FINANCIAL MANAGEMENT-I Objectives This course aims at: Familiarising the students with the financial environment of business,

, especially the financial markets Imbibing knowledge about the decisions and decision variables involved in building the liability side of balance sheet of the firm Developing the analytical skills by associating the tools and techniques with the situation Developing skills for interpretation business information and application of financial theory in financing related decisions UNIT I Financial Environment of Business- General financial environment- Introduction to Financial Markets- Capital Markets- Primary Market- Basics of capital market mechanism, instruments, financing and rating institutions, and legal environment related to this. Secondary MarketBasics of stock exchanges and their role- regulatory framework, and transactions on stock exchange. UNIT II Money Markets- Basics of money market mechanism instruments - institutions, and legal environment related to this- Corporate Financial Objectives and Functions - Financial Analysis - Ratio analysis (liquidity ratios, profitability ratios, turnover ratios, structural ratios, etc.) UNIT III Comparative balance sheet - Common size statement analysis - Trend analysis- Sickness prediction- Funds Flow analysis- Risk and Return Portfolio Theory- Sources of Funds (including regulatory framework) - Types of securities- Issuing the capital in market- Pricing of issue - Valuation of Stocks and bonds UNIT IV Capital Structure Decision - Modigliani-Millar proposition I and II - Capital structure theoriesInterface with cost of capital - Dividend policy and issue of bonus shares UNIT V Dividend Policies Financial leverage and Returns Risk and Returns Determining Optimal Capital Structure - Practice Problems REFERNCE BOOKS

PETERSON , PAMELA.P FINANCIAL MANAGEMENT & ANALYSIS McGraw Hill BODIE,ZVI,KANE,ALEX,MARCUS,ALAN J Essentials of Investment McGraw Hill