MBA CG-203 - FINANCIAL MANAGEMENT

Objective: The objective of this course is to acquaint the

students with the broad framework of financial decision making.
It is intended to develop skills in using the techniques of
financial analysis of business problems through case studies and
theory, with a view to familiarize students with decision making
process of corporate finance managers.
COURSE CONTENTS
1. Financial Management: Objectives, Profit Maximization,
Wealth Maximization, Finance-Interface with others areas, Role of
Finance Manager in changing environment.
No. of Session-1
2. Time value of Money: Future value of the single cash flow,
multiple flows, annuity. Present value of single cash flow, multiple
flows, and annuity.
No. of Session-2
3. Risk-Return Analysis: Ex post return, Ex ante return, Total
risk, systematic risk, Unsystematic risk, Relationship between risk
and return.
No. of Session-1
4. Managing of cash and Marketable and Securities:
No. of Session-1

5. Management of Account Receivables:

Case study- Cool Aid Private Ltd.
No. of Session-2
6. Working capital Management: Concept, Estimating working
capital requirement Component and mechanism, working capital
financing in India.
No. of Session-3
Case study Citizens Band Antenna Company
7. Valuation of securities
No. of Session-1
8. Leverage: Operating leverage, financial lenerage, total
leverage, leverage and risk analysis.
No. of Session-2
Case study Central Equipment company
9.Cost of Capital Concept: Mechanism of estimating cost of
capital, Managerial implication.
No. of Session-1
10. Capital expenditure Decisions: Capital budgeting process,
estimating cash flows, Methods of capital budgeting evaluation.
No. of Session-3
Case study- Balmer Corporation

11. Capital Budgeting: Ranking of projects, conflicts of ranking,

resolving conflict in ranking.
No. of Session-1
12. Capital structure Decision: Theories of capital structure,
EBIT-EPS analysis, deciding the mix.
No.
of Sessions-3
13. Dividend Decision: Theories, determining the Dividend
policy. Dividend policy practices in India.
No. of Sessions-2
Real Life Study with regard to dividend policy.
14. Sources of Long Term Finance
Self Study
15. Sources of Short Term Finance
Self-Study
16. Financial Markets
Term Paper
PEDAGOGY:
The teaching methodology used in this course will be a judicious
mix of lectures, numerical problems, case analysis and discussion,
assignments, quizzes, project work and presentations.

Suggested Reading
1. Van Horne, James C., & Wachowicz Jr.,
John M. Fundamental of Financial
Management, 1996 (Ninth) Edition, Prentice
Hall of India.
2. Brealey, Richard A. Myers, & Stewart C.
Principles
of
Corporate
Finance,
1996(Fourth Edition), Tata McGraw Hill.
3. Hampton, John J. Financial Decision Makin,
Concepts, Problems & Cases, 1996(Fourth
Edition), Prentice Hall of India.
4. Clark, John, Hindland, Thomas J. &
Pritchard, Robert E: Capital Budgeting
Planning and control of capital Expenditure.
1989, Prentice Hall.
5. Levy, H. & Sarnat, M.: Capital investment
and Financial Decisions, 1990, prentice
Hall.
6. Hill, Ned C. & Sartoris William L., Short
Term financial Management- Text and
Cases, 1995(Third edition), Prentice Hall.
7. Damodaran, Aswath: Corporate Financialtheory 7 Practice 1997, John Wiley & Sons.
8. Dr.
Prasana
Chandra:
Financial
Management- Theory and Practice, Fourth
Edition 1998, Tata McGraw Hill.