Financial Management I

Often said, that finance is the life blood of business. True, as all the activities in the business requires finance. Be it marketing, HR or operations of the business. The utility of proper financial management increases in this way. The major objectives of MBA Financial Management Subject:
  • To acquaint the students about the different functions of finance.
  • To elaborate each finance function and its components.
  • To establish a relationship between the different functions of finance.
  • To make the student understand and design the financial management program of any organization/ business.
  • To establish among the students that proper financial management of the business organization is the key to the success of the business.
MBA Financial Management Subject covers four modules, it explores the scope of financial management, the long-term financial decisions, the investment decisions and the financing and the dividends decision. Topics include objectives of financial management, financial markets, money markets, time value of money, future value and compounding, present value and discounting, investment evaluations criteria, significance cost of capital, concept of leverage, theories of capitalization, forms of dividend, and other related topics for financial management.

Module I: Introduction Financial Management
This module explores the introduction to Financial Management, Financial Process, Scope of Financial Management, Goals of the firm (Profit Maximum v/s Wealth Maximum), and Objectives of Financial Management in contemporary business environment.

Module II: Long-term Financing Decisions
This module covers the topic , Financial Markets, Money Markets, Capital Markets (Capital market Institutions), Types of Issue, Types of share capital, Debentures, Relative merits and demerits, Stock Indices (Sensex, Nifty)

Module III: Investment decisions
This module explores the Time value of money, Future value and compounding, Present value and discounting, Concept of Return and Risk, CAPM Model, Concept of value, Nature and Types of investment decision, Investment evaluation criteria (NPV, IRR, Payback, Discounted payback), Significance of Cost of Capital, Determining components of cost of capital – Cost of Debt, Preference Share Capital, Equity share capital, Cost of Retained earning.

Module IV: Financing and Dividend decision
This module contains Concept of Leverage, Types of Leverage, Capitalization, and Theories of capitalization, over and under capitalization, watered stock/capital. Capital Structure Theories – Relevance and irrelevance theories; Dividend policies, Factors determining dividend policy, Forms of dividend, Theories of dividend – Relevance & Irrelevance (Traditional, Walter’s Model, Gordon’s Model, M & M Model).

Go to MBA Subjects at eNotesMBA

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