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FM Syllabus For Students

The document outlines the course structure for CORE XVI - Financial Management, aimed at B. Com and B.B.A students, with a focus on financial management concepts, capital structure, and working capital management. It details course objectives, unit topics including functions of finance, sources of finance, dividend theories, capital budgeting, and working capital management, along with recommended textbooks and references. The course comprises 60 teaching hours and is assessed with a theory to problem ratio of 40:60.

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82 views2 pages

FM Syllabus For Students

The document outlines the course structure for CORE XVI - Financial Management, aimed at B. Com and B.B.A students, with a focus on financial management concepts, capital structure, and working capital management. It details course objectives, unit topics including functions of finance, sources of finance, dividend theories, capital budgeting, and working capital management, along with recommended textbooks and references. The course comprises 60 teaching hours and is assessed with a theory to problem ratio of 40:60.

Uploaded by

vaishalichakravarthi
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CORE XVI - FINANCIAL MANAGEMENT

COMMON TO B. Com (Accounting & Finance), B. Com (Corporate Secretaryship) &


B.B.A.

COURSE CODE: YEAR/SEMESTER: III/ 1. MAXIMUM MARKS


17UCOM314 VI
:100
COURSE TYPE: 1. CREDITS: TOTAL TEACHING
4
THEORY HOURS 60

GENERAL COURSE OBJECTIVE


To explain the concept and significance of financial management, compute cost of capital and
evaluate the capital structure decisions.

COURSE OBJECTIVES (Co)

Co Course Objectives
No.
Co1 To understand the scope, objectives, importance and functional areas of financial
Management
Co2 To identify the sources and cost of various types of capital and its consequent
impact on capital structure
Co3 To understand the various dividend theories and models
Co4 To understand the different methods of capital budgeting and risk analysis
Co5 To demonstrate the working capital cycle and the management of various
components within.

UNIT I
Functions of Finance
Financial Management: Meaning, Definition, Scope, Nature and Objectives- Profit
Maximization – Wealth Maximization –Financial Management Functions - Role of a CFO.
(10 hrs)
UNIT II
Sources of Finance, Cost of Capital & Capital Structure
Composition and Sources of Long Term Finance and Short Term Finance - Difference
between Short and Long Term Finance
Cost of Capital- Basic concepts, Cost of equity, Cost of Debt, Cost of Preference capital,
Cost of Retained Earnings, Weighted Average Cost of capital. (Problem based)
Capital structure
Capital structure planning (basic aspects) - Determining Debt and Equity proportion.
(Excluding Theories of capital structure) - Leverage: Financial, Operating and combined.
(Problem based)
(12 hrs)

UNIT III
Dividend Theories
Introduction, Meaning, Types of Dividend, Nature of Dividend Policy, Objectives of
Dividend Policy, Factors Determining Dividend Policy. Dividend Theories- Walter &
Gordon, MM theory. (12 hrs)

UNIT IV
Capital Budgeting
Meaning, Definition, Need and Significance of Capital Budgeting, Factors Influencing
Capital Budgeting Decisions- Capital Budgeting Process-Evaluation of Capital Budgeting
Proposals- Payback, Discounted Cash flow, NPV, ARR, IRR and Profitability Index.
(Problem based).
Risk Analysis in Capital Budgeting: Incorporation of Risk Factor in Capital Budgeting-
General Techniques- Risk Adjusted Discount Rate Method, Certainty Equivalent Method,
Sensitivity Analysis, Probability Assignment, Standard Deviation & Coefficient of Variation,
Decision Tree Analysis(Theory based). (14
hrs)

UNIT V
Working capital management:
Meaning, Gross and Net Concepts, Working Capital Cycle, Determinants of Working Capital
Requirements, Significance of Working Capital – Inventory Management, Management of
Cash and Management of Receivables. (Problem based) (12 hrs)

Theory: Problem Ratio - 40:60


TEXT BOOKS
 A.Murthy, Financial Management, Second Edition Reprint 2018, Margham
Publications
 Dr.S.N.Maheshwari, Elements of Financial Management, Edition 2010,Sultan Chand
& Sons, New Delhi
 Dr. Kulkarni and Dr. Sathya Prasad, Financial Management, 13 Revised Edition 2011
th

REFERENCES BOOKS
 PrasanaChandra, Financial Management, 2008 Tata Mc.GrawHill, New Delhi
 I.M.Pandey, Financial Management, 2009 Vikas Publishing
 Khan &Jain ,Financial Management, Edition 2009, Sultan Chand & Sons

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