Financial Management syllabus

Financial Management

• 1 Introduction to Financial Management (5 LHs)

  • Meaning and Decisions of Financial Management
  • Role of Financial Manager
  • Forms of Business Organization and Financial Goals
  • Agency Problems
• 2 Financial Statements and Analysis (6 LHs)

  • Balance Sheet, Income Statement, and Cash Flow Statement
  • Common-size Financial Statements
  • Ratio Analysis and Du Pont Identity
  • Uses and Limitations of Financial Statement Analysis
• 3 Financial Planning and Growth (5 LHs)

  • Meaning and Importance of Financial Planning
  • Financial Planning Models
  • Percentage of Sales Approach
  • External Financing and Growth
• 4 Time Value of Money (6 LHs)

  • Present and Future Values
  • Multiple Cash Flows, Annuities, and Perpetuities
  • Compounding
  • Loan Types and Amortization
• 5 Bond Valuation (5 LHs)

  • Bond Features and Valuation
  • Interest Rate Risk and Bond Yields
  • Bond Markets, Inflation, and Interest Rates
• 6 Stock Valuation (5 LHs)

  • Common Stock Features and Valuation
  • Expected Return, Dividend Yield, and Capital Gain Yield
  • Stock Markets
  • Preferred Stock Features and Valuation
• 7 The Basics of Capital Budgeting (8 LHs)

  • Meaning, Types, and Process of Capital Budgeting
  • Payback and Discounted Payback Periods
  • Net Present Value and Internal Rate of Return
  • Modified Internal Rate of Return and Profitability Index
• 8 Return, Risk and Portfolio (8 LHs)

  • Return and Risk Measurement
  • Portfolio Return and Risk
  • Systematic and Unsystematic Risk
  • Beta Coefficient and Security Market Line