Course outline

Batch: 2021 - 2023 Term: III

Course : Fundamentals of Financial Credits: 3.0
Management (Core Subject)
Course Instructor: Priti Samant.Vandana Sohoni. No. of Sessions: 15

OVERVIEW
Course Description
Financial Management is the study of the judicious use of financial
resources with a view to maxmising the value of the firm, thereby
maximizing the shareholder’s value.

Learning Objectives 1 To introduce students to the fundamentals of financial management. 2 To

help students to understand various financial concepts and tools that help in
creating value for a company and its shareholders. 3 To help students
understand the role of a finance manager in effective sourcing and judicious
utilization of the financial resources for the organization.

Pedagogy 1. Case Study Analysis & Discussions

2. Lecture & Discussions
3. Problem solving / Assignment
Course Requirements Pre Reading of chapters/material specified

Group Project Objective of the project: NA Methodology to be adopted by the students:NA

Outcome of the project:NA Method of evaluation:NA LO Mapped NA

Case Study Assignments D’Leon Inc case I & II ,Allied food products ,New World Chemicals Inc

Basic Text Book

Brigham &Houston-(2013)-Fundamentals of Financial Management-13th edition–- Cengage
Learning

Basic Reference Material Notes provided while solving Problems

Reference Books 2. Khan & Jain.2011. Financial Management Text, Problems & Cases.6th
edition. Tata McGraw Hill 3. Chandra.2011. Financial Management Theory
and Practice.8th edition. Tata McGraw Hill. 4. Pandey.2015. Financial
Management.11th edition. Vikas Publishing House
Class rules / Expectations from Students must complete the assignments given during the sessions and carry
students
the competed assignments for the next session

Punctuality & Class Behavior Students must complete the assignments given during the sessions and carry
the competed assignments for the next session

Participation in Class Discussions -

E-Resource / Databases : (If Any) -

Additional Reference Resources -

Videos : (If Any) -

Any other Remarks Critical and Analytical and Integrative Thinking and Communication skills and
Global Perspective

TOPICS / SUB-TOPICS

Topic No. 1.0

Topic Name Objective of Financial Management and Free cash flow
Brief outline of deliverables
Book reference
Pre-requisites for preparation
Sub-Topic No. Sub-Topic Name. Brief outline of Reference Book Pre-requisites for
deliverables preparation

1.1 a. Objective of Lecture and Brigham Pre reading:

Financial Discussions &Houston.2009. Chapters 1,3 from
Management Fundamentals of Brigham & Houston
Financial to be read
Management.13thE
dition. Cengage
Learning
1.2 b. Free cash flow Case Study analysis Brigham Pre reading:
and discussions: &Houston.2009. Chapters 1,3 from
Du2019Leon I Case Fundamentals of Brigham & Houston
from Brigham & Financial to be read
Houston to be Management.13thE
administered in dition. Cengage
class Learning

Topic No. 2.0

Topic Name Review of Financial Ratios
Brief outline of deliverables
Book reference
Pre-requisites for preparation

Topic No. 3.0

Topic Name Time Value of Money
Brief outline of deliverables
Book reference
Pre-requisites for preparation
 Sub-Topic No. Sub-Topic Name. Brief outline of Reference Book Pre-requisites for
deliverables preparation

3.1 a. Present value Lecture and Brigham Pre reading:

