Course Handout- FM

ICFAI Business School

The ICFAI University Jaipur
THE ICFAI UNIVERSITY, JAIPUR
ICFAI Business School
Course Handout
MBA (Class of 2026)
First Semester: 2024-25

Course Code Course Title L P U

SL FI 501 Financial Management 3 0 3

1. Instructor-in-charge:
Dr. Ruchi Gupta
Email ID: rgupta@iujaipur.edu.in
Mobile: +91 8989023430
CA Sukriti Khatri
Email ID: skhatri@iujaipur.edu.in
Mobile No: 9928606040
Dr. Kunal Vijay
Email ID: kvijay@iujaipur.edu.in
Mobile No: 9785766655
Dr. Vaibhav Kaushik
Email ID: vkaushik@iujaipur.edu.in
Mobile No: 9828080236

2. Scope & Objective of the course:

The aim of the course is to gain an understanding of basic functions of finance and its interface with other
functional areas. To familiarize students with finance markets and instruments, develop working knowledge of
fundamental tools and apply them in investment and financing decisions.
At the end of the course, the student will be able to:
▪ Understand the financial environment of business, especially the role of components of financial
system.
▪ Assess the relationship between risk and return.
▪ Apply the concept of time value of money.
▪ Understand and determine the optimal combination of the various sources of finance with
respect to constraints such as cost and risk both for the long term and short term.
▪ Understand the basic type of financial management decisions and the role of the financial
manager.

3. (a) Textbook(s):

T1 Financial Management: Theory and Practice, Latest Edition, Chandra Prasanna, Tata McGraw-Hill

(b) Reference book(s):

R1 Financial Management and Policy, Van Horne, James C. Prentice Hall

R2 Financial Management, Pandey I. M. Vikas Publishing House Pvt. Ltd.
R3 Financial Management, Ross Westerfield Jaffe- TMH

(c) Other readings:

COURSE HANDOUT –FM
THE ICFAI UNIVERSITY, JAIPUR
E-RESOURCES/DATABASES
www.damodaran.com
www.khanacademy.org
http://aswathdamodaran.blogspot.in/

(d) Recommended E – Book:

Name: Principles of Managerial Finance (13 th edition)
Authors: Lawrence J. Gitman & Chad J. Zutter
Publisher: Prentice Hall (Pearson)
URL to download: https://ibfbzu.edu.pk/wp-content/uploads/2020/08/Principles-of-Managerial-
Finance-13th-Edition-E.pdf

Lecture-wise plan

Lectur
Reference
e/ Learning Topics to be
(Chapter/Sec./Page Nos.
Sessio Objectives covered
(of Text/Ref. Books)
n Nos.
1 (1) Introduction to Financial
Management Reading material to be shared periodically.
Introduction to URL: https://www.ilearnlot.com/goals-of-
Financial financial-management/55065/
Management https://efinancemanagement.com/financial-
management/agency-theory
1 (2) Financial Markets - Functions and Reading material to be shared periodically.
Classifications of Financial URL & Links:-
Markets – Introduction to Money https://www.youtube.com/watch?v=jEmVcw
Market - Forex Market - 004-A&t=577s
Government Securities Market- https://www.knightfintech.com/knowledge-
Primary & Secondary market for center/articles/learning/overview-of-
G.Sec, Call money market: Money financial-markets
Overview of https://www.economicsdiscussion.net/india/
Market, Treasury Bill Market, Financial money-market/money-market-in-india-
Commercial Paper and Certificate Markets features-structure-constituents-participants-
of Deposits, Discount and Finance
and-defects/31348
House of India, Corporate Debt
https://www.economicsdiscussion.net/india/
market Recent Developments. -
money-market/money-market-instruments-
Capital Market – Derivatives in-india/31642
Market - International Capital
Markets – Participants.
2 (3,4) Procedural Aspects of Primary Reading material to be shared periodically.
Issues - Pre- Issues Decision URL & Links:
Making - SEBI Guidelines for https://www.moneycontrol.com/news/busine
Public Issues – IPO -Pricing and Primary ss/ipo/indian-primary-market-may-rock-on-
Timing of Public Issues - Pre-Issue Markets and after-the-fund-raising-boom-in-covid-hit-
Management – Regulatory aspects Secondary fy21-6709081.html
-Advertising and Marketing, Post- Markets https://www.youtube.com/watch?v=G8hZina
Issue Management - Rights Issues, qCrY
Scope, management of debt and
equity, corporate advisory
services, project advisory services,
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THE ICFAI UNIVERSITY, JAIPUR
loan syndication, venture
financing, private equity, M&A,
financial engineering, structural
analysis of investment banking
industry
1 (5) Practicing Managers Session
4 Introduction to Equity Capital and Reading material to be shared periodically.
(6,7,8, Preference Capital - Debenture Case to be shared.
9) Capital - Initial Public Offering, URL & Link:-
Public issue by listed companies, https://www.businessmanagementideas.com/
Rights Issue, Preferential financial-management/sources-of-
allotment, Private placement, Term Sources and finance/long-term-sources-of-finance/19444
Loans, Venture Capital. Term Raising of Long- https://fullscale.io/blog/what-is-venture-
Loans and Deferred Credit - Term Finance capital/
(Including https://hbr.org/1998/11/how-venture-capital-
Government Subsidies - Leasing
Cases) works
and Hire - Purchase - Emerging
sources of finance – (Private
Equity, FDI, FCCB).

