Course Outline for B.B.A. / B.Com. (Hons) / B.Sc.

Finance Programs
Course Name: T.Y.B.B.A

Term: Fifth Semester

Course Objective & Practical Application:
To understand concepts relating to financing and investment decisions.

Evaluation Criteria:
External Exam: 60 Marks

Internal Exam: 40 Marks

Internal Components

Marks

Internal Written Test (20 Marks)

Presentations

15

Quiz
Journals (10 Marks) Compulsory Component

10

(Assignments to be part of the Journal)

Online Exams

15

Any Other (Please Specify)

Total

40 Marks

Faculty Names: Diwahar Nadar

Pedagogy: Handouts-Practical Questions, PPT, Cases, Excel Application, Newspaper

Discussion, Theory & notes.

Session Outline:

No of
Sessions

1-8

Topic / Description

Module 1:Dividend policy: Concept and meaning, Kinds of dividends, Different

models for analysing dividends such Walters Model,
Determinants and constraints, Dividend pay-out ratio, Legal

Module Wise
Reference Books
Financial
management by
Prasanna Chandra
(Chp 21&22)

9-24

25-34

35-46

considerations
Bonus Shares

ICAI Final
Strategic
Financial
Management (Chp
4)

Module 2:Working capital Management:

Introduction, Factors effecting working capital
requirement, permanent and temporary working capital,
working capital management strategies.
Operating cycle time Concept, methods of working
capital estimation and operating cycle time.
Cash management including cash budget and optimal cash
balance using Baumols Model, motives for holding cash +
excel application
Inventory management: Types of inventory, motives for
holding inventory, cost of inventory, ABC Analysis, EOQ
Model, JIT
Receivable management: Cost and benefits of receivables,
credit policy, monitoring accounts receivables, ageing of
debtors, factoring of debtors
Financing of working capital and other short term sources
of financing such as Commercial Paper, Overdraft, Cash
Credit, Bills discounting, Letter of Credit, Maximum
Permissible Bank Finance and Tandon committee norm II
recommendations.

Financial
management by
Prasanna Chandra
(Part VII)

Module 3:Valuation of securities:

Concept, Introduction to Fundamental and technical
analysis
Basic valuation model
Valuation of Preference shares
Valuation of equity shares
Excel application
Economic Value Add, Market value Add, Free Cash Flows
to Equity

Financial
Management by
Khan and Jain(Part 4)
Advanced
Financial
management by
Ainapure
(Module 3)

Financial
management by
Prasanna Chandra
(Chp 32)
Financial Analysis
& Business
ValuationICMAI-Final(Chp
8)
ICAI Final
Financial
reporting (Chp 9
& 10)

Module 4:Lease financing (Theory):Introduction

Operating and finance lease
Sale and lease back

Financial
management by
Prasanna &
Chandra (Chp
13& 30)

Capital Budgeting :
Risk and uncertainty

ICAI Final
Strategic
Financial

Sensitivity Analysis
Certainty Equivalent Method
Decision Tree

Management (Chp
2&3)
Financial
Management by
Khan and Jain(Chp 12).
Financial
management by
Prasanna Chandra
(Chp 34)

Module 5:Mergers and Acquisitions:

Introduction, Types, Motives
LBO
Discounted Cash Flow Techniques for Valuation
Free Cash Flows to Firm
Enterprise Value

ICAI Final
Strategic
Financial
Management (Chp
13)

47-60

Advanced
Financial
Management.
ICMAI Final.
(Chp 4)

2) Infrastructure Financing:
Introduction
Types
Viability Gap Financing
Project Evaluation Methods
Take out financing

Financial Analysis
& Business
ValuationICMAI-Final
(Chp 8)

General References: -

Prasanna Chandra. Financial Management. July 2012, 8th Edition

Ross. Corporate Finance. 2011, 8th Edition
Journals, newsletters and study material issued by CA Institute

Prepared by Faculty

Approved By Dean ASM SOC

Diwahar Nadar
Signature

Signature

Note: School request faculty members to adhere to the Internal Component Assessments that
they have mentioned in course outline. If faculty members comes out with any innovative ideas
during the semester, they are requested to implement it in the next semester.

If faculty members want to increase the marks of internal components, they can do so, however it
should be scaled down to marks mentioned in the internal components while submitting it to the
school office.
For Example: Journal (Assignment) is 10 marks, faculty members can conduct it for 40 marks,
but while submitting it to the school office, it should be scaled down to 10 marks.