6.

Agricultural Finance Proposals and Management

Teaching Schedule - Theory
Lecture Topic Points to be Covered
No.
1&2 Financial management. Meaning, nature, Importance, scope, and
objectives; Time value of money; Valuation of
long-term securities; Risk and return.
3 Capital Budgeting: Long term investment decisions.
4 Nature of investment decisions.
5 Forms of investment decisions.
6 -7 Estimation of project cash flows,
8 Evaluation of proposals.
9 Evaluation technique -Discounting and non-
discounting techniques
10 Risk analysis in capital budgeting.
11 Sources of Long Term finance. Sources of Long Term finance.
12 -13 Cost of Capital Cost of Capital
14- 15 Capital structure Capital structure: importance
Features of an optimal capital structure.
16 factors influencing capital structure
17- 18 Leverage Leverage: leverage in financial context
Measures of leverage.
19- 22 Estimation of Working Capital Estimation of Working Capital Requirements:
Requirements: Concept,
Factors affecting the working capital
requirement.
working capital requirement - operating cycle
approach
Criteria for evaluation of working capital
management
23 Inventory Management Inventory Management: nature and role
24-25 Inventory Management: purpose,
Inventory management : techniques.
26-27 Receivables Management Receivables Management: purpose
Cost of maintaining receivables.
28 Credit policy. Credit policy.
29-30 Cash management: Cash management: liquidity– profitability trade
off,
Need and objectives,
31 Cash budget. Cash budget.
32 Dividend Dividend decisions of a firm.
Practical
Exercise Title of Exercise
1. Practical exercise on calculation of Net Present Worth (NPW)
2. Calculation of Benefit Cost Ratio (BCR)
3. To study of Internal Rate of Return (IRR)
4. Calculation of Profitability Index (PI)
5. Calculation of Pay Back Period (PBP)
6. Exercise on principles of cash flow estimation.
7. Practical exercise on Financial Break Even Analysis.
8. Study of different sources of long term finance.
9. Practical on Calculation / illustrations on Operating Leverage
10. Practical on Calculation / illustrations on Financial Leverage
11. Practical on Calculation / illustrations on Combined Leverage.
12. Practical on Valuation of stocks.
13. Practical on Valuation of debentures.
14. Exercise on estimation of operating cycle / Inventory Turnover
15. Computation of costs of borrowed capital and preferred stock.
16. Computation of costs of equity capital and retained earnings