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    Corporate Finance - 2024-26

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    Corporate Finance - 2024-26

    Uploaded by

    shrimandilkarsahil
    2 views3 pages

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    Corporate Finance_2024-26

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    2 views3 pages

    Corporate Finance - 2024-26

    Uploaded by

    shrimandilkarsahil

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    CORPORATE FINANCE

    Course Description:

    Most decisions a Firm takes, has some form of direct or indirect financial implication that
    involves the use of money. Businesses of all forms have to invest their resources judiciously
    find the prudent mix of financing to fund these investments, and return cash to the shareholders.
    This is an introductory course that examines the critical issues relevant in formulating,
    analyzing or evaluating investment decisions (Both Short and Long Term), the Financing
    mix that are imperative in the structure and processes targeted at maximizing a Firm’s value.

    Course Objectives:

    1. To understand the significance, use and application of the time value of money in
    financial decisions.

    2. To examine the various approaches in estimating the average rate of return demanded
    by investors in the company’s debt and equity as a basis for estimating the cost of capital.

    3. To examine and evaluate the financing mix decisions in the light of leverage
    implications.

    4. To formulate and appraise capital investment decisions using various methods and
    approaches.

    5. To understand the significance of working capital management and to determine the


    optimal levels of the components of current assets and liabilities.

    Course Content

    UNIT- I

    1. Time Value of Money (8 Hours)

    (a) Future Value of a single and series of Cash Flow/s

    (b) Present Value of a single and series of Cash Flow/s

    (c) Present Value of a perpetuity and annuity

    (d) Present Value of a growing perpetuity and annuity

    (e) Applications of the above

    UNIT- II

    2. Cost of Capital (6.5 Hours)

    (a) Cost of debt

    (b) Cost of Preference Capital

    Page 1 of 3
    (c) Cost of Equity Capital: Gordon’s/CAPM

    (d) WACC

    (e) Floatation Costs

    3. Capital Structure Analysis: Financing Mix decisions (7 Hours)

    (a) Operating Leverage

    (b) Financial Leverage

    (c) Combined/Total Leverage

    (d) EBIT analysis: Break Even Analysis

    (e) M&M Propositions I & II

    UNIT- III

    4. Capital Investment Appraisal (8 Hours)

    (a) Payback/Discounted Payback

    (b) Accounting Rate of Return

    (c) Net Present Value

    (d) IRR & MIRR

    (e) Profitability Index

    5. Complex Capital Budgeting (5.5 Hours)

    (a) Equipment Replacement Decisions

    (b) Capital Rationing and choosing the relevant independent projects

    (c) Determining the Sales Bid Value

    (d) Break Even NPV

    UNIT-IV

    6. Working Capital Management: Concept and Estimation (4.5 Hours)

    (a) Working Capital Cycle

    Page 2 of 3
    (b) Cash Conversion Period

    UNIT-V

    7. Management of Working Capital (5.5 Hours)

    (a) Cash

    (b) Receivables

    (c) Inventory

    (d) Trade Payables

    Total (45 Hours)

    Text Book

    1. Financial Management: Theory, Concepts and Problems, 6th Edition, Rastagi R.P
    /Galgotia Publishing Company/ /2010/ISBN: 81-85989-28-1.

    References Books:
    1. Financial Management, Pandey IM/ Vikas Publishing/2015/ ISBN 978-9325-98229-1
    2. Financial Management, Van Horne James et al / Prentice Hall/2008/ ISBN 978-0-
    273-71363-0
    3. Principles of Corporate Finance, Brealey Richard/McGraw – Hill/ 2011/ISBN 978-0-
    07-355073-4
    4. Corporate Finance, Jonathan Berk/ Prentice Hall/2012/ISBN 978-0-13-214823-8
    5. Corporate Finance, Theory and Practice, Vishwanath S.R/ Sage Publications
    /2007/ISBN: 978-0-7619-3497-4
    6. Corporate Finance, Ross, Westerfield,Jaffe, Kankani/McGraw Hill/2014/ISBN :13-
    978-93-392-0312-2

    Page 3 of 3

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