Course Objectives :This course provides a comprehensive coverage of all the essential and basic concepts of financial management and provides required basic knowledge of Finance to all the students/practicing managers, as this is a core course. Students who want to learn more about Finance can choose Finance as their specialization and learn Finance in more detail.Target Learners :The course for learners/students of IGNOU for MBA courses. As the course provides comprehensive coverage to almost all the concepts of financial management therefore it will also be beneficial for students who are either enrolled for any of the Post Graduation Degree having financial management as one of the courses.Apart from students the course will also be beneficial for practicing managers.
Overview
Syllabus
Week
Tentative Topic
01
Introduction to course : course coverage, exam pattern
Financial Management : An introduction
· Introduction
· Scope of financial management
· Objectives of financial management
· Role and responsibility of finance manager
Types of Securities
Equity shares : meaning and features
Preference shares : meaning and features
Debentures : meaning, features and types
Time Value of Money
Concept of present value of money
· Present value of lump sum amount
· Present value of an annuity
· Present value of an advance annuity
· Present value of a perpetuity
Time Value of money continued
Concept of Future value of money
· Future value of lump sum amount
· Future value of an annuity
· Future value of an advance annuity
Practice/Demo session on time value of money
02
Risk and Return
· Meaning of return – holding period return vs. yield till maturity
· Measuring return
Risk and return continued
· Meaning and types of risk in investment- systematic vs. non-systematic risk
· Measuring historical risk
· Measuring expected risk
Practice/Demo session on risk and return calculation
Valuation of securities
· Valuation of debentures
· Valuation of preference shares
Valuation of securities continued
Valuation of equity shares
· Dividend capitalization approach
· Earning capitalization approach
03
Practice session on valuation of securities -I
Practice session on valuation of securities - II
Cost of Capital
· Meaning of cost of capital
· Cost of Long-term debt
· Cost of preference share capital
Cost of capital continued
· Cost of equity share capital
· Cost of retained earning
Cost of capital continued
· Weighted average cost of capital
· Marginal cost of capital
04
Practice session on cost of capital - I
Practice session on cost of capital - II
Investment Appraisal Methods
· Meaning and need of investment decision
· Investment appraisal process
· Investment appraisal methods – brief description
Investment Appraisal Methods continued
Non-discounted methods
· Payback Period Method
· Accounting Rate of Return Method (ARR)
Practice session on payback method and ARR
05
Investment Appraisal Methods continued
Discounted methods
· NPV Method
· PI Method
Investment Appraisal Methods continued
· IRR Method
Practice session on NPV/PI/IRR
Management of Working Capital
· Introduction and significance of working capital
· Concept of operating cycle
Management of Working Capital continued
· Components of working capital
· Determinants of working capital
06
Management of Working Capital continued
· Measuring working capital
Practice session on measuring working capital
Financial Markets An Introduction
· Introduction and Role of Financial Markets
· Money Market – brief description
· Capital Market – brief description
Financial Markets continued
· Derivatives Market
Financial markets continued
· Currency market
07
Sources of Finance
· Introduction
· Types of sources
Capital Structure
· Concept and its Features
· Determinants of Capital Structure
Leverage Analysis continued
· Financial Leverage
· Degree of Financial Leverage
· Combined Leverage
Practice session on leverage analysis
08
Dividend Decisions
· Dividend Theories
· Dividend Policies
Emerging Issues and Recent Trends in Finance
· Behavioural Finance
· Financial re-engineering
Venture Capital finance
Discussion about financial market scams in India Capital and Money Market
Emerging Trends in Banking Industry
Taught by
Dr. Dhanesh Kumar Khatri
