FULLY SOLVED BOOK LASY 5 YEARS PAPERS SOLVED PLUS GUESS
FINANCIAL MANAGEMENT Unit 1: Finance FunctionNature and Scope; Evolution of Finance Function – Its New Role in the Contemporary Scenario – Goals of Finance Function – Maximizing versus Satisfying; Profit versus Wealth versus Welfare; The Agency Relationship and Costs; Risk-Return Trade off; Concept of Time Value of Money – Future Value and Present value. Unit 2: Investment DecisionInvestment Decision Process – Project Generation, Project Evaluation, Project Selection and Project Implementation, Developing Cash Flow; Data for New Projects; Using Evaluation Techniques – Traditional and DCF Methods, The NPV versus IRR Debate; Approaches for Reconciliation, Capital Budgeting Decision Under Conditions of Risk and Uncertainty; Measurement of Risk – Risk Adjusted Discount Rate, Certainty Equivalents and Beta Coefficient, Probability Tree Approach, Sensitivity Analysis. Unit 3: Financing DecisionSources of Finance – A Brief Survey of Financial Instruments; Capital Structure Theories, Concept and Financial Effects of Leverage; The Capital Structure Decision in Practice: EBIT – EPS Analysis. Cost of Capital: The Concept – Average versus Marginal Cost of Capital; Measurement of Cost of Capital – Component Costs and Weighted Average Cost of Capital. Unit 4: Current Assets Management and Dividend DecisionConcept of Current Assets, Characteristics of Working Capital, Factors Determining Working Capital, Estimating Working Capital Requirements, Working Capital Policy, Management of Current Assets: Cash Management, Receivables Management and Inventory Management, Bank Norms for Working Capital Financing, The Dividend Decision: Major Forms of Dividends – Cash and Bonus Shares. The Theoretical Backdrop – Dividends and Valuation; Major Theories Centered on The Works of Gordon, Walter, and Lintner, A Brief Discussion on Dividend Policies of Indian Companies. Unit 5: Corporate Restructuring and Corporate GovernanceCorporate Mergers, Acquisitions and Takeovers: Types of Mergers, Economic Rationale of Mergers, Motives for Mergers; Financial Evaluation of Mergers; Approaches for Valuation: DCF Approach and Comparable Company Approach (No Practical Exercises). Corporate Value based Management Systems, Approaches: Marakon Approach and McKinsey Approach; Principles of Good Corporate Governance.
