Course Description
The Financial Management syllabus typically covers the principles and practices of managing an organization’s finances. This subject is essential for students in commerce, business administration, finance, and related fields. Here’s an overview of a typical Financial Management syllabus:
What You’ll Learn From This Course
- Introduction to Financial Management
Definition and Scope:
- What is financial management?
- Importance of financial management in business.
Financial Goals:
- Profit maximization vs. wealth maximization.
- Role of financial management in achieving organizational goals.
- Financial Analysis and Planning
Financial Statements:
- Understanding balance sheets, income statements, and cash flow statements.
- Key financial ratios and their analysis.
Financial Planning:
- Importance of financial planning in business.
- Tools and techniques for financial forecasting.
Capital Budgeting:
- Definition and importance of capital budgeting.
- Techniques: NPV, IRR, payback period, and profitability index.
- Cost of Capital
Definition and Components:
- Understanding the concept of cost of capital.
- Different sources of finance and their costs.
Calculating Cost of Capital:
- Weighted Average Cost of Capital (WACC).
- Cost of equity, debt, and retained earnings.
- Capital Structure
Definition and Importance:
- What is capital structure?
- Factors influencing capital structure decisions.
Theories of Capital Structure:
- Modigliani-Miller theorem.
- Trade-off theory, pecking order theory.
Optimal Capital Structure:
- Determining the optimal capital structure for an organization.
- Working Capital Management
Definition and Importance:
- What is working capital?
- Importance of managing working capital.
Components of Working Capital:
- Inventory management, accounts receivable, and accounts payable.
Working Capital Financing:
- Sources of short-term finance.
- Cash management techniques.
- Financial Markets and Instruments
Overview of Financial Markets:
- Types of financial markets: Capital market, money market, and foreign exchange market.
Financial Instruments:
- Understanding stocks, bonds, derivatives, and mutual funds.
Market Efficiency:
- Concepts of market efficiency and its implications for investors.
- Investment Decisions
Investment Analysis:
- Techniques for evaluating investment opportunities.
- Risk and return analysis.
Portfolio Management:
- Concepts of diversification and portfolio theory.
- Capital Asset Pricing Model (CAPM).
- Dividend Policy
Understanding Dividend Policy:
- Importance and factors influencing dividend policy.
- Types of dividends: Cash, stock, and property dividends.
Theories of Dividend Policy:
- Residual theory, relevance theory, and irrelevance theory of dividends.
- Financial Risk Management
Types of Financial Risks:
- Market risk, credit risk, operational risk, and liquidity risk.
Risk Management Techniques:
- Hedging, insurance, and diversification.
Derivatives for Risk Management:
- Use of options, futures, and swaps in managing financial risk.
- Contemporary Issues in Financial Management
Global Financial Management:
- Issues and challenges in managing finances in a global environment.
Corporate Governance:
- Importance of corporate governance in financial management.
Ethics in Financial Management:
- Ethical considerations and corporate social responsibility.
- Case Studies and Practical Applications
Case Studies:
- Analysis of real-world financial management scenarios and decisions.
- Evaluating financial strategies of successful companies.
Research Projects:
- Research on specific areas of financial management or emerging trends.
Lessons:
