IE482 Financial Management 3-0-0-3 2016 Prerequisite: Nil: Course Code Course Name L-T-P - Credits Year of
IE482 Financial Management 3-0-0-3 2016 Prerequisite: Nil: Course Code Course Name L-T-P - Credits Year of
IE482 Financial Management 3-0-0-3 2016 Prerequisite: Nil: Course Code Course Name L-T-P - Credits Year of
Syllabus:
Nature and Scope of Financial Management; Time Value of Money, Cash Flow Statement and its
Interpretation, Financial Statement Analysis, Sources of Finance, Capital Structure; Dividend
Decision; Fixed and Current, Short-term financial planning, working capital–planning and
management, Capital Budgeting.
Expected outcome.
The students will be able to
i. Obtain an overview of financial system.
ii. Analyze financial statements using standard financial ratios.
iii. Apply techniques to project financial statements for forecasting long-term financial
needs.
iv. Understand the role of short-term financial needs.
v. Apply time value, risk, and return concepts.
Text books
1. Khan, M. Y. and Jain P. K., Financial Management, Text, Problems & Cases, Tata
McGraw Hill Company, New Delhi, 2007.
2. Pandey I. M., Financial Management, Vikas Publishing House Pvt. Ltd., 2009.
3. Prasanna Chandra, Financial Management: Theory and Practice, Tata McGraw
Hill, 2011
References:
1. Bhalla. V. K., Financial Management and Policy: Text and Cases, 9th Edition,
Anmol Publications Pvt. Ltd, 2009.
2. Brigham. Eugene F. and Houston. Joel F., Fundamentals of Financial Management,
10th Edition, Cengage Learning, 2006.
3. Gitman, L. J., Principles of Managerial Finance, New York, 2006.
4. Sheeba Kapil, Financial Management, Pearson Education, 2010.
5. Van Horne and C. James, Principles of Financial Management, Pearson, 2002.
Course Plan
End
Sem.
Module Contents Hours
Exam
Marks
Nature and Scope of Financial Management; Financial Objectives;
I 7 15%
goal of financial management, FM decisions, Time Value of Money.
Funds Flow Analysis; Cash Flow Statement and its Interpretation,
II 7 15%
Financial Statement Analysis, Ratio Analysis, Time Series.
FIRST INTERNAL EXAMINATION
Planning for Sources of Finance; Capital Structure; Net Income
Approach; Net Operating Income Approach; Traditional Approach
III 7 15%
and MM Approach, Cost of Capital; EBIT – EPS Analysis, Capital
Gearing/Debt-Equity Ratio
Retained Earning Vs. Dividend Decision; Gordon Model; Walter
IV Model; MM Approach; Fixed and Current, Short-term financial 7 15%
planning.
SECOND INTERNAL EXAMINATION
Working capital–Gross and net working capital, planning and
V 7 20%
management, Operating Cycle, Determination of working capital.
Capital Budgeting – Evaluation techniques for capital budgeting,
VI capital budgeting decision criteria, NPV–IRR comparisons, capital 7 20%
rationing.
END SEMESTER EXAM
Candidates have to answer any 2 questions from a choice of 3 questions. Each full
question carries a total of 15 marks and can have a maximum of 4 sub questions (a, b,
c, d). No two f u l l questions shall be exclusively from a single module. All three
questions shall preferably have components from both modules. Marks for each
question/sub question shall be clearly specified. Total percentage of marks for the two
modules put together as specified in the curriculum shall be adhered to for all
combinations of any two questions.
(Same as for part A, except that each full question carries 20 marks)
Note: If use of tables and charts are permitted for the university examination for this
course, proper direction of the same should be provided on the facing sheet of the
question paper.