Discussions: &Houston.2009. Chapter 5 from
Examples are taken Fundamentals of Brigham & Houston
to explain the Financial to be read
Concept Management.13thE
Assignment: From dition. Cengage
M Y Khan and P K Learning
Jain End of chapter
2 Part I solved sums
3.2 b. Future Value Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 5 from
Examples are taken Fundamentals of Brigham & Houston
to explain the Financial to be read
Concept Management.13thE
Assignment: From dition. Cengage
M Y Khan and P K Learning
Jain End of chapter
2 Part I solved sums
3.3 c. Different types of Lecture and Brigham Pre reading:
annuities and Discussions: &Houston.2009. Chapter 5 from
cashflows Examples are taken Fundamentals of Brigham & Houston
to explain the Financial to be read
Concept Management.13thE
Assignment: From dition. Cengage
M Y Khan and P K Learning
Jain End of chapter
2 Part I solved sums
3.4 d. Nominal ,Periodic Lecture and Brigham Pre reading:
and effective Discussions: &Houston.2009. Chapter 5 from
interest rates Examples are taken Fundamentals of Brigham & Houston
to explain the Financial to be read
concepts From Management.13thE
Chapter 5 of dition. Cengage
Brigham & Houston Learning
problems on the
concepts
Assignment: From
M Y Khan and P K
Jain End of chapter
2 Part I solved sums
3.5 e. Loan amortisation Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 5 from
Examples are taken Fundamentals of Brigham & Houston
to explain the Financial to be read
concepts From Management.13thE
Chapter 5 of dition. Cengage
Brigham & Houston Learning
problems on the
concepts
Assignment: From
M Y Khan and P K
Jain End of chapter
2 Part I solved sums

Topic No. 4.0

Topic Name Stock Valuation
Brief outline of deliverables
Book reference
Pre-requisites for preparation
 Sub-Topic No. Sub-Topic Name. Brief outline of Reference Book Pre-requisites for
deliverables preparation

4.1 a. stocks market Lecture and Brigham Pre reading:

price and its intrinsic Discussions: &Houston.2009. Chapter 9 from
value Problems from Fundamentals of Brigham & Houston
Chapter 9 of Financial to be read
Brigham & Houston Management.13thE
covering the dition. Cengage
concept to be solved Learning
in class Select end
of chapter 5
problems from
Brigham & Houston
to be given as
assignment.
4.2 b. stocks intrinsic Lecture and Brigham Pre reading:
value using Discussions: &Houston.2009. Chapter 9 from
discounted dividend Problems from Fundamentals of Brigham & Houston
model Chapter 9 of Financial to be read
Brigham & Houston Management.13thE
covering the dition. Cengage
concept to be solved Learning
in class Select end
of chapter 5
problems from
Brigham & Houston
to be given as
assignment.
4.3 c. corporate Lecture and Brigham Pre reading:
valuation model Discussions: &Houston.2009. Chapter 9 from
Problems from Fundamentals of Brigham & Houston
Chapter 9 of Financial to be read
Brigham & Houston Management.13thE
on the concept to be dition. Cengage
solved in class Learning
Select end of
chapter 5 problems
from Brigham &
Houston to be given
as assignment
4.4 d. valuation of Lecture and Brigham Pre reading:
preferred stock Discussions: &Houston.2009. Chapter 9 from
Problems from Fundamentals of Brigham & Houston
Chapter 9 of Financial to be read
Brigham & Houston Management.13thE
on the concept to be dition. Cengage
solved in class Learning
Select end of
chapter 5 problems
from Brigham &
Houston to be given
as assignment

Topic No. 5.0

Topic Name Cost of capital
Brief outline of deliverables
Book reference
Pre-requisites for preparation
 Sub-Topic No. Sub-Topic Name. Brief outline of Reference Book Pre-requisites for
deliverables preparation

5.1 a. Significance of Lecture and Brigham Pre reading:

cost of capital Discussions: &Houston.2009. Chapter 9 from
Problems from Fundamentals of Brigham & Houston
Chapter 9 of Financial to be read
Brigham & Houston Management.13thE
on the concept dition. Cengage
solved in class Learning
Problems from
Chapter 9 of
Brigham & Houston
on the concept to be
solved in class
Select end of
chapter 5 problems
from Brigham &
Houston to be given
as assignment.
5.2 b. estimation and Lecture and Brigham Pre reading:
combination of Discussions: &Houston.2009. Chapter 9 from
various components Problems from Fundamentals of Brigham & Houston
of WACC Chapter 9 of Financial to be read
Brigham & Houston Management.13thE
on the concept dition. Cengage
solved in class Learning
Problems from
Chapter 9 of
Brigham & Houston
on the concept to be
solved in class
Select end of
chapter 5 problems
from Brigham &
Houston to be given
as assignment.

