GUJARAT TECHNOLOGICAL UNIVERSITY

With effective
Syllabus for Master of Business Administration, 2nd Semester from academic
Subject Name: Corporate Finance (CF) year 2018-19
Subject Code: 4529202

1. Learning Outcomes:
Learning Outcome Component Learning Outcome (Learner will be able to)
Business Environment and Domain  Interpret accounting, economic and
Knowledge (BEDK) financial data for planning and decision
making in an organization.
Critical thinking, Business Analysis,  Examine the impact of investment decisions
Problem Solving and Innovative Solutions on a company’s value for a given listed
(CBPI) company.
 Estimate the cost of each source of capital
and combine these costs into a weighted
average cost of capital for a company.
Global Exposure and Cross-Cultural  Compare dividend policies of Indian
Understanding (GECCU) corporate with globally practiced dividend
policies.
Social Responsiveness and Ethics (SRE)  Identify and explain corporate agency
conflicts and resolutions.
Effective Communication (EC)  Explain the relationship between the risks
of capital investment with the opportunity
cost of capital and returns.
Leadership and Teamwork (LT)  Determine the main factors that financial
managers should consider when
determining a company’s financing
strategy.

LO – PO Mapping: Correlation Levels:

1 = Slight (Low); 2 = Moderate (Medium); 3 = Substantial (High), “-“= no correlation
Sub. Code: 4529202 PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8 PO9
LO1: Interpret
accounting, economic
and financial data for
2 2 3 1 1 - - - 2
planning and decision
making in an
organization
LO2: Examine the
impact of investment
3 2 3 - - - - 3 3
decision on company’s
value.
LO3: Estimate the cost
of each source of capital
and combine these costs
3 2 3 - - - - - 3
into a weighted average
cost of capital for a
company
LO4: Compare dividend
policies of Indian 2 2 2 - 3 - - - -
corporate with globally

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 GUJARAT TECHNOLOGICAL UNIVERSITY
With effective
Syllabus for Master of Business Administration, 2nd Semester from academic
Subject Name: Corporate Finance (CF) year 2018-19
Subject Code: 4529202

practiced dividend
policies.
LO5: Identify and
explain corporate
2 2 1 1 - 2 3 - -
agency conflicts and
resolutions
LO6: Explain the
relationship between the
risks of capital 2 1 1 3 1 -- 1 1 1
investment with the
return.
LO7: Determine the
main factors that
financial managers
should consider when 2 2 2 2 - 3 - 1 1
determining a
company’s financing
strategy.

2. Course Duration: The course duration is of 40 sessions of 60 minutes each.

3. Course Contents:
Module Module Content No. of 70 Marks
No: Sessions (External
Evaluation)
Overview of Financial Management:
 Meaning, Objectives, Scope, Role and Functions of
Financial Management (Financial Decisions).
 Financial Goal - Profit Maximization versus
Shareholders’ Wealth Maximization.

Time value of Money: (theory and numerical)

I  Concepts, Compounding, Discounting, Annuities. 10 17

Sources of Long-Term Finance:

 Introduction to Equity Shares, Preference Shares and
Debentures, Term loan.

Valuation of Bonds, Preference shares and Equity.

(numerical)

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 GUJARAT TECHNOLOGICAL UNIVERSITY
With effective
Syllabus for Master of Business Administration, 2nd Semester from academic
Subject Name: Corporate Finance (CF) year 2018-19
Subject Code: 4529202

Understanding Investment Decisions (Capital Budgeting

Decisions):
 Meaning, Features
 Types and Importance of Investment Decisions
o Discounted Cash Flow (DCF)
 NPV, IRR, MIRR, PI, Discounted
Payback
o Non-Discounted Cash Flow Techniques
 ARR, Payback period
Capital Rationing (theory and numerical)

II Understanding Dividend Decision: 10 18

 Dividend and dividend policy
 Factors affecting dividend payout
 Dividend payment models: (theory and numerical)
o Dividend relevance model
 Walter model
 Gordon model
o Dividend irrelevance model
 MM model

