SCHOOL OF BUSINESS STUDIES, SHARDA UNIVERSITY
COURSE MODULE FOR MBA (TRIMESTER BASED SYSTEM)
Module Title
Programme
Term
Credits
:
:
:
:
Financial Management & Control
MBA (Trimester)
III
3
Time required in terms of Student Learning:
Module Aim:
Learning
Contact
Guided study
Projects and Assignments
Assessment
Total
Hours
25
25
15
10
75
Financial Management and policy deals with the decision of the firm related to
Investment, Financing and Dividend. The module aim is concerned with the analysis of
financial decisions, capital budgeting, managing working capital and other financial
decisions and policies.
Module objectives/ Learning outcomes
On completion of this module the student will be able to:
1. Describe the goals of Financial Management and evaluate their relevance in the
current corporate world.
2. Understand the concept of time value of money and cost of capital.
3. Understand the logic of trade off between distribution of dividend and retained
earnings and the different dividend policy.
4. Manage working capital and firm’s policy for receivables, inventory and cash.
5. Understand other contemporary policy issues in the area of finance,
Teaching/Learning Approach
Students will learn through a combination of face-to-face contact and guided study.
Personal contact sessions will include Presentations, calculation of major techniques,
classroom discussion and the additional work outside of class.
Guided study will include text readings and articles on contemporary issues in Corporate
Finance which have appeared in economic/business newspapers in 2010-11. Additional
material will also be emailed by presenters.
Throughout the teaching/learning process a focus will be maintained on the application of
techniques currently in use. This will include a survey of the prevalence of use in
contemporary Indian commerce
Version 1, Year 2012-13
SCHOOL OF BUSINESS STUDIES, SHARDA UNIVERSITY
COURSE MODULE FOR MBA (TRIMESTER BASED SYSTEM)
Indicative Content:
Unit
Financial
Management: An
Overview
Contents
Concept of Cost
of Capital
Capital
Budgeting









Dividend Policy


Working Capital
Management &
Ploicy






Contemporary
Issues
TOTAL
Functions & Key Activities of Financial
Management
Objectives and goals of Financial Management
Time value of money- present & future value,
simple & comp. interest, annuity and perpetuity
Cost of Debt
Cost of Equity
Cost of Preference share capital
Weighted Average Cost of Capital
Payback period, Accounting Rate of Return,
Discounted Cash Flow Technique : Discounting Payback period,
 NPV
 IRR
Concept of Retained Earning
Relevance and irrelevance of Theories of
Dividend Decisions:
 Walter’s Model
 Gordon’s Model
Management of Working Capital
Inventory Management
Receivables Management
Cash Management
Introduction to Merger and Acquisitions
Lease Financing
sessions
4
4
6
5
4
2
25
Suggested Readings:
1.
2.
3.
4.
5.
6.
7.
Ross-Westerfield-Jaffe - “Corporate Finance” (International Student Edition)
Glen Arnold – “ Corporate Financial Management” (FT-Prentice Hall)
Haim Levy – “Principles of Corporate Finance” (South Western)
Ross-Westerfield-Jaffe.-“Fundamentals of Corporate Finance” (TMH)
Khan and Jain – “Financial Management” (TMH)
Fundamentals of Financial Management by Van Horne and Wachowick
Financial Management by I.M.Pandey
_____
Version 1, Year 2012-13