Description

Financial Management – I

FYBAF Semester I

Syllabus

1. Introduction to Financial Management (12 Lec.)
Introduction
Meaning
Importance
Scope and Objectives
Profit vs Value Maximization

2. Concepts in Valuation (12 Lec.)
The Time Value of Money
Present Value
Internal Rate of Return
Bonds Returns
The Returns from Stocks
Annuity
Techniques of Discounting
Techniques of Compounding

3. Leverage (12 Lec.)
Introduction
EBIT & EPS Analysis
Types of Leverages : Operating Leverage, Financial Leverage & Composite Leverage
Relationship between Operating Leverage and Financial Leverage
(Including Practical Problems)

4. Types of Financing (12 Lec.)
Introduction
Needs of Finance and Sources: Long Term, Medium Term, Short Term
Long Term Sources of Finance
Short Term Sources of Finance
5. Cost of Capital (12 Lec.)
Introduction
Definition and Importance of Cost of Capital
Measurement of Cost of Capital WACC
(Including Practical Problems)