Essentials of Financial Management

Week 1: Concept of Finance:
Module 1: Meaning of Business Finance, Finance Function, Traditional View and Modern View of Finance
Module 2:Scope of Finance Function, Objectives of Financial Management, Profit Maximization and Wealth Maximization
Module 3:Financial Decisions, Investment Decision, Financing Decision, Dividend Decision, Factors Influencing Financial Decisions and Risk-return Trade-Off
Module 4:Role of a Finance Manager, Financial Engineering, Financial Planning, Characteristics of a Sound Financial Plan and Limitations of Financial Planning
Module 5: Different Forms of Business Organizations and Financial Considerations Underlying the Choice of Form of Business Organization
Week 2:Capitalization:
Module 6: Capital and Capitalization, Fair Capitalization, Under Capitalization, Over Capitalization, Causes and Effects of Over Capitalization and Under Capitalization
Module 7: Practical Questions on Fair Capitalization, Under Capitalization and Over Capitalization
Module 8: Capital Structure vs Financial Structure, Importance of Capital Structure, Patterns of Capital Structure and Essential Features of a Sound Capital Mix
Module 9: Determinants of Capital Structure
Module 10: Principles of Capital Structure, Optimal Capital Structure and Risk-Return Trade-Off and Changes in Capitalization or Capital Structure
Week 3:Theories of Capital Structure:
Module 11: Net Income Approach and Practical Questions
Module 12: Net Operating Income Approach and Practical Questions
Module 13: Intermediate Approach and Practical Questions
Module 14: Modigliani & Miller (MM) Approach and Practical Questions
Module 15: Concept of Arbitrage and Pecking Order Theory
Week 4:Leverages:
Module 16: Concept of Leverage, Financial Leverage or Trading on Equity and Impact of Financial Leverage
Module 17: Degree of Financial Leverage, Significance of Financial Leverage and Limitations of Financial Leverage
Module 18: Practical Questions on Financial Leverage
Module 19: Operating Leverage, Combined Leverage and Practical Questions
Module 20: Break-Even Level of EBIT and Practical Questions
Week 5:Sources of Finance:
Module 21: Short-Term, Medium-Term and Long-Term Sources of Finance, Ownership Securities, Equity Shares, Features, Advantages and Limitations of Equity Shares
Module 22: Preference Shares, Types of Preference Shares, Features, Advantages and Limitations of Preference Shares
Module 23: Creditorship Securities, Debentures and Bonds, Types of Debentures, Features, Advantages and Limitations of Debentures, Shares vs Debentures
Module 24: Short-Term Loans and Credits, Indigenous Bankers, Trade Credit, Instalment Credit, Advances and Deferred Incomes
Module 25: Factoring, Commercial Paper, Public Deposits, Commercial Banks, Certificate of Deposits, Treasury Bills, Term Loans, Venture Capital, Seed Capital, Bridge Finance and Lease Financing
Week 6:Capital Budgeting:
Module 26: Time Value of Money, Concept and Significance of Cost of Capital, Weighted Average Cost of Capital (WACC), Need and Importance of Capital Budgeting
Module 27: Capital Budgeting Process, Classification of Projects under Capital Budgeting and Kinds of Capital Budgeting Decisions
Module 28: Appraisal Techniques for Risk-Free Projects, Net Present Value (NPV) Method, Advantages and Limitations of NPV and Practical Questions
Module 29: Internal Rate of Return (IRR) Method, Advantages and Limitations of IRR and Practical Questions on IRR, Profitability Index (PI) Method, Advantages and Limitations of PI and Practical Questions on PI
Module 30: Payback Period (PB) Method, Discounted Payback Period (DPB) Method, Accounting Rate of Return (ARR) Method
Week 7:Working Capital Management:
Module 31: Concept of Working Capital, Constituents of Current Assets, Constituents of Current Liabilities, Gross Working Capital and Net Working Capital and Classification of Working Capital
Module 32: Significance of Adequate Working Capital, Excess or Inadequate Working Capital, Factors Determining the Working Capital Requirements and Principles of Working Capital Management Policy
Module 33: Management of Cash, Motives for Holding Cash, Managing Cash Flows, Determining Optimal Cash Balance, Cash Management Models, Investment of Surplus Funds and Management of Marketable Securities
Module 34: Receivables Management, Cost of Maintaining Receivables, Factors Influencing the Size of Receivables, Forecasting the Receivables and Dimensions of Receivables Management
Module 35: Inventory Management, Benefits of Holding Inventories, Risk and Costs of Holding Inventories, Objectives of Inventory Management and Techniques of Inventory Management
Week 8:Dividend Decisions:
Module 36: Forms of Dividend, Determinants of Dividend Policy, Types of Dividend Policy, Bonus Issue, Objectives of Bonus Issue, Advantages and Limitations of Issuing Bonus Shares
Module 37: Ploughing Back of Profits, The Necessity of Ploughing Back, Factors Influencing Ploughing Back of Profits, Advantages and Limitations of Ploughing Back of Profits
Module 38: Dividend Decisions and Valuation of Firms, Theory of Relevance, Waltor's Approach and Practical Questions
Module 39: Gordon's Approach and Practical Questions
Module 40: Theory of Irrelevance, Modigliani & Miller (MM) Approach and Practical Questions