Text Book : –
Fundamentals of Financial Management [ Download ]
References : –
- Financial Management Policy (12th Edition) by james C.Van Horne .
- Managerial Finance (Latest Edition) by Jae-R. Shim & Joel Siegel .
- Finance (Preliminary Edition) by Zvi Bodies & Robert C. Merton, Prentice Hall .
Course Description : –
Provides a comprehensive introduction to financial management & financial analysis. Focus is on creating shareholder value. Topics include financial modelling, the time value of money, stock & bond valuation, capital budgeting & net present value, risk & diversification, & the Capital Asset Pricing Model .
- Introduction to Financial Management .
- 1.1: What is financial management ?
- 1.2: Goal of the firm .
- 1.3: Discuss potential agency problems .
- 1.4: Stockholders versus managers .
- 1.5: Stockholders versus creditors .
- Business, tax, and Financial Environments .
- 2.1: Sole proprietorships .
- 2.2: Partnerships and Corporations .
- 2.3: Corporate income taxes and personal income taxes .
- 2.4: Flow of funds in the economy .
- 2.5: Financial Institutions and Financial Markets role .
- 2.6: Interest rates (Real, Nominal and Risk premium) .
- Time Value of Money .
- 3.1: Calculate the future value (FV) or present value (PV) of a single sum of money .
- 3.2: Calculate the interest rate or time period for single-sum problems .
- 3.3: Calculate the FV or PV of an annuity and an annuity due .
- 3.4: Calculate the payments, interest rate, or time period for annuity and annuity due problems .
- 3.5: Calculate the value, cash flow, or interest rate in a perpetuity problem .
- Capital Budgeting Techniques .
- 4.1: Project evaluation and selection: Alternative methods .
- 4.2: Payback period .
- 4.3: Discounted payback period .
- 4.4: Net present value (VPN) and internal rate of return (IRR) .
- 4.5: Explain the relative advantages and disadvantages of the NPV and IRR methods .
- 4.6: Particularly with respect to independent versus mutually exclusive projects .
- 4.7: Describe and calculate the modified IRR (MIRR) .
- 4.8: Explain the “multiple IRR problem” and the condition that can cause the problem .
- 4.9: Explain why NPV, IRR, and MIRR methods can produce conflicting rankings for capital projects .
- Cost of Capital .
- 5.1: Determining Individual Cost of Capital .
- 5.2: Cost of Debt .
- 5.3: Cost of Preferred Stock .
- 5.4: Cost of Internally generated & External Equity .
- 5.5: Factors determining the firms cost of capital .
- 5.6: Computation of Weighted Average Cost of Capital .
- Bond Valuation .
- 6.1: Key Features of Bonds .
- 6.2: Bond Valuation .
- 6.3: Measuring Yield .
- 6.4: Assessing Risk .
- 6.5: Case Study (Class Activity) .
- Stock Valuation .
- 7.1: Legal Rights & Privileges of Common Stockholders .
- 7.2: Types of Common Stock .
- 7.3: Types of Stock Market Transactions .
- 7.4: Common Stock Valuation, P/E Multiplier Approach, Dividend Models .
- Overview of Working Capital Management .
- 8.1: Working Capital management concept .
- 8.2: Significance of working capital management .
- 8.3: Profitability and Risk .
- 8.4: Working Issues :
- 8.5: Optimal amount of current assets .
- 8.6: Financing current assets .
- Account Receivable and Inventory Management .
- 9.1: Credit and collection policies .
- 9.2: Inventory management and control .
- Short-term Financing .
- 10.1: Spontaneous Financing .
- 10.2: Negotiated Financing .
- 10.3: Factoring Accounts Receivable .
- 10.4: Composition of Short-term Financing .