MBA/BBA

Course Outline to be used in conjunction with the Subject Syllabus

Subject Name ADVANCED FINANCIAL MANAGEMENT

Subject Code MGT 208

Subject Credits 3
PROF. R NITHYANANDA PATEL
Faculty Details r.nithyananda@allianceuniversity.edu.in
M:7353522622/7019546414
Office Hours 17:00 to 18:30 Hours on all working days
The funds raised from different sources by each
organization both from primary and secondary market by
issuing different financial instruments needs to be properly
Summary/Overview utilized to maximize the wealth of the owners
(shareholders).
The subject Advanced Financial Management is structured to
provide such skills to the students.

 To assess the proper capital requirements of the firm

and to Achieve the optimum capitalization.
 To know the concept of present and future value of
money.
Aims
 Application of different techniques for making long-
term investment decisions and estimation of short term
capital requirements.
 To know the methods of reducing cost of capital.
 To accelerate the financial growth by leveraging.

Core Learning Outcomes

LEARNING OUTCOMES ASSESSMENT CRITERIA
SL.
NO. On completion of this unit you should be To achieve the learning outcome, you must
able to: demonstrate the ability to:
1. Understand the Objectives of the The students will be able to differentiate the
Financial management and different Profitability and wealth and important
decisions of financial management. decisions in finance area.
2. Decide the Optimum Capitalization The students will be able to design proper
and causes, evils and Benefits of under Capitalization for the firms.
and over capitalization
3. Know the present and future value The students will be able make investment
of Money. Analysis with clear idea of expected returns.
 4. Understand Application The students will be able to apply make Long-
of different Techniques of term corporate investments Decisions by
Capital Budgeting applying NPV, IRR, ARR, PBP, Profitability
Decisions. Index, Risk Analysis etc.
5. Understand cost of individual and The students will earn to minimize the cost of
Combined components of capital. Capital.

Understand operating, financial and

6. Combined leverages and their The students will be able make use of
importance in financial decisions. leverages
In maximizing wealth with minimized cost of
capital.

7 Understand Working Capital The students will be able to estimate the

Management. Working capital requirements.

The following teaching methods will be used to enable

the students better understand the subject
 Lecture Method
Approach to Learning  Problem solving Method
 Case Analysis Method.
 Supervised Study Method.

Assessment Strategy
Participants will be tested both conceptually and on application
of concept on areas related to the subject by the following
methods:
 Assignments
 Presentation
 Class participation
 Written tests

Submission
Learning Outcomes day/week
Assessment Description of Weight
No Assessed (assignments) or
Method* Assessment Method %
length (exam)
1 2 3 4
CS Case Study X X X Fortnight
PF Preparation of cases for X X X As scheduled
class discussion
EX Written X X X X As scheduled
RE FM Plans X Three Weeks

*The following codes for assessment methods apply:-

LR literature review PC practical
CB computer-based PF performance
CS case study PL placement
DI dissertation or project PO portfolio
EX exam PR presentation
 GR group report RE individual report
DTA during term test OR oral
OT other

SESSIO
N Session Plan: Topic & Case Discussion Remarks

#
1.
Introduction to Financial Management, Nature and Scope of Finance; Financial Goal
2.
Profit Maximization, Wealth Maximization
3.
Finance Function- Investment, Financing and Dividend Decisions.
4.
Financial Needs, Sources of rising finance, long term sources of finance,
5. Short term sources of finance

6. Time Value of Money, Present Value of single amount, Present Value of an

Annuity, Future Value of a Single Amount, Future Value of an Annuity.
7.
Nature of Investment Decisions; Investment Evaluation Criteria,
8.
Payback Period, Accounting Rate of Return;
9. Net Present Value
10.
Internal Rate of Return, Profitability Index,
11.
Payback Period, Accounting Rate of Return;
12.
NPV And IRR Comparison;
13.
Meaning and Significance of Cost of Capital;
14.
Calculation of Cost of Debt,
15.
Calculation of Cost of Preference Capital,
16.
Calculation of cost of Equity and Retained Earnings
17.
Calculation of WACC
18.
Further problems on WACC
19.
Further problems on WACC
20. Financial Leverages, Operating Leverages, Combined leverages.

21.
Further problems related to all three leverages
22.
Analysis of Alternate Financial Plans
 23.
Meaning, Significance and Types of Working Capital;
24.
Estimation of Working Capital Requirements
25.
Inventory Management: Meaning of Inventory, Purpose of Holding Inventory
Inventory Management, Objectives of Inventory Management; Inventory
26. Management Techniques.

27.
Revision

RECOMMENDEDRESOURCES
ESSENTIAL BOOK:
Financial management – CA(Dr.) P.C.Tulsian,CA Bharat Tulsian, S Chand publication.

REFERENCEBOOKS:
1. Pandey IM: - “Financial Management” Vikas Publishing
2. Dr. S.N. Maheswari & Dr. C.B. Gupta,Financial Management
3. PrasannaChandra, Financial Management&Practice.
4. Khan and Jain: - “Fundamentals of FinancialManagement”Tata McGraw Hill Reddy,
5. Appannaiah & Satya Prasad, Financial Management, Himalaya Publishing House
Chandrasekhar, K Raamachandra &D S Prathima, Financial management, Himalaya

Form completed by:

Name: Prof-

Approved by:

Area Chair:

Dean – Academics