Unit V: Financial Management

About Course

Note: This module is currently a Work in Progress.

Topics Covered:

Financial Management: Concept & Functions
Capital Structure: Theories, Cost of Capital, Sources, and Finance
Budgeting and Budgetary Control: Types and Process, Zero-base Budgeting
Leverages: Operating, Financial and Combined Leverages, EBIT–EPS Analysis, Financial Breakeven Point & Indifference Level
Value & Returns: Time Preference for Money, Valuation of Bonds and Shares, Risk and Returns
Capital Budgeting: Nature of Investment, Evaluation, Comparison of Methods, Risk and Uncertainty Analysis
Dividend: Theories and Determination
Mergers and Acquisitions: Corporate Restructuring, Value Creation, Merger Negotiations, Leveraged Buyouts, Takeover
Portfolio Management: CAPM, APT
Derivatives: Options, Option Payoffs, Option Pricing, Forward Contracts & Future Contracts
Working Capital Management: Determinants, Cash, Inventory, Receivables and Payables Management, Factoring
International Financial Management, Foreign Exchange Market.

Course Content

Financial Management
Financial Management: Concept and Functions

Burn Rate & Runway
Cost of Equity
test
F: Mix
F: Functions of Finace and Financial Markets
F: Shiller PE / CAPE Ratio

Capital Structure
Capital Structure: Theories, Cost of Capital, Sources, and Finance

What is Cost of Capital?
Capital Structure Theories
Net Income Approach
Net Operating Income (NOI) Approach
F: Sources of Finance/ Capital Structure
F: Equity Market
F: Capital Structure Theories
F: Cost of Capital
F: Net Income Approach
F: Net Operating Income Approach of Capital Structure
F: Cost of Equity Modes
F: Pecking Order Theory of Capital Structure

Budgeting and Budgetary Control
Budgeting and Budgetary Control: Types and Process, Zero-base Budgeting

Leverages
Leverages: Operating, Financial and Combined Leverages, EBIT–EPS Analysis, Financial Breakeven Point & Indifference Level.

Value & Returns
Value and Returns: Time Preference for Money, Valuation of Bonds and Shares, Risk and Returns

Capital Budgeting
Capital Budgeting: Nature of Investment, Evaluation, Comparison of Methods, Risk and Uncertainty Analysis

Steps involved in Capital Budgeting Analysis
NPV : Capital Budgeting Technique
Merits of Internal Rate of Return Method of Capital Budgeting
F: NPV–IRR Conflict / Project Ranking Problems
F: Capital Budgeting Evaluation: NPV
F: Capital Budgeting Methods
F: Capital Budgeting Analysis
F: IRR
F: Methods of Risk Analysis
F: Capital Budgeting Process
F:Certainty Equivalent (CE) approach of Risk Analysis

Dividend
Dividend: Theories and Determination

📘 Gordon Growth Model (Variant of Dividend Discount Model – DDM)
Modigliani and Miller (MM) Dividend Irrelevance Theory
Modigliani and Miller (MM) Hypothesis
F: MM theory for Irrelevance of dividends
F: Payout Ratio
F: Walter’s Model of Dividend
F: Gordon Growth Model
F: Dividend Theories
F: Timeline for Dividend Payment
F: Graham and Dodd Model of Dividend policy

Mergers and Acquisitions and Alliance
Mergers and Acquisitions: Corporate Restructuring, Value Creation, Merger Negotiations, Leveraged Buyouts, Takeover

Corporate Restructuring
Steps Involved in the Valuation of Merger
Merger Negotiations
Advantages of Merger
F: Corporate Restructuring
F: Gains to Corporate Restructuring
F: Mergers
F: Internation Negotiation Process
F: Negotiations Results
F: Hostile Takeover Defense
F: Merger and Acquisition Example
F: Case Study: Jenson’s view on Takeovers
F: Strategic Alliance

Portfolio Management
Portfolio Management: CAPM, APT

Capital Asset Pricing Model (CAPM)
F: Steps in Fixed Income Portfolio Management
F: Portfolio Expected Return
F: CAPM
F: Sharpe Single Index Model of Portfolio Management
F: CAL, CML, SCL & SML
F: Standard Deviation of Portfolio
F: Assumption of Modern Portfolio Theory
F: Efficient Market Hypothesis (EMH)

Derivatives
Derivatives: Options, Option Payoffs, Option Pricing, Forward Contracts and Future Contracts

Working Capital Management
Working Capital Management: Determinants, Cash, Inventory, Receivables and Payables Management, Factoring

International Financial Management, Foreign exchange market.
International Financial Management, Foreign exchange market.

