Lovely Professional University, Punjab

Course Code Course Title Course Planner Lectures Tutorials Practicals Credits
FIN302 BASIC FINANCIAL MANAGEMENT 13720::Harendra Singh 3.0 1.0 0.0 4.0
Course Category Courses with numerical and conceptual focus

TextBooks
Sr No Title Author Edition Year Publisher Name
T-1 ESSENTIALS OF FINANCIAL I M PANDEY 3rd 2012 VIKAS PUBLICATION
MANAGEMENT
Reference Books
Sr No Title Author Edition Year Publisher Name
R-1 FINANCIAL MANAGEMENT SHRIVASTAVA RAJIV 2nd 2011 OXFORD AND IBH PUBLISHING CO. PVT. LTD NEW
AND MISHRA ANIL DELHI
R-2 FINANCIAL MANAGEMENT CHANDRA, PRASANA 9th 2007 TATA MCGRAW HILL
R-3 FUNDAMENTALS OF FINANCIAL SHARAN VYUPTKESH 2nd 2008 PEARSON
MANAGEMENT

Other Reading

Sr No Journals articles as Compulsary reading (specific articles, complete reference)

OR-1 Determinants of Capital Structure : A Study of Manufacturing Sector PSUs in India-2011 International Conference on Financial Management and Economics , ,
OR-2 Onyemachi O. " Capital Structure and Firm Value: Empirical Evidence from Nigeria"-,International Journal of Business and Social Science, vol 3 issue 19 year
2012 ,
OR-3 "The Cost of Capital for Alternative Investments", Harvard business school working paper ([Link]
[Link]) ,
OR-4 Time Value of Money Practice Problems Solutions by Dr. Stanley D. Longhofer
([Link] ,
OR-5 "Growing Your Nest Egg: Risk and Return", Securing your financial future series, IOWA State University([Link] ,

OR-6 Why Is the Time Value of Money So Important in Capital Budgeting Decisions? ([Link]
[Link]) ,
OR-7 The Agency problem Shareholders unending nightmare ([Link]/Geoffrey%[Link]) ,

Relevant Websites
Sr No (Web address) (only if relevant to the course) Salient Features
RW-1 [Link] A Primer on the Time Value of Money - For Basics of Time Value of
Money
RW-2 [Link] Working Capital Management Principal and Approaches

RW-3 [Link] Video on CAPM

 RW-4 [Link] Video on NPV

RW-5 [Link] Video on Time value of money

RW-6 [Link] Video on WACC

RW-7 [Link] Video on IRR

RW-8 [Link] Video on annuity - present value

RW-9 [Link] Calculating the Future Value of an Annuity

RW-10 [Link] Video on EOQ calculation

RW-11 [Link] Introduction - Why Finance

LTP week distribution: (LTP Weeks)

