Financial Management (BBA)

Capital budgeting, cost of capital, capital structure, leverage, dividend policy and working capital.

6 MonthsDuration 5Chapters24Topics

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Syllabus · पाठ्यक्रम

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01Unit 1: Introduction and Time Value of Money 5 topics

Meaning, scope and functions of financial management
Profit maximisation vs wealth maximisation
Role of the finance manager
Compounding and discounting
Present and future value of annuities

02Unit 2: Capital Budgeting 5 topics

Nature and importance of investment decisions
Payback period and accounting rate of return
Net present value
Internal rate of return
Profitability index and capital rationing

03Unit 3: Cost of Capital 5 topics

Concept and importance
Cost of debt and preference capital
Cost of equity: dividend growth model and CAPM
Cost of retained earnings
Weighted average cost of capital

04Unit 4: Capital Structure and Leverage 4 topics

Capital structure and its determinants
EBIT-EPS analysis
Operating, financial and combined leverage
Theories: NI, NOI, traditional and Modigliani-Miller

05Unit 5: Dividend Policy and Working Capital 5 topics

Dividend policy and its determinants
Walter, Gordon and MM dividend models
Working capital: concept and operating cycle
Estimation of working capital
Management of cash, receivables and inventory

About

You will be able to

Explain the objectives of financial management and apply the time value of money
Evaluate investment proposals using payback, ARR, NPV, IRR and profitability index
Calculate the cost of debt, equity and weighted average cost of capital
Analyse capital structure and operating, financial and combined leverage
Explain dividend theories and estimate working capital requirements

Who it is for

BBA students of Semester 4 in UP state universities and affiliated colleges (Lucknow University pattern)
Students aiming at finance careers, banking or MBA Finance

What you need

Financial Accounting, Cost Accounting and Management Accounting (Semesters 1-3)
A simple calculator

Questions

Which syllabus does the course follow?

The common UP state university BBA syllabus for Financial Management (Semester 4, Lucknow University pattern). The centre follows the student's own university syllabus (Lucknow University, MGKVP, VBSPU, CSJMU or any other) where it differs.

How are classes conducted?

Unit-wise lectures with examples from Indian business, short notes, numerical practice where needed and MCQ tests.

Are present value tables provided?

Yes, students learn to use PV tables as in the university exam and to verify answers with a calculator.

Are previous year questions covered?

Yes, previous university questions are solved unit-wise before the semester examination.