MBA Paper 8 Financial Management SYLLABUS RTMNU

NAGPUR UNIVERSITY MBA EXAM Paper 8 Financial Management SYLLABUS RTMNU

Paper – 8: Financial Management

Financial Management

SECTION – A

Unit I: Introduction - Concept of business finance, finance function, scope, organization, Responsibilities

of finance executive, Goals & objectives of financial management, Functional areas; Concept of time value

of money, Compounding & discounting; Future value of single amount & annuity, present value of single

amount & annuity; Practical application of time value technique.

Unit II: Sources of financing - LONG TERM: shares, debentures, term loans, lease & hire purchase,

retained earnings, public deposits, bonds (Types, features & utility)

(a) SHORT TERM: bank finance, commercial paper & trade credit & bills discounting

(b) INTERNAL: Retained earnings, Depreciation policies.

Unit III: Capital structure - Concept, meaning, principles & importance. Introduction to Trading on

equity, Capital gearing & leveraging, Cost of capital, Cost of different sources of finance, Weighted

average cost of capital, Theories of capital structure, concept of optimal capital structure, Computation of

leverages, Cost of capital and EBIT-EPS analysis.

Unit IV: Capitalization - Concept, Theories, Over capitalisation – Concept, Symptoms, causes,

Consequences & remedies, Under capitalisation - Concept, causes, Consequences & remedies, Watered

Stock, Watered stock Vs Over capitalisation.

Unit V: Dividend policies - Concept, determinants and factors affecting, relevance and irrelevance

concept, dividend valuation models – Gordon, Walter and Modigliani-Miller models Stability of

dividends – concept and significance.

SECTION – B

Unit VI: Working capital - Concept, significance, types. Adequacy of working capital, Factors affecting

working capital needs, Financing approaches for working capital, Methods of forecasting working capital

requirements.

Unit – VII: Capital budgeting - Nature and significance, techniques of capital budgeting –Pay Back

Method, Accounting rate of return, Net Present Value and profitability index.

Unit – VIII: Financial institutions - Need, structure, policies, norms & schemes; Financing procedures,

changing role of project appraisal; Overview of operations of NBFC’s & Financial Institutions.

Unit – IX: Financing of small scale industry - Meaning, importance, growth of SSIs, Special financing

needs and sources, issues & implications.

Unit – X: Corporate restructuring - Reasons & drivers of restructuring, Methods of restructuring-

mergers, takeovers, acquisitions, divesting, spin-off, split ups, privatization, buyback & joint ventures.

Suggested Readings:

1.

Financial Management by Ravi Kishore, Taxmann’s.

2.

Financial Management by S. M. Inamdar, Everest Publishing house, 12

th

Edition 2004.

3.

Financial Management by Sharma & Gupta , Kalyani Publishers.

4.

Financial Management by R.M. Srivastav, Kalyani Publishers.

5.

Financial Accounting for Management by P. Shah- Pub, by Oxford