Weeks before MTE 7
Weeks After MTE 7
Spill Over 4

Detailed Plan For Lectures

Week Lecture Broad Topic(Sub Topic) Chapters/Sections of Other Readings, Lecture Description Learning Outcomes Pedagogical Tool Live Examples
Number Number Text/reference Relevant Websites, Demonstration/
books Audio Visual Aids, Case Study /
software and Virtual Images /
Labs animation / ppt
etc. Planned
Week 1 Lecture 1 Financial Management T-1:ch1 RW-11 L1: Introduction to the L1: Students will get Discussion
(Introduction to Financial R-1:ch1 course in the lecture the overview of the
Management) R-2:ch1 course.
R-3:ch1 L2: Introduction to L2: Students will get
Financial Management the Introduction and
importance of
Financial
management
Lecture 2 Financial Management T-1:ch1 RW-11 L1: Introduction to the L1: Students will get Discussion
(Introduction to Financial R-1:ch1 course in the lecture the overview of the
Management) R-2:ch1 course.
R-3:ch1 L2: Introduction to L2: Students will get
Financial Management the Introduction and
importance of
Financial
management
Week 1 Lecture 3 Financial Management T-1:CH 1 OR-7 1. Scope of Finance Students will learn Article Discussion
(Scope of Finance) R-1:CH 1 [Link] Profit the scope of Finance
R-2:CH 1 Maximization vs Wealth and the process
R-3:CH 1 Management objective carried to achieve
is ultimate aim of
achieved after business
considering the Agency
Problem
Financial Management T-1:CH 1 OR-7 1. Scope of Finance Students will learn Article Discussion
(Financial Goal Profit [Link] Profit the scope of Finance
Maximization vs Wealth Maximization vs Wealth and the process
Maximization) Management objective carried to achieve
is ultimate aim of
achieved after business
considering the Agency
Problem
Week 2 Lecture 4 Financial Management T-1:CH 1 Financing decision, Students will be able Discussion with
(Finance function & role of R-1:CH1 Investment Decision, to the
finance manager) R-2:ch1 Dividend decision, appreciate the example of JCT
R-3:CH1 working capital importance of role of Limited
decisions financial manager in
optimization of value
of
the company
Lecture 5 Sources of Finance(Short T-1:ch2 1. Short term sources of To make students Discuss with Recent example
term sources of finance) R-1:CH3 finance aware about the respect to of each sources
2. medium term sources instruments the balance sheet of finance can
of finance available for short of be given during
and medium term companies the discussion in
financing and their lecture
use
Which instrument to
be
used to finance
Sources of Finance(Medium T-1:ch2 1. Short term sources of To make students Discuss with Recent example
term sources of finance) R-1:CH3 finance aware about the respect to of each sources
2. medium term sources instruments the balance sheet of finance can
of finance available for short of be given during
and medium term companies the discussion in
financing and their lecture
use
Which instrument to
be
used to finance
Week 2 Lecture 6 Sources of Finance(Long T-1:ch 2 Long term sources of To make students Discuss with Recent example
term sources of finance) finance aware about the respect to of each sources
instruments the balance sheet of finance can
available for Long of be given during
term companies the discussion in
financing and their lecture
use
Which instrument to
be
used to finance and
why
Week 3 Lecture 7 Time Value of Money(Time T-1:ch3 OR-4 1. Introduction of time Students will Video lecture Examples can be
preference for money) RW-1 value of money understand why given to make
RW-5 2. contingency lecture money students
has time value and understand the
how importance of
time value of money time value of
is money
important in a
business
Lecture 8 Time Value of Money T-1:CH3 RW-9 1. Future value of single Students will Problem solving Examples like
(Future value & Future R-1:CH3 some understand how to Fixed deposit
value of Annuity) 2. Future value of compute the future and Recurring
annuity value of money deposits can be
and the importance of given to make
annuity students
and how annuity understand the
becomes important in future value of
future moeny
Lecture 9 Time Value of Money T-1:Ch3 RW-8 1. Present value of To make students Problem solving Example like
(Present value & Present R-1:ch3 single some understand the Loan EMIs and
value of Annuity) 2. Present value of concept of Insurance claim
annuity discounting and its can be given to
uses in real life. make students
understand
about the
present value of
future cash flow
Week 4 Lecture 10 Risk & Return(Variance and T-1:Ch5 1. Introduction, [Link] Student will Problem solving
standard deviation) R-2:Ch5 of understand
risk the concept of risk
3. Variance and and will be able to
standard compute variance and
deviation standard deviation as
a
measure of risk
Week 4 Lecture 10 Risk & Return(Variance and T-1:Ch5 1. Introduction, [Link] Student will Problem solving
standard deviation) R-2:Ch5 of understand
risk the concept of risk
3. Variance and and will be able to
standard compute variance and
deviation standard deviation as
a
measure of risk
Lecture 11 Risk & Return(Return on a T-1:Ch5 OR-5 Calculation To make students problem solving
single asset) RW-3 of return on a single understand how to
asset, Expected Return compute the return on
using single asset and
CAPM CAPM model
Risk & Return(Expected T-1:Ch5 OR-5 Calculation To make students Problem solving
Return using CAPM) RW-3 of return on a single understand how to
asset, Expected Return compute the return on
using single asset and
CAPM CAPM model
Lecture 12 Quiz,Test1
Week 5 Lecture 13 Cost of Capital(Introduction T-1:Ch 13 OR-3 Introduction of cost of Students will Discussion and
& Significance of Cost of capital its component understand the problem solving
Capital) and their uses meaning of cost
capital and its use in
decision making
Cost of Capital(Components T-1:Ch 13 OR-3 Introduction of cost of Students will Discussion and
of Cost of Capital) capital its component understand the problem solving
and their uses meaning of cost
capital and its use in
decision making
Lecture 14 Cost of Capital(Cost of T-1:Ch 13 1. Cost of term loan and Student will learn the problem solving
Debt) cost of debentures computation of the
cost of
term loan and cost of
debenture
Lecture 15 Cost of Capital(Cost of T-1:Ch-13 Dividend capitalization After this lecture problem
Equity Capital) approach, with and student will able to solvingNumerical
without flotation compute the cost of
cost,Earning based equity capital
apporach,
Cost of retained earning
Week 6 Lecture 16 Cost of Capital(Cost of T-1:Ch-13 Cost of Preference After this lecture problem
Preference capital) capital student will able to solvingNumerical
compute the cost of
preference capita
Week 6 Lecture 17 Cost of Capital(Weighted T-1:Ch-13 RW-6 Meaning of WACC and Students will problem
Average Cost of Capital) its calculation understand why solving, Numerical
WACC
becomes important
for
a company despite
other costs
Lecture 18 Quiz,Test2
Week 7 Lecture 19 Capital Structure T-1:Ch-16 OR-1 Introduction of the Enable the students to Problem solving
(Introduction and optimum Concept of optimum understand concept of
capital structure concept) capital structure optimum capital
structure and its
relevance
Lecture 20 Capital Structure(Relevance T-1:Ch-16 OR-2 Net income approach, To make students Problem solving
Theories of capital structure( Traditional approach understand the
Net income approach & relevance theories of
Traditional approach)) capital structure
Lecture 21 Capital Structure(Irrelevance T-1:Ch-16 Net operating income To make students Problem solving
Theories of capital structure theory, MM theory understand the
( Net operating income Irrelevance theories
theory and M.M theory)) of capital structure