Topic No. 6.0

Topic Name Capital Budgeting & Investment Decision Analysis
Brief outline of deliverables
Book reference
Pre-requisites for preparation
 Sub-Topic No. Sub-Topic Name. Brief outline of Reference Book Pre-requisites for
deliverables preparation

6.1 a. NPV Lecture and Brigham Pre reading:

Discussions: &Houston.2009. Chapter 11 from
Problems from Fundamentals of Brigham & Houston
Chapter 11 of Financial to be read
Brigham & Houston Management.13thE
on the concepts to dition. Cengage
be done in class Learning
Problem solving /
Assignment:
Problems from
Chapter 11 of
Brigham & Houston
on the concepts to
be done in class.
Select end of
chapter 11 problems
from Brigham &
Houston to be given
as assignment.
6.2 b. IRR Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 11 from
Problems from Fundamentals of Brigham & Houston
Chapter 11 of Financial to be read
Brigham & Houston Management.13thE
on the concepts to dition. Cengage
be done in class Learning
Problem solving /
Assignment:
Problems from
Chapter 11 of
Brigham & Houston
on the concepts to
be done in class.
Select end of
chapter 11 problems
from Brigham &
Houston to be given
as assignment.
6.3 c. MIRR Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 11 from
Problems from Fundamentals of Brigham & Houston
Chapter 11 of Financial to be read
Brigham & Houston Management.13thE
on the concepts to dition. Cengage
be done in class Learning
Problem solving /
Assignment:
Problems from
Chapter 11 of
Brigham & Houston
on the concepts to
be done in class.
Select end of
chapter 11 problems
from Brigham &
Houston to be given
as assignment.
6.4 d. payback Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 12 from
Problems from Fundamentals of Brigham & Houston
Chapter 11 and 12 Financial to be read
of Brigham & Management.13thE
Houston on the dition. Cengage
concepts to be done Learning
in classProblem
solving /
Assignment:
Problems from
Chapter 11 and 12
of Brigham &
Houston on the
concept to be done
in class Select end
of chapter 12
problems from
Brigham & Houston
to be given as
assignment.
6.5 e. NPV profiles Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 12 from
Problems from Fundamentals of Brigham & Houston
Chapter 11 and 12 Financial to be read
of Brigham & Management.13thE
Houston on the dition. Cengage
concepts to be done Learning
in classProblem
solving /
Assignment:
Problems from
Chapter 11 and 12
of Brigham &
Houston on the
concept to be done
in class Select end
of chapter 12
problems from
Brigham & Houston
to be given as
assignment.
6.6 f. crossover rate Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 12 from
Problems from Fundamentals of Brigham & Houston
Chapter 11 and 12 Financial to be read
of Brigham & Management.13thE
Houston on the dition. Cengage
concepts to be done Learning
in classProblem
solving /
Assignment:
Problems from
Chapter 11 and 12
of Brigham &
Houston on the
concept to be done
in class Select end
of chapter 12
problems from
Brigham & Houston
to be given as
assignment.
6.7 g. NPV of mutually Lecture and Brigham Pre reading:
exclusive/independe Discussions: &Houston.2009. Chapter 12 from
nt projects Problems from Fundamentals of Brigham & Houston
evaluation Chapter 11 and 12 Financial to be read
of Brigham & Management.13thE
Houston on the dition. Cengage
concepts to be done Learning
in classProblem
solving /
Assignment:
Problems from
Chapter 11 and 12
of Brigham &
Houston on the
concept to be done
in class Select end
of chapter 12
problems from
Brigham & Houston
to be given as
assignment.
6.8 h. NPV of mutually Lecture and Brigham Pre reading:
exclusive projects Discussions: &Houston.2009. Chapter 12 from
with unequal life Problems from Fundamentals of Brigham & Houston
Chapter 11 and 12 Financial to be read
of Brigham & Management.13thE
Houston on the dition. Cengage
concepts to be done Learning
in classProblem
solving /
Assignment:
Problems from
Chapter 11 and 12
of Brigham &
Houston on the
concept to be done
in class Select end
of chapter 12
problems from
Brigham & Houston
to be given as
assignment.
6.9 i. Real options: Lecture and Brigham Pre reading:
growth, Discussions: &Houston.2009. Chapter 13 from
abandonment, Problems from Fundamentals of Brigham & Houston
investment timing Chapter 13 of Financial to be read
Brigham & Houston Management.13thE
on the concepts to dition. Cengage
be done in class Learning
Problem solving /
Assignment:
Problems from
Chapter 13 of
Brigham & Houston
onthe concept to be
done in class Select
end of chapter 13
problems from
Brigham & Houston
to be given as
assignment.

