Managerial Finance II.ppt1

8/10/2019 Managerial Finance II.ppt1

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Course outline

8/18/2013Hari Pd.Wagle M.Phil.,KUSOM

2

Credit Hour :Three

Objective: The course aims to familiarize the

participants with the basic concepts, tools and

techniques of financial management fordecision making.


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Learning Unit -1


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Analysis of financial Statements

Balance sheet and its major components

Assets, Liabilities and Owners' Equity

Net working capital

Debt Vs. Equity

Market vs. Book Value

Income Statement GAAP


4/16

Learning Unit- 1


4

Ratio analysis:- Liquidity Ratio ,Asset

Management Ratios, Debt Management

Ratios, Profitability Ratios, and Market value

Ratios, Du-Pont Chart and Equation, Uses and limitation of Ratio Analysis

End Chapter Exercise

Quiz


5/16

Learning Unit-2


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Financial Planning and Control

Financial Plan Breakeven Analysis

Sales Forecasts

Financial Statement Forecasting:- Percentage ofsales method External Financing (additionalFunds needed) and Growth


Quiz Presentation(To be informed in the class with

respective topic)


6/16

Learning Unit-3


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Risk and Rates of Return

Meaning of Risk and Return

Inflation and Returns

Expected Return and Variances

Portfolios

Systematic and Unsystematic Risk

Diversification and Portfolio Risk

Systematic Risk and Beta


7/16

Learning Unit-3


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Capital Market Line (CML)

Security Market Line(SML) and Cost of Capital


Assignment

Quiz


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Learning Unit-4


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Short Term Financing Decisions

Alternatives Current Asset Financing Policies

Advantage and Disadvantage of Short-term

Financing Sources of Short term financing :- Accruals,

Trade Credit, Short-term Bank loans,Commercial Paper


Quiz

Presentation


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Learning Unit-5


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Long Term Financing Decisions

Concept of Long Term Financing

Sources of Long term Financing Polices with

their comparative Advantage and

Disadvantages

Equity, Preferences shares, Long-term debts

Operating and Financial Leverage

Capital Structure

Factor affecting Capital Structure of a firm


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Learning Unit-5


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Optimal Capital Structure

M & M Propositions


Quiz

Assignment

Presentation


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Learning Unit-6


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Dividend policies

Dividend Theories and Policy

Does dividend policy matter?

Factor Favoring low payout and high payouts Establishing a Dividend policy

Stock dividend, Cash dividend and Stock Split


Quiz

Project work


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Learning Unit-7


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Bond and Stock Valuation

Valuation of Bonds Valuation of Common

Stocks

Valuation of Preferred stock


Quiz

Case Study


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References


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Basic Text: Stephen A. Ross. Randolph W.Westerfield and Bradford D. Jordan (2012)Fundamentals o f Corporate Finance(9thEdition) New Delhi: Tata McGraw- Hill Publishing

Company Limited.

References:

1 Eugene F. Brigham and Joel F. Houston(2012),Fundamentals of Financial Management, 12th Edition, Singapore: Harcourt Asia Pte. Ltd.,Harcourt College Publisher InternationalCompany.


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References


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2. Richard A. Brealey and Stewart C. Myers

(2012), Principles o f Corporate Finance , 10

thEdition, New Delhi: Tata McGraw-Hill

Publishing Company Limited.


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Evaluation


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In-Semester evaluation 50%

Quiz

Assignment

Attendance

Behavior

Mid term


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Cont


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Presentation

Case analysis

Send-up test and other

End- Semester evaluation 50%

Total 100%

Managerial Finance II.ppt1

Documents

Transcript of Managerial Finance II.ppt1