Unit V: Financial Management

Financial Management
Financial Management: Concept and Functions

Burn Rate & Runway
Cost of Equity
Function of Finance

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
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.

Final Evaluation

Course Content

Financial Management Financial Management: Concept and Functions

Burn Rate & Runway

Cost of Equity

Function of Finance

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

Pecking Order Theory of Capital Structure

Sources of Finance/ Capital Structure

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

Steps in Zero Base Budgeting

Budgetary Control System Steps

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

Operating Leverage

Financial Leverage

Combined Leverage

Degree of Leverage

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

Types of Risks

Bonds Related Terms

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

Steps involved in Capital Budgeting Analysis

Capital Budgeting Methods

NPV : Capital Budgeting Technique

Merits of Internal Rate of Return Method of Capital Budgeting

NPV–IRR Conflict / Project Ranking Problems

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

Mergers and Acquisitions 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

Case Study: Jenson’s view on Takeovers

Takeover Tactics

Portfolio Management Portfolio Management: CAPM, APT

Capital Asset Pricing Model (CAPM)

Steps in Fixed Income Portfolio Management

Portfolio Expected Return

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

Premium

Derivatives Types

Option Strategies

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

Short Term Financing Option / Sources of Working Capital

Quality of Receivables

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

Final Evaluation

Rapid Fire : Financial Management

Student Ratings & Reviews

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
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.