1. Introduction : Introduction to Financial Management - Goals of the firm - Financial Environments.
2. Time Value of Money : Simple and Compound Interest Rates, Amortization, Computing more that once a
year, Annuity Factor.
3. Valuation of Securities : Bond Valuation, Preferred Stock Valuation , Common Stock Valuation,
Concept of Yield and YTM.
4. Risk & Return: Defining Risk and Return, Using Probability Distributions to Measure Risk, Attitudes Toward Risk,
Risk and Return in a Portfolio Context, Diversification, The Capital Asset Pricing Model (CAPM)
5. Cost of Capital : Concept , Computation of Specific Cost of Capital for Equity - Preference – Debt,
Weighted Average Cost of Capital – Factors affecting Cost of Capital
6. Working Capital Management : Overview, Working Capital Issues, Financing Current Assets (Short Term
and Long Term- Mix), Combining Liability Structures and Current Asset Decisions, Estimation of Working
Capital.
7. Cash Management : Motives for Holding cash, Speeding Up Cash Receipts, Slowing Down Cash Payouts,
Electronic Commerce, Outsourcing, Cash Balances to maintain, Factoring.
8. Accounts Receivable Management : Credit & Collection Policies, Analyzing the Credit Applicant, Credit
References, Selecting optimum Credit period.
9. Capital Budgeting : The Capital Budgeting Concept & Process - An Overview, Generating Investment Project
Proposals, Estimating Project, After Tax Incremental Operating Cash Flows, Capital Budgeting Techniques,
Project Evaluation and Selection - Alternative Methods
10. Operating & Financial Leverage : Operating Leverage, Financial Leverage, Total Leverage, Indifference
Analysis in leverage study.
11. Capital Structure Determination : Concept of Capital Structure, Legal Requirements, Factor affecting Capital
Structure, Theories of Capital Structure like N.I. Approach, NOI Approach, Traditional Approach, M-M
Approach.
12. Dividend Policy : Passive Versus Active Dividend Policy ; Factors influencing Dividend Policy, Dividend
Stability, Stock Dividends and Stock splits, Dividend Theories like Gordon’s Model, Walters Model, M-M
Approach and Residual Approach, Legal Consideration of Paying Dividends.