MID-TERM
Week 8 Lecture 22 Capital Budgeting T-1:ch 9 OR-6 [Link] of Capital Students will article discussion
(Introduction & Nature of R-1:ch11 budgeting understand the
capital budgeting) 2. why a concept
decision is called as of capital budgeting,
capital budgeting why capital
decision budgeting
3. types of decisions are
investment decisions important
for a company
Capital Budgeting(Types of T-1:ch 9 OR-6 [Link] of Capital Students will article discussion
capital Budgeting decisions) R-1:ch11 budgeting understand the
2. why a concept
decision is called as of capital budgeting,
capital budgeting why capital
decision budgeting
3. types of decisions are
investment decisions important
for a company
Lecture 23 Capital Budgeting(Non T-1:Ch11 Discussion on the After this lecture Problem solving
Discounting Techniques concept of Non- students will learn the numericals
(Payback period & Discounted cash flow concept of non
Accounting Rate of return)) techniques discounted cash flow
techniques
Week 8 Lecture 24 Capital Budgeting T-1:ch 11 RW-4 Discussion on the Student will come to Discussion and
(Discounting Techniques( RW-7 concept of Discounted know the relevance problem solving
NPV & IRR)) cash flow techniques of discounted cash
1. NPV flow techniques in
2. IRR capital budgeting
Week 9 Lecture 25 Leverage(Financial T-1:Ch 9 1. Meaning Definition Students will come to Discussion with
leverage) Importance of Leverage know about leverage the
2. Degree of financial and their impact on help of financial
leverage the statements of a
earnings and capital company
structure
and will be able to
compute the degree
of
financial leverage
and
know its importance
Leverage(Introduction to T-1:Ch 9 1. Meaning Definition Students will come to Discussion with
Leverage & Capital Importance of Leverage know about leverage the
structure) 2. Degree of financial and their impact on help of financial
leverage the earnings and statements of a
capital structure and company
will be able to
compute the degree
of financial leverage
and know its
importance
Lecture 26 Leverage(Operating T-1:Ch 11 1. Degree of operating Student will able to Discussion with
leverage) leverage compute the degree the
2. Degree of combined of help of financial
leverage operating leverage statements of a
and degree of company
combined leverage
Leverage(Operating T-1:Ch 11 1. Degree of operating Student will able to Discussion with
leverage) leverage compute the degree the
2. Degree of combined of help of financial
leverage operating leverage statements of a
and degree of company
combined leverage
Lecture 27 Dividend Theory T-1:Ch 19 L27: Introduction, L27: Student will Discussion with
(Introduction & Objectives Relevance understand respect to
of Dividend policy) of dividend the relevance of companies
L28: Forms of dividend for the value those who pay
dividend, of firm and the dividend and those
Factors affecting factors that influence who do not pay
dividend policy the value of the firm dividend
L28: Students will
understand how
different factors
affect the dividend
policy of the firm
Week 9 Lecture 27 Dividend Theory(Forms of T-1:Ch 19 L27: Introduction, L27: Student will Discussion with
Dividend) Relevance understand respect to
of dividend the relevance of companies
L28: Forms of dividend for the value those who pay
dividend, of firm and the dividend and those
Factors affecting factors that influence who do not pay
dividend policy the value of the firm dividend
L28: Students will
understand how
different factors
affect the dividend
policy of the firm
Week 10 Lecture 28 Dividend Theory(Forms of T-1:Ch 19 L27: Introduction, L27: Student will Discussion with
Dividend) Relevance understand respect to
of dividend the relevance of companies
L28: Forms of dividend for the value those who pay
dividend, of firm and the dividend and those
Factors affecting factors that influence who do not pay
dividend policy the value of the firm dividend
L28: Students will
understand how
different factors
affect the dividend
policy of the firm
Dividend Theory T-1:Ch 19 L27: Introduction, L27: Student will Discussion with
(Introduction & Objectives Relevance understand respect to
