Financial Management

Paper Code: 
MTM 225
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 
  1. Develop an insight in the field of Financial Management
  2. Equip the student with basic knowledge required for financial decision making.

 

Course Outcomes:

Course

Course outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

MTM 225

Financial Management

CO 78: Apply discounting and compounding techniques to solve practical financial problems.

CO 79: Analyze risk and return associated with a security or portfolio

CO 80: Examine Cash Management, Marketable Securities Management, Receivables Management and Inventory Management.

CO 81: Calculate working capital requirements and Cost of Capital of a Company.

CO 82: Evaluate a project proposal using Capital Budgeting techniques

CO 83: Analyze Leverage; Capital Structure and Dividend policy of a company.

 

Approach in teaching:

Interactive Hours, Group Discussion, Tutorials, Case Study

 

Learning activities for the students:

Self-learning assignments, presentations

Class test, Semester end examinations, Quiz, Assignments, Presentation
 

 

12.00
Unit I: 

Introduction-Meaning, Nature, Scope, Importance and Objectives of Financial Management, Functions of a chief financial officer; Sources of finance- Long term and Short term; Indian financial system-structure and functions.
Time value of money-Compounding and Discounting concept and its applications

12.00
Unit II: 

Risk and Return-Risk of a single asset, portfolio theory and risk diversification, Systematic and unsystematic risk, Capital Asset pricing model (CAPM)- Assumptions, CAPM equation, Security Market line (SML)
Cash and Marketable securities management- Meaning and Principles of cash management;

12.00
Unit III: 

Management of working capital-Meaning, Estimation of working capital requirements, Working capital financing by banks
Receivables management- Meaning and importance;
Inventory management- Meaning, objectives and techniques-Economic order quantity, Re-order point, Fixing stock levels.

12.00
Unit IV: 

Cost of Capital- Meaning, Cost of Debt, Preference and Equity Capital, Weighted average cost of capital;
Capital Budgeting- Concept, need and objectives; Methods of Capital budgeting –Average Rate of Return, Payback period, Net present value, Internal Rate of Return, Profitability Index.

12.00
Unit V: 

Leverage-Meaning, types of leverages and their significance
Capital Structure-Meaning, considerations in capital structure planning
Dividend Policy- Meaning, Factors affecting dividend decisions, Alternative forms of dividends, Types of dividend policies, Dividend policy models-Assumptions and criticism

Essential Readings: 
  • Chandra Prassana, Financial Management, Tata McGraw Hill, 9th Edition
References: 

• Brigham Houston, Fundamentals of Financial Management, Cengage Learning, Thirteenth Edition

• I M Pandey “Financial Management”, Vikas Publications

• Vyuptkesh Sharan, Fundamentals of Financial Management, Pearson, Third Edition

• Khan & Jain, “Financial Management”. Tata McGraw Hill, 7e

• Van Horne, Financial Management, PHI

• Rustagi R.P, Fundamentals of Financial Management, Taxmann

Academic Year: 
2023-2024
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