Course Outcomes (COs):
Course Outcomes |
Learning and teaching strategies |
Assessment Strategies |
On completion of this course, the students will be able to;
CO 77: Apply discounting and compounding techniques to solve practical financial problems. CO 78: Analyze risk and return associated with a security or portfolio CO 79: Examine Cash Management, Marketable Securities Management, Receivables Management and Inventory Management. CO 80: Calculate working capital requirements and Cost of Capital of a Company. CO 81: Evaluate a project proposal using Capital Budgeting techniques CO 82: Analyze Leverage; Capital Structure and Dividend policy of a company. |
Approach in teaching: Interactive Lectures, Group Discussion, Tutorials, Case Study
Learning activities for the students: Self-learning assignments, presentations |
Class test, Semester end examinations, Quiz, Assignments, Presentation |
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
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;
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.
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.
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
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