INSTITUTE OF MANAGEMENT STUDIES NOIDA

Course PGDM Session 2009-10

PG 202 FINANCIAL MANAGEMENT

Objectives: The purpose of this course is to familiarize students with the procedures and
documentation relating to foreign trade operations, and to train them to handle the
documentary work concerning export-import business.

Pattern of question paper for final examination

1. The total weight oI the end semester examination will be 70 marks.

2. The question paper will be divided into three sections. Section A will have a small case study
with speciIic questions and it will carry a weight oI 20 marks. Section B will consist oI 5 short
answer questions with a weight oI 2 marks each (total 10 marks). Section C will have 4 Iull
length questions oI 20 marks each , out oI which the candidate will be required to attempt any
two (total weight oI 40 marks).

3. The time allotted Ior attempting the question paper will be 3 hrs.


CONTENTS

Nature of Financial Management - ntroduction, Scope of Finance, Finance Functions,
Financial Managers Role, Financial Goal-Profit V/s Wealth, Conflict of Goals: Management
V/s Owners

Concept of Value and Return - Compound and Present Value Concepts

Cost of Capital - Cost of debt, Cost of equity, Cost of Retained Earnings, Weighted Average
cost of capital, mpact of Cost of Capital on Capital Structure.

Valuation of Bonds and Shares - PV of Bonds and Shares, Constant growth formula

Analysis of Capital Budgeting Decisions - DCF and Non DCF techniques

Financial and Operating Leverage - Capital Structure Defined, Financial Leverage,
Operating Leverage, Combined Operating and Financial Leverages

Management of Retained Earnings - Retained Earnings and Dividend Policy,
Consideration in Dividend Policy, Forms of Dividend Theories , Bonus Shares

Textbooks:
1. Financial Management by .M.Pandey
2. Financial Management by M.Y.Khan
3. Financial Management by Prasanna Chandra

References:
1. Financial Management by Van Horne
2. Financial Management by Braley Myres
3. Financial Management by V.K.Bhalla