GUJARAT TECHNOLOGICAL UNIVERSITY
With effective
Syllabus for Master of Business Administration, 2nd Semester from academic
Subject Name: Corporate Finance (CF) year 2018-19
Subject Code: 4529202
1. Learning Outcomes:
Learning Outcome Component Learning Outcome
Business Environment and Domain Acquire, interpret, and analyze accounting,
Knowledge (BEDK) economic, and financial data to facilitate decision
making in corporate and investment environments
in both personal and professional settings.
Critical thinking, Business Analysis, Critically evaluate corporate finance techniques
Problem Solving and Innovative
Solutions (CBPI)
Social Responsiveness and Ethics Make sound and ethical financial decisions in a
(SRE) risky business environment
2. Course Duration: The course duration is of 40 sessions of 60 minutes each.
3. Course Contents:
Module Module Content No. of 70 Marks
No: Sessions (External
Evaluation)
Overview of Financial Management:
Meaning, Objectives, Scope, Role and Functions of
Financial Management (Financial Decisions).
Financial Goal - Profit Maximization versus
Shareholders’ Wealth Maximization.
Time value of Money: (theory and numerical)
I Concepts, Compounding, Discounting, Annuities. 10 17
Sources of Long-Term Finance:
Introduction to Equity Shares, Preference Shares and
Debentures, Term loan.
Valuation of Bonds, Preference shares and Equity.
(numerical)
Understanding Investment Decisions (Capital Budgeting
Decisions):
Meaning, Features
Types and Importance of Investment Decisions
o Discounted Cash Flow (DCF)
NPV, IRR, MIRR, PI, Discounted
II Payback 10 18
o Non-Discounted Cash Flow Techniques
ARR, Payback period
Capital Rationing (theory and numerical)
Understanding Dividend Decision:
Dividend and dividend policy
Page no. 1 of 4
GUJARAT TECHNOLOGICAL UNIVERSITY
With effective
Syllabus for Master of Business Administration, 2nd Semester from academic
Subject Name: Corporate Finance (CF) year 2018-19
Subject Code: 4529202
Factors affecting dividend payout
Dividend payment models: (theory and numerical)
o Dividend relevance model
Walter model
Gordon model
o Dividend irrelevance model
MM model
Basics of Decision Tree Analysis (1-level and 2-level)
(theory only)
Cost of Capital: (theory and numerical)
Significance, Concept of the Opportunity Cost of Capital
Component Costs of Capital - Cost of Debt, Preference
Capital and Equity Capital
Weighted Average Cost of Capital (WACC)
Leverage: (theory and numerical)
Types of Leverage - Operating, Financial and Combined
III 10 18
Leverage.
Point of indifference
Understanding Financing Decisions (Capital Structure
Decisions): (theory and numerical)
NI Approach
NOI Approach
MM Theory with and without Taxes
Working Capital Management:
Concepts of Working Capital.
Operating Cycle.
Determinants of Working Capital.
Estimating Working Capital Needs. (theory and
numerical)
Working Capital Finance Policies.
o Matching approach, conservative approach,
aggressive approach.
IV Cash Management: (theory and numerical) 10 17
Need for Cash Management.
Cash Management Cycle.
Cash Forecasting through budgeting.
Determining the Optimum Cash Balance under Certainty
(Baumol’s Model) and Uncertainty (The Miller- Orr
Model).
Receivables Management:
Nature and Goals of Credit Policy
Credit Policy Variables(theory and numerical)
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GUJARAT TECHNOLOGICAL UNIVERSITY
With effective
Syllabus for Master of Business Administration, 2nd Semester from academic
Subject Name: Corporate Finance (CF) year 2018-19
Subject Code: 4529202
Application:
Select suitable organization and study:
The role and functions of Finance department;
(30 marks
V Select Scrip or bonds and do the valuation of its ---
CEC)
Securities;
Study the investment decisions,
working capital policy and cash budgeting etc.
4. Pedagogy:
ICT enabled Classroom teaching
Case study
Practical / live assignment
Interactive class room discussions
5. Evaluation:
Students shall be evaluated on the following components:
Internal Evaluation (Internal Assessment- 50 Marks)
A Continuous Evaluation Component 30 marks
Class Presence & Participation 10 marks
Quiz 10 marks
B Mid-Semester examination (Internal Assessment-30 Marks)
C End –Semester Examination (External Assessment-70 Marks)
6. Reference Books:
No. Author Name of the Book Publisher Year of
Publication /
Edition
Prasanna Chandra Financial Management, McGraw - Latest Edition
1
theory and Practice Hill
2 I M Pandey Financial Management Vikas Latest Edition
M. Y. Khan and P. Financial Management McGraw - Latest Edition
3
K. Jain Hill
Rajiv Srivastava & Financial Management Oxford
4
Anil Misra Latest Edition
Ravi Kishore Financial Management – Taxmann Latest Edition
5
Problems and Solutions
6 P C Tulasiyani Financial Management S. Chand Latest Edition
P. V. Kulkarni and B. Financial Management Himalaya 14th Revised
7
G. Satyaprasad Edition
Eugene F. Brigham Financial Management: South 14th Edition
8 Theory and Practice Western
College
Vyuptakesh Sharan Fundamentals of Financial Pearson 3rd Edition
9
Management
R. P. Rastogi Financial Taxmann Latest Edition
10
Management
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GUJARAT TECHNOLOGICAL UNIVERSITY
With effective
Syllabus for Master of Business Administration, 2nd Semester from academic
Subject Name: Corporate Finance (CF) year 2018-19
Subject Code: 4529202
V Pattabhi Ram and S D Strategic Financial Snow Latest Edition
11
Bala Management white
Dr. J.B. Gupta Strategic Financial Taxmann Latest Edition
12
Management
Note: Wherever the standard books are not available for the topic appropriate print and online
resources, journals and books published by different authors may be prescribed.
7. List of Journals / Periodicals / Magazines / Newspapers / Web resources, etc.
1. News Paper: Business Standard, Economic Times, Times of India
2. Journals: Finance India, Global Journal of Finance & Management, Journal of
Business & Financial Affairs etc.
3. Websites pertaining to companies, capital market, RBI etc.
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