Course Outline Financial Management
Course Outline Financial Management
COURSE DESCRIPTION:
The aim of this course is to introduce the students to the basic concepts in finance and the
analytical tools used in business finance. The course focuses on basic principles of corporate
finance, analysis of risk & return, cost of capital, analysis of time value of money, various
sources of finance available to business enterprise, capital structure & financial statement
analysis and essentially Capital Budgeting. This course would facilitate the easy
conceptualization of the basic areas of finance. This will also encourage the students to proceed
towards the advanced issues in financial management.
LEARNING OBJECTIVES:
The basic objective of this finance foundation course is to summarize the fundamental theoretical
aspects of finance relevant to the future study of finance and application within a range of
profession including accounting and property valuation issues. By the end of this course students
should be able to:
1
2. A deep understanding of the concepts of time value of money and its application to
various valuation models to value long-term debt, preference shares and ordinary shares
3. Explain the importance, role and techniques of capital budgeting in a project or firm
4. Understand risk and return, diversifiable and non-diversifiable risk, and asset pricing
models
5. Understand how to determine the cost of capital of a project or firm
6. Explain operating and financial leverage, and implications for the target capital structure
7. Discuss theories and issues related to dividend policy
8. Identify & apply ethical principles relevant to the finance profession
DISTRIBUTION OF WEIGHTAGE:
Examination Marks Percentage of marks
Quizzes/Term-Paper/Assignments/Class Attendance 10 10%
Mid Term Examination-1 15 30%
Mid Term Examination-2 15
Semester Final 60 60%
Total 100 100%
GRADING:
Numerical Grade Letter Grade Grade Point
80% and above A+ (A Plus) 4.00
75% to < 80% A (A Regular) 3.75
70% to < 75% A- (A Minus) 3.50
65% to < 70% B+ (B Plus) 3.25
60% to < 65% B (B Regular) 3.00
55% to < 60% B- (B Minus) 2.75
50% to < 55% C+ (C Plus) 2.50
45% to < 50% C (C Regular) 2.25
40% to < 45% D - 2.00
< 40% F - 0.00
--------------------- I - Incomplete
--------------------- W - Withdrawal/Withdrawn
Reference Books:
1. Eugene F. Brigham and Joel F. Houston. Fundamentals of Financial Management
(Thomson South-Western).
2. I M Pandey. Financial Management (Vikas Publishing HousePvt. Ltd.)
3. M.Y. Khan and P.K.Jain. Financial Management: Texts, Problems and Cases
4. L.J. Gitman and E.A. Moses. Principles of Managerial Finance
5. James Van Horne and John M. Wachowicz Jr. Fundamentals of Financial Management
(Prentice Hall).
2
LECTURE PLAN
3
10 19 Single-Asset Risk and Portfolio Risk; Risk Measurement:
Variance, Standard Deviation and Coefficient of Variation.
15 29 Presentation
30 Presentation