Financial Management
Babasaheb Bhimrao Ambedkar University · LL.B. Semester 4 · BBM-406
Unit I
Financial Management- An Introduction Financial Management: · i. Meaning, Scope, Objectives of Financial Management · ii. Profit Vs Wealth Maximization · iii. Financial Management and other Areas of Management · iv. Liquidity Vs Profitability · v. Methods of Financial Management · vi. Organization of Finance · vii. Functions of Finance Sources of Financing: · i. Classification of Sources of Finance · ii. Security Financing · iii. Loan Financing · iv. Project Financing · v. Loan Syndication- Book Building New Financial Institutions and Instruments: · i. Depositories · ii. Factoring · iii. Venture Capital · iv. Credit Rating · v. Commercial Paper · vi. Certificate of Deposit.
Unit II
Money Valuation and Capital Structure Concept in Valuation: · i. Time Value of Money · ii. Valuation Concepts · iii. Valuation of Securities viz., Debentures, Preference shares and Equity Shares Capital Structure: · i. Meaning, Capital Structure and Financial Structure · ii. Patterns of Capital Structure · iii. Optimum Capital Structure, Capital Structure Theories · iv. Factors Determining Capital Structure · v. Capital Structure Practices in India. Cost of Capital: · i. Concept, Importance · ii. Classification and Determination of Cost of Capital. Leverages: · i. Concept · ii. Types of leverages and their significance.
Unit III
Capital Budgeting &Risk Analysis Capital Budgeting: · 1. Concept and Importance · 2. Appraisal Methods: · i. Payback period · ii. DCF techniques · iii. Accounting rate of return · iv. Capital Rationing Risk Analysis · 1. Concept of Risk · 2. Incorporation of Risk Factor · 3. General Techniques: · i. Risk adjusted discount return · ii. Certainty equivalent coefficient · 4. Quantitative Techniques: · i. Sensitivity analysis · ii. Probability assignment · iii. Standard deviation · iv. Coefficient of variation.
Unit IV
Working Capital Management & Dividend Theories Working Capital Management: · i. Concept · ii. Management of Cash · iii. Management of Inventories · iv. Management of Accounts Receivable and Accounts Payable · v. Over and Under Trading Dividend, Bonus and Rights: · i. Concepts of Dividend · ii. Bonus · iii. Rights · iv. Dividend Policy · v. Relevance and Irrelevance · vi. Corporate Dividend Practices in India.