UNIQUE SERIES AKTU Syllabus
BMLS204

Financial Management and Corporate Finance

L-T-P4-0-0 Credits3 Session2024-25 TypeTheory
Appears in 1 semester

MBA Logistics & Supply Chain Management · Sem 2 (Core)

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Syllabus

5 units · 40 lecture hours
Unit1

Unit 1

6 hrs

Introduction to Finance & Corporate Finance: Corporate Finance & its scope, Corporate Governance and Agency Problem, Corporate valuation Models: Asset Based Valuation Model, Earning based Valuation Model, Cash flow-based Model, CAPM Model, APT, EVA Analysis, Introduction to start-up finance, Financial Decisions, Time Value of Money.

Unit2

Unit 2

10 hrs

Investment and Financing Decision: Concept of Opportunity Cost, Cost of Debenture, Preference and Equity capital, Composite Cost of Capital, Cash Flows as Profit and components of Cash Flows, Capital Budgeting Decisions, Calculation of NPV and IRR, Excel Application in Analysing Projects.

Unit3

Unit 3

10 hrs

Financial Decision: Capital Structure, Relevance and Irrelevancy theory, Leverage analysis – financial, operating and combined leverage along with its implications, EBIT EPS Analysis, Point of Indifference.

Unit4

Unit 4

10 hrs

Dividend Relevance: Factors affecting Dividend Policy, Forms of Dividends, Types of Dividend Policies, Dividend Models: Walter and Gordon Model, Miller- Modigliani (MM) Hypothesis.

Unit5

Unit 5

4 hrs

Mergers and Acquisition: Introduction, Exchange Ratio, Synergy Benefits, Post Merger EPS, Post Merger Price of share, Required rate of return of merged company, De-Merger.

Course Objectives6 points
  • This course is intended to introduce the basic theory, concepts and practical applications in corporate finance and to enable students to analyse various corporate decisions. The course objectives are outlined below:
  • To understand the fundamentals, various models and agency problems of Corporate Finance.
  • To acquire knowledge about various techniques used for analysing various long-term projects.
  • To have an understanding about various capital structure techniques and selecting best source of finance.
  • To have an understanding of various dividend models and its applicability.
  • To acquaint students about corporate valuation in mergers and acquisitions.
Course Outcomes (COs)5 outcomes

After completion of the course student will be able to:

  1. CO1Understand the different basic concept / Models of Corporate Finance and Governance
  2. CO2Understand the practical application of time value of money and evaluating long term investment decisions
  3. CO3Develop analytical skills to select the best source of capital, structure and leverage.
  4. CO4Understand the use and application of different models for firm’s optimum dividend pay-out.
  5. CO5Understand the recent trends of mergers and acquisition and its valuationK2, K1, K5, K7, K5, K6, K3, K4, K3, K6 (Knowledge, Remembering, Analyzing, Evaluating, Analyzing, Synthesizing, Comprehending, Applying, Comprehending, Synthesizing)

Suggested Readings

  1. Khan and Jain - Financial Management (Tata McGraw Hill, 7th Ed.)
  2. Pandey I M - Financial Management (Vikas, 11th Ed.)
  3. William HakkaBettnerCarcello- Financial and Management Accounting (TMH-16th Ed.)
  4. Sheebakapil-Fundamental of financial management (Wiley,2015)
  5. Prasanna Chandra - Fundamentals of Financial Management (TMH, 9th Ed.)
  6. Bark DemazoThampy- Financial Management (Pearson,2nd Ed.)
  7. R P Rustagi - Financial Management (Galgotia, 2000, 2nd revised ed.)
  8. Damodaran, A., Applied Corporate Finance, 3rd Edition, Wiley, 2012
  9. Ravi.M Kishore – Financial Management (Taxman, 7th Ed)
  10. Fundamentals to Financial Management, Brigham & Houston, 14/e, Cengage Learning
  11. Van Horne - Financial Management and Policy (Prentice hall, 2003, 12th Ed.)

Official AKTU syllabus

This subject is on page 31, 32 of the original AKTU PDF.

Official AKTU syllabus PDF ↗