Corporate Financial Management: Reference Books
Corporate Financial Management: Reference Books
Corporate Financial Management: Reference Books
UNIT I
Financial Management: Meaning and Objectives-Functions of Financial ManagementFinance Vs. Other functions in the organization- Duties and responsibilities of a CFOShareholder wealth Maximization objective Agency Theory- Structure of the Financial
System- Financial Planning and Forecasting.
UNIT II
Time Value of Money concepts: Future Value, Present Value, Compounding and
discounting- Capital Budgeting Cash flows-Methods of Evaluating Capital Expenditure
Proposals: Payback, ARR, NPV and IRR-capital rationing-Risk adjusted capital budgeting
techniques.
UNIT III
Computation of cost of capital: cost of debt, cost of preference shares, cost of Equity:
Different Methods-computation of cost of retained earnings, and weighted average cost of
capital.
Capital structure Planning- EBIT EPS analysis- Trading on Equity-Leverages:
Operating Leverage, Financial Leverage and Total Leverage- Factors affecting Capital
Structure
UNIT IV
Dividend Fundamentals- Payment of Dividend: Procedural and Legal frameworkDividend Models-Types of Dividend Policies-Factors affecting Dividend Policy-Other
forms of dividends; Bonus shares, stock splits, share buyback
UNIT V
Working Capital Management Trade off between profitability and risk- Need for working
capital determinants of working capital-operating cycle- estimation of working capital
requirements Management of Cash, cash budgets, Management of ReceivablesManagement of Inventories
REFERENCE BOOKS:
1. Pandey, I M., - Financial Management, 2009
2. Khan & Jain - Financial Management, 2011
3. Chandra, Prasanna- Financial Management, 2011
4. Gitman, Lawrence J: principles of Managerial Finance, 11th edition, Pearson
Education (2008) NewDelhi
5. Brigham &Houston: Fundamentals of Financial Management, 10th edition, South
Western Publishing
6. Aswath Damodaran: Corporate Finance: Theory and Practice, John Wiley &Sons Inc.
(1997) New York.