Discipline Specific Course- 3.2(DSC-3.

2): Financial Management

CREDIT DISTRIBUTION, ELIGIBILITY AND PRE-REQUISITES OF
THE COURSE

Course Credits Credit distribution of the Eligibility Pre-

title & course requisite
Code criteria
Lecture Tutorial Practical/ of the
course (if
Practice any)
DSC-3.2: 4 3 0 1 Pass in XII NIL
Financial
Managemen
t

Learning Objectives
The course aims to enable students to acquire knowledge of principles and practice
of financial management.
Learning outcomes
After completion of the course, learners will be able to:
1. Analyse the conceptual framework of financial management and get an insight into
the concept of time value of money, and risk and return.
2. Estimate cash flows for projects, and evaluate their profitability using capital
budgeting techniques.
3. Estimate the cost of capital; and critically analyse different capital structure theories
and factors affecting capital structure decision of a firm.
4. Analyse different theories of dividend and factors affecting dividend policy.
5. Estimate working capital requirements of a firm, and device optimum credit policy
for a firm.

SYLLABUS OF DSC-3.2
Unit 1: Financial Management: An Overview (3 hours)
Nature, scope and objectives of financial management. An overview of time value of
money and risk and return.
Unit 2: Capital Budgeting Decision (12 hours)
The Capital Budgeting Process, Cash Flow Estimation, Different techniques of
Capital budgeting: Payback Period Method, Discounted Payback Period Method,
Accounting Rate of Return, Net Present Value (NPV), Internal Rate of Return (IRR)
and Profitability Index.
Unit 3: Cost of Capital and Financing Decision (15 hours)

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Cost of Capital: Estimation of components of cost of capital: Method for calculating
cost of equity, Cost of retained Earnings, Cost of Debt, Cost of Preference Capital,
Weighted Average Cost of Capital (WACC) and Incremental (Marginal) Cost of
Capital.
Capital Structure: Theories of Capital Structure (Net Income, Net Operating Income,
MM Hypothesis, Traditional Approach). Operating, Financial and Combined
Leverage. EBIT-EPS Analysis. Determinants of Capital Structure.

Unit 4: Dividend Decision (6 hours)

Theories for relevance and irrelevance of dividend decision for corporate valuation-
MM Approach, Walter’s Model, Gordon’s Model. Determinants of Dividend
policy.
Unit 5: Working Capital Decision (9 hours)
Concepts of Working Capital, Operating & Cash Cycles, Risk-return Trade off,
working capital estimation, Receivables Management.

Note: Use of Spreadsheet should be encouraged for doing basic calculations for
various topics in the course and giving students subject related assignments for
their internal assessment purposes.

Practical Exercises 30 hours

The learners are required to:
1. Compute risk and return of various investment alternatives using excel
spreadsheet. 2. Estimate cash flows for a hypothetical Start-up. Using excel,
evaluate the project’s profitability by employing capital budgeting evaluation
techniques.
2. Extract data from financial statements of different firms/financial databases and
estimate the cost of capital using appropriate software.
3. Extract historical data and evaluate different dividend policies followed by
companies of specific industries.
4. Estimate working capital requirements for any two companies belonging to
different industries and compare them.

Suggested Readings:
• Brealey, R.A., Myers S.C., Allen F., & Mohanty P. (2020). Principles of
Corporate Finance. McGraw Hills Education.
• Khan, M.Y. & Jain, P.K. (2011). Financial Management: Text, Problems and
Cases. New Delhi: Tata McGraw Hills.
• Kothari, R. (2016). Financial Management: A Contemporary Approach. New
Delhi: Sage Publications Pvt. Ltd.
• Maheshwari, S. N. (2019). Elements of Financial Management. Delhi: Sultan
Chand & Sons.
• Maheshwari, S. N. (2019). Financial Management – Principles & Practice. Delhi:
Sultan Chand & Sons.
• Pandey, I. M. (2022). Essentials of Financial Management. Pearson.

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 • Rustagi, R.P. (2022). Fundamentals of Financial Management. New Delhi:
Taxmann. New Delhi.
• Sharma, S.K. & Sareen, R. (2019). Fundamentals of Financial Management. New
Delhi: Sultan Chand & Sons (P) Ltd.
• Singh, J.K. (2016). Financial Management: Theory and Practice. New Delhi:
Galgotia Publishing House.
• Singh, S. and Kaur, R. (2020). Fundamentals of Financial Management. New
Delhi: SCHOLAR Tech Press.
• Tulsian, P.C. & Tulsian, B. (2017). Financial Management. New Delhi: S. Chand.

Additional Resources:
• Chandra, P. (2019). Financial Management: Theory and Practice. New Delhi:
Tata McGraw Hills.
• Ross, S. A., Westerfield, R. & Jefferey, J. (2017). Corporate Finance. Tata McGraw
Hills.
• Srivastava, R. and Mishra, A. (2011). Financial Management. U.K.: Oxford
University Press.
• Van Horne, J. C, & John, W. (2008). Fundamentals of Financial Management.
Pearson Education.
Note: Suggested readings will be updated by the Department of Commerce and
uploaded on Department’s website.

Note: Examination scheme and mode shall be as prescribed by the Examination

Branch, University of Delhi, from time to time.

Discipline Specific Course- 3.3(DSC-3.3): Principles of Marketing

CREDIT DISTRIBUTION, ELIGIBILITY AND PRE-REQUISITES
OF THE COURSE
Course Credits Credit distribution of the Eligibility Pre-
title & Code course criteria requisite
of the
Lecture Tutorial Practical/ course (if
Practice any)

DSC 3.3 – 4 3 1 0 Pass in NIL

Principles XII
of Marketing

Learning Objectives
The objective of this course is to provide basic knowledge of
concepts, principles, tools and techniques of marketing and to

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provide knowledge about various developments in the
marketing.

Learning outcomes
After completion of the course, learners will be able to:
1. Discuss basic concepts of marketing, marketing philosophies and
environmental conditions affecting marketing decisions of a firm.
2. Describe the dynamics of consumer Behaviour and process of market
selection through STP.
3. Analyse the process of value creation through marketing decisions involving
product development.
4. Analyse the process of value creation through marketing decisions involving
product pricing and its distribution.
5. Explore marketing decisions involving product promotion, and draft promotion
mix strategies.

SYLLABUS OF DSC-3.3
Unit 1: Introduction to Marketing and Marketing Environment (9 hours)
Introduction to Marketing: Scope and Importance; Core concepts
of marketing; Marketing Philosophies; Services Marketing, Marketing Mix.
Marketing Environment: Need for studying marketing environment; Micro
environmental factors- company, suppliers, marketing intermediaries,
customers, competitors, publics; Macro environmental factors – demographic,
economic, natural, technological, politico-legal and socio- cultural.
Unit 2: Consumer Behaviour and Market Selection (9 hours)
Consumer Behaviour: Need for studying consumer Behaviour; Stages
in Consumer buying decision process; Factors influencing consumer
buying decisions.
Market Selection: Choosing market value through STP. Market Segmentation-
bases of segmenting consumer markets. Market Targeting, Product Positioning
– concept and bases
Unit 3: Product Decisions and New Product Development (9 hours)
Product Decisions: Concept and classification; Levels of Product. Designing
value: Product- mix, Branding- types, significance, and qualities of good brand
name; Packaging and Labelling- types and functions; Product support services.
New Product Development: New product development process; Product life
cycle – concept and marketing strategies.
Unit 4: Pricing Decisions and Distribution Decisions (9 hours)
Pricing Decisions: Objectives, Factors affecting price of a product,
Pricing methods, Pricing strategies.