BA6125-CORPORATE FINANCE |
FINANCIAL MANAGEMENT |
FOUNDATIONS OF FINANCE |
Financial Management - an Overview, Time Value of Money. Introduction to the Concept of Risk
and Return of a Single Asset and Portfolio, Valuation of Bonds and Shares Option Valuation. |
INVESTMENT DECISIONS |
Capital Budgeting: Principles and Techniques, Nature of Capital Budgeting, Identifying Relevant
Cash Flows, Evaluation Techniques, Payback, Accounting Rate of Return, Net Present Value,
Internal Rate of Return, Profitability Index, Comparison of DCF Techniques, Project Selection Under
Capital Rationing.
Cost of Capital : Concept and Measurement of Cost of Capital, Specific Costs and Overall Cost of
Capital. |
FINANCING AND DIVIDEND DECISION |
Leverage: Financial and Operating Leverage.
Capital Structure: Determinants - Theories, Cost of Capital - Types - Specific and Weighted
Average Cost of Capital.
Dividend Policy: Determinants - Theories, Forms of Dividend Policy, Practical Considerations,
Forms of Dividends, Share Splits.
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WORKING CAPITAL MANAGEMENT |
Principles of Working Capital: Concepts Need; Determinants, Issues and Estimation of Working
Capital, Accounts Receivables Management and Factoring, Inventory Management, Cash
Management, Working Capital Finance, Trade Credit, Bank Finance and Commercial Paper.
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CAPITAL MARKET AND LONG TERM FINANCE |
Indian Capital and Stock Market, New Issues Market, Derivatives and Risk Management -Types of
Derivatives – Future and Forward Contracts, Swaps, Structured Notes and Inverse Floaters. Options
– Types – Strike Price, Call Option, Put Option - The Black–Scholes Option Pricing Models (Theory
Only). Long Term Finance: Shares Debentures and Term Loans, Lease, Hire Purchase, Project
Financing, Venture Capital Financing (Theory Only). |
Text Books |
1. M.Y. Khan and P.K. Jain, “ Financial Management, Text, Problems and Cases”, 5th Edition,
Tata McGraw -Hill Publishing Company Ltd., 2007 |
Reference Books |
1. Ross and Westerfield, “Fundamentals of Corporate Finance”, 8th Edition, Tata McGraw -Hill
Publishing Company Ltd., 2007.
2. Van Horne, “Financial Management and Policy”, 12th Edition, Pearson Education, 2002 /
Prentice Hall of India Pvt. Ltd., 2007.
3. Aswat Damodaran, “Corporate Finance Theory and Practice”, 2nd Edition, Wiley India, 2008.
4. I.M.Pandey, “Financial Management”, Vikas Publishing House Pvt. Ltd., 9th Edition, 2007. |
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