SYLLABUS

UNIT-I

Evolution, scope and function of finance managers, objectives of financial management, profit vs. wealth maximization, time value of money.

UNIT-II

Investment Decisions; brief introduction of cost of capital; methods of capital budgeting; ARR, PBP, NPV and IRR, capital rationing (simple problems on capital budgeting methods).

UNIT-III

Financing decision: operational and financial leverage; capital structure theories – NI, NOI and traditional approach; EPS-EBIT Analysis.

UNIT-IV

Dividend decision and Management of working capital; determinants of dividend policy; Walter’s Dividend Model; Operating Cycle, brief discussion on management of cash, receivable and inventory (simple problem on operating cycle and inventory management).