Financial Management (B.Com)

Financial goals, capital budgeting, cost of capital, capital structure, leverage, dividend and working capital decisions.

6 MonthsDuration 5Chapters24Topics

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Syllabus · पाठ्यक्रम

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01Unit 1: Introduction to Financial Management 5 topics

Meaning, scope and objectives
Profit maximisation and wealth maximisation
Investment, financing and dividend decisions
Role of the finance manager
Time value of money

02Unit 2: Capital Budgeting 5 topics

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

03Unit 3: Cost of Capital 5 topics

Meaning and significance
Cost of debt and preference capital
Cost of equity: dividend growth model
Cost of retained earnings
Weighted average cost of capital

04Unit 4: Capital Structure and Leverage 4 topics

Capital structure theories: NI, NOI, traditional and MM
EBIT-EPS analysis
Operating leverage
Financial and combined leverage

05Unit 5: Dividend and Working Capital Decisions 5 topics

Dividend theories: Walter, Gordon and MM
Forms of dividend
Concept and kinds of working capital
Operating cycle and determinants
Management of cash, receivables and inventory

About

You will be able to

Explain the objectives and scope of financial management and the role of the finance manager
Evaluate projects using payback, ARR, NPV, IRR and profitability index
Calculate the cost of debt, preference and equity capital and the weighted average cost of capital
Explain capital structure theories and calculate operating, financial and combined leverage
Apply dividend models and manage working capital and the operating cycle

Who it is for

B.Com students (General and Accounting & Taxation streams) of Semester 6 under the UP State Universities NEP 2020 syllabus
Students preparing for finance careers, MBA entrance or CA / CMA intermediate basics

What you need

Management Accounting basics and comfort with simple formulas
A simple calculator

Questions

Are present value tables given in the exam?

Usually yes, or the discount factors are given in the question; we also teach how to compute them.

Which units are numerical?

Capital budgeting, cost of capital, leverage and dividend models are mostly numerical and are practised in detail.

Which syllabus does the course follow?

It follows the UP State Universities NEP 2020 common minimum syllabus for B.Com. Where your own university's syllabus differs, the centre teaches as per your university syllabus and papers.