables - Management of inventory – credit policies. |
UNIT – VIII |
Case Study: Compulsory. Relevant cases have to be discussed in each unit. |
REFERENCES |
1. Brigham and Ehrdhart: “Financial Management Text and Cases”, Cengage Learning, New Delhi.
2. I.M Pandey: “Financial Management”, 9/e, Vikas Publishing, 2004
3. M.Y Khan, P K Jain: “Financial Management-Text and Problems”, Tata McGraw Hill, New Delhi. 2003
4. James C.VanHorne: “Financial Management and Policy”, Pearson Education, 2004
5. Srivatsav, RM: “Financial Management”, Himalaya Publishing House, Mumbai.
6. Chakraborty, Bhattacharya, Rao and Sen: “Financial Management and Control”, Macmillan India Limited, 2003
7. John J. Hampton: “Financial Decision Making-Concepts, Problems and Cases”, Prentice Hall .2003
8. Sudhindra Bhat: “Financial Management Principles and Practice”, Excel Books, New Delhi, 2007
9. Pradeep Kumar Sinha: “Financial Management Tools and Techniques”, Excel Books, New Delhi.
10. S.N. Maheswari: “Financial Management”, Vikas Publishers, New Delhi, 2003.
11. Bhabatosh Banerjee: “Fundamentals of Financial Management”, PHI Learning Private Limited, New Delhi, 2008.
12. CA.C. Rama Gopal: “Financial Management”, New Age International Publisher, New Delhi, 2008.
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