BHARATHIDASAN INSTITUTE OF MANAGEMENT, TIRUCHIRAPPALLI
COURSE FILE
Program MASTER OF BUSINESS ADMINISTRATION
PGP I / PGP II PGP I
Academic Year 2022-23
Batch BIM 39
Term and Duration Trimester III – January – March – 2023
Sections or Groups A and B
Course Code CF-II
Course Title Corporate Finance II
Course Level/Type Foundation
(Foundation/Functional/Practice/Workshop/Capstone)
Core/Elective Core
Course Credit 3
Faculty Dr Sadrita Deb & Prof Vijayaraghavan SV
Contact 9432991246/+91 98408 25260
Email ID [email protected]/[email protected]
Bharathidasan Institute of Management
Tiruchirappalli
Batch 39 (2022-24)
COURSE OUTLINE
Course Code Course Title
CF-II Corporate Finance II
Credits PGP Trimester Level Section/Group
3 I III Foundation A&B
@
Total Number of Contact Hours
Lecture (L) Practical Total Hours
30 5 35
1. COURSE OVERVIEW:
The objective of this foundation course is to gain an insight and understanding into financial
market mechanism, financial planning, various short term financial (working capital) activities,
tools and techniques a firm can use in financial decision making, irrespective of whether the
firm is small or large. The course will also expose the students to the basics of financial
modelling using excel.
2. COURSE OUTCOME (COs):
CO 1 – Students will understand how various segments of financial markets work.
CO 2 – Students will get an overview of financial planning to achieve the goals of financial
management.
CO 3 – Students will be equipped with enough knowledge to understand the importance of
working capital in managing liquidity of the business.
CO 4 – Students will be able to make monthly, quarterly and annual financial budgets for
sections of the business and understand the underpinning linkages between sources and uses of
funds in business.
CO 5 – Students will understand the dynamics of managing each component of the current
assets and learn how best to source capital to fund it.
CO 6 – Students will become proficient in using Microsoft Excel to build basic FPnA models. This
course will present the platform to the students to choose ‘Financial Modeling using Excel’ in the
IV Trimester.
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3. CO/PO MAPPING MATRIX:
Program Outcomes (POs) of BIM
Create, select, Acquire Observe &
learn & apply professional & examine
Analyse Extract
appropriate intellectual critically the
complex Demonstrate relevant
techniques, integrity, outcomes of
management Think knowledge information
Possess in- resources & professional one’s actions
issues laterally and and through
depth modern code of & make
critically, originally, understanding literature
knowledge management conduct, ethics corrective
apply conceptualis of survey, apply
of business & IT tools, of research & measures
Course independent e and solve management appropriate
and including scholarship & subsequently,
judgement management principles and research
Outcomes management prediction & understanding & learn from
to issues, apply the methodologies,
(CO) including modelling, to of managerial mistakes.
synthesize evaluate a same to one’s techniques and
wider and complex responsibility Recognise
information wide range of own work, as tools, design,
global business to contribute need for &
to make potential and a member and conduct
perspective. activities with to community have
intellectual feasible leader in a experiments,
understandin for sustainable preparation &
and/or solutions. team. analyse and
g of the development ability to
creative interpret data.
limitations. of society. engage in life-
advances.
long learning.
(PO1) (PO2) (PO3) (PO4) (PO5) (PO6) (PO 7) (PO 8)
CO 1 H
CO 2 H H H M
CO 3 H H M H
CO 4 H H H H H H L L
CO 5 H H H H
[Key: While “H” indicates High, “M” indicates Medium & “L” indicates Low levels of apping.]
4. PRE-REQUISITES:
Corporate Finance I, PITT Productivity IT Tools for Managers, DST Data Science Tools
5. INTENDED STUDENTS (Optional):
Not Applicable.
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6. CONTENTS OF THE COURSE:
UNIT-1:
Introduction to Financial Markets: Equity Market, Debt(Bond) Market, Derivatives
Market, and Forex Market
UNIT-2:
Financial Planning and Analysis: Financial forecasting, budgeting and financial
planning process.
