TEACHING AND LEARNING PLAN (TLP)

Title of the subject Advanced Financial Management

Name of the faculty Prof. Smeeta Bhatkal
Name of the program / PGDM, PGDM – Ebiz, PGDM- RM,
specialization if any PGDM – RM&EE
Course Revision No
Academic Year & Trimester / 2019-20
Semester
No of credit hours and sessions 30 hours. 15 sessions
Faculty contact details smeeta.bhatkal@welingkar.org

This course will provide an understanding of the investment and financial decision making
functions of a firm. The assumption is that the goal of financial management is to maximize
the value of the company for its shareholders.

Learning Objectives:

To gain an understanding of the investment and financial decision making

functions of a firm with the assumption is that the goal of financial management is to
maximizethe value of the company for its shareholders.
Evaluation of companies, capital structuring and designing financial options will be covered.
Project financing options and infrastructure financing issues will be examined
and discussed as also IPO‘s and raising money from the equity markets.
We will also discuss how derivatives and other startegies can be used tomitigate risks faced
by companies operating in an open, global market. It therefore extendsclosed- world
financial management to the global market environment.

Learning Outcomes( LO ):

The student should be able to:

LO1: Suggest an optimal capital structure for a company
LO2: Apply the adjusted present value approach to valuation
LO3: Assess issues and risks involved in project and infrastructure finance and
suggestways of mitigating them.
LO4: Understand how investment banks operate and how capital is raised.
LO5: Understand the factors which influence credit rating and the rating
process.Understand the mechanics of securitization and when it is beneficial
LO6: Assess risks faced by companies operating in the global environment and
suggestways of mitigating them

1
 Mapping of Learning Outcomes of the subject to the AOL goals

Leader Innovatio Critical and Communic Global Role of self

ship n Analytical ation Perspectiv in
Thinking e organizatio
n and
society
LO 1 X X
LO 2 X X
LO 3 X X X X
LO4 X X
LO5 X X
LO6 X X X X

Recommended Readings / Books / Websites / Videos:

1. Brealey R.A.,Myers S.C., Allen F., (2014), Principles of Corporate Finance, 11th edition
McGraw Hill Education (India) Pvt. Ltd.(BMA)
2. Brigham, E. F., Houston, J. F.,(2013), Fundamentals of Financial Management, 13th
ed,Cengage Learning (B&H)
3. Chandra P., (2014), Projects: Planning, Analysis, Selection, Financing, Implementation, and
Review, 8th edition, CFM-MHE Professional Series in Finance (PC)
4. Khan M. Y., (2018),Indian Financial System, 6th edition M. Y. Khan McGraw Hill Education
(India) Pvt. Ltd.(MYK)
5. Shapiro, A. C., (2010) Multinational Financial Management 9thedn John Wiley & Sons 8th
edition (AS)
6. Note on Financial Forecasting, Harvard Business School
7. Luehrman, T.A., (1993), Note on Adjusted Present Value, Harvard Business School
8. Jobst, A.,(2008) What is Securitisation? Retieved
fromhttps://www.imf.org/external/pubs/ft/fandd/2008/09/pdf/basics.pdf
9. Securitisation. Retrieved from https://www.fimarkets.com/pagesen/securitization.php

Session Plan:

Details of Syllabus Delivery for Advanced Financial Management

Pedagogy
Suggested pedagogical tools are : (Articles/Case
Session Topics to be covered Study / Presentations/Videos/Quiz/ Assignments/etc)

Financial Analysis and Pre Reading

Forecasting – how to forecast B&H Ch 17
1.
financial statements using key Note on Financial Forecasting HBS
business drivers Financial Forecasting - Problems HBS

Financial Analysis and Pre Reading :

Forecasting – how to forecast and
2
plan for growth and financing Flash Memory Inc.HBS Case
Prepare answers to assignment questions

2
 Capital Structuring: Pre Reading :
How firms arrive at an optimal B&H Ch 14.
3
capital structure Cases and problems from B&H

Capital Structuring: Pre Reading :

How firms arrive at an optimal
4
capital structure
Valuation using Free Cash Flow
and Adjusted Present Value
5 (APV). How APV differs from
the traditional DCF method
Valuation using Free Cash Flow
and Adjusted Present Value –
6
application to a business situation
Project Financing, Feasibility
8 Analysis with sensitivities.How to
evaluate a project.
Project Financing, Feasibility
Analysis with sensitivities. How
8 to identify and mitigate risks.
Blaine Kitchenware, Inc.: HBS Case
Prepare answers to assignment questions
Test will be conducted on this topic
Pre Reading :
Note on Adjusted Present Value: Harvard Business
School
Problems to be solved in class
Pre Reading :
Valuation of Air Thread Connections
HBS Case
Prepare answers to assignment questions
PC Ch 9 & 18
Problems from text
Pre Reading :
Financing the Mozal Project: HBS Case
Prepare answers to assignment questions

Infrastructure Financing - Issues Pre Reading :

9 & Financing Options PC Ch 19

Pre Reading :
Credit Rating Agencies and
https://www.imf.org/external/pubs/ft/fandd/2008/09/pdf/
10 Methodology of Rating.
Securitisation
basics.pdf
https://www.fimarkets.com/pagesen/securitization.php
Investment Banking: Pre Reading :
Role and Functions of Investment MYK Ch 4,6 & 7
Banks
11
Raising funds- IPO,FPO,Private
Placement, External funding
options
Risk Management in a Global Pre Reading :
12 scenario – how risks are identified AS Ch 10
and managed Test will be conducted on this topic
Risk Management in a Global Pre Reading :
13 scenario – how risks are identified AS Ch 11
and managed Test will be conducted on this topic
Risk Management –Practical Presentations
14 issues with reference to
industries and companies
Contemporary topics in the Presentations
15
financial sector

3
 Evaluation Schedule
Evaluation Methodology % of marks assigned The Learning
Objective that it
will measure *
1. Surprise quizzes/tests 20% LO1, LO2, LO6
2. Case evaluation
3. Group presentations 20% LO6
4. Mid Term Evaluation
5. Project
6. Any other evaluation
method : Please specify
7. End Term Exam 60% LO1 to LO6

Objective of the project:

Methodology to be adopted by the students:

Outcome of the project:

Method of evaluation:

Approved By
TLP submitted by Program Head

Name of the Faculty Prof.Smeeta Bhatkal Prof. Vanita Patel

Signature

Date