INSTITUTE OF TECHNOLOGY & SCIENCE MOHAN NAGAR, GHAZIABAD Learning objective & Lesson Plan

Course PGDM(11-13) Batch Sessions : 33 Trimester: III Subject: Financial Management-2(full credit)

PART I Learning objective

Objective: The purpose of the course is to familiarize students with technique of understanding of the financial decision making process. The core aspects in this subject are long-term decision-making and emerging Trends in Indian Capital Market. A finance manager has to make estimation with regards to capital requirements of the company. Once the estimation has been made, the capital structure have to be decided. This involves short- term and long- term debt equity analysis. The course will also help the students to take decision with regards to the net profit distribution and investment decisions. Outcomes: After completion of this course the students will be able to understand the scope of financial management. The long term investment decisions Examine the importance of working capital management. Management of cash, receivables and inventory. The course also aims to give an overview to corporate restructuring and its various forms. Contents: Unit 1- Capital Budgeting: Nature & types, Principles and investment evaluation techniques: discounting & non-discounting techniques: Payback method, ARR, Discounted payback, NPV, IRR, PI, MIRR Corporate strategies and its impact on corporate finance UNIT II Raising Finance sourcing domestic and global markets problems and advantages of listing financial instruments abroad Financial Instruments structuring ADR & GDR convertibles option embedded securities UNIT III Right Issue pricing rights right as a strategy of increasing promoters stake Bonus issue formulating bonus strategy Trade Investment strategy subsidiaries, group companies, associates Joint ventures Planning strategic alliances UNIT IV Managing public deposit and commercial papers Buy back of securities strategic formulations and financing techniques Emerging Trends in Indian Capital Market Investment Decisions In New Technologies Unit V- Introduction to Investment, An overview of Financial Market , Basics of foreign exchange dealings

Suggested Readings 1. Khan MY & Jain PK-Financial Management Text , Problems & cases, Tata Mcgraw Hill,2010 2. Chandra Prasanna-Financial Management Theory & Practice, Tata Mcgraw Hill,2007 3. Pandey I M- Financial Management, Vikas Publications, tenth edition 4. Horne Van,Wachowicz John- Fundamentals of Financial Management, Pearson ,13th edition 5. Arthur, Martin and Scott. : Financial Management -Principles and Applications - PHI 6. Brealey, R.A., and Stewart C Myres, Principles of Corporate Finance, Tate McGraw Hill. 7. Damodaran , Corporate Finance , Wileyl Evaluation Criteria: Internal Evaluation: 60 Marks a) Quiz on all units 15 Marks b) Assignments 20 Marks c) Class Test 15 Marks d) Case Study 10 Marks

Delivery: The subject will be taught using a combination of lectures to cover the basic theory, and practical case studies and examples Group presentations will be encouraged.

PART-II
S.No Topic Lecture No References Remarks

Unit-1 Capital Budgeting: MY Khan & PK Jain About Capital 1-2 Tata Mcgraw Hill Budgeting ,PBP and ARR Techniques MY Khan & PK Jain Discounted payback, NPV, 3-4 Tata Mcgraw Hill IRR MY Khan & PK Jain PI, MIRR ,Corporate 5-6 and strategies and its impact on corporate finance Case Study on Replacement of Assets :Gurgaon Chemicals Unit2 Raising Finance Sourcing domestic and 7-8 Rp Rustagi , global markets Taxmann FDI, Euro Issues , Foreign 9-10 Rp Rustagi , Exchange Market Taxmann
Private Equity, ADRs and 11-12 GDRs Class Test of Unit 1 & 2 13

Assingnment MY Kkan

Rp Rustagi , Taxmann Stephen Ross, TMH Damodaran,Corporate Finance , Wileyl

Assingnment

Unit 3
Right Issue- Advantages, 14-16 Pricing rights and strategies

Bonus Issue Strategy,

17-18

Strategies related to subsidiaries, group companies, associates Joint ventures Planning strategic alliances

19-20 21

Rp Rustagi , Taxmann Rp Rustagi , Taxmann Assingnment

Case Study on Merger- EPS and Market Price Calculation 22 Unit 4 Public Deposits and 23 Rp Rustagi , Commercial paper Taxmann Buy back of securities strategic formulations and financing techniques Emerging Trends in financial Market Investment Decisions In New Technologies Unit 5 Basic of Financial Markets and foreign Exchange dealings Quiz of all Units Class Test 29- 31 Rp Rustagi , Taxmann Assingnment 24-25
MY Khan & PK Jain Tata Mcgraw Hill

26-27

Rp Rustagi , Taxmann Damodaran,Corporate Finance , Wileyl

28

32 33