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Course Detail

Course Name Financial Management (FM)
Course Code 23FI203C
Program MBA
Credits 3
Course Category Domain Core
Area Finance


Module 1

Module 1: Introduction to Finance and Time Value of Money (7.5 hours)

  • Data Sources in Finance – A Walkthrough.
  • Demystifying Company Annual Reports
  • Financial Management – Goals, Principles,
  • Risk Return Trade-off Agency
  • Profit Vs Wealth Maximization
  • Organization of the Finance Function and Role of Finance Managers
  • Nature and Society as stakeholders in financial decision-making
  • Time value of Money: Future Value and Present Value
Module 2

Module 2: Capital budgeting decisions (7.5 hours)

  • Capital Budgeting
  • Process, concepts of discounted cash flow
  • Appraisal Techniques
  • Payback period,
  • Accounting Rate of Return,
  • Net Present Value,
  • Internal Rate of Return,
  • Modified Internal Rate of Return,
  • Profitability Index or Cost Benefit Ratio
  • Estimation of Project Cash Flows
  • Sources of Long-Term Finance
  • Cost of Capital – specific costs and Weighted Average Cost of Capital
Module 3

Module 3: Financing Decisions (7.5 hours)

  • Capital Structure Decision
  • Leverage Analysis
  • EBIT-EPS analysis
  • Dividend Decision
  • Dividend Policy and Firm Value – dividend discounting valuation models
  • Gordon model
  • Walter model
  • Modigliani-Miller hypothesis
Module 4

Module 4: Working Capital (7.5 hours)

  • Working Capital Policy & estimation of net working capital
  • Estimation of net working capital
  • Cash and Liquidity Management, cash budget
  • Credit Management
  • Inventory Management
  • Sources of Short term / Working Capital finance.

Course Description & Outcomes

Course Description

This course builds on the main concepts taught in the financial Accounting course in the 1st trimester. The course helps the students understand the basic framework of Financial Management. The focus of the course is to help the finance manager in making management decisions for maximizing shareholders’ wealth.

Course Outcomes& Learning Levels

At the end of this course, students will be able to:

  1. Outline basic concepts of Financial Management (Understand)
  2. Compare investments and select the best investment alternative (Apply)
  3. Evaluate different sources of finance and decide the optimal capital structure (Analyze)
  4. Plan the working capital requirements for business operations(Evaluate)

Evaluation Pattern 

# Assessment Component Percentage of Marks
1 Continuous Assessment * 40
2 Mid –Term Examination 20
3 End –Term Examination 40

*Based on assignments / Tests / Quizzes / Case Studies / Project / Term paper / Field visit report. 


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