Description

Corporate Finance

MCOM Semester II

Syllabus

1. Scope and Objectives of Financial Management (15 Lec.)
♦ Introduction, Meaning, Importance, Scope, Objectives, Profit v/s Value Maximization

2. Time Value of Money (15 Lec.)
♦ Concept, Present Value, Annuity, Techniques of Discounting, Techniques of Compounding, Bond Valuation and YTM

3. Financial Analysis – Application of Ratio Analysis in Financial Decision Making (15 Lec.)
Management Analysis
♦ Profitability Ratios : Gross Profit Ratio, Operating Profit Ratio, Return on Capital Employed
♦ Efficiency Ratios : Sales to Capital Employed, Sales to Fixed Assets, Profit to Fixed Assets, Stock Turnover Ratio, Debtors Turnover Ratio, Creditors Turnover Ratio
♦ Liquidity Ratios : Current Ratio, Quick Ratio
♦ Stability Ratios : Capital Gearing Ratio, Interest Coverage Ratio
♦ Investor’s Analysis
♦ Earnings per Share, P/E Ratio, Dividend Yield

4. Financial Decisions (15 Lec.)
♦ Cost of Capital – Introduction, Definition of Cost of Capital, Measurement of Cost of Capital, WACC, Marginal Cost of Capital
♦ Capital Structure Decisions – Meaning, Choice of Capital Structure, Importance, Optimal Capital Structure, EBIT-EPS Analysis, Cost of Capital, Capital Structure and Market Price of Share, Capital Structure Theories, Dividend Policy – Pay Out Ratio
♦ Business Risk and Financial Risk – Introduction, Debt v/s Equity Financing, Types of Leverage, Investment Objective/Criteria for Individuals/Non-business Purpose