BMBAI302 Financial Management Syllabus — AKTU 2025-26

Syllabus

5 units · 40 lecture hours

Unit1

Unit 1

8 hrs

Concept of Finance, Scope and Objectives of Finance, Profit Maximization vs. Wealth Maximization, Functions of Finance Manager in Modern Age, Financial Decision Areas, Time Value of Money, Risk and Return Analysis.

Unit2

Unit 2

8 hrs

Investment Decisions: Appraisal of Project; Concept, Process & Techniques of Capital Budgeting and its Applications; Risk and Uncertainty in Capital Budgeting; Leverage Analysis – Financial, Operating and Combined Leverage along with implications;

Unit3

Unit 3

10 hrs

Financial Decision: Capital Structure: Meaning, Capital Structure and Financial Structure, Patterns of Capital Structure, Optimum Capital Structure, Capital Structure Theories, Factors Influencing Capital Structure – Optimum Capital Structure; EBIT- EPS Analysis. Various long term sources of finance. Cost of Capital: Cost of Equity, Preference Shares, Debentures and Retained Earnings, Weighted Average Cost of Capital and its implications.

Unit4

Unit 4

6 hrs

Dividend Decisions: Concept of Retained Earnings, Relevance and Irrelevance of Dividends, Ploughing Back of Profits, Forms of Dividends, Factors affecting Dividend Policy, Dividend Payout Decisions. Theories of Dividend Decision: Walter’s Model, Gordon’s Model & Modigliani-Miller Model; Factors affecting Dividend Decision.

Unit5

Unit 5

8 hrs

Working Capital Decisions: Concept, Components, Factors affecting Working Capital Requirement; Management of Cash, Inventory and Receivables; Sources Working Capital Financing, Sources of short-term finance.

Course Objectives5 points

To apply and analyze capital budgeting techniques, leverage, and risk-return frameworks to make informed investment decisions.
To identify, evaluate, and compute optimal capital structure and cost of capital using theories and practical models like WACC and EBIT-EPS analysis.
To differentiate and justify various dividend policies and theories, and assess factors influencing dividend decisions and earnings retention.
To describe, solve, and plan effective working capital management strategies including cash, inventory, and receivables control using appropriate financing sources.
To select, relate, and validate financial strategies for decision-making, demonstrating critical thinking and problem-solving in real-world business contexts.

Course Outcomes (COs)5 outcomes

After completion of the course student will be able to:

CO1Understand the different basic concepts of financial management. Functions of finance manager in 21st century.K1, K2 (Remembering, Knowledge)
CO2Understand the practical application of the time value of money and evaluating long-term investment decisions.K5, K7 (Analyzing, Evaluating)
CO3Develop analytical skills to select the best source of capital structure and leverage.K5, K6 (Analyzing, Synthesizing)
CO4To familiarize students with cost of capital, capital structure techniques and working capital management to support managerial decisions. K3, (x2)K4 (Comprehending, Applying)
CO5Understand the various sources of working capital and estimating working capital needs. To have an understanding of various dividend models and their applicability.K3, K6 (Comprehending, Synthesizing)

References

Pandey I M, “Financial Management”, Vikas Publishing House Pvt. Ltd.
Van Horne, “Financial Management and Policy”, Prentice Hall.
Sheeba kapil, “Fundamental of financial management”, Pearson Education.
Khan and Jain, “Financial Management”, Tata McGraw Hill.
Prasanna Chandra, “Fundamentals of Financial Management”, Tata McGraw Hill.
Lawrence J.Gitman, “Principles of Managerial Finance”, Pearson Education

Official AKTU syllabus

This subject is on page 4, 5, 6 of the original AKTU PDF.

Official AKTU syllabus PDF ↗