Description

Corporate Finance

SYBMS Semester III

Syllabus

1. Introduction (15 Lec.)
♦ Introduction To Corporate Finance : Meaning, Principles of Corporate Finance, Significance of Corporate Finance, Amount of Capitalisation, Over Capitalisation and Under Capitalisation, Fixed Capital and Working Capital Funds.
♦ Introduction to Ownership Securities : Ordinary Shares, Reference Shares, Creditor Ship Securities, Debtors and Bonds, Convertible Debentures, Concept of Private Placement of Securities.

2. Capital Structure and Leverage (15 Lec.)
♦ Introduction to Capital Structure theories, EBIT – EPS analysis for Capital Structure decision.
♦ Cost of Capital – Cost of Debt, Cost of Preference Shares, Cost of Equity Shares and Cost of Retained Earnings, Calculation of Weighted Cost of Capital.
♦ Introduction to Concept of Leverage – Operating Leverage, Financial Leverage and Combined Leverage.

3. Time Value of Money (15 Lec.)
♦ Introduction to Time Value of Money – compounding and discounting
♦ Introduction to basics of Capital Budgeting (time value of money based methods) – NPV and IRR (Net Present Value and Internal Rate of Return)
♦ Importance of Risk and Return analysis in Corporate Finance

4. Mobilisation of Funds (15 Lec.)
Public deposits and RBI regulations, Company deposits and SEBI regulations, Protection of depositors, RBI and public deposits with NBFC’s.
Foreign capital and collaborations, Foreign direct Investment (FDI)
Emerging trends in FDI
Global Depositary Receipts, Policy development, Capital flows and Equity Debt.
Brief introduction & sources of short term Finance Bank Overdraft, Cash Credit, Factoring