Topic No. 7.0

Topic Name Working Capital Management
Brief outline of deliverables
Book reference
Pre-requisites for preparation
 Sub-Topic No. Sub-Topic Name. Brief outline of Reference Book Pre-requisites for
deliverables preparation

7.1 a. Current asset Lecture and Brigham Pre reading:

investment policies Discussions: &Houston.2009. Chapter 16 from
Problems from Fundamentals of Brigham & Houston
Chapter 16 of Financial to be read
Brigham & Houston Management.13thE
on the concepts to dition. Cengage
be done in class Learning
Problem solving /
Assignment:
Problems from
Chapter 16 of
Brigham & Houston
on the concept to be
done in class. Select
end of chapter 16
problems from
Brigham & Houston
to be given as
assignment.
7.2 b. Impact of working Lecture and Brigham Pre reading:
capital on Discussions: &Houston.2009. Chapter 16 from
profitability of the Problems from Fundamentals of Brigham & Houston
firm Chapter 16 of Financial to be read
Brigham & Houston Management.13thE
on the concepts to dition. Cengage
be done in class Learning
Problem solving /
Assignment:
Problems from
Chapter 16 of
Brigham & Houston
on the concept to be
done in class. Select
end of chapter 16
problems from
Brigham & Houston
to be given as
assignment.
7.3 c. Impact of credit Lecture and Brigham Pre reading:
policy on profitability Discussions: &Houston.2009. Chapter 16 from
of the firm Problems from Fundamentals of Brigham & Houston
Chapter 16 of Financial to be read
Brigham & Houston Management.13thE
on the concepts to dition. Cengage
be done in class Learning
Problem solving /
Assignment:
Problems from
Chapter 16 of
Brigham & Houston
on the concept to be
done in class. Select
end of chapter 16
problems from
Brigham & Houston
to be given as
assignment.
7.4 d. short and Long Lecture and Brigham Pre reading:
term financing Discussions: &Houston.2009. Chapter 16 from
sources Problems from Fundamentals of Brigham & Houston
Chapter 16 of Financial to be read
Brigham & Houston Management.13thE
on the concept to be dition. Cengage
done in class Learning
Problem solving /
Assignment:
Problems from
Chapter 16 of
Brigham & Houston
on the concept to be
done in class .
Select end of
chapter 16 problems
from Brigham &
Houston to be given
as assignment.
7.5 e. Inventory Lecture and Brigham Pre reading:
Management Discussions: &Houston.2009. Chapter 16 from
Problems from Fundamentals of Brigham & Houston
Chapter 16 of Financial to be read
Brigham & Houston Management.13thE
on the concept to be dition. Cengage
done in class Learning
Problem solving /
Assignment:
Problems from
Chapter 16 of
Brigham & Houston
on the concept to be
done in class .
Select end of
chapter 16 problems
from Brigham &
Houston to be given
as assignment.
7.6 f. Receivable Lecture and Brigham Pre reading:
Management Discussions: &Houston.2009. Chapter 16 from
Problems from Fundamentals of Brigham & Houston
Chapter 16 of Financial to be read
Brigham & Houston Management.13thE
on the concept to be dition. Cengage
done in class Learning
Problem solving /
Assignment:
Problems from
Chapter 16 of
Brigham & Houston
on the concept to be
done in class .
Select end of
chapter 16 problems
from Brigham &
Houston to be given
as assignment.
7.7 g. Cash Lecture and Brigham Pre reading:
Management Discussions: &Houston.2009. Chapter 16 from
Problems from Fundamentals of Brigham & Houston
Chapter 16 of Financial to be read
Brigham & Houston Management.13thE
on the concept to be dition. Cengage
done in class Learning
Problem solving /
Assignment:
Problems from
Chapter 16 of
Brigham & Houston
on the concept to be
done in class .
Select end of
chapter 16 problems
from Brigham &
Houston to be given
as assignment.