UNIT-3:
Working Capital –an overview: Concepts –Dimensions- Components of Working
Capital –Types- Importance of Working Capital Management – Factors influencing the
requirements of working capital – Risk and Return trade off – Profitability – Liquidity
angle.
Estimating Working Capital Requirements: Operating Cycle method – Ratio of Sales
method – Ratio of Investment
UNIT-4:
Cash Management: concepts and motives- Importance – Techniques- Factors
influencing Cash balance – Cash Budgeting – Controlling and Monitoring – Collection
and Disbursements
Receivables Management: Concepts –Purposes - cost of maintaining receivables-
Credit Policy Variables (Credit Standards, Credit Period – Cash Discount and Collection
Efforts) – Credit Granting Decision – Control of Receivables – Management of Trade -
Factoring – Credit in India
Inventory Management: Investment in inventory and the Importance of its
Management (Techniques for managing inventory (E.O.Q. Model, Order Point, Safety
Stock) will be handled in Supply Chain Management Course)
UNIT-5:
Financing Current Assets – Different Approaches to Financing Current Assets
(Conservative, Aggressive and Matching Approach) – Sources of Finance (Spontaneous
Source – Trade Credits – Short term Bank Finance – Commercial Paper – Public
Deposits)– Bank Financing – trade and supply chain finance.
UNIT-6:
Business forecasting and Modeling Basics using MS-Excel
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7. SUGGESTED READINGS:
a. (1) Main Text (Required):
Fundamentals of Corporate Finance – latest available Indian Edition. By Ross
Westerfield and Jordan (Tata Mcgraw Hill Publications).
(2) Main Text (Required)
Excel 201/2016/2019 Data Analysis and Business Modeling by Wayne Winston
(Published by Microsoft)
b. Additional Readings:
Fundamentals of Financial Management – latest available Edition. By Prasanna
Chandra.
Cases/articles shared in class.
c. Supplemental Readings:
There are many books titled ‘Financial Management’ – students can access any of
these books.
Business Newspaper
d. Journal Articles:
As will be shared in class.
COURSE PLAN
1. TEACHING PEDAGOGIES:
Classroom lectures, empirical exercises on laptop, Assignments, and guest lectures.
2. INSTRUMENTS TO ACHIEVE COURSE OUTCOMES
CO 1: Classroom lectures, Theoretical and Empirical Assignments
CO 2: Classroom lectures, Theoretical and Empirical Assignments
CO 3 and CO 4: Classroom lectures, Empirical Exercises Guest Lecture for working
capital management
CO 5: Classroom lectures, Lab sessions on MS Excel, Classroom lectures
CO 6: Classroom lectures, Lab sessions on MS Excel, Classroom lectures
3. ASSESSMENT METHODS
SL.NO. Assessment Areas Full Marks
1 Midterm examination 20%
2 Assignments 35%
3 Attendance and Class Participation 5%
4 Final Exam 40%
Total 100%
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MAPPING ASSESSMENT METHODS TO COURSE OUTCOMES WITH MARKS DISTRIBUTION
Assessment Course Outcomes (COs)
Methods and
Weightage CO1 CO2 CO3 CO4 CO5 CO6
(Total Weightage = 100)
Marks Distribution
Class 2 2 2 2 2 10
Participation
Quiz
2 2 2 2 2 10
Assignment 1 3 3 6
Assignment 2 3 6 9
Assignment 3 5 5 10
Mid term 12 3 15
End Term 2 6.46 4.15 19.85 7.54 :40
Total = 100 24.00 22.46 13.15 28.85 11.54 Total = 100
4. PROFESSIONAL ASSOCIATIONS / INSTITUTIONS & RECOMMENDED
CERTIFICATIONS (Optional)
Bloomberg Database
5. EXPERIENTIAL COMPONENTS/INDUSTRY VISITS/PROFESSIONAL
INTERACTION, ETC.
