MLP-31

MANIPAL INSTITUTE OF MANAGEMENT, MANIPAL

The Lesson Plan

Subject & Subject code: Financial Management (MGT-203)

I MBA II SEMESTER
December 2010 to April 2011
Subject Teacher/s: Mr. Nandan Prabhu
Course Objectives:
• Knowledge of Financial functions, Evaluation; working capital management’s knowledge and
awareness of dividend decisions.
Session Topics Covered Remarks
No
1 Scope of Finance, Assets and Funds, Finance
and other functions, Financial Divisions,
Financial Manager’s Role
2 Financial Goal: Profit Maximisation Versus
Wealth maximization
3 Need for Valuation Approach, Risk return
trade-off, Agency Problems and Clarity of
concepts
4 Time value of Money, Risk and return, Basic
concepts of cost
5-12 Computation of cost of debt, cost of equity, cost
of retained earnings, overall cost of capital
13-15 Operating and financial leverage
16-23 Capital structure theories, NI, NOI, MM
hypothesis and optimum capital structure
24-27 Dividend theory and Policy
28-35 Capital Budgeting decisions
36-37 Principles of working capital management
38-42 Receivables Management
43-46 Inventory Management
47-48 Cash Management
49-50 Estimating working capital needs
51-53 Working capital financing
54-55 Concept of EVA, Corporate Governance
*Dates on which topics are taken to be shown in the attendance register in the appropriate columns

Reference Books & Materials

1. I.M. Pandey: Financial Management
2. M.Y. Khan, P.K. Jain: Financial Management
3. S.N. Maheshwari: Financial Management

1
Internal Assessment Evaluation Plan

• Mid-term examinations 20 marks

• Assignments: 15 marks
• Viva voce: 10 marks
• Class participation: 05 marks

Prepared By: Approved by:

(K.P. Nandan Prabhu) Director