Financial Management Syllabus MBA Pune university for Academic year 2013-14

Subject Name: Financial Management

Subject Type: Generic Core ( External Subject for Sem II)

Subject Code: 202

Marks: 100

Distribution of Marks: 50 (External Written) 20 (External Online Exam) 30 (Internal Marks by College)

Unit 1 Environment of Business Finance:

Introduction, Definition of Financial Management, Goals of Financial Management, Modern approaches to Financial Management, Finance and other related disciplines, Functions of

finance manager, Key strategies of financial management. ( 3+2 )

Unit 2 Techniques of Financial Analysis:

Meaning, Nature, Objectives and limitations of financial analysis. Tools of analysis and interpretation,, fund flow statement analysis ( Working capital basis) Cash flow statement analysis –

(Cash basis) Ratio analysis (Interpretations of ratios only) (8+2)

Unit 3 Capital Budgeting:

Meaning, Definition and types of evaluating the project on the basis of payback period, NPV, IRR, PI, ARR (8+2)

Unit 4 Working Capital Management:

Nature and Scope, Components of working capital, operating cycle, types of working capital, determination of working capital, Assessment of working capital requirement, Working Capital Financing. (8+2)

Unit 5 Capital Structure and Firm Valuation:

Meaning, Factors affecting the capital structure, Concept and measurement in cost of capital, measurement of specific costs: WACC. Assumptions of capital structure theories, NI, NOI and

MM Approach. (8+2)


Numerical problems will be asked on the following topics only –

Simple problem on Fund flow statement, Ratio analysis (Interpretations of ratios only)

Capital budgeting: Payback period, NPV, IRR, PI, ARR

Estimation of Working Capital, Cost of Capital: WACC

The weightage of theory questions will be 40% and numerical problems 60%

Text Books

• Financial Management by Khan & Jain (TATA McGraw Hill)

• Contemporary Financial Management by Rajesh Kothari (Macmillan Publication)

• Financial Management by I. M. Pandey (Vikas Publication)

• Corporate Finance, Theory and Practice, Aswath Damodaran (Wiley Publication)

• Financial Management Principle and Practices by S. Sudarsana Reddy (Himalaya Publication)

• Fundamentals of Financial Management by Sheeba Kapil (Pearson Publications)

Reference Books

• Financial Management by Jonathan Berk, Peter DeMarzo and Ashok Thampy (Pearson Publication)

• Financial Management: Theory & Practice by Brigham

• Financial Management: Principles & Practice by Lasher

• Financial Management by Sudarshan Reddy

Supplementary Reading Material

• Fundamentals of Financial Management by Brigham and Houston (Cengage Learning)





• Indian Journal of Finance