SVKM’s NMIMS ASMSOC – Course Outline

Course 742FI0C022
Code
Course Financial Management
Title
Course 1) Prof. Basavaraja P.M. – Bengaluru Campus
Instructor/s 2) Prof. Dhara Vora – Mumbai Campus
3) Dr. Rohini Bhatt – Mumbai Campus
4) Prof. Ritesh Mehta – Mumbai Campus
5) Dr. Surendar Gade – Hyderabad Campus
6) Dr. Shoaib Alam Siddiqui – Indore Campus
7) Dr Parul Mahajan – Chandigarh Campus
8) Prof. Pooja Sadane - Dhule Campus
9) Prof. Anil Thakkar – Navi Mumbai Campus

Course 4
Credit
Program S.Y.BBA - Semester IV
and
Semester
Pre- Students should have basic conceptual understanding of accounting &
Requisite finance namely financial statements and financial ratios.

Learning PLO 1 b – Apply fundamental conceptual tools in decision making

Objectives PLO 2a –Analysis and interpretation of the data which is used in
Decision Making
Learning CLO 1: Students will be able to apply the time value of money concept
Outcomes in financing decisions. (PLO 1b)
CLO 2: Students will be able to analyse and interpret the data from
financial statements related to investment and/ or financing decisions.
(PLO 2a)
Course The course will provide theoretical and practical applications in the
Description areas of corporate financial decisions i.e. investment and financing
decisions
Evaluation Specific % AOL Intended CLOs to be
Pattern Assessment Weig Instrum Assessed
Methods / Task htage ents
CLO CLO CL CL CL
1 2 O3 O4 O5
Class Test 1 10 X X
Class Test 2 10 X X
Project & VIVA 10 X x
Mid- term 20 X X
Term End 50 X X
Total 100
 Course Session Plan

Session Topics / Module Chapters (Mention Page

Numbers) / Articles / Cases /
Material and Activities
1-4 Module 1: - Financial Management by
Introduction to FM, scope & goals Khan & Jain; 8th edition;
Learning Outcomes: chapter 1: Financial
Students will be able to understand both the Management – An Overview
theoretical and practical role of financial
management in business corporations. Financial Management by I M
Pandey; 12th edition; chapter
1: Nature of Financial
Management.

(Concepts only)

5-10 Module 2: - Financial Management by

Time value of money: Khan & Jain; 8th edition;
 Concept chapter 2: Time Value of
 Compound Interest Money
 Discounting & Compounding
 Annuity, Sinking fund Financial Management by I M
 Practical application of the concept of Pandey; 12th edition; chapter
time value of money 2: Time Value of Money

Learning Outcomes:
Students will get to know how to
determine Time Value of Money by
calculating present and future values can
help them distinguish between the worth of
investments that offer returns at different
times.
11-28 Module 3: - Financial Management by
Capital budgeting: Khan & Jain; 8th edition;
 Introduction chapter 9&10: Capital
 Techniques (Payback, discounted Budgeting I & II
payback, Payback reciprocal, accounting
rate of return, NPV, IRR, Profitability Index)
 Capital rationing - Equivalent Annual Financial Management by I M
value Pandey; 12th edition; chapter
 MIRR 8: Capital Budgeting
Decisions.
Learning Outcomes:
Students will be able to analyse the
alternative Investment options available to
the individual corporation both in terms of
 their performance and capital requirements
and they will be able to understand the
importance of risk within the context of
financial decision making.
29-32 Module 4: - Financial Management by I M
Long term sources of financing: Pandey; 12th edition; chapter
 Equity 20: Long term Sources of
 Bonds & Debt finance.
 Preference shares
(Concepts only)
Learning Outcomes:
Students will be able to understand
alternative sources of finance and investment
opportunities and their suitability in
particular circumstances.

33-42 Module 5: - Financial Management by

Cost of capital: Khan & Jain; 8th edition;
 Concept, Factors effecting cost of capital chapter 10: Concept and
 Cost of equity: Measurement of Cost of
a. Dividend method capital
b. CAPM: Rf calculation, Rm calculation,
Beta calculation via Cov/Var and Financial Management by I M
levered/unlevered (Pure play method) Pandey; 12th edition; chapter
 Cost of retained earnings (same as Ke) 9: Cost of capital
 Cost of debt
a. Through YTM (Using IRR concept)
b. Through Default spread
c. Through redeemable & Irredeemable
formulas
 Cost of preference shares
 Weighted Average Cost of Capital
(WACC)
 Marginal Cost of Capital (MCOC)

Learning Outcomes:
Students will be able to explore the various
concepts of cost for different Sources of
Capital and they will be able to illustrate
these concepts in different situations.
43-56 Module 6: - Financial Management by
Capital structure: Khan & Jain; 8th edition;
 Cost & benefit of Debt chapter 20: Designing Capital
 Factors affecting capital structure Structure
 Pecking order theory (Only concept)
 EBIT EPS Analysis Financial Management by I M
 ISCR and DSCR Pandey; 12th edition; chapter
 Trading on equity (Only concept)
 Static Trade off theory (Only concept) 15: Capital Structure: Theory
Point of Indifference and Policy
Financial Break-even point
Learning Outcomes: ICAI Material
Students will learn the different combination
of debt and equity with which the firm plans
to finance its investments and they will be
able to apply this knowledge to analyse
different capital structures.
57-60 Module 7: - Financial Management by
Leverages: Concepts Khan & Jain; 8th edition;
 Types: Operating, financial and combined chapter 18: Concept and
leverage Measurement of Cost of
 Analysis and interpretation capital.

Learning Outcomes: Financial Management by I M

Students will be able to evaluate how Pandey; 12th edition; chapter
business risk and financial risk concepts can 14: Operating, Financial and
be used to analyse capital structure decisions Combined Leverage.
with respect to risks associated with a firm.

Prescribed Text Books:

Reading  Financial Management by Khan & Jain; 8th edition.
List and
References
 Financial Management by I M Pandey; 12th edition.

References:

In addition to the references mentioned above, the below books can also
be used
 Study materials of ICAI
(https://www.icai.org/post.html?post_id=17776)
 Financial Management by Prasanna Chandra; 10th edition

Note:
The Subject Will Be Taught and Tested in Pen - Paper Mode.
Normal and scientific calculators are allowed.
 Prepared by Faculty Members Approved by Approved by
Program Associate Deans
Chairperson

Prof. Basavaraja PM

Approved by I/C Dean – ASM SOC

Annexure – ICA Syllabus and Timeline

ICA Weightage Syllabus Timeline

Component
Class Test 1 10 marks Module 1 & 2 On or before 10th February,
(Introduction to FM 2024 (Campus Level)
and Time Value of
Money)
Mid Term 20 marks Module 1, 2 and 3 14 – 16 March, 2024
(Time Value of Money (Common across all Campuses)
and Capital
Budgeting)
Project & 10 marks Module 1 to 6 Mid of April (Campus Level)
VIVA
Class Test 2 10 marks Module 4, 5 & 6 (Long On or before 20th April, 2024
term sources , Cost of (Campus Level)
Capital & Capital
Structure)