FM2101

Corporate Finance
Year / Semester: 
3rd Semester
Objective: 

The course aims to provide students with a deeper understanding of how firms finance, invest and manage themselves in the `real world.

Credits: 
6

Valuation: Nature of Financial Management, Concepts of Value and Return, Valuation of Bonds and Shares, Risk and Return: An Overview of Capital Market Theory; Investment Decisions: Capital Budgeting Decisions, The Cost of Capital, Determining Cash Flows for Investment Analysis; Financing and Dividend Decisions: Financial and Operating Leverage, Capital Structure Theory and Policy, Valuation and Financing, Dividend Theory, Dividend Policy; Long-Term Financing: Capital Market Efficiency and Capital Markets in India, Long-Term Finance: Shares, Debentures and Term Loans; Convertible Debentures and Warrants; Asset-Based Financing: Lease, Hire Purchase and Project Financing, Venture Capital Financing; Financial and Profit Analysis: Financial Statements and Cash Flow Analysis, Financial Statements Analysis, Financial Planning and Strategy; Working Capital Management: Principles of Working Capital Management, Receivables Management and Factoring, Inventory Management, Cash Management, Working Capital Finance; Managing Value and Risk: Corporate Restructing, Mergers and Acquisitions, Derivatives for Managing Financial Risk, International Financial Management, Shareholder Value and Corporate Governance, Financial Management in Government Companies.

Suggested Readings: 
  1. I.M.Pandey, ‘Financial Management’, Vikas Publishing House Pvt., Ltd., 8th Edition, 2004.
  2. Machiraju, ‘Indian Financial System’, Vikas Publishing House P.Ltd, 2nd Edition, 2002.
  3. Comparative Corporate Governance: ‘The State of the Art and Emerging Research’, by Klaus Hopt.
  4. Thomas E.Copeland and J.Fred Weston – ‘Financial Theory & Corporate Policy’, Addison – Wesley Publishing Company.
  5. Raj Aggarwal – ‘Capital budgeting under uncertainty’. Prentice Hall Englewood Cliffs, New Jersey, 1993.
  6. Cooley – ‘Advances in Business Financial Management’, The Dryden Press – 1990.
  7. Periodicals like Journal of Institute of Company Secretaries, India.