M.B.A.

(Business Analytics)

Course Specifications: Corporate Finance

Course Title Corporate Finance

Course Code 19MBA513B
Course Type Core Theory Course
Department Management Studies
Faculty Management and Commerce

1. Course Summary

The course deals with formulation and implementation of financial decisions in a company.
Analytical ability of students is honed through concepts in order to increase firm shareholder
value. Students are taught concepts of cash management, inventory management, capital
budgeting and cost of capital. In addition, value-based management and dividend decision will be
discussed. Students are taught to evaluate tradeoff between risk and return. Further, students are
taught tools and techniques to measure asset volatility and performance in the context of a
corporation.

2. Course Size and Credits:

Number of Credits 04
Credit Structure (Lecture: Tutorial: Practical) 4:0:0
Total Hours of Interaction 70
Number of Weeks in a Semester 15
Department Responsible Management Studies
Total Course Marks 100
Pass Criterion As per the Academic Regulations
Attendance Requirement As per the Academic Regulations

3. Course Outcomes (COs)

After the successful completion of this course, the student will be able to:

CO-1. Discuss the essential principles of Financial Management

CO-2. Discuss cost of capital, capital budget, inventory value and working capital
CO-3. Analyse problems and provide solutions pertinent to the financial management
function
CO-4. Analyse financial decisions for value maximization
CO-5. Demonstrate use of financial techniques and tools in financial investment, dividend
distribution and asset management
CO-6. Solve problems related to finding optimum capital structure

4. Course Contents

Unit 1 Indian Financial system and Financial Markets: Salient features of Indian Financial System,
resource mobilization, Channelization of funds, Equity, Debt and Currency markets, markets for
short term financing requirements, financial sector reforms and financial markets, contemporary
issues

Unit 2 Introduction to Financial management: The role of Financial Management, Introduction, The

Faculty of Management and Commerce

 M.B.A. (Business Analytics)

goal of a firm, Corporate governance, Organisation of Financial Management function, The Business
Environment, The Tax Environment, The Financial Environment.

Unit 3 Valuation: The Time Value of Money, the valuation of Long-term securities; Bond Valuation,
Preferred stock valuation, Common stock Valuation, Risk and Return; Defining Risk and return,
Risk and return in portfolio context, The Capital –Asset Pricing Model (CAPM), Efficient Financial
Market.
Flow of Funds Statements, Cash Flow forecasting, Cash flow estimates.

Unit 4 Working capital Management: Overview of Working Capital Management, cash and
Marketable Securities Management, Accounting Receivables and Inventory Management, Short –
Term Financing

Unit 5 Investment in Capital Assets: Capital Budgeting and Estimating Cash flows, Capital
Budgeting Techniques

Unit 6 The Cost of Capital, Capital Structure, and Dividend Policy: Required Returns and the Cost
of Capital, Operating and Financial Leverage, Capital Structure Determination, Dividend Policy

Unit 7 Intermediate and Long-Term Financing: The Capital Market, Long-Term Debt, Preferred
Stock, and Common Stock, Term Loans and Leases

Course Map (CO-PO-PSO Map)

Programme Specific Outcomes (PSOs)

PO-1 PO-2 PO-3 PO-4 PO-5 PO-6 PO-7 PO-8 PO-9 PO-10 PO-11 PSO-1 PSO-2 PSO-3 PSO-4
CO-1 3 1 1 1 1 1
CO-2 2 3 1 2
CO-3 3 2 1 1 1
CO-4 1 3 2 1 1 1
CO-5 3 2 1 1 1
CO-6 2 3 1 1 1

5. Course Teaching and Learning Methods

Total Duration
Teaching and Learning Methods Duration in hours
in Hours
Face to Face Lectures 42
Demonstrations
1. Demonstration using Videos 00
00
2. Demonstration using Physical Models / Systems 00
3. Demonstration on a Computer 00
Numeracy
10
1. Solving Numerical Problems 10
Practical Work 00
1. Course Laboratory 00

Faculty of Management and Commerce

 M.B.A. (Business Analytics)

