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Financial Management Course Overview

The Financial Management course aims to provide an understanding of financial principles, techniques, and theories, focusing on finance functions, performance analysis, investment decisions, and capital structure. Students will learn to analyze financial statements, evaluate long-term projects, and understand various financing options and dividend policies. The course includes units on financial management overview, financial statement analysis, capital budgeting, financing decisions, leverage analysis, and dividend decisions.

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Abeer Tiwari
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54 views2 pages

Financial Management Course Overview

The Financial Management course aims to provide an understanding of financial principles, techniques, and theories, focusing on finance functions, performance analysis, investment decisions, and capital structure. Students will learn to analyze financial statements, evaluate long-term projects, and understand various financing options and dividend policies. The course includes units on financial management overview, financial statement analysis, capital budgeting, financing decisions, leverage analysis, and dividend decisions.

Uploaded by

Abeer Tiwari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

COURSE CODE COURSE TITLE CREDITS

Financial Management 04

Course Description
The course is designed to develop an understanding of basic principles, techniques, and
theories of financial management. It explains how firms raise finance, make apt financing
decisions and evaluate investment decisions. In addition, it describes how to analyze firm
performance using the financial statements.
Course Objectives
1. Understand the role of finance function in an organization.
2. Develop understanding for analyzing financial performance of firms.
3. Comprehend with long-term investment decisions of firms.
4. Remembering various alternatives of long-term capital.
5. Describe the weighted average cost of capital of a company.
6. Analyze various leverages on capital structure decisions and various dividend policies.
Course Outcomes
1. After completing this course students will be able to:
2. Compile various finance function.
3. Measure financial performance of firms.
4. Apply investment decisions for evaluating long-term projects of firms.
5. Explain sources of long-term finance for firms.
6. Evaluate leverage and capital structure decisions of firms and dividend policies.

Course Content
Unit 1: Overview of financial management.
Financial management–– meaning, objectives, functions, and scope. Introduction to time
value of money. Organization structure to carryout finance function in Corporate enterprises.
Financial Planning and Financial Forecasting.
Unit 2: Financial statement analysis.
Analysis and Interpretation of Corporate Final Accounts: Understanding the Parameters of
health of Business: Liquidity, Profitability, Solvency and Efficiency through learning
computation, analysis and interpretation of various tools of financial analysis
Unit 3 Investment decisions – Capital budgeting techniques.
Nature of capital budgeting, Investment decision appraisal techniques – net present value,
profitability index, pay back and accounting rate of return.
Unit 4: Financing decision.
Sources of finance - equity, preferences, debentures, bonds, term loan and retained earnings
Capital structure theories and factors affecting capital structure. Weighted average cost of
capital
Unit 5: Leverages analyses.
Leverages–– financial, operating and combined leverage. Impact of leverage on capital
structure –– EBIT-EPS approach, and ROI-ROE approach.
Unit 6: Dividend decisions
Types of dividend models – Determinants of dividend policy – Practical aspects of dividend.

Reference
 Khan and Jain (2018), Financial Management, Eighth edition, McGraw Hill. New
Delhi.
Recommended references
 Pandey, I. M. (2015). Financial Management, Eleventh edition. Vikas Publishing
House, Nodia.
 Prasanna Chandra. (2020). Fundamentals of Financial Management. Seventh edition.
Tata McGraw Hill. New Delhi.

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