Basics of Decision Tree Analysis (1-level and 2-level)

(theory only)
Cost of Capital: (theory and numerical)
 Significance, Concept of the Opportunity Cost of Capital
 Component Costs of Capital - Cost of Debt, Preference
Capital and Equity Capital
 Weighted Average Cost of Capital (WACC)

Leverage: (theory and numerical)

 Types of Leverage - Operating, Financial and Combined
III 10 18
Leverage.
 Point of indifference

Understanding Financing Decisions (Capital Structure

Decisions): (theory and numerical)
 NI Approach
 NOI Approach
 MM Theory with and without Taxes
Working Capital Management:
 Concepts of Working Capital.
 Operating Cycle.
 Determinants of Working Capital.
IV 10 17
 Estimating Working Capital Needs. (theory and
numerical)
 Working Capital Finance Policies.
o Matching approach, conservative approach,

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 GUJARAT TECHNOLOGICAL UNIVERSITY
With effective
Syllabus for Master of Business Administration, 2nd Semester from academic
Subject Name: Corporate Finance (CF) year 2018-19
Subject Code: 4529202

aggressive approach.

Cash Management: (theory and numerical)

 Need for Cash Management.
 Cash Management Cycle.
 Cash Forecasting through budgeting.
 Determining the Optimum Cash Balance under Certainty
(Baumol’s Model) and Uncertainty (The Miller- Orr
Model).

Receivables Management:
 Nature and Goals of Credit Policy
 Credit Policy Variables(theory and numerical)
Application:
Select suitable organization and study:
 The role and functions of Finance department;
(30 marks
V  Select Scrip or bonds and do the valuation of its ---
CEC)
Securities;
 Study the investment decisions,
working capital policy and cash budgeting etc.

4. Pedagogy:
 ICT enabled Classroom teaching
 Case study
 Practical / live assignment
 Interactive class room discussions

5. Evaluation:
Students shall be evaluated on the following components:
Internal Evaluation (Internal Assessment- 50 Marks)
A  Continuous Evaluation Component 30 marks
 Class Presence & Participation 10 marks
 Quiz 10 marks
B Mid-Semester examination (Internal Assessment-30 Marks)
C End –Semester Examination (External Assessment-70 Marks)

6. Reference Books:
No. Author Name of the Book Publisher Year of
Publication /
Edition
Prasanna Chandra Financial Management, McGraw - Latest Edition
1
theory and Practice Hill
2 I M Pandey Financial Management Vikas Latest Edition
M. Y. Khan and P. Financial Management McGraw - Latest Edition
3
K. Jain Hill

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 GUJARAT TECHNOLOGICAL UNIVERSITY
With effective
Syllabus for Master of Business Administration, 2nd Semester from academic
Subject Name: Corporate Finance (CF) year 2018-19
Subject Code: 4529202

Rajiv Srivastava & Financial Management Oxford

4
Anil Misra Latest Edition
Ravi Kishore Financial Management – Taxmann Latest Edition
5
Problems and Solutions
6 P C Tulasiyani Financial Management S. Chand Latest Edition
P. V. Kulkarni and B. Financial Management Himalaya 14th Revised
7
G. Satyaprasad Edition
Eugene F. Brigham Financial Management: South 14th Edition
8 Theory and Practice Western
College
Vyuptakesh Sharan Fundamentals of Financial Pearson 3rd Edition
9
Management
R. P. Rastogi Financial Taxmann Latest Edition
10
Management
V Pattabhi Ram and S D Strategic Financial Snow Latest Edition
11
Bala Management white
Dr. J.B. Gupta Strategic Financial Taxmann Latest Edition
12
Management
Note: Wherever the standard books are not available for the topic appropriate print and online
resources, journals and books published by different authors may be prescribed.

7. List of Journals / Periodicals / Magazines / Newspapers / Web resources, etc.

1. News Paper: Business Standard, Economic Times, Times of India
2. Journals: Finance India, Global Journal of Finance & Management, Journal of
Business & Financial Affairs etc.
3. Websites pertaining to companies, capital market, RBI etc.

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