HS 426 - Theory and Policy of Managerial Finance

Course content
  • Introduction to financial statements. Concepts of compunding and discounting, Valuation of securities.
  • Sources of finance-Trade credit. Bank Finance. Term finance. Stock market. Dividend policy. Share valuation. Leverages. Theories of capital structure. Cost of capital. Capital budgeting. Cash flow analysis.
  • Methods of depreciation. Methods of capital appraisal. Risk and Uncertainty in capital budgeting.
  • Introduction to working capital management. Issues in financial planning. Tax planning. Break even analysis. International aspects of financial management. Foreign exchange Market. Exchange rates. Currency risks etc.
References
  • R.Brealey and S.Myers, S.,Principles of corporate Finance, McGraw-Hill, 1987.
  • J.C.Van Horne, Financial Management and Policy, Prentice Hall, 1971.
  • L.M.Bhole, Financial Markets and Institutions, Second Edition, Tata McGraw-Hill, 1992.
  • Prasanna Chandra, Financial Management, Third Edition, Tata McGraw-Hill, 1993.
Pre-requisite : Finance and Econometrics knowledge is necessary
Total credits : 6
Maximum Strength : 50
Type :
Duration : Autumn 2022
Name(s) of other Academic units to whom the course may be relevant : N/A