NA
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SESSION PLAN
1. DETAILED SESSION PLAN
S. Topic No. of Learning Outcome Methods of Resources** Assessment**
N Sessions teaching/learning Pre-session Post-session *&
o * Weightage
1 Introduction 2 Understanding basic Classroom Lectures None Review the PPT. 5%
to Financial segments in financial Articles for
markets markets reading – LIBOR/
annual reports/
RBI annual
reports
2 Equity & Bond 2 Understanding the equity Classroom Lectures NA Readings to be 10%
market - market and bond market in shared
detailed study India
3 FPNA 4 FPNA Process Classroom Lectures, Chapter 3 of the Review of 10%
Lab approach to Main Text Chapter 3.
solving exercises in recommended Solving selected
MS Excel problems at the
Case Study end of Ch. 3
4 Working 3 Understanding Working Classroom Lectures, Chapter 19 of the Review of 10%
Capital capital components Working with annual Main Text Chapter 19.
Overview reports of selected recommended Solving selected
companies problems at the
Research Papers end of Ch.19
5 Working 2 Detailed understanding of Classroom Lectures & 10%
Capital – Working capital excel exercises
Hands on management
(Prof. SVV)
6 Estimating 3 Ability to estimate Operating Classroom Lectures, Chapter 19 of the Review of 10%
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Working Cycle and working capital Working with annual Main Text Chapter. Solving
capital requirements of a business reports of selected recommended selected
requirements companies problems at the
Case Study/research end of Ch.18
papers
7 Cash 2 Understand Cash and Classroom Lectures, Chapter 20 of the Review of 10%
Management liquidity Management Lab approach to Main Text Chapter 20.
Practices in business solving exercises in recommended Solving selected
environment; Create MS Excel problems at the
Monthly Cash Budget (Prof. Case Study/research end of Ch.20
SVV) papers
8 Receivables 2 Managing receivables Classroom Lectures, Chapter 21 of the Review of 10%
Management Lab approach to Main Text Chapter 21.
solving exercises in recommended Solving selected
MS Excel problems at the
end of Ch.21
9 Inventory 1 Role of inventory and issues Classroom Lectures Chapter 21 of the Review of 5%
Management with managing it – the Main Text Chapter 20.
financial angle recommended Solving selected
problems at the
end of Ch.21
10 Financing 2 Understanding the various Classroom Lectures , Chapter 21 of the Review of 10%
Current Assets methods of financing current Guest Lecture by a Main Text Chapter 21.
asset. Practical aspects Senior Bankter recommended Solving selected
relating to Bank Borrowings problems at the
(Prof. SVV) end of Ch.21
11 Excel basics, 6 Using Excel as a tool for Lab oriented sessions Introductory Explore as much 10%
Business modeling business needs with students chapters in as possible the
Modeling and working along with Wayne Winston possibilities with
Forecasting the faculty Book Excel
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ANNEXURE:
1. VISION, MISSION AND PROGRAM EDUCATIONAL OBJECTIVES (PEOS)
Vision
To be an innovative, socially responsive, and inclusive institute of excellence in management
education
Mission
1. Nurture socially responsible and competent leaders
2. Foster innovative practices in curriculum, pedagogy, and industry engagement for
holistic student development
3. Provide access to quality management education for all sections of the society.
4. Engage in meaningful research and share knowledge with community & industry.
Program Educational Objectives (PEO’s):
1. Enable our graduates to become professionally competent and competitive managers
and leaders for tomorrow.
2. Enable our graduates to become socially responsible citizens.
3. Enable the intent in our graduates for advancing in learning & professional
development.
