MBA Syllabus for Semester I (first)
Subject: Financial Management
Reason for studying Financial Management: The main reason for studying this subject is to develop a conceptual frame work of finance function and to acquaint the participants with the tools techniques and process of financial management in the realm of financial decision making.
Introduction - nature concept of finance function, Distinction between Accounting and Finance function, Objectives of Financial Management - Profitability vs wealth Maximisation, Organisation for Finance Function, Time value of money valuation concept, compound value concept, Present value concept, Financial Planning and Financial Forecasting.
Capital Structure Planning- Patterns of financial requirement, Objectives of an optimum capital structure, Security Mix, Capitalisation concept, Causes, Consequences and Remedies of over capitalisation and under capitalisation, Capital structure theories (with numerical problems), Sources of long term finance-shares and Debentures, New financial Instruments and Institutions Leverage Analysis.
Management of Fixed Capital - Concept, relevance and computation of cost of capital nature and Scope of Capital Budgeting, Capital Budgeting, Analysis of risk and Uncertainty (with numerical problems).
Management of Working Capital - Concepts of working capital, Nature and Scope of Working Capital Management, Approaches to the Financing of Current Assets determining the financing mix, Financing of working capital, Estimation of working capital (with numerical problem).
Management of Earnings- Nature and scope of management of earnings , Dividend Policy and Dividend Models , Waltor's Model , Gordon's Model , MM Hypothesis, Pattern of dividend policies (with numerical problems), Determinants of Dividend Policy.
1. Brigham : Financial Management Theory and Practice
2. Horne, Wachowiez , Jr. : Fundamentals of : Financial Management
3. Westorn and Brigham : Managerial Finance
4. Van-Horne : : Financial Management and Policy
5. I.M. Pandey : : Financial Management
6. S.N. Maheshwari : : Financial Management