MBA628: Financial

Management - II
CONTENTS

1. Dividend: Approaches – determinants – types of

dividend policy –effects and objects of bonus issue –
Dividend theories and Models - Walter’s Model,
Gordon’s Model and MM approach

2. Working capital requirements: Meaning -

concept – kinds – importance of adequate working
capital - determinants of working capital.-
management of cash, receivables and inventory

3. Sources of Finance: Various sources of raising

short term and long term funds – kinds of ownership
securities – internal financing – loan financing –
innovative sources of finance
4. Lease Financing and Hire Purchase: Meaning –
types – financial evaluation – methods of
computation lease rentals – economics 0f leasing –
meaning and features of hire purchase – methods of
computing installment under hire purchase – method
of splitting HP, installment – leasing Vs. HP
5. Valuation of Firms: Need for Valuation –
Different Approaches – Asset Based Approach –
Earnings Based Approach – Cash Flow Approach

Text Books
1. Shashi K. Gupta, R.K. Sharma, (2006), Financial
Management, Kalyani Publishers, Mumbai
Reference Books:
1. I.M. Pandey, (2005), Financial Management, Ninth
Edition., Vikas publishing house Pvt. ltd., New Delhi.
2. Khan and Jain , (2006), Financial Management,
Tata McGraw Hill, New Delhi.