Course Title: Financial Management

L T P Credits
3 1 0 4

Course Code: BBA-204

Credit Units: 4
Number of Lectures: 40

Course Objectives: The basic objective of the course is to equip the students with the understanding of
various investment and financing decisions. The course is designed so as to familiarize the students with the
principles and practices of financial management.

TOPIC LECTURE
S S
Module- I: Introduction

Introduction: Concepts, Nature, Scope, Function and Objectives of Financial Management.

Basic Financial Decisions: Investment, Financing and Dividend Decisions. 8

Module- II: Investment Decisions

Investment Decisions: Analysis of Risk and Uncertainty. Concept and Computation of

Time Value of Money, DCF and Non DCF methods of Investment Appraisal. Project
selection on the basis of Investment Decisions. Valuating Investment Proposals for 8
Decision Making. Capital Rationing

Module-III: Financing Decisions

Leverage Analysis: Developing the Concept of Leverage in Finance. Computation and

inferences of Degree of Operating Leverage, Financial Leverage and Combined Leverage.
8

Module- IV: Dividend Decisions

Theories for Relevance and irrelevance of dividend decision for corporate valuation; Cash 8
and stock dividends; Dividend policies in practice

Module- V: Working Capital Decisions

Management of Working Capital: Concepts, components, Determinants and need of 8

Working Capital. Computation of Working Capital for a Company.

Course Outcomes: Students who complete this course will be able to understand and define basic
terminology used in finance and accounts. By the end of the course, students would be able to prepare&
appraise Financial Statements and evaluate a company in the light of different measurement systems. The
students would be able to analyze the risk and return of alternative sources of financing.
Book References:

 Khan and Jain. Basic Financial Management, McGraw Hill Education

 I.M. Pandey, Financial Management. Vikas Publications
 Chandra, P. Fundamentals of Financial Management. McGraw Hill Education
 James C. Van Horne and Sanjay Dhamija, Financial Management and Policy, Pearson Education
 Levy H. and M. Sarnat . Principles of Financial Management. Pearson Education