2. Computer Laboratory 00
3. Engineering Workshop / Course/Workshop /
00
Kitchen
4. Clinical Laboratory 00
5. Hospital 00
6. Model Studio 00
Others
1. Case Study Presentation 03
2. Guest Lecture 00
3. Industry / Field Visit 00 08
4. Brain Storming Sessions 05
5. Group Discussions 00
6. Discussing Possible Innovations 00
Term Tests, Laboratory Examination/Written Examination, Presentations 10
Total Duration in Hours 70
6. Course Assessment and Reassessment

The details of the components and subcomponents of course assessment are presented in the
Programme Specifications document pertaining to the M.B.A (Business Analytics). The procedure to
determine the final course marks is also presented in the Programme Specifications document.
The evaluation questions are set to measure the attainment of the COs. In either component (CE or
SEE) or subcomponent of CE (SC1, SC2, SC3 or SC4), COs are assessed as illustrated in the following
Table.

Focus of COs on each Component or Subcomponent of Evaluation

Component
  Component 1: CE (50% Weightage) 2: SEE (50%
Weightage)
Subcomponent ► SC1 SC2 SC3 SC4
Assignmen Group
Subcomponent Type ► Term Test Term Test
t Task 100 Marks
Maximum Marks ► 25 25 25 25
CO-1 🞫 🞫   🞫 🞫 
CO-2 🞫 🞫 🞫  🞫 
CO-3 🞫  🞫 🞫 
CO-4 🞫  🞫 🞫 
CO-5      🞫 🞫
CO-6 🞫 🞫
The details of SC1, SC2, SC3 or SC4 are presented in the Programme Specifications
Document.

The Course Leader assigned to the course, in consultation with the Head of the Department, shall
provide the focus of COs in each component of assessment in the above template at the beginning
of the semester.

Course reassessment policies are presented in the Academic Regulations document.

Faculty of Management and Commerce

 M.B.A. (Business Analytics)

7. Achieving COs
The following skills are directly or indirectly imparted to the students in the following teaching
and learning methods:

S. No Curriculum and Capabilities Skills How imparted during the course

1. Knowledge Classroom lectures
2. Understanding Classroom lectures, Self-study
3. Critical Skills Assignment
4. Analytical Skills Assignment
5. Problem Solving Skills Assignment, Examination
6. Practical Skills Assignment
7. Group Work --
8. Self-Learning Self-study
9. Written Communication Skills Assignment, Examination
10. Verbal Communication Skills --
11. Presentation Skills --
12. Behavioral Skills --
13. Information Management Assignment
14. Personal Management --
15. Leadership Skills --
8. Course Resources

a. Essential Reading
1. Class Notes
2. Text Book: Van Horne, James C and Wachowicz, John M (2015)
Fundamentals of Financial Management, 13th edition, Pearson
Education India.
b. Recommended Reading
1. Brealey, R. and Myers, S. (2014) Principles of corporate Finance. 7th edition,
McGraw Hill.
2. Gitman, L. and Zutter, C. (2012) Principles of Managerial Finance. 13th Edition,
Prentice Hall.
3. Keown, A., Martin, J. and Petty, W. (2017) Foundations of Finance.
9th Edition, Pearson Education Limited.

c. Magazines and Journals

1. The Economist
2. CFO magazine
3. eJournal of Management Accounting Research, American Accounting
Association
4. Chartered Secretary, CSA publications
5. Finance India, Review Publishing Company Ltd

Faculty of Management and Commerce

 M.B.A. (Business Analytics)

6. Forbes India – Reliance Industries, Monthly

7. Business India - Fortnightly
8. Business Today – Bi-weekly

d. Websites
1. http://www.exinfm.com
2. http://www.quickmba.com/accounting/fin/
3. http://www.economist.com
4. http://www.ft.com

e. Other Electronic Resources

1. Software: MS Excel

9. Course Organization

Course Code 19BFS513B

Course Title Corporate Finance
Course Leader’s Name As per time table
Phone: 080-4536 6666
Course Leader’s Contact Details
E-mail: As per time table
Course Specifications Approval Date 23rd October 2020
Next Course Specifications Review Date May-2022

Faculty of Management and Commerce