Syllabus
Syllabus
Syllabus
3 0 0 0 3
Pre-requisite Syllabus version
1.0
Course Objectives:
Understand the fundamental concepts of financial management
Appreciate basic concepts such as time value of money, cost of capital, risk and return,
working capital management, capital budgeting etc.
Leverage the concept for deciding financial angle of IT projects
Course Outcome:
Students will be able to
1. To enable the budding Technocrat Managers to understand the Financial Management
concepts and to appreciate the concepts of “time value of money” in the decision-
making process.
2. To value the Securities and know the concept of Risk and return
3. To evaluate the “Leverage” , “cost of capital” and the projects using the Capital
budgeting concepts
4. To understand the Capital components, their implications and Working Capital
requirements.
5. To analytically view the Components of Working Capital.
Student Learning Outcomes (SLO): 2,12,18
Module:1 Introduction 2 hours
Introduction: Introduction to Financial Management - Goals of the firm - Financial
Environments. Time Value of Money: Simple and Compound Interest Rates, Amortization,
Computing more than once a year, Annuity Factor.
Module:2 Valuation of Securities / Risk & return 10 hours
Valuation of Securities: Bond Valuation Preferred Stock Valuation, Common Stock Valuation,
Concept of Yield and YTM.
Risk & Return: Defining Risk and Return, Using Probability Distributions to Measure Risk,
Attitudes Toward Risk, Risk and Return in a Portfolio Context, Diversification, The Capital
Asset Pricing Model (CAPM)
Module:3 Leverage / Cost of Capital 6 hours
Operating & Financial Leverage: Operating Leverage, Financial Leverage, Total Leverage,
Indifference Analysis in leverage study
Cost of Capital : Concept , Computation of Specific Cost of Capital for Equity - Preference –
Debt, Weighted Average Cost of Capital – Factors affecting Cost of Capital
Module:4 Capital budgeting 4 hours
The Capital Budgeting Concept & Process - An Overview, Generating Investment Project
Proposals, Estimating Project, After Tax Incremental Operating Cash Flows, Capital Budgeting
Techniques, Project Evaluation and Selection - Alternative Methods
Module:5 Working Capital Management: 3 hours
Overview, Working Capital Issues, Financing Current Assets (Short Term and Long Term- Mix),
Combining Liability Structures and Current Asset Decisions, Estimation of Working Capital
Module:6 Cash Management: 9 hours
Motives for Holding cash, Speeding Up Cash Receipts, Slowing Down Cash Payouts,
Electronic Commerce, Outsourcing, Cash Balances to maintain, Factoring
Module:7 Accounts Receivable Management: 9 hours
Credit & Collection Policies, Analyzing the Credit Applicant, Credit References, Selecting
optimum Credit period.
Module 8 Recent Trends 2 hours