INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE

IIM Kozhikode Campus P.O. Kozhikode- 673 570

Course Code EPGP-205

Course Title Financial Management-I (FM1)
Instructor Prof. S S S Kumar
Contact E-mail id and Phone No.
Course credit 2
Session duration 2.5 Hours
Term/Quarter/Year Term-1/ Quarter-II /2020-21
Core/Elective/Workshop CORE
Area* Finance

1. Course Description
Many managers assume that finance is an affair of the accounts department but the fact of the matter is
most managerial roles necessarily involves understanding financial jargon and all functional managers
should be knowledgeable enough in finance so that their domain decisions are not financially unwise
or uneconomical. This course focuses mostly on the investment decisions of a firm and takes you
through the investment decision-making aspects using cashflow analysis.

2. Learning Outcomes :
After completion of the course the participants:
I. Be capable to perform time-value computations
II. Be able to evaluate capital budgeting projects using both DCF and non-DCF methods
III. Be able to perform risk and return analysis on basic financial instruments and conversant with
basic portfolio theory
IV. Be able to value bonds and equity shares

3. Pedagogy
All the concepts will be discussed in the lecture mode followed by working out exercises and caselets.
We will try to work out some of the problems in the class and some will be handed out as assignments.
Please come to the class with a calculator capable of computing exp, nth root etc functions.

4. Required Text Book

i. Financial Management by Titman, Keown and Martin (13/e) Pearson India

-Reference**
ii. Principles of Corporate Finance by Brealey and Myers 7/e
iii. Corporate Finance by Ross, Westerfield and Jaffe 7/e
iv. Corporate Finance by Aswath Damodaran

-Additional reading

5. Evaluation Components

Component Weightage
Quizzes 40%
Submissions 10%
End term 50%
TOTAL 100%
6. Session Details:

Session No. Topics Readings Cases Remarks

1 Understanding financial markets Handout
2 Time value of Money – Basics Chap 5
3 Time value of Money – Annuities and other topics Chap 6
4 Capital budgeting techniques Chap 11
5 Capital budgeting techniques Chap 11
6 Estimating Cash flows Chap 12
7 Valuation of Bonds Chap 9
8 Valuation of Stocks Chap 10
*Marketing, Strategy, Finance, OM, OB&HR, ITM, HLAM, Economics
**Texts, articles, journals etc.

Signature of the Faculty