Syllabus 4th sem BBA LLB Calicut University Financial Management

C.M.13 Financial Management

 

Course objectives: 

  1.  To familiarize the students with the concepts, tools and practices of financial management, and,
  2.  To learn about the decisions and processes of financial management in a business firm.

Module I

Financial management: meaning, nature and scope of finance; financial goals: profit maximization, wealth maximization; finance functions,- investment, financing and dividend decisions.
 

Module II

Capital budgeting: nature of investment decisions; investment evaluation criteria- net present value, internal rate of return, profitability index, payback period, accounting rate of return , NPV and IRR comparison; capital rationing; risk analysis in capital budgeting.
 

Module III

Working capital: meaning, significance and types of working capital; financing of working capital; sources of working capital; management of inventory; management of cash; management of account receivables; optimum credit policy; credit collection; factoring service; various committee reports on bank finance; dimensions of working capital management.


Module IV

Capital structure theories: traditional and MM hypotheses; determining capital structure in practice; Capital structure planning. 
Cost of capital: meaning and significance of cost of capital; calculation of cost of debt, preference capital, equity capital and retained earnings;
Operating and financial leverages; measurement of leverages; effects of operating and financial leverages on profit.
 

Module V

Dividend decisions—Types of dividend- dividend models—principles of dividend policy— practical aspects of dividend .
 

Books:

  1.  Battacharya, Hrishikas: Working Capital Management: Strategies and Techniques; Prentice Hall of India, New Delhi.
  2.  Chandra, Prasanna: Financial Management; Tata McGraw Hill, Delhi
  3.  Pandey, I.M.: Finanical Management, Prentice Hall of India, New Delhi.
  4.  Khan M.Y. and Jain P.k.: Financial Management; Tata McGraw Hill, Delhi.
  5.  Vanhorne, J.C.: Financial Management and Policy; Prentice Hall of India, New Delhi.
  6. Ravi M kishore: Fundamentals of Financial Management ( Tax man)