|
 SEMESTER III
SPECIALISATION FINANCE
MS -121 FINANCIAL MANAGEMENT
*****************************************
1. Risk and Return Concepts :
Risk in Portfolio context, Relationship between Risk and
Return, concept of Leverage Operating Leverage. Financial
Leverage and Total Leverage.
(10 credit)
II. Cost of Capital and Capital Structure :
Cost of Debentures. Terms Loans. Equity Capital, Retained
Earnings weighted
Average cost of capital. Marginal cost of capital. Introduction
to Capital Structure Factors affecting capital structure -
Features of an Optimal Capital Structure.
(10 credit)
III. Theory involving Divided Decisions.
Factors involving dividends. Dividends hypothesis
(Modgliani & Miller theory).
Dividend and Bonus Issues. Dividend and its impact on
evaluation by investors. Management of Earnings.
(10 credit)
IV. Project financing,
Lease financing and Hire purchase, Mergers and
Acquisition. Industrial sickness and Rehabilitation - BIFR, bills
Discounting, Credit card and Housing finance.
(10 credits)
Cases wherever applicable
MS 122 WORKING CAPITAL MANAGEMENT
***************************************************
1. Principles of working capital management. Need and concept of
working capital. Concept of current asset current liabilities. Determinants
of working capital. Estimation of working capital needs. Factors affecting
working capital requirement. Operating cycle.
2. Management of cash - cash planning, managing the cash flows, Factors
determining optimum cash balance, cash vs marketable securities. Cash
forecasting - case studies.
3. Management of Receivables and factoring credit policy, optimum credit
policy- cost benefits analysis, Factors affecting credit policy.
Determinants of credit policy Factoring of receivables - its importance,
factory agencies in India.
4. Management of Inventories - Nature and need of inventory management.
Its objectives, inventory management techniques, Analysis of investment in
inventory. Inventory control - ABC analysis. Inventory management process.
5. Sources of working capital finance - trade credits, balance finance
and commercial papers - their advantages and limitations.
MS 123 PROJECT APPRAISAL, PLANNING AND CONTROL
*******************************************************************
1. Planning and Analysis.
(a) Overview of capital Budgeting
(b) Resource Allocation framework
(c) Generation and screening of project ideas, Market and Demand
Analysis, Technical Analysis, Financial Analysis
(10 credit)
II. Selection - Basic Methods.
Project cash flows, cost of capital, Appraisal criteria, Analysis
of Risk (Sensitivity Analysis, scenario Analysis, Monte Carlo
Simulation, Decn Tree
(10 credit)
III. Selection - Advanced Methods
- Special Decn Situations (Choice between mutually exclusive projects of
unequal life, Inflation & capital budgeting)
- CAPM and capital budgeting, social cost Benefit Analysis Multiple
Projects and Constraints. Qualitative Analysis.
(10 credit)
IV. Implementation, Review, & other Aspects.
Project Financing in Indian Assessing the tax burden and payment of tax,
Financial Feasibility Analysis, Project management, Network techniques for
project management, project Review and Administrative aspects.
(10 credit)
|
|
