Financial Management, in short, FM is an important subject in management study and courses like PGDM, MBA, B.com, M.com, BBA, ..etc. Here we have shared all the topics that are in the syllabus of Financial Management in the second semester of MBA (Master of Business Administration).
► What is Financial Management?
Financial Management is one of the functional areas of management which refers to that part of the management activity which is concerned with the planning and controlling of financial resources of the business.
Definition
“Financial Management can be defined as the planning, organizing, directing, and controlling economic and financial activities such as procurement and utilization of funds of the organization.”
Why we study Financial Management?
- To analyze the basic concept, conventions, and postulates as an important tool for decision-making for managers.
- To apply various accounting equations in an organization by the Manager.
- To analyze and develop various accounting statements in organizations by the manager.
- To apply the knowledge of Indian accounting standards by the managers in the corporate world.
► Financial Management Syllabus
Syllabus of Financial Management in MBA.
Subject Name: Financial Management
Subject Code: MBAT 201
Course: MBA II Semester 2020-22
University: Uttarakhand Technical University (Dehradun, Uttarakhand)
Total Credit: 3
Internal Marks: 30
External Marks: 70
Total Marks: 100
Financial Management in MBA (UTU Syllabus)
Note: This Financial Management Syllabus is as per MBA Academic Session 2020-21 of Uttarakhand Technical University, UTU Dehradun. The syllabus is according to the Scheme of Examination as per AICTE Flexible Curricula.
Unit 1: Introduction
Nature,
Objectives and Scope,
Modern Concept of Finance,
Financial Decision – Types of Financial Decisions,
Role of Finance Manager,
Risk Return Framework for Financial Decision Making,
Time Value of Money.
Unit 2 (a): Cost of capital
Concept of Value,
Present Value,
Basic Valuation Models.
(b) Capital Structure:
Concept,
Financial Leverage and its Impact on the Valuation of Firm,
Theories of Capital Structure –
Net Income Approach,
Operating Income Approach, Miller –
Modigliani Approach,
Determinants of Capital Structure.
Unit 3: Investment Decisions
Nature and kinds of Capital Budgeting,
Techniques of Evaluating Capital Budgeting Decisions,
Capital Budgeting under Risk and Uncertainty,
Analysis of Real-Life Capital Budgeting Decisions –
Some Case Studies.
Unit 4 (a): Dividend Decisions
Dividend and its Form,
Theories of Dividend Policy and Impact on the Value of a Entity or Firm,
Determinants of Dividend Policy.
(b) Working Capital Management:
Meaning and Concepts of Working Capital.
Estimating Working Capital Requirements.
Management of Cash Receivables and Inventory.
Unit 5: Corporate Restructuring
Merger and Acquisitions –
Types,
Sources of Takeover Gains,
Valuation and Financing of Acquisitions,
Analysis of some Case Studies.
The Empirical Evidence on Theories
Case Studies relevant to the above topics are required to be Discussed.
► Suggested Books & Readings
- Van Horne James C: Financial Management and Policy, Prentice Hall of India 2nd Edition, 2008.
- Prashna Chandra: Financial Management. McGraw Hill
- Pandey, I.M: Financial Management. 9th Edition Vikas Publishing.
- Khan and Jain: Financial Management. McGraw Hill.
- Ross S.A, R.W: Westerfield and J. Jaffe, Corporate Finance, 7th Edition. McGraw Hill.
- Richard A. Brealey, and Stewart Myers: Principles of Corporate Finance 3rd Edition, McGraw Hill
- V Saran, Financial Management, PHI.
► MBA (II Sem) Complete Syllabus
- Organizational Behaviour (OB)
- Management Accounting (MA)
- Special Foundation Course (SFC)
- Marketing Management (MM)
- Financial Management (FM)
- Human Resource Management (HRM)
- Production and Operation Management (POM)
- Business Research Methods (BRM)