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2. GRADING RUBRIC
Rubric for Assignments:
Levels of Achievement
Criteria Unacceptable Poor Fair Good
Conceptual 0 to 24 % 25 to 49 % 50 to 74 % 75 to 100 %
Clarity Unable to apply the Appropriate tool but Appropriate tool with Appropriate tool
appropriate poorly applied. average application with proper
Weight econometric tool and lack of cohesion application and
20.00% exact modeling
Empirical 0 to 24 % 25 to 49 % 50 to 74 % 75 to 100 %
Results Doesn’t represent Fits the data on Fits the data and Fits the data well,
the data at all and average and only average solution for exact solution for
Weight fails to address the satisfactory empirical the empirical the empirical
35.00% managerial problem solution problem. problem
Grammar and 0 to 24 % 25 to 49 % 50 to 74 % 75 to 100 %
Composition Many grammatical, A few grammatical Almost no No grammatical,
spelling, or spelling, or grammatical, spelling spelling or
Weight 5.00% punctuation errors. punctuation errors. or punctuation errors punctuation errors.
Sources 0 to 24 % 25 to 49 % 50 to 74 % 75 to 100 %
Some sources are All sources All sources All sources
Weight 5.00% not accurately (information and (information and (information and
documented. graphics) are graphics) are graphics) are
accurately accurately accurately
documented, but documented, but a documented in the
many are not in the few are not in the desired format.
desired format. desired format.
Coding & 0 to 24 % 25 to 49 % 50 to 74 % 75 to 100 %
Illustrations Incorrect code and Code runs but Code runs on all Code runs on all
code doesn’t run at produces only specific components but components and
Weight all components and inaccurate results accurate results as
35.00% inaccurate results in empirical
solution.
Rubric for the Mid-term examination:
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Criteria Levels of Achievement
<30% >=40% and >=50% and >=60% and >=70% and >80%
<50% <60% <70% <80%
Incorrect The answer is A partially A partially correct A partially An effective
answer; not entirely correct answer; answer; Answer correct answer; answer that
Relationships correct; Answer Answer misses misses specific Answer misses completely
or terms not misses specific specific relationships or specific answers the
covered in relationships or relationships or terms needed to relationships or question(s);
answer, or terms needed to terms needed to fully answer the terms needed to All terms and
are covered fully answer the fully answer the question; fully answer the relationships
inaccurately; question; question; Underlying logic of question; identified
Question / Subjective, Underlying logic Underlying logic answer is not Answer is based and
Problems opinion- of answer is not of answer is not accurate; Answer on objective integrated
based accurate; Answer accurate; Answer is based on analysis; Answer into the
analysis; has elements of has elements of objective analysis; is well written answer(s);
(70 Marks) Answer is subjective, subjective, Answer is well and easy to Answer
hard to opinion-based opinion-based written and easy to understand. based on
understand; answers; Answer answers; Answer understand. objective
not well is hard to is hard to analysis;
written. understand at understand at Answer is
times. times. well written
and easy to
understand.
Rubrics for the End-term examination:
Criteria Levels of Achievement
<30% >=40% and >=50% and >=60% and >=70% and >80%
<50% <60% <70% <80%
Incorrect The answer is A partially A partially correct A partially An effective
answer; not entirely correct answer; answer; Answer correct answer; answer that
Relationships correct; Answer Answer misses misses specific Answer misses completely
or terms not misses specific specific relationships or specific answers the
covered in relationships or relationships or terms needed to relationships or question(s);
answer, or terms needed to terms needed to fully answer the terms needed to All terms and
are covered fully answer the fully answer the question; fully answer the relationships
inaccurately; question; question; Underlying logic of question; identified
Question / Subjective, Underlying logic Underlying logic answer is not Answer is based and
Problems opinion- of answer is not of answer is not accurate; Answer on objective integrated
based accurate; Answer accurate; Answer is based on analysis; Answer into the
analysis; has elements of has elements of objective analysis; is well written answer(s);
(120 Answer is subjective, subjective, Answer is well and easy to Answer
Marks) hard to opinion-based opinion-based written and easy to understand. based on
understand; answers; Answer answers; Answer understand. objective
not well is hard to is hard to analysis;
written. understand at understand at Answer is
times. times. well written
and easy to
understand.
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