Financial Management 433e1x

Sub. : FINANCIAL MANAGEMENT – I

Sub. Code: 2005 Note:

1. Section A consists of not more than 4 theory questions out of which the students attempts 2 questions compulsorily each carrying 12.5 marks. Section A carries 25 marks. 2. Section B consists of not less than 4 practical questions each carrying 15 marks out of which the student attempts any 3 questions compulsorily. Section B carries 45 marks. 3. Attach A4 size sheets as per requirement with this front page of question paper sent by the Institute. Syllabus Module – I Introduction : Nature and Scope, Finance Functions, Financial Objectives, Roles and Responsibilities of the Finance Manager, Introduction to Indian Financial System, Sources of Finance: Equity Capital, Debentures, Preference Capital and Term Loans- Relative Merits and Demerits. Module – II Cost of Capital : Time Value of Money, Concept of Risk and Return, Concept Measurement of Cost of Capital, WACC and MCC, Valuation of Stocks and Bonds, Case Analysis. Module – III Capital Budgeting : Introduction, Project Appraisal Techniques, Determination of Cash Flow Streams, Capital Rationing and Conflicts in NPV and IRR, Capital Budgeting under Risk and Uncertainty, Case Analysis. Module – IV Corporate Financial Structure : Leverage: Operating Financial and Combined Leverage. Capital Structure : Theories of Capital Structure (Net Income approach, Net Operating Income approach, MM approach, Traditional approach), determinants of Capital Structure, EBIT-EPS relationship. Text Books : 1. Khan & Jain, Financial Management, Tata McGraw Hill 2. I.M. Pandey, Financial Management, Vikas Publishing 3. Kulkarni, P.V. & Satya Prasad B.G. – Financial Management – Himalaya Reference Books : 1. Chandra P. – Financial Management – New Delhi, TMH 2. Reddy G. Sudarshana – Financial Management : Principles & Practice, Himalaya 3. Brigham & Houhton, Fundamentals of Financial Management, Harcourt 4. I.M. Pandey, Cases on Financial Management 5. R.P. Restogi, Cases on Financial Management 6. Keown – Financial Management : Principles and Applications – Pearson 7. Van Horne : Fundamentals of Financial Management – Pearson 8. Sharan – Fundamentals of Financial Management – Pearson 9. Rajesh Kothari – Contemporary Financial Management – Macmillan 10. Paresh P. Shah, Financial Management, Biztantra 11. S.N. Maheshwari: Financial Management Theory & Practice