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An overview –Nature & Scope – Finance Functions-Goals of financial management

Financial manager’s role-Agency problems-Agency cost –Economic value added

2 Concept -Future value Single Cash flow - Annuity –Uneven cashflows

3 Present value – single cash flow – Annuity – Un even cashflows

Annuity Practical problems- Multiple cash flows –Continuous cash flows –yield calculation Practical
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problems- Multiple cash flows –Continuous cash flows –yield calculation

5 Time value of Money Applications:

Bond Valuation ,

Valuation of preference shares

6 Valuation of equity shares Single Growth- Multiple Growth models , Real time applications

Risk and Return Analysis: Definition – Types of risk (Introduction)

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Risk types – Concept of Beta and its application , Market Risk premium , Trade off between Risk and
Return

Cost of capital: Concept – Determining the component cost of capital

8 Specific cost of capital, Weighted average cost of capital, Marginal cost of capital

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Long term finance –ordinary shares, Right issue of equity shares ,preference shares ,debentures ,
 term loan ,asset based financing.

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Hire purchase , Leasing ,Venture capital,Short term finance-Trade credit , Bank credit , Bill discounting
,Commercial paper

Indian financial system