M-202

FINANCIAL MANAGEMENT

Course/Paper : 202                                     Max.Marks : 70

MBA Semester-II                                        Time : 3 Hrs.

Objective:

The focus in this paper would be on issues related to financial management in the Indian Corporate Sector. The contents are related to the practices observed in Indian Corporate Sector. The objective is to enable and equip the manager with basic tools for applying financial analysis.

Section-A

Meaning, Importance and Objectives of Financial Management; Time value of money; Conflicts in profit versus value maximization principle; Functions of chief financial officer. Risk and Return- overview of capital market theory, Beta Estimation, CAPM, and APTManagement of working capital; Cash and Marketable securities management; Treasury  management, Receivables management, Inventory management, Financing of working capital  Investment decisions: Capital budgeting- concept, theory. Cost of capital.  Risk analysis in capital budgeting.

Financing decisions: Concepts of operating and financial leverage; Capital structure Theory and Policy; Dividend Policy . Different sources of finance: Asset Based financing- Lease, Hire Purchase and Project Financing. Corporate Restructuring, Merger and Acquisition .

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