Course Name: Advanced Financial Management Course Code: BBF434

Total Number of Hours: 60 Credits: 4

Course Description: The course is designed to gain understanding on various aspects of
advanced concepts like advanced investment appraisal techniques and mergers/acquisition
tools. The course provides comprehensive analysis of financial management by introducing
concepts short-term and long-term financing, mergers, business failures, and reorganizations.
To apply the learning at a senior financial executive or advisor level relating to the financial
management of an organization.

Course Outcomes: By the end of the course the learner will be able to:
1. Application of relevant knowledge, skills and exercise professional judgments to evaluate
the role and responsibility of the senior financial executive or advisor in meeting
conflicting needs of stakeholders.

2. Manage international trade and finance for multinational organizations

3. To evaluate potential investment decisions and assessing their financial and strategic
consequences

4. Analyze valuation of Mergers and Acquisition and able to interpret pre and post mergers
and acquisition

5. Gain knowledge about the current trends in finance and financial management

Unit 1: Role and responsibility towards stakeholders Hours: 10

The role and responsibility of senior financial executive/advisor, financial strategy formulation,
Conflicting stakeholder interests, Ethical issues in financial management, Environmental issues
and integrated reporting

Unit 2: Economic environment for multinational organizations Hours: 10

Management of international trade and finance, Strategic business and financial planning for
multinational organizations

Unit 3: Advanced investment appraisal Hours: 10

Discounted cash flow techniques, Application of option pricing theory in investment decisions;
Impact of financing on investment decisions and adjusted present values, Valuation and the use
of free cash flows, International investment and financing decisions.

Unit 4: Acquisitions and mergers Hours: 8

Acquisitions and mergers versus other growth strategies, Valuation for acquisitions and
mergers, Regulatory framework and processes, Financing acquisitions and mergers.
Unit 5: Corporate reconstruction and re-organization Hours: 6
Financial reconstruction, Business re-organization,

Unit 6: Treasury and advanced risk management techniques Hours: 10

The role of the treasury function in multinationals, the use of financial derivatives to hedge
against forex risk, the use of financial derivatives to hedge against interest rate risk, Dividend
policy in multinationals and transfer pricing.

Unit 7: Emerging issues in finance and financial management. Hours: 6

Developments in world financial markets, Developments in international trade and finance,
Developments in Islamic financing.

Essential References:
1. Prasanna Chandra: Financial Management 2011-Tata McGraw-Hill publishing company

2. M.Y. Khan &P.K Jain: Financial Management 2012-Tata McGraw-Hill publishing

company

3. James C.Van Horne: Fundamentals of Financial Management2001, Prentice- Hall India.

4. Ravi.M.Kishore: Financial Management2011-Taxman Publications

Recommended References:
1. James C.Van Horne: Fundamentals of Financial Management 2001, Prentice- Hall India

2. Satyaprasad, B. G., & Raghu, G. H. (2009). Advanced Financial Management. Bangalore:

Himalaya Publishing Houses

3. Acharya Shruthi. (2016). Advanced Financial Management. Chamrajpet: Skyward

Publishers

4. ICAI. (2020). Financial Management. The Institute of Chartered accountants of India,

ICAI Bhavan, Indraprastha Marg, New Delhi