of Dividend policy) of dividend the relevance of companies
L28: Forms of dividend for the value those who pay
dividend, of firm and the dividend and those
Factors affecting factors that influence who do not pay
dividend policy the value of the firm dividend
L28: Students will
understand how
different factors
affect the dividend
policy of the firm
Lecture 29 Dividend Theory(Dividend T-1:Ch-19 L29: Walter model L29: Students would Problem solving
Relevance( Walter & be able to understand
Gordon Model)) L30: Gordon the impact of
Model Dividend on
the value of the firm
with the help of
Walter model
L30: L29: Students
would be able to
understand the
impact of Dividend
on
the value of the firm
with the help of
Gordan model
Week 10 Lecture 30 Dividend Theory(Dividend T-1:Ch-19 L29: Walter model L29: Students would Problem solving
Relevance( Walter & be able to understand
Gordon Model)) L30: Gordon the impact of
Model Dividend on
the value of the firm
with the help of
Walter model
L30: L29: Students
would be able to
understand the
impact of Dividend
on
the value of the firm
with the help of
Gordan model
Week 11 Lecture 31 Dividend Theory(Dividend T-1:Ch-19 MM hypothesis Students would be Problem solving
Irrelevance( M.M hypothesis able to understand the
& Bird in hand argument)) impact of Dividend
on
the value of the firm
Lecture 32 Working Capital RW-2 1. Introduction, meaning Enable student to Problem solving
Management(Introduction to of understand the basic
Working Capital) working capital,Scope concept of working
of capital
working capital
management
2. Factors affecting
working capital
need,
Working Capital 1. Introduction, meaning Enable student to Problem solving
Management(Determinants of understand the basic
of working capital) working capital,Scope concept of working
of capital
working capital
management
2. Factors affecting
working capital
need,
Lecture 33 Working Capital T-1:Ch 21 Operating cycle Students will learn Problem solving
Management(Operating the concept of
cycle) Operating cycle and
how it used in
estimation of
working capital
requirement
Week 12 Lecture 34 Quiz,Test3
Lecture 35 Inventory Management T-1:Ch 22 1. Nature of inventory Students will Discussion
(Need and Objectives) 2. Motive of holding understand the
Inventories concept of Inventory
and it motive of
holding
Week 12 Lecture 36 Inventory Management T-1:22 RW-10 L36 Inventory L36-37 Students will Problem solving
(Inventory Management management techniques( learn the inventory
Techniques) EOQ) management
L37 Inventory techniques and their
Management practical uses
Techniques( ABC
Analysis)
Week 13 Lecture 37 Inventory Management T-1:22 RW-10 L36 Inventory L36-37 Students will Problem solving
(Inventory Management management techniques( learn the inventory
Techniques) EOQ) management
L37 Inventory techniques and their
Management practical uses
Techniques( ABC
Analysis)
Lecture 38 Cash Management T-1:Ch24 L38. Introduction of Students will Discussion
(Introduction to Cash Cash understand the
Management) management,Motives of meaning of cash
holding cash management and
L39: Contingency motives of holding
lecture cash
Cash Management(Need and T-1:Ch24 L38. Introduction of Students will Discussion
objectives) Cash understand the
management,Motives of meaning of cash
holding cash management and
L39: Contingency motives of holding
lecture cash
Lecture 39 Cash Management(Need and T-1:Ch24 L38. Introduction of Students will Discussion
objectives) Cash understand the
management,Motives of meaning of cash
holding cash management and
L39: Contingency motives of holding
lecture cash
Cash Management T-1:Ch24 L38. Introduction of Students will Discussion
(Introduction to Cash Cash understand the
Management) management,Motives of meaning of cash
holding cash management and
L39: Contingency motives of holding
lecture cash
Week 14 Lecture 40 Cash Management(Cash T-1:Ch 24 Cash collection Students will Discussion and
collection techniques) techniques like: understand how to numerical
Decentralised manage the cash examples
Collections, collection by using
Lock-box System different techniques

