Nagpur University Syllabus of Financial Management NAGPUR UNIVERSITY MBA EXAM Paper 8 Financial Management SYLLABUS RTMNU
Paper – 8: Financial Management
SECTION – A
Unit I: Introduction – Concept of business finance, finance function, scope, organization, Responsibilities
of finance executive, Goals & objectives of financial management, Functional areas; Concept of time value
of money, Compounding & discounting; Future value of single amount & annuity, present value of single
amount & annuity; Practical application of time value technique.
Unit II: Sources of financing – LONG TERM: shares, debentures, term loans, lease & hire purchase,
retained earnings, public deposits, bonds (Types, features & utility)
(a) SHORT TERM: bank finance, commercial paper & trade credit & bills discounting
(b) INTERNAL: Retained earnings, Depreciation policies.
Unit III: Capital structure – Concept, meaning, principles & importance. Introduction to Trading on
equity, Capital gearing & leveraging, Cost of capital, Cost of different sources of finance, Weighted
average cost of capital, Theories of capital structure, concept of optimal capital structure, Computation of
leverages, Cost of capital and EBIT-EPS analysis.
Unit IV: Capitalization – Concept, Theories, Over capitalisation – Concept, Symptoms, causes,
Consequences & remedies, Under capitalisation – Concept, causes, Consequences & remedies, Watered
Stock, Watered stock Vs Over capitalisation.
Unit V: Dividend policies – Concept, determinants and factors affecting, relevance and irrelevance
concept, dividend valuation models – Gordon, Walter and Modigliani-Miller models Stability of
dividends – concept and significance.
SECTION – B
Unit VI: Working capital – Concept, significance, types. Adequacy of working capital, Factors affecting
working capital needs, Financing approaches for working capital, Methods of forecasting working capital
Unit – VII: Capital budgeting – Nature and significance, techniques of capital budgeting –Pay Back
Method, Accounting rate of return, Net Present Value and profitability index.
Unit – VIII: Financial institutions – Need, structure, policies, norms & schemes; Financing procedures,
changing role of project appraisal; Overview of operations of NBFC’s & Financial Institutions.
Unit – IX: Financing of small scale industry – Meaning, importance, growth of SSIs, Special financing
needs and sources, issues & implications.
Unit – X: Corporate restructuring – Reasons & drivers of restructuring, Methods of restructuring-
mergers, takeovers, acquisitions, divesting, spin-off, split ups, privatization, buyback & joint ventures.
Financial Management by Ravi Kishore, Taxmann’s.
Financial Management by S. M. Inamdar, Everest Publishing house, 12
Financial Management by Sharma & Gupta , Kalyani Publishers.
Financial Management by R.M. Srivastav, Kalyani Publishers.
Financial Accounting for Management by P. Shah- Pub, by Oxford