School of Commerce and Management
Financial Management
MBA [Business Analytics] -I Semester
Course Code: MCH 503 B Course Category:” Core L-T-P: 3-0-0
Course Description: The main goal of this course is to develop a foundation of financial
management concepts. This will enable to the student to understand how corporations make
important investment and financing decisions, and how they establish working capital policies.
The course also lays a foundation for more complex financial topics that arise in additional
elective courses in finance. This course in financial management describes the corporation and
its operating environment; it will help any future manager to understand how the finances of a
company work, and how they will be interfacing with finance.
Course Objectives: The objectives of this course are:
To acquaint the students with the fundamental concepts of Financial Management & Time Value
of Money
To enable students to take decisions using Capital Budgeting techniques
To enable students to understand and apply concepts of working capital management
To enable students to analyze and apply the concepts of firm’s value, capital structure theories,
dividend policy decisions.
Section A: Introduction: Concepts, Nature, Scope, Function and Objectives of Financial
Management. Basic Financial Decisions: Investment, Financing and Dividend Decisions.
Analysis and Interpretation of Corporate Final Accounts: Understanding the Parameters of
health of Business: Liquidity, Profitability, Solvency and Efficiency through learning
computation, analysis and interpretation of various tools of financial analysis
Section B: Leverage Analysis: Developing the Concept of Leverage in Finance. Computation
and inferences of Degree of Operating Leverage, Financial Leverage and Combined Leverage.
Investment Decision (Capital Budgeting) Meaning & implications of the concept. Capital
Budgeting: Meaning, Importance, types of capital budgeting decisions, Capital Budgeting
Techniques: Pay back, Average rate of return method, Net Present Value, Profitability Index
method and Internal rate of return method along with pros and cons of each method.
Section C: Time value of Money: Meaning & implications of the concept, Present value of
money, future value of money
Sources of finance (short term and long term sources). Cost of capital: Meaning, need &
importance, Estimation the cost of various sources of finance (Debentures, Preference shares &
Equity Share Capital).
Section D:
Working Capital: Meaning, types, cons of excessive and inadequate working capital and methods
to access Working Capital requirements of a Company.
Digital Currency: Introduction to digital currencies (BitCoin, LiteCoin, PPCoin, NameCOin
etc.). Evolution of digital currencies, digital currencies and impact on business. Technology for
digital currencies, regulating digital currencies.
Sections & CO Mapping with BT Level: -
Section Content Cos BT Level Mapping of the
content with
skill.
Introduction: Concepts, Nature, CO1: To acquaint the BT-2 Employability
Scope, Function and Objectives of students with the Understand and
Financial Management. Basic fundamental concepts
Financial Decisions: Investment, entrepreneurship
of Financial
Financing and Dividend Decisions. Management & Time
Analysis and Interpretation of Value of Money
Corporate Final Accounts:
Understanding the Parameters of
health of Business: Liquidity,
Profitability, Solvency and Efficiency
through learning computation,
analysis and interpretation of various
tools of financial analysis
Leverage Analysis: Developing the
Concept of Leverage in Finance. CO2: To enable the BT-2 Employability
Computation and inferences of Degree students to Understand and
of Operating Leverage, Financial UNDERSTAND the entrepreneurship
Leverage and Combined Leverage.
Investment Decision (Capital Budgeting) consumer buying
Meaning & implications of the concept.
Capital Budgeting: Meaning, behavior & STP
Importance, types of capital budgeting concept as the core
decisions, Capital Budgeting of the Marketing
Techniques: Pay back, Average rate of
return method, Net Present Value,
Profitability Index method and Internal
rate of return method along with pros
and cons of each method.
Time value of Money: Meaning & CO3: To enable BT-3 Employability
implications of the concept, Present students to Analyze and
value of money, future value of money understand and entrepreneurship
Sources of finance (short term and long apply concepts of
term sources). Cost of capital: Meaning, working capital
need & importance, Estimation the cost management
of various sources of finance
(Debentures, Preference shares & Equity
Share Capital).
Working Capital: Meaning, types, cons
of excessive and inadequate working CO4: To enable BT- 4 Employability
capital and methods to access Working students to analyze and and
Capital requirements of a Company. apply the concepts of Applying entrepreneurship
firm’s value, capital
Digital Currency: Introduction to digital structure theories,
currencies (BitCoin, LiteCoin, PPCoin, dividend policy
NameCOin etc.). Evolution of digital decisions.
currencies, digital currencies and impact
on business. Technology for digital
currencies, regulating digital currencies.
CO-PO Mapping
Course PO 1 PO 2 PO 3 PO PO 5 PO 6 PO 7 PO 8 PO 9 PSO 1 PSO
Outco 4 2
me
Doma Integri C&A PD Leader Com. Creati EVS Softw Emp &
in ty & thinki and vity, are entre
ship &
Knowl ethics ng team
Strategy Empa Tools
thy
CO 1 3 2 3 3 2 3 2 1 0 3 2
CO 2 3 0 3 2 2 2 1 0 0 3 2
CO 3 3 0 3 0 1 1 1 1 0 3 3
CO 4 0 2 3 2 2 2 0 1 2 3 3
Teaching Pedagogy to be used
Lecture content
Cases/Caselettes
Group Discussion
Role Plays
Project Based Field Assignments
Individual & Group Presentations
ICT Tools to be used:
PowerPoint Slides
Smart Board Teachings
Videos from YouTube
Text Book & References
Book Title Authors Publishers Edition
Financial Management: Text, M. Y. Khan (Author), P. K. Tata Mcgraw 8th Edition
problems and Cases 8e Jain (Author) Hill
Financial Management I.M.Pandey Pearson 12th Edition
INTERNATIONAL FINANCIAL Vyuptesh sharan PHI 6th Edition
MANAGEMENT
Financial Management Geert Bekaert, Robert Cambridge 4th Edition
Hodrick University
Press
https://books.google.co.in/books?
id=UAflULA1DkIC&printsec=frontcover&dq=financial+management+youtube&hl=en&newbks
=1&newbks_redir=0&sa=X&ved=2ahUKEwjO0-
GJkKmHAxVznq8BHZvOBh0Q6AF6BAgDEAI#v=onepage&q&f=false
Continuous Assessment Evaluation Matrix:
Evaluation Criteria Marks
Class Tests 1 & 2 20
Mid Semester exam 40
Case Discussion & Participation 20
Individual & Group Presentation 20
End Semester Examination 100
Total 200