Financial Management & Corporate Finance

Introduction to Finance & Corporate Finance: Corporate Finance & its scope, Corporate Governance and Agency Problem, Finance & Corporate Strategy, Time Value of Money, Risk and Return. Types of Financial Markets: Capital Market, Factors affecting Financial Markets, Linkages between Economy & Financial Markets, Integration of Indian Financial Markets with Global Financial Markets.

Investment and Financing Decision: Capital Budgeting, Nature of investment decisions, Risk Analysis in investment decisions, Concept of Opportunity Cost, Cost of Debenture, Preference and Equity capital, Composite Cost of Capital, Cash Flows as Profit and components of Cash Flows, Capital Budgeting Decisions, Calculation of NPV and IRR, Excel Application in Analysing Projects.

Financial Decision: Capital Structure, Relevance and Irrelevancy theory, Leverage analysis – financial, operating and combined leverage along with its implications, EBIT EPS Analysis, Point of Indifference.

Dividend Relevance: Factors affecting Dividend Policy, Forms of Dividends, Types of Dividend Policies, Dividend Models: Walter and Gordon Model, Miller- Modigliani (MM) Hypothesis. Theories of Dividend Payout (Dividend Irreverence Theory, Bird- in the hand Theory, Tax Preference Theory.

Working Capital Management : Concepts & Principles of Working Capital, Need for working capital, Classification and importance of working capital, Working capital cycle, Inventory Management, Cash Management, Accounts receivable Management and Factoring, Credit policy, Financing working capital.