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FM-H16
MBA (HRM) 2016-18 : Term-III

Financial Management

COURSE OUTLINE


Credits3.0
Faculty NameProf. B.P. Mishra
ProgramMBA (HRM)-I, Class 2016-18
Academic Year and Term2016-17, Term-III


Course Description: The course revolves around the fundamental theme of finance: value creation. The course initiation is with the basic building blocks like time value of money, concept of cash flows, discounting, compounding, present value and future value. The students then apply these tools to value some of the basic financial securities like stocks and bonds. The course continues with the concepts pertaining to risk and return in capital markets and some of the fundamental models relating them. It then dwells upon one of the key issues in corporate finance i.e capital budgeting and how it is used for creating value for the firm. In the process the students are exposed to determination of ‘relevant’ cash flows for a project, capital structure, determination of appropriate cost of capital and selection of a suitable project along with asset creation and operalization for value creation

2. Student Learning Outcomes :

At the end of the course the students should

• Be able to understand and Speak the language of Finance

• Be able to Compare one firm’s financials with rivals’. • Be able to Shift focus from revenue , profits to CASHFLOW 3. Required Materials :

a) Text :

Finance for executives- Managing Value Creation,
HAWAWINI & Viallet- 4th Ed –Cenage Learning

b) Reference Book:

c) Reading Materials as and when made available in the class.

d) Calculator : You will typically need a calculator that can handle exponents (i.e., that has a “yx”-type key).

4.) Tentative Session Plan:

Session
Topics Covered
1,2,3,4,5,6
Building blocks :

· Introduction,
· Managerial balance Sheet
· Time Value of money

7,8,9
· Bond Pricing
· Bond Features
· Equity
10-11
Risk, Return and Capital Markets

· Concepts of risk and return in isolation
· Concept of risk and return in a portfolio context
· CAPM
· Market Efficiency

12,13,14
Building Blocks of capital budgeting :

· Introduction,
· Competing Criteria for making a capital budgeting decision

,15
Cost of Capital
· Determination of Component Costs
· Determination of WACC
· Issues in using WACC.
16-17
Cash Flow determination in Capital Budgeting
· Deriving the Cash Flows from accounting numbers
18-19
Various Approaches typically used for making a capital budgeting decision and

Other issues in capital Budgeting
· Capital budgeting under uncertainty and risk analysis, (Sensitivity analysis, scenario analysis, breakeven analysis, Certainty equivalent approach etc.
· Working Capital and it’s management

20
· Recapitulation of the discussion during the course.


i) Quiz -20% : You will be typically told in advance when a regular quiz will be given. The faculty also reserves the right to give any number of unannounced “pop” quizzes during the semester.
ii) Midterm : 30% iii) Class participation: 10 This could be comprised of attendance, response and overall positive demeanor in class. Your active participation in class is necessary, both for you and for your classmates. Your participation score will reflect the faculty’s assessment of your attendance, your contributions to class discussions, and your overall positive demeanor during class. iv) End term : 40% : This will be typically on the entire course ( pre and post midterm coverage) GRADING :

An important note about grading:

6. Academic Integrity and Additional issues :

i) Students involved in academic dishonesty will receive a ZERO grade on the particular component in which the violation occurred. Academic dishonesty consists of misrepresentation by deception or by other fraudulent means such as copying or use of unauthorized aids in tests, talking during in-class examinations; aiding another student’s dishonesty; and giving false information for the purpose of gaining credits.

ii) COMPUTERS and MOBILES IN THE CLASSROOM: …are NOT allowed. No electronic devices that allow your access to the internet are allowed in the classroom.

iii) If you are not appearing any componenet on the declared date, NO retest will be done and the marks awarded in that component will be zero.

Iv) Proxying for attendance will be severely dealt with. The attendance will be treated as zero for whom the proxy is made by others unless the person proxying is identified .

All the best !

Created By: Bijoy Kar on 12/31/2016 at 04:09 PM
Category: Course Outlines-HRM-I Doctype: Document

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