Advanced Financial Management
Class of : 2015
Course Code : SL FI 502
Credit : 3
Aim:
Develop a framework to evaluate key decision in respect of capital structure, dividend policy, working capital
management and decision involving alternate choices.
REFERENCE BOOKS
Corporate Finance
Financial Management: Theory & Practice
th
Financial Management and Policy, 12 e
Financial Management : Text & Problems
th
Financial Management , 7 e
Cost Accounting 2ed (Paperback)
Detailed Syllabus
Financial Forecasting: Sales Forecast -Preparation
of Pro-Forma Income Statement and Balance Sheet -
Growth and External Funds Requirement - EFR
Leverage: Measuring and analyzing the
implications of Leverage - Operating Leverage,
Financial Leverage and Total Leverage.
Capital Structure Theories: Net Income Approach -
Net Operating Income Approach -Traditional
Approach - Modigliani-Miller Model (MM), Miller
Model - Criticisms of MM and Miller Models -
Financial Distress & Agency Cost - Asymmetric
Information Theory.
Capital Structure Policy: Business & Financial Risk - A
Total Risk Perspective - Business & Financial Risk - A
Market Risk Perspective -Determinants of Capital
Structure Decision -Approach to Estimating the
Target Capital Structure - Variations in Capital
Structures, EBIT / EPS Analysis and ROI / ROE
Analysis
Academic Year : First
Semester : II
Sessions : 30
AUTHOR / PUBLICATION
Ross Westerfield Jaffe- TMH
Chandra, Prasanna. Tata McGraw-Hill - 2007
James C Van Horne. Prentice-Hall, India
Khan M.Y / Jain, P.K. Tata McGraw-Hill - 2004
Ravi M. Kishore. Taxmann's - 2009
Jawahar Lal- Tata McGraw-Hill
Dividend Policy: Traditional Position - Walter Model
- Gordon Model - Miller-Modigliani Position - and
Rational Expectations Model.
Estimation of Working Capital Needs: Objectives of
Working Capital (Conservative vs Aggressive
Policies), Static vs Dynamic View of Working Capital
- Factors Affecting the Composition of Working
Capital Independence among Components of
Working Capital - Operating Cycle Approach to
Working Capital.
Inventory Management: Nature of Inventory and its
Role in Working Capital - Purpose of Inventories -
Types and Costs of Inventory -Inventory
Management Techniques - Pricing of Investments -
Inventory Planning and Control.
Receivables Management: Purpose of
Receivables - Cost of Maintaining Receivables -
Credit Policy Variables (Credit Standard, Credit
Period, Cash Discount, Collection Program), Credit
Evaluation - and Monitoring Receivables.
Financing Current Assets: Behaviours of Suggested Schedule of Sessions
Current Assets and Pattern of Financing -Accruals
No. of
- Trade Credit - Provisions - Short-Term Bank Topic
Sessions
Finance - Factoring
Financial Forecasting ( include case
Treasury Management and Control: Cash 2
discussion
Management - Meaning of Cash - Need for and
Leverage 2
Objectives of Cash Management - Cash
Forecasting and Budgets - Cash Reports - and Capital Structure- Theories and policy 2
Efficient Cash Management. Cases on Capital Structure Theories and 1
Capital Structure Policy
Cost- Volume- Profit Analysis: The Relationship of
Dividend Policy 2
Costs and Profits with Volumes- Use of CVP Analysis-
Cases on Dividend Policy 1
Marginal Costing- Marginal Costing and Absorption
Estimation of Working Capital Needs 2
Costing Distinguished- Break-even Point
(including case discussion)
Contribution Margin Approach.
Inventory Management 3
Decisions involving Alternate choices: Nature of Receivables Management 2
managerial decision making- characteristics of cost Cases on Working Capital Management, 2
for decision making- concept of different costs- Inventory Management and Receivables
decision to make or buy- decision to line Management
replacement- decision regarding selling or further Financing Current Assets (including case 2
discussion)
processing.
Treasury Management And Control 1
Cases and Exercises (including case discussion)
Hero Hondas Dividend Policy Cost -Volume -Profit Analysis 3
Decisions involving Alternate choices 4
Intel: Managing Working Capital
Current
Dressen (Abridged) (A)
Total 30
The Fall of United Western Bank
DLF Ltd: Working Capital Analysis
Women led family owned business: Capital
Structure of Balajitelefilms limited.
Dr. Reddys Laboratories: Financial Forecosting
Source : CDC