AKTU Financial Management (BMBAI302) Syllabus PDF – MBA (Integrated) 3rd Semester

Course Objectives

1. To apply and analyze capital budgeting techniques, leverage, and risk-return frameworks to make informed investment decisions.
2. To identify, evaluate, and compute optimal capital structure and cost of capital using theories and practical models like WACC and EBIT-EPS analysis.
3. To differentiate and justify various dividend policies and theories, and assess factors influencing dividend decisions and earnings retention.
4. To describe, solve, and plan effective working capital management strategies including cash, inventory, and receivables control using appropriate financing sources.
5. To select, relate, and validate financial strategies for decision-making, demonstrating critical thinking and problem-solving in real-world business contexts.

Unit- I (Hours 08)

Concept of Finance, Scope and Objectives of Finance, Profit Maximization vs. Wealth Maximization, Functions of Finance Manager in Modern Age, Financial Decision Areas, Time Value of Money, Risk and Return Analysis.

Unit- II (Hours 08)

Investment Decisions: Appraisal of Project; Concept, Process & Techniques of Capital Budgeting and its Applications; Risk and Uncertainty in Capital Budgeting; Leverage Analysis – Financial, Operating and Combined Leverage along with implications;

Unit- III (Hours 10)

Financial Decision: Capital Structure: Meaning, Capital Structure and Financial Structure, Patterns of Capital Structure, Optimum Capital Structure, Capital Structure Theories, Factors Influencing Capital Structure – Optimum Capital Structure; EBIT- EPS Analysis. Various long term sources of finance. Cost of Capital: Cost of Equity, Preference Shares, Debentures and Retained Earnings, Weighted Average Cost of Capital and its implications.

Unit- IV (Hours 06)

Dividend Decisions: Concept of Retained Earnings, Relevance and Irrelevance of Dividends, Ploughing Back of Profits, Forms of Dividends, Factors affecting Dividend Policy, Dividend Payout Decisions.

Theories of Dividend Decision: Walter’s Model, Gordon’s Model & Modigliani-Miller Model; Factors affecting Dividend Decision.

Unit –V (Hours 08) Working Capital Decisions: Concept, Components, Factors affecting Working Capital Requirement;

Management of Cash, Inventory and Receivables; Sources Working Capital Financing, Sources of short-term finance.

Reference Books

1. Pandey I M, “Financial Management”, Vikas Publishing House Pvt. Ltd.
2. Van Horne, “Financial Management and Policy”, Prentice Hall.
3. Sheeba kapil, “Fundamental of financial management”, Pearson Education.
4. Khan and Jain, “Financial Management”, Tata McGraw Hill.
5. Prasanna Chandra, “Fundamentals of Financial Management”, Tata McGraw Hill.
6. Lawrence J.Gitman, “Principles of Managerial Finance”, Pearson Education Course Outcome: After successful completion of this course, students will be able to:

Course Outcomes