Why should a student study financial management?

1. WHY?Financial Management

2.  Fundamental knowledge about finance
 Ask a sales person who has been asked to prepare a budget
 Rewarding field growing range of financial products
 careers in financial analysis are to grow by 23 percent, corporate finance by 14 percent, and financial
advising by 32 percent
 Personal Finances
 Anybody- who will not earn
 Job Opportunities
 Corporate management
 International financial management
 Investment Banking
 Financial planning services
 Brokerage firms
 Insurance companies
 Commercial Banking
 Credit Management

3. Numbers- They are every where!!
 Cricket Score
 Balance in our Savings Account
 Age
 Phone number
Think of Numbers as a Score Card !
On a serious note in business all stakeholders are interested in the score
card of the business !

4. The THREE questions in Finance
1. Where do I get money from?
2. Where can I use this money?
3. How can put this money for day-to
day use?

5. Unit One
• Finance & its scope Financial Decisions
• Sources of Finance
• Time Value of Money
• Profit maximization vs. Wealth maximization
• Functions of Finance Manager in Modern Age
• Indian Financial System : Primary and Secondary Market
• Concept of Risk and Return
• CAPM Model

6. Unit Two
• Concept of Opportunity Cost
• Cost of Debenture, Preference and Equity capital, Composite
Cost of Capital
• Cash Flows v/s Profit and components of Cash Flows
• Capital Budgeting Decisions
• Calculation of NPV and IRR
• Excel Application in Analyzing Projects

7. Unit Three
• Capital Structure, Relevance and Irrelevancy theory
• Leverage analysis and its implications
• Financial
• Operating
• Combined leverage
• EBIT-EPS Analysis, Point of Indifference

8. Unit Four
• Factors affecting Dividend Policy
• Forms of Dividends , Types of Dividend Policies
• Dividend Models
• Walter and Gordon Model
• Miller- Modigliani(MM) Hypothesis

9. Unit Five
• Concepts of Working Capital and its types
• Determinants of Working Capital
• Adequate Working Capital
• Working Capital Financing

10. What should I be prepared with?
Pre-Reading:
•Financial Statements
• Balance Sheet
• Profit/Loss Account
•Basic Terms of Accountancy
Books you need to refer:
•Financial Management by I.M.Pandey (Vikas Publishing House)
•Reference Books-
• Elements of Financial Management by Dr. R.P. Rustagi
(Taxmann Publications)
• Financial Management by M.Y.Khan and P.K.Jain
(Tata McGraw Hills)

11. Course Assessment Model

12. MOST IMPORTANT
Know what is/should be
your reason for studying
this subject