Course Details
Subject {L-T-P / C} : SM6102 : Financial Management { 3-0-0 / 3}
Subject Nature : Theory
Coordinator : Dr. Dushyant Ashok Mahadik
Syllabus
Financial Management : An Overview, Theoretical Concept of Finance, Profit Maximization vs.
Wealth Maximization, Functions of Finance Manager in Modern Age, Financial Decision areas, Time Value of Money, Risk and Return Analysis.
Financing Decision: Long-term Sources of Finance, Concept and Approaches of Capital Structure Decision, Measurement of Specific Cost of Capital, Computation of Overall Cost of Capital, Cost of Capital Practices in India. Leverage Analysis along with Implications, EBIT-EPS Analysis and Indifference Points.
Investment Decision: Appraisal of Project, Techniques and its Applications of Capital Budgeting, Risk and Uncertainty in Capital Budgeting,
Dividend Decision: Concept of Retained Earnings and Plough Back of Profits, Relevance and Irrelevance Theories of Dividend Decision, Factors Affecting Dividend Decision.
Course Objectives
- To understand the principles behind financial decision making.
- To be able to assess financial health of an organization or a project.
- To appreciate the operation of capital markets.
Course Outcomes
This course will provide an understanding of the function, the roles, the goals and the processes of <br />corporate Financial Management. On successful completion, the student will be able to check financial soundness of decisions such as project approval, securities investment, etc.
Essential Reading
- Pandey, I. M., Financial Management, Vikas Publications , (10thed 2013)
- Brealey R A, Myers S C, Allen F and Mohanty, Principles of Corporate Finance, McGrawHill , 12th Edition
Supplementary Reading
- Chandra, P., Financial Management Theory and Practice, TMH. , 8th Ed
- Bhaduri, S. and Van Horne, J., &Wachowicz, J., Fundamentals of Financial Management., Pearson Education Limited