Terminologies of Foreign Exchange Market
Significance of Foreign Exchange
Foreign Exchange Quotation
Expatriates
F: International Finacial Management
F: Foreign Exchange Market
F: Parity Conditions in Foreign Exchange Market
F: Foreign Exchange Quotation
F: Pegged Exxchange Rate
F: Foreign Exchange Risks
F: fixed vs floating exchange rate regimes

Final Evaluation

Student Ratings & Reviews

No Review Yet

About Course

Course Content

Financial Management Financial Management: Concept and Functions

Burn Rate & Runway

Cost of Equity

test

F: Mix

F: Functions of Finace and Financial Markets

F: Shiller PE / CAPE Ratio

Capital Structure Capital Structure: Theories, Cost of Capital, Sources, and Finance

What is Cost of Capital?

Capital Structure Theories

Net Income Approach

Net Operating Income (NOI) Approach

F: Sources of Finance/ Capital Structure

F: Equity Market

F: Capital Structure Theories

F: Cost of Capital

F: Net Income Approach

F: Net Operating Income Approach of Capital Structure

F: Cost of Equity Modes

F: Pecking Order Theory of Capital Structure

Budgeting and Budgetary Control Budgeting and Budgetary Control: Types and Process, Zero-base Budgeting

F: Steps in Zero Base Budgeting

F: Budgetary Control System Steps

F: Steps in Budgeting

Leverages Leverages: Operating, Financial and Combined Leverages, EBIT–EPS Analysis, Financial Breakeven Point & Indifference Level.

F: Leverages: DOL & DFL

F: Leverages: DCL

Value & Returns Value and Returns: Time Preference for Money, Valuation of Bonds and Shares, Risk and Returns

F: Bonds Related Terms

F: Valuation of Shares

F: Time Value for Money

F: Systematic & Unsystematic Risks

F: Term structure of interest rates Model

F: Terms in Value and & Returns

F: Risks Associated with differetn type of bonds

Capital Budgeting Capital Budgeting: Nature of Investment, Evaluation, Comparison of Methods, Risk and Uncertainty Analysis

Steps involved in Capital Budgeting Analysis

NPV : Capital Budgeting Technique

Merits of Internal Rate of Return Method of Capital Budgeting

F: NPV–IRR Conflict / Project Ranking Problems

F: Capital Budgeting Evaluation: NPV

F: Capital Budgeting Methods

F: Capital Budgeting Analysis

F: IRR

F: Methods of Risk Analysis

F: Capital Budgeting Process

F:Certainty Equivalent (CE) approach of Risk Analysis

Dividend Dividend: Theories and Determination

📘 Gordon Growth Model (Variant of Dividend Discount Model – DDM)

Modigliani and Miller (MM) Dividend Irrelevance Theory

Modigliani and Miller (MM) Hypothesis

F: MM theory for Irrelevance of dividends

F: Payout Ratio

F: Walter’s Model of Dividend

F: Gordon Growth Model

F: Dividend Theories

F: Timeline for Dividend Payment

F: Graham and Dodd Model of Dividend policy

Mergers and Acquisitions and Alliance Mergers and Acquisitions: Corporate Restructuring, Value Creation, Merger Negotiations, Leveraged Buyouts, Takeover

Corporate Restructuring

Steps Involved in the Valuation of Merger

Merger Negotiations

Advantages of Merger

F: Corporate Restructuring

F: Gains to Corporate Restructuring

F: Mergers

F: Internation Negotiation Process

F: Negotiations Results

F: Hostile Takeover Defense

F: Merger and Acquisition Example

F: Case Study: Jenson’s view on Takeovers

F: Strategic Alliance

Portfolio Management Portfolio Management: CAPM, APT

Capital Asset Pricing Model (CAPM)

F: Steps in Fixed Income Portfolio Management

F: Portfolio Expected Return

F: CAPM

F: Sharpe Single Index Model of Portfolio Management

Financial Management
Financial Management: Concept and Functions

Capital Structure
Capital Structure: Theories, Cost of Capital, Sources, and Finance

Budgeting and Budgetary Control
Budgeting and Budgetary Control: Types and Process, Zero-base Budgeting

Leverages
Leverages: Operating, Financial and Combined Leverages, EBIT–EPS Analysis, Financial Breakeven Point & Indifference Level.

Value & Returns
Value and Returns: Time Preference for Money, Valuation of Bonds and Shares, Risk and Returns

Capital Budgeting
Capital Budgeting: Nature of Investment, Evaluation, Comparison of Methods, Risk and Uncertainty Analysis

Dividend
Dividend: Theories and Determination

Mergers and Acquisitions and Alliance
Mergers and Acquisitions: Corporate Restructuring, Value Creation, Merger Negotiations, Leveraged Buyouts, Takeover

Portfolio Management
Portfolio Management: CAPM, APT

Derivatives
Derivatives: Options, Option Payoffs, Option Pricing, Forward Contracts and Future Contracts

Working Capital Management
Working Capital Management: Determinants, Cash, Inventory, Receivables and Payables Management, Factoring

International Financial Management, Foreign exchange market.
International Financial Management, Foreign exchange market.