Topic No. 8.0

Topic Name Divided Policy / Bonus - Theory & Practice
Brief outline of deliverables
Book reference
Pre-requisites for preparation
 Sub-Topic No. Sub-Topic Name. Brief outline of Reference Book Pre-requisites for
deliverables preparation

8.1 a. Aspects to be Lecture and Brigham Pre reading:

considered for Discussions: &Houston.2009. Chapter 15 from
dividend distribution Discussion on the Fundamentals of Brigham & Houston
concepts Financial and Chapters 17
Management.13thE and 18 from I M
dition. Cengage Pandey to be read
Learning
8.2 b. optimal dividend Lecture and Brigham Pre reading:
policy Discussions: &Houston.2009. Chapter 15 from
Discussion on the Fundamentals of Brigham & Houston
concepts Financial and Chapters 17
Management.13thE and 18 from I M
dition. Cengage Pandey to be read
Learning
8.3 c. Dividend theories Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 15 from
Discussion on the Fundamentals of Brigham & Houston
concepts Financial and Chapters 17
Management.13thE and 18 from I M
dition. Cengage Pandey to be read
Learning
8.4 d. Information Lecture and Brigham Pre reading:
content Discussions: &Houston.2009. Chapter 15 from
Discussion on the Fundamentals of Brigham & Houston
concepts Financial and Chapters 17
Management.13thE and 18 from I M
dition. Cengage Pandey to be read
Learning
8.5 e. signaling Lecture and Brigham Pre reading:
hypothesis Discussions: &Houston.2009. Chapter 15 from
Discussion on the Fundamentals of Brigham & Houston
concepts Financial and Chapters 17
Management.13thE and 18 from I M
dition. Cengage Pandey to be read
Learning
8.6 f. clientele effect Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 15 from
Discussion on the Fundamentals of Brigham & Houston
concepts Financial and Chapters 17
Management.13thE and 18 from I M
dition. Cengage Pandey to be read
Learning
8.7 g. Residual Dividend Lecture and Brigham Pre reading:
Model Discussions: &Houston.2009. Chapter 15 from
Discussion on the Fundamentals of Brigham & Houston
concepts Financial and Chapters 17
Management.13thE and 18 from I M
dition. Cengage Pandey to be read
Learning
8.8 h. Stock splits Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 15 from
Discussion on the Fundamentals of Brigham & Houston
concepts Financial and Chapters 17
Management.13thE and 18 from I M
dition. Cengage Pandey to be read
Learning
8.9 i. stock Dividends Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 15 from
Discussion on the Fundamentals of Brigham & Houston
concepts Financial and Chapters 17
Management.13thE and 18 from I M
dition. Cengage Pandey to be read
Learning
8.11 j. Share buybacks Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 15 from
Discussion on the Fundamentals of Brigham & Houston
concepts Financial and Chapters 17
Management.13thE and 18 from I M
dition. Cengage Pandey to be read
Learning

