Page 4 - DMGT207_MANAGEMENT_OF_FINANCES

SYLLABUS
Management of Finances

Objectives: To train the student in the conceptual and practical aspects of finance function in business.
To make students understand various types of decisions taken by a business organization in the area of finance.

Sr. No. Description
1 Meaning, Objectives and Scope of Financial Management;

Finance Functions: Investment, Financing, Liquidity and Dividend Decisions.
2 Sources of Finance: Evaluation of Short term and long term source of finance.

3 Concept of Time Value of Money.
4 Cost of Capital: Concept and its significance, measurement of cost of capital of

various sources of funds, Weighted Average cost of capital using book value
weights and market value weights.
5 Capital Budgeting: meaning, importance, Risk and uncertainty, Estimation of

Project Cash Flows, Discounting and non-discounting techniques of Capital
Budgeting, Concept of Capital Rationing.

6 Capital Structure Decision: Understanding debt and equity, theories of Capital
Structure, Optimum Capital Structure

7 Leverage: Operating, Financial Leverage and combined leverage, indifferent point
8 Dividend Decisions: Dividend Policy; Forms of dividend, Theories of dividend,

Factors affecting dividend decisions
9 Working Capital: Concept, operating and cash cycle, Determinants working

capital requirements, Overview of management of cash
10 Inventory Management, Receivables Management

Capital Markets and Financial Institutions