Course image Financial Management (Prarambha)

Course Description:

The aim of this course is to familiarize students with an overview of the principles, methods, and practices of financial decision-making in firms. 

Major topics that will be covered include:

Nature of financial management: finance in organizational structure of the firm, value maximization goal as a financial decision criterion, financial functions and agency problems.

Financial management concepts: financial statements and cash flows, time value of money;

Financial planning and forecasting: the financial plan, financial statement forecasting, the AFN formula and simple regression technique.  Securities valuation: bond and stock valuation.

Strategic investment decision making: estimation of cash flows, estimation of cost of capital, evaluation of cash flows.

Strategic financing decision making: operating and financing leverage, EBIT-EPS analysis, breakeven and indifference charts.

Dividend policy decision making: nature and types of dividend policy, determinants, stock dividends and stock splits.