Lecture 41 Receivable Management T-1:25 L41: Introduction to Students will learn Discussion using
(Introduction to Receivable Receivable management the concept of PPT and cases
Management) and credit policy receivable
L42: Revision management and
different credit
policies used by firm.
 Week 14 Lecture 41 Receivable Management T-1:Ch 25 L41: Introduction to Students will learn Discussion
(Credit policy) Receivable management the concept of
and credit policy receivable
L42: Revision management and
different credit
policies used by firm.
Lecture 42 Receivable Management T-1:Ch 25 L41: Introduction to Students will learn Discussion
(Credit policy) Receivable management the concept of
and credit policy receivable
L42: Revision management and
different credit
policies used by firm.
Receivable Management T-1:25 L41: Introduction to Students will learn Discussion using
(Introduction to Receivable Receivable management the concept of PPT and cases
Management) and credit policy receivable
L42: Revision management and
different credit
policies used by firm.

SPILL OVER
Week 19 Lecture 57 Spill Over
Week 20 Lecture 58 Spill Over
Lecture 59 Spill Over
Lecture 60 Spill Over

Scheme for CA:

Component Frequency Out Of Each Marks Total Marks
Quiz,Test 2 3 10 20

Total :- 10 20

Details of Academic Task(s)

AT No. Objective Topic of the Academic Task Nature of Academic Task Evaluation Mode Allottment /
(group/individuals/field submission Week
work
Test1 To check the The test will be taken from the topics covered in lecture 1-12 Individual 6 questions of 5 4/4
analytical abilities of marks each.
the students Maximum marks 30
and time duration
45 minutes
Quiz1 To check whether or The syllabus for the quiz is from lecture 1 to lecture 19 Individual Minimum 25 6/6
not the students have questions of 1 or 2
conceptual clarity marks each.
Maximum marks 30
and time duration
30 minutes
Test2 To check numerical Topics covered from lecture 29 to lecture 44 will be the syllabus Individual 6 question of 5 11 / 12
ability of students for test marks each.
Maximum marks 30
and time duration
45 minutes

Plan for Tutorial: (Please do not use these time slots for syllabus coverage)
Tutorial No. Lecture Topic Type of pedagogical tool(s) planned
(case analysis,problem solving test,role play,business game etc)

Tutorial2 Numerical problems on time value of money Problem Solving

Tutorial3 Numerical problem on time value of money Problem Solving
Tutorial4 Numerical problem on risk and return Problem Solving
Tutorial5 Numerical problem on cost of capital Problem Solving
Tutorial6 Numerical problem on cost of capital Problem Solving
Tutorial7 Revision -problem solving and practice Problem Solving
Tutorial1 Discussion on topics covered from Lecture 1-3-THE FINANCIAL Problem Solving
MANAGEMENT ROLE IN MODERN ORGANIZATIONS
After Mid-Term
Tutorial10 Case study on leverage-Financial Leverage and the Leverage - A Case Analysis
Market and Firm Analysis
Tutorial8 Numerical problem on capital budgeting Problem Solving
Tutorial9 Numerical problem on capital budgeting Problem Solving
Tutorial11 Case discussion on capital structure-Capital Structure and Firm Case Analysis
Value: Empirical Evidence from Nigeria- International Journal of
Business and Social Science
Tutorial12 Numerical problem on value of firm Problem Solving
Tutorial13 Discussion on inventory management- Basics of inventory Case Analysis
management -from warehouse to distribution centre
Tutorial14 Revision-problem solving and practice Problem Solving