2 (10, Intermediaries, euro-dollar market,

11) Instrument- ADR/GDR, FCCB, Reading material to be shared periodically.
ECB-Regulatory aspects URL & Link:
https://corporatefinanceinstitute.com/resourc
es/knowledge/trading-investing/american-
Raising Finance
depositary-receipts/
from
https://www.youtube.com/watch?v=Dctcdhy
International
UvY0
Markets
https://www.adityabirlacapital.com/abc-of-
money/what-is-gdr-in-the-stock-market
https://corpbiz.io/learning/global-depository-
receipt/

1 (12) Practicing Managers Session

6 Introduction - Types of Cash flows Reading material to be shared periodically.
(13,14, - Future Value of a Single Cash Case to be shared.
15, 16, Flow, Multiple Flows and Annuity URL & Link:
Time Value of
17, 18) - Present Value of A Single Cash https://magnimetrics.com/time-value-of-
Money
Flow, Multiple Flows and money-explained/
(Including
Annuity, Growing Annuity, https://www.khanacademy.org/economics-
Cases)
Perpetuity and Growing finance-domain/core-finance/interest-
Perpetuity. tutorial/present-value/v/time-value-of-money

5 Risk and Return Concepts - Risk Introduction to Reading material to be shared periodically.
(19,20, in a Portfolio Context - Risk and Return URL & Link:
21, Relationship Between Risk and (Including https://www.coursera.org/lecture/investments
22,23) Return -CAPM and Dividend -fundamentals/return-and-risk-intro-to-
Capitalization Model. Cases) portfolios-EzZGk

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THE ICFAI UNIVERSITY, JAIPUR
Case to be shared.
1 ((24) Practicing Managers Session
5 (25, Concept of Valuation Valuation of Reading material to be shared periodically.
26, 27, Securities Case to be shared.
- Bond Valuation - Equity URL & Link:
28, 29) (Including
Valuation: Dividend Capitalization https://corporatefinanceinstitute.com/resourc
Approach and Ratio Approach. Cases)
es/knowledge/valuation/valuation-methods/
4 (30, Concept and Importance - Cost of Reading material to be shared periodically.
31,32, debenture - Term loans - Equity Case to be shared.
33) capital and retained earnings - Cost of Capital URL & Link:
Calculation of Weighted Average (Including https://hbr.org/2015/04/a-refresher-on-cost-
Cost of Capital - Weighted Cases) of-capital
Marginal Cost of Capital Schedule.

1 (34) Practicing Managers Session

5. Evaluation Scheme:
The evaluation for the courses would broadly fall into the following evaluation scheme:
COMP EVALUATION DURA OVERALL TO BE
QP PATTERN
ONENT TYPE TION WEIGHTAGE CO0NDUCTED
1. Application Oriented Short
Questions - 3
At the end of
1 Written 2. Application Oriented 1 Hour 10%
6-8 Sessions
Subjective Questions-2
3. Case-Let - 1
Project Project Presentation-cum- At the end of 11-13
2 1 Hour 10%
Presentation Viva Sessions
Mid Semester
1. Application Oriented Short
Questions - 6 2 At the end of 16-18
3 Open Book 20%
2. Application Oriented Hours Sessions
Subjective Questions-2
3. Case-Let - 1
1. Application Oriented Short
Questions - 3
At the end of 21-23
4 Written 2. Application Oriented 1 Hour 10%
Sessions
Subjective Questions-2
3. Case-Let - 1
At the end of 26-28
5 Project Viva Project Viva 1 Hour 10%
Sessions
End Semester
1. Application Oriented Short
3 After completing the
6 Written Questions – 6 40%
Hours whole syllabus
2. Application Oriented
Subjective Questions-3

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THE ICFAI UNIVERSITY, JAIPUR
3. Case-Let – 2
Total Weightage 100%
The type of Evaluation is subject to change as per the demands of the course and based on the creativity
of the teaching Faculty

6. Chamber Consultation Hours: Every Thursday between 4.00 pm to 5.00 pm

7. Make-up Policy: Make up tests will be allowed to the students only in case of genuine circumstances.
However, there has to be a prior and proper intimation to the Program Head.
8. General:
a. Assignments topic will cover the given syllabus but it should be aligned with the current business scenario
b. Pre-mid- term Test and Post Mid-term test shall be of problem and conceptual theories.

Dr. Ruchi Gupta

CA Sukriti Khatri
Dr. Kunal Vijay
Dr. Vaibhav Kaushik
Date: 30th May 2024 Name & Signature of I/C
Form: GT/2

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