FINANCE FOR MANAGERS
Programme : PGDM Batch : 2019-21
Semester : II Course Code : 204
UNIT 1 : Overview of Financial Management
Nature & scope of financial management
Objective of financial management
Agency cost theory
Emerging role of finance manager
UNIT 2 : Long Term sources of Finance
Equity share capital
Preference share capital
Debentures
Term Loans
UNIT 3 : Cost of Capital, Capital Structure & Leverage analysis
Meaning & significance of cost of capital
Methods of calculating cost of capital
Weighted Average Cost of Capital [WACC]
Meaning & significance of capital structure
Features of optimum capital structure
Meaning & types of leverage
UNIT 4 : Ratio Analysis
Financial Statements as per Schedule 3 of Companies Act
Meaning & significance of Ratio Analysis
Different types of Ratios & their interpretation
UNIT 5 : Working Capital Management
Meaning & significance of working capital
Factors of working capital
Operating Cycle
Estimation of working capital
Working capital finance
2
UNIT 6 : Capital Budgeting
Time value of money & its application
Meaning & significance of capital Budgeting
Types of Capital budgeting decisions
Methods to evaluate capital expenditure proposals – Payback period,
Accounting Rate of Return(ARR), Discounted payback period, Net Present
Value (NPV), Profitability Index( PI)
Learning Sources
1. Financial Management - Khan & Jain(TATA Mc Graw Hill)
2. Financial Management - I. M. Pandey (Vikas Publication)
3. Corporate Finance, Theory and Practice - Aswath Damodaran (Wiley Publication)
4. Fundamentals of Financial Management - Brigham and Houston