Ranchi University, Jharkhand, General Semester 3, Financial Management Syllabus

                                                                                                          financial Management

Unit I:
Financial Management : Nature, Scope and Objective, Profit Maximisation Vs. Wealth Maximisation, Time Value of Money- Compounding and Discounting concept, Risk and Return

Unit II:
Capital Budgeting Process, Cash Flow Estimation, Payback Period Method, Accounting Rate of Return Method, Net Present Value (NPV), Internal Rate of Return (IRR).

Unit III:
Cost of Capital and Financing Decisions: Sources of Long term Financing Estimation of Components, Components of Cost of Capital, Methods of calculating cost of equity capital, Cost of Retained Earnings, Cost of Debt and Cost of Preference Capital
Capital Structure: Determinants, Theories of Capital Structure (Net Income, Net Operating, MM Hypothesis, Traditional Approach), Determinants of Capital Structure.

Unit IV:
Dividend Decision: Theories for Relevance and Irrelevance of Dividend Decision for corporate valuation, Cash and Stock Dividends, Dividend policies in practice.

Unit V
Working Capital Decisions: Concept of working capital, Factors affecting Working Capital, Sources of short term finance, working capital estimation, Brief Introduction of Cash management, Receivables Management, Inventory Management and payables management.