Financial Management

EMBA BG 6

Lecturer: Jyoti Gupta
Date: 6-11.5.2014





SYLLABUS

Module Objectives
The objective of this course is to provide students with a survey of the basic principles of financial
management. The course first introduces tools and techniques, including Time Value of Money, Net
Present Value Analysis, and Risk and Return, and the effect of leverage. The rest of the course focuses
on the applications of these tools and techniques on common, important issues in corporate finance,
including capital budgeting, capital structure policy, cost of capital estimation, financial planning, and
simple valuation. Underpinning this entire course is the concept of creating value.
Preliminary tasks
None

Course work
A combination of formal lectures, case analysis and group discussion. The cases to be presented in
groups in front of the class

Evaluation
Participants will be evaluated on two (2) aspects:
1. Case assignments/presentations 40%
2. Individual Final Examination 60%






Readings
Participants are required to read selected chapters (1, 29,3, 4, 5, 6, 7, 8, 9, 10, 14, 15, 17 and 18 )
from Principles of Corporate Finance by Brearly and Myers,Seventh Edition, Editor McGraw-Hill.


Chapter 1 finance and the financial manager

Chapter 29 financial analysis and planning

Chapter 3 how to calculate present values

Chapter 4 the value of common stocks

Chapter 5 why net present value leads to better investment decisions tha
other criteria

Chapter 6 making investment decisions with net present value rule

Chapter 7 introduction to risk, return and the opportunity cost of capital

Chapter 8 risk and return

Chapter 9 capital budgeting and risk

Chapter 10 a project is not a black box

Chapter 14 an overview of corporate financing

Chapter 15 how corporations issue securities

Chapter 17 does debt policy matter?

Chapters 18 how much should a firm borrow
















Schedule

Day 1

11:00 13:00 Overview of Finance, Role of financial managers
13:00 14:00 LUNCH BREAK
14:00 15:30
Financial statements, Balance sheet, Income statement,
Shareholders and
Managers, Financial objectives and goals
15:30 15:45 Break
15:45 17:15 Measures and Performance of Value Creation
17:15 17:30 Break
17:30 19:00 Case Study in groups
18:00 18:30 Closing

Day 2

9:00 11:00 Time value of money, Present Value, Future Value
11:00 11:30 Break
11:30 13:00 Valuating of Financial Securities, Bonds and shares
13:00 14:30 LUNCH BREAK
14:30 16:00 Risk and Return
16:00 16:30 Break
16:30 18:00 Case Study in groups
18:00 19:00 Closing

Day 3

9:00 11:00 Capital asset pricing model
11:00 11:30 Break
11:30 13:00
Cost of capital of a firm, the determinants and weighted
average cost of
capital ( WACC )
13:00 14:30 LUNCH BREAK



14:30 16:00 How to determine WACC of a firm
16:00 16:30 Break
16:30 18:00 Case Study in groups.
18:00 19:00 Closing

Day 4

9:00 11:00 Capital Budgeting Decisions
11:00 11:30 Break
11:30 13:00
Defining Financial Profile of an Investment Project, Hurdle
rate and selection
13:00 14:30 LUNCH BREAK
14:30 16:00 Group presentations
16:00 16:30 Break
16:30 18:00 Case Study in groups
18:00 19:00 Closing

Day 5

9:00 11:00 Different sources of long term financing
11:00 11:30 Break
11:30 13:00 How firms issue securities
13:00 14:30 LUNCH BREAK
14:30 16: 00 Group Presentations
16:00 16:30 Break
16:30 18: 00
Financial Analysis of firms,Financial planning and
valuation, IPO
18:00 19:00 Exam preparations


Day 6

11:00 13:00 Group presentations
13:00 - 14:30 LUNCH BREAK
14:30 - 16:00 Closing