CMG331 Financial Management Syllabus:

CMG331 Financial Management Syllabus – Anna University Regulation 2021

COURSE OBJECTIVES

 To acquire the knowledge of the decision areas in finance.
 To learn the various sources of Finance
 To describe about capital budgeting and cost of capital.
 To discuss on how to construct a robust capital structure and dividend policy
 To develop an understanding of tools on Working Capital Management.

UNIT I INTRODUCTION TO FINANCIAL MANGEMENT

Definition and Scope of Finance Functions – Objectives of Financial Management – Profit Maximization and Wealth Maximization- Time Value of money- Risk and return concepts.

UNIT II SOURCES OF FINANCE

Long term sources of Finance -Equity Shares – Debentures – Preferred Stock – Features – Merits and Demerits. Short term sources – Bank Sources, Trade Credit, Overdrafts, Commercial Papers, Certificate of Deposits, Money market mutual funds etc

UNIT III INVESTMENT DECISIONS

Investment Decisions: capital budgeting – Need and Importance – Techniques of Capital Budgeting -– Payback -ARR – NPV – IRR –Profitability Index. Cost of Capital – Cost of Specific Sources of Capital – Equity -Preferred Stock- Debt – Reserves – Concept and measurement of cost of capital – Weighted Average Cost of Capital.

UNIT IV FINANCING AND DIVIDEND DECISION

Operating Leverage and Financial Leverage- EBIT-EPS analysis. Capital Structure – determinants of Capital structure- Designing an Optimum capital structure . Dividend policy – Aspects of dividend policy – practical consideration – forms of dividend policy – Determinants of Dividend Policy

UNIT V WORKING CAPITAL DECISION

Working Capital Management: Working Capital Management – concepts – importance -Determinants of Working capital. Cash Management: Motives for holding cash – Objectives and Strategies of Cash Management. Receivables Management: Objectives – Credit policies.

TOTAL : 45 PERIODS
TEXT BOOKS

1. M.Y. Khan and P.K.Jain Financial management, Text, Tata McGraw Hill
2. M. Pandey Financial Management, Vikas Publishing House Pvt. Ltd

REFERENCES

1. James C. Vanhorne –Fundamentals of Financial Management– PHI Learning,.
2. Prasanna Chandra, Financial Management,
3. Srivatsava, Mishra, Financial Management, Oxford University Press, 2011