CCD332 Financial Management Syllabus:

CCD332 Financial Management Syllabus – Anna University Regulation 2021

COURSE OBJECTIVES:

 Understand the fundamental concepts of financial management
 Understand valuation of securities.
 Analyse operating and financial leverages.
 Comprehend and apply the concepts of capital budgeting.
 Understand cash management.

UNIT I INTRODUCTION

Introduction: Introduction to Financial Management – Goals of the firm – Financial Environments. Time Value of Money: Simple and Compound Interest Rates, Amortization, Computing more that once a year, Annuity Factor.

UNIT II VALUATION OF SECURITIES

Valuation of Securities: Bond Valuation, Preferred Stock Valuation, Common Stock Valuation, Concept of Yield and YTM. Risk & Return: Defining Risk and Return, Using Probability Distributions to Measure Risk, Attitudes Toward Risk, Risk and Return in a Portfolio Context, Diversification, The Capital Asset Pricing Model (CAPM).

UNIT III OPERATING & FINANCIAL LEVERAGE

Operating & Financial Leverage: Operating Leverage, Financial Leverage, Total Leverage, Indifference Analysis in leverage study. Cost of Capital: Concept, Computation of Specific Cost of Capital for Equity – Preference – Debt, Weighted Average Cost of Capital – Factors affecting Cost of Capital 4L.

UNIT IV CAPITAL BUDGETING

Capital Budgeting: The Capital Budgeting Concept & Process – An Overview, Generating Investment Project Proposals, Estimating Project, After Tax Incremental Operating Cash Flows, Capital Budgeting Techniques, Project Evaluation and Selection – Alternative Methods. Working Capital Management: Overview, Working Capital Issues, Financing Current Assets (Short Term and Long Term- Mix), Combining Liability Structures and Current Asset Decisions, Estimation of Working Capital.

UNIT V CASH MANAGEMENT

Cash Management: Motives for Holding cash, Speeding Up Cash Receipts, Slowing Down Cash Payouts, Electronic Commerce, Outsourcing, Cash Balances to maintain, Factoring. Accounts Receivable Management: Credit & Collection Policies, Analyzing the Credit Applicant, Credit References, Selecting optimum Credit period.

COURSE OUTCOMES:

CO1: Understand the fundamental concepts of financial management
CO2: Apply valuation of securities and calculate the risk & return in portfolio management.
CO3: Analyse the cost structure of a company using operating and financial leverages.
CO4: Develop capital budgets and to estimate working capital. CO5: Apply cash management in business.

TOTAL:45 PERIODS

TEXTBOOKS

1. Chandra, Prasanna – Financial Management – Theory & Practice, Tata McGraw Hill, 2007.
2. Srivastava, Misra: Financial Management, OUP, 2011.
3. Van Horne and Wachowicz : Fundamentals of Financial Management, Prentice Hall/Pearson Education.
4. Financial Management: Theory & Practice: by Brigham and Ernhardt, 14th edition, Cengage, 2015.
5. M.Y. Khan and P.K.Jain Financial management, Text, Problems and cases Tata McGraw Hill, 6th edition, 2011.
6. M. Pandey Financial Management, Vikas Publishing House Pvt. Ltd., 10th edition, 2012.