Corporate Finance
Course Overview
Faculty : Dr. Rajesh Kothari (Ph.D,M.Phil,MBA)
- Financial Management: Concept and contemporary issue. Review and analysis of financial statements, Decision. Types of financial management.
- Foundation of Financial management: Concept of time, risk, return and value.
- Investment Decision: Capital structure, Cost of capital, leverage, Capital budgeting decisions, Risk analysis in capital budgeting.
- Operating Decision: Working capital management, Cash, Inventory and receivables, Trends in working capital finance.
- Reward Decision: Dividend policy, Right and bonus issue.
- Sources of long term Finance
- Share valuation and corporate governance
Book: Financial Management: A contemporary Approach-Rajesh Kothari-SAGE
Session plan(90 minutes each)
| Session No. | Topics |
|---|---|
| 1 | Concept of Financial management-Goals of FM, Contemporary Business environment. Mission statement |
| 2 | The fundamental concepts of Financial markets, institutions ,instruments and intermediaries |
| 3 | Financial statements Analysis-Composition, Ratio and cash flow analysis, Regulatory provisions |
| 4 | Concept of time |
| 5 | Concept of risk and return |
| 6 | Concept of value |
| 7 | Capital structure-concept and theory |
| 8 | Leverage |
| 9 | Cost of capital |
| 10 | Capital Budgeting Decision |
| 11 | same as above |
| 12 | Overview of working capital management |
| 13 | Inventory management |
| 14 | Receivable management and cash management |
| 15 | Dividend policy |
| 16 | Bonus Issue and right issue |
| 17 | Sources of long term Finance |
| 18 | Corporate restructuring |
| 19 | Share values and corporate governance |
| 20 | Case method and practical |
Approach to study Financial Management
The paper of financial management is indeed thoughtful and interesting to learn.This paper requires the following:
- Capability to guide through numbers
- Ability to draw inferences
- Competence to read the writing on the wall.
Students are expected to ‘raise hand’ during session as this paper advocates ‘Presence of logic’ in each statement. So competence should lie in ‘discovering’ the logic and accept the outcome only when it is ‘logical’ otherwise not.
The study of financial management will make you to be updated with all developments in the financial world-money, capital, forex, derivatives, and intimation economic scenario. So you are expected to be on ‘your toe’ because there may be sudden developments in money and capital market regulations. You may be caught unaware while you were sleeping so be conscious. Let’s take an example –‘Calculate the financial impact on EPS and book value of a firm not directly involved in Ukraine or Russia. So you are resulted to establish cause-effect relationship.
Every topic will be explained with suitable practical illustration to be blended with real life example.
So brush your basic calculation ability ,get ready to read ‘ET’ before coming to class.
The outcomes of paper will be :
- Complete exposure to the dynamic world of ‘finance’ where all important variables are in fluid state.
- Enhancing ‘finance Sense’
- Increase capability to ‘read between lines’.
- Logic and reasoning will supersed emotions and casual approach.
- Able to appreciate ’interdependence ‘of allied subjects.