COURSE MODULE/SYLLABUS
Programme: [Link] (H), 3rd Year, Semester - I
Core/ Contact Hours
Course
Course Title Elective/ Prerequisite Total Hours
Code L T/P U
CBCS
FINANCIAL
COM305 Core 3 1/0 4 60
MANAGEMENT
Course Objectives:
CO1:Enable students to make informed financial decisions that align with an organization
strategic goals.
CO2: Provide students with the tools and techniques to value businesses accurately using
methods such as discounted cash flow (DCF) analysis, comparable company analysis, and
asset-based valuation
CO3: Evaluate investment opportunities, assess the cost of capital, and make investment
decisions that maximize shareholder value
CO4: Introduce students to the concepts and strategies involved in mergers, acquisitions, and
corporate restructuring.
CO5: Understanding how financial decisions impact long-term goals and sustainability.
RBT: 1- Remembering, 2-Understanding, 3-Applying, 4-Analyzing, 5-Evaluating, 6-
Creating
Topics Covered as per Syllabus:
UNIT-1
Introduction: Nature, scope and objectives of financial management, Financing Decision,
Time Value of Money, Risk and Returns, Capital Budgeting. Cash Flow Estimation, Payback
Period Method, Discounted Payback Period Method, Accounting Rate of Return, Net Process
Value (NPV), Net Terminal Value, Internal Rate of Return (IRR). (RBT: 1,2,3, 4 and 5)
UNIT-2
Cost of capital: Estimation of components of cost capital, Methods for calculating cost of
Equity, Cost of Retained Earnings, Cost of Debt and cost of Preference Capital, WACC,
Theories Of Capital Structure (Net Income, Net Operating Income, MM Hypothesis,
Traditional Approach) Determinants of capital structure. (RBT: 1, 2,3, 4 and5)
UNIT-3
Dividend Decision: Theories for Relevance and irrelevance of dividend decision for corporate
valuation- Walter’s Model, Gordon’s Model, MM Theory and Determination of Dividend
policy.(RBT: 1, 2,3, 4 and 5)
UNIT-4
Leverage: Introduction, Meaning, Operating Leverage, Financial Leverage, Combined
Leverage, Measures of Leverages with simple problems. (RBT: 1, 2,3, 4 and 5)
UNIT-5
Working Capital Decisions: Concepts of Working Capital, Operating & Cash Cycles sources
of Short term finance, cash management, receivables management, Payables management,
inventory management. (RBT: 1, 2,3, 4 and 5)
List of Text Books
1. Khan, M.Y. & [Link], Financial Management: Text and Problems, Tata Mcgraw Hill,
2. Srivastva Rajiv and Anil Mishra, Financial Management, Oxford University Press, UK 5
Singh, Preeti, Financial Management, Anne Books Pvt. Ltd., New Delhi.
List of Reference Books
1. Singh, Surender and Kaur Rajeev, Fundamentals of Financial Management, Mayur Paper
Noida.
2. Rustagi, R.P. Financial Management, Galgotia Publications Company
3. Pandey, IM Financial Management, Vikas Publications UNCTAD Reports
4. Chandra. P. Financial Management- Theory and Practice, Tata McGraw Hill
5. Bhalla, V.K. Financial Management & Policy, Anmol Publications, Delhi
6. Banerje, B, Fundamentals of Financial Management, PHI, New Delhi
List of URLs, Text Books, Notes, Multimedia contents, etc. (If any)
Course Outcomes:
CO1: To understand the role of Financial Manager in the modern business 1, 2, 3, 4, and 5
CO2: Students will gain proficiency in various valuation methods. 1, 2, 3, 4, and 5
CO3: Students will be able to apply valuation techniques to assess the
1, 2, 3, 4, and 5
value of businesses in different industries and contexts
CO4: Students will be able to identify, assess, and manage risks associated
1, 2, 3, 4, and 5
with strategic business decisions.
CO5: Students will learn how to build and analyze financial models to
1, 2, 3, 4, and 5
support valuation exercises and strategic decision-making processes
Internal Assessment Marks: 40 Marks
Internal-I: Assignment and Presentation
Internal-II: Project/ Class Performance/Viva-Voce/Attendance