Topic No. 9.0

Topic Name Financial Forecasting & Modeling
Brief outline of deliverables
Book reference
Pre-requisites for preparation
 Sub-Topic No. Sub-Topic Name. Brief outline of Reference Book Pre-requisites for
deliverables preparation

9.1 a. AFN equation Lecture and Brigham Pre reading:

Discussions: &Houston.2009. Chapter 17 and New
regarding the case Fundamentals of World Chemicals
done in class Case Financial case from Brigham
Study analysis and Management.13thE & Houston
discussions: New dition. Cengage
World Chemicals Inc Learning
case from chapter
17, to be
administered in the
class using excel in
Laptops
9.2 b. Retention ratio Lecture and Brigham Pre reading:
Discussions: &Houston.2009. Chapter 17 and New
regarding the case Fundamentals of World Chemicals
done in class Case Financial case from Brigham
Study analysis and Management.13thE & Houston
discussions: New dition. Cengage
World Chemicals Inc Learning
case from chapter
17, to be
administered in the
class using excel in
Laptops
9.3 c. Capital intensity Lecture and Brigham Pre reading:
Ratio Discussions: &Houston.2009. Chapter 17 and New
regarding the case Fundamentals of World Chemicals
done in class Case Financial case from Brigham
Study analysis and Management.13thE & Houston
discussions: New dition. Cengage
World Chemicals Inc Learning
case from chapter
17, to be
administered in the
class using excel in
Laptops
9.4 d. Excess capacity Lecture and Brigham Pre reading:
adjustments Discussions: &Houston.2009. Chapter 17 and New
regarding the case Fundamentals of World Chemicals
done in class Case Financial case from Brigham
Study analysis and Management.13thE & Houston
discussions: New dition. Cengage
World Chemicals Inc Learning
case from chapter
17, to be
administered in the
class using excel in
Laptops

EVALUATION PARAMETERS
Sr. No. Parameter Weightage Exam Type Exam Mode Remarks
Name
1 C. Continuous 40 Continuous Online CO1,CO2,CO3,
Evaluation Evaluation CO4,CO5,CO6,
CO7
2 E. End Term 60 End Term Online CO1,CO2,CO3,
Exam CO4,CO5,CO6,
CO7,CO8,CO9

LEARNING OUTCOMES
CO1 Analyse financial statements using financial ratios.
CO2 Construct projected financial statements for forecasting long-term financial needs
CO3 Apply the concept of time values of money in making investment decisions.
CO4 Apply risk, and return concepts and valuation techniques to stocks and corporate
valuation.
CO5 Determine the cost of debt, cost of equity and the cost of capital.
CO6 Discuss the role of working capital management, its components, key strategies and
techniques in managing liquidity.
CO7 Evaluate the major sources of short-term and long-term financing available to the
firm.
CO8 Apply capital budgeting techniques like Discounted payback, NPV, IRR including real
options in investment decisions.
CO9 Discuss the factors influencing dividend policy.

MAPPING OF LEARNING OUTCOMES OF THE SUBJECT AOL THE GOAL

Level of correlation: 3-2-1

CO PO1. PO2. PO3. Critical PO4. PO5. Global PO6. Role of

Leadership Innovation and Communicati Perspective Self in the
Analytical on Organization
Thinking and in the
Society
CO1 - - High Medium - -
(3) (2)
CO2 - - High Medium - -
(3) (2)
CO3 - - High Medium - -
(3) (2)
CO4 - - High Medium - -
(3) (2)
CO5 - - High Medium - -
(3) (2)
CO6 - - High Medium - -
(3) (2)
CO7 - - High Medium - -
(3) (2)
CO8 - - High Medium - -
(3) (2)
CO9 - - High Medium - -
(3) (2)