University of Mumbai MMS III Semester Advanced Financial Management Sr. No.

. 01 02 0* Topic Indian Financial System: Functions of the financial system; Financial Assets; Financial markets; Financial intermediaries; Regulatory system Analysis of "e#erage: $perating% financial and total )heory of capital structure: +et income approach; +et operating income approach; ,, approach; )raditional approach; -esigning capital structure and factors affecting capital structure. No. of Sessions Chapter 2: rasanna Chandra! Self 1 study and presentation $perating and financial le#erage% 2 com&ined le#erage% '(I)! ' S analysis% Indifference point As part of designing the capital * structure% the ten theoretical points gi#en in /han 0 1ain and se#en theoretical points gi#en in rasanna Chandra in the chapter on Capital Structure -ecision. 5arious models% the theoretical points 2 from 6 -i#idend decision7 8 rasanna Chandra and 6 -eterminants of di#idend policy7 9 /han 0 1ain: rasanna Chandra% Constructing the 2 roforma p 0 " a?c and (alance Sheet using percent of sales method% &udgeted e=pense method and com&ination method. Forecasting AF+ &ased on pro@ected &alance sheet. ,ethods of #aluation of &onds and 2 stocks 9 C and /han 0 1ain:. (usiness #aluation methods to &e

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-i#idend olicy: Factors affecting di#idend policy decision; -i#idend decision models; 3alter model; 4ordon model; ,, approach Financial lanning and Forecasting: ,eaning and importance of financial planning; Approaches to financial planning; roforma profit 0 loss account; roforma &alance sheet; 4ro<th and e=ternal financing re>uirements

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Corporate #aluation and 5alue (ased ,anagement: 5aluation concepts; 5aluation of e>uity% 5aluation of de&t instruments% Corporate #aluation approaches; #arious approaches and concepts of '5A 0 ,5A

co#ered ie.% ad@usted &ook #alue approach% earnings &ased approach% stock and de&t approach% direct comparison approach% -CF approach 9all aspects of -CF like free cash flo<% continuing #alue etc to &e co#ered:. Concepts of ,5A% '5A to &e discussed in detail. 0B ro@ect Financing and Appraisal: Sources of long term finances; (ook to &e referred to is 6 pro@ects Institutional considerations; 5enture capital; S'(I 4uidelines planning % analysis% selection% implementation and re#ie<7% &y C in addition to the &asic te=ts &y / 01. from the first &ook Appendi= ( 0 C are to &e co#ered. Additionally% topics to &e referred from C are sources of long term finance% #enture capital etc.% 0C Inflation and Financial ,anagement: ro@ect appraisal and inflation Do< inflation ad@usted discounting rate is to &e used to appraise a pro@ect. / 0 1 % 2th edition% Chapter 11% pgs 11.12. to 11.12% Section III Inflation and capital &udgeting. 0E -eri#ati#es and Risk ,anagement: For<ard contracts; Futures and Futures /han 0 @ain contracts; $ptions and option contracts; Interest rates% currency s<aps 10 In#estment (anking: Internal and e=ternal funding options; rimary issue $#er#ie< on In#estment &anking management; ri#ate placement; A-Rs?4-Rs; Important S'(I 4uidelines ? Companies Act pro#isions pertaining to I $s; Credit rating agencies and rocess 11 Financial ,anagement of SFs /han 0 1ain 12 Financial ,anagement of sick units C 8 F, in Sick units 'ach session <ill &e of E0 minutes duration GGGGGGGGGGGG

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