NMIMS SBM : Teaching Plan

Financial Management
Academic Year: 2016-17
Course Code
Course Title
Course
Instructor/s

Credit Value
Programme
& Trimester
Pre-requisite
Learning
Objectives /
Outcomes

Financial Management
Dr. Chandan Dasgupta
Dr. Mayank Joshipura
Prof. Debasish Ghosh
Dr. Smita Mazumdar
Dr. Sangeeta Wats
3 credits ( 100 marks paper )
MBA Year I Trim III

: chandan.dasgupta@nmims.edu
: mayank.joshipura@nmims.edu
: dghosh@nmims.edu
: smita.mazumdar@nmims.edu
: sangeeta.wats@nmims.edu

NA
1. Apply analytical techniques / models/ framework to reflect critically on
financial decisions (PLO 2b)
2. Integrate functional areas of business to facilitate financial decisions
(PLO 3b)

Session Plan
1

Session Details:
Introduction to Corporate Finance: Revision of Corporate Balance sheet and
relevant decision areas; Objectives- profit maximization Vs Shareholder wealth
maximization
Reading: Chapter 1 (RWJ) : Introduction to Corporate Finance

2,3,4

Working Capital Management : Working capital planning, Operating and cash

cycle, Receivables management, Cash Management and budgeting
Reading: Chapter 26 (RWJ) : Short-Term Finance and Planning,
Chapter 27 (RWJ) : Cash Management
Chapter 28 (RWJ) : Credit Management
Case: Butler Lumber Company (HBS 9-292-013)

Long term decisions Time Value of money

Reading: Chapter 4 (RWJ) : Discounted Cash Flow Valuation

6,7

Valuing Bonds and stocks

Reading: Chapter 5 (RWJ) : How to Value Bonds and Stocks

8, 9, 10

Long term Decision -Investment in long term assets - Discounting and Non
discounting methods (PB, ARR, NPV, IRR, PI, MIRR), Computation of Cash
flows
Reading: Chapter 6 (RWJ): Net Present Value and Other Investment Rules
Chapter 7 (RWJ): Making Capital Investment Decisions
Case: Valuing Capital Investment Projects (HBS 9-298-092)

MID TERM
11,12

Risk analysis in Capital Budgeting

Case: Kaanapali Beach

13, 14, 15

Cost of Capital Weighted Average Cost of Capital, levered beta, CAPM

Reading: Chapter 12 (RWJ): Risk, Cost of capital, and Capital Budgeting
Case: Midland Energy Resources Inc.: Cost of Capital (HBS 4129)
Capital structure theory- Irrelevance theory, static trade-off, agency costs,
pecking order hypothesis
Reading: Chapter 15 (RWJ): Capital structure- basic concepts,
Chapter 16 (RWJ): Capital structure- Limits to the Use of Debt
Leverage- operating, financial, combined; EBIT EPS analysis; indifference
point
Reading:
http://www.cengage.com/resource_uploads/downloads/0324594690_163047.pdf

16

17

18, 19

Dividend decision and payout policy- cash dividends, stock repurchase, split
Reading: Chapter 18 (RWJ) : Dividends and Other Payouts
Case: Blaine Kitchenware ( HBS 4040)

20

Long term sources of finance Different forms of debt, equity and hybrid
instruments
Reading: Chapter 14 (RWJ): Long-Term Financing, Raising capital
Chapter 20 (RWJ): Long-term Debt
Conceptual understanding through problem solving
Case discussion

Pedagogy

Assessment
methods in
Alignment
with
Intended
learning
outcomes

Reading List
and
References

Specific assessment methods/tasks

Class Participation
Mid Term
Surprise Quiz
Final exam

%
weighting
10%
25%
15%
50%

Text :
Ross, S.A., Westerfield, R. W., Jaffe, J., Kakani, R. K. (2009). Corporate
Finance 8 th Edition. Tata McGraw Hill Education (RWJ)
Reference:
Brealey, R. A., Myers, S. C., & Allen, F (2011). Principles of Corporate
Finance. 10th Edition, Mc Graw Hill Education