FM-V09

FM-V09
(PGCBM 2009-10 : Term-II)

Financial Management
(Instructor: Prof. S. G. Deb)

COURSE OUTLINE

A. Objective:

A basic knowledge of Finance is compulsory for aspiring managers, independent of the functional area of specialization. The last decade has seen fundamental changes in financial markets and financial instruments. Electronic and print media are constantly engrossed with issues like financial restructuring, initial public offerings, bankruptcy, dividends, bonuses, and many more. This course on Financial Management is aimed at providing a broad overview of the world of business from a financial manager’s perspective. At the end of the course the participants should be having an overall idea about why the corporates and financial markets behave the way they do, and should be better equipped to respond to the fast changing dynamics of the business environment.

B. Readings :

1)Textbook : Fundamentals of Corporate Finance by Stephen A Ross, R W Westerfield and B. D Jordan –8th Edition, ( Subcontinent edition) published by Tata Mcgraw Hill

2) Reference Book :

Financial Management : Theory and Practice

–11th Edition by Brigham and Ehrhardt, Thomson India edition

Principles of Corporate Finance

- 8th Edition, by Brealey, Myers, Allen and Mohanty, Special Indian Edition, Tata Mcgraw Hill,

3) Readings as and when made available during the course.

Tentative Session Plan :

(Relevant Chapter numbers from the text book are indicated within parenthesis)

Session no.	Coverage	Relevant Chapter from RWJ
1.	Overview of Corporate Finance	Chapter 1
2.	Introduction to Time Value of Money concepts	Chapters 5,6
3.	Application of time value of money concepts to value fixed income securities like bonds, bond features, brief idea about term structure of interest rate	Chapter 7
4.	Application of time value of money concepts for valuation of stocks	Chapter 8
5,6,7	Capital Budgeting	Chapters 9,10, 11
8,9	Risk , return and capital markets	Chapters 12,13
10	Cost of Capital	Chapter 15
11	Financial Leverage and Capital Structure Policy	Chapter 17
12	Dividends and Dividend Policy	Chapter 18
13	Short term financial planning and management—Cash and liquidity management	Chapters 19,20
	Short term Financial planning and Management--- Credit and Inventory management	Chapter 21

Pedagogy :

Interactive class lectures, numerical problem solving, short case problem solving, and other assigned readings. Assignments will be given to students on a regular basis after class sessions, and students would be expected to come prepared with the assignments in the next class.

Evaluation:

The evaluation process is divided into three components.

(a) Quizzes: 30%

During the entire period of the course,

there will be three quizzes out of which two best will be selected

as components of evaluation.(each carrying 15% weightage).. As such the participants should ensure that they attend at least two out of the three, and

under no circumstances there will be any make-up quiz

(b) Assignment: 30%

: There will be two home assignments (15% each ) during the course. Late submission will call for deduction of marks. After a certain announced date no further submission will be allowed and the participant will be assigned a zero towards this component of evaluation.

(c) End Term: 40%

The end term examination will again be a closed book one based on topics covered during the entire course .

Created By: Bijoy Kar on 05/28/2009 at 02:22 PM
Category: PGCBM Doctype: Document

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