S.P.

MANDALI’S
WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

ACADEMIC DELIVERABLES CELL (ADC)

TEACHING AND LEARNING PLAN (TLP)

Title of the subject Advanced Financial Management

Name of the faculty Prof.Vandana Sohoni
Name of the program / specialization if MMS - Finance
any
Course Revision No
Academic Year & Trimester / Semester 2019-20 – Sem III
No of credit hours and sessions 4 Credit,40 hours and 20 sessions
Faculty contact details 9819210354

Brief description of the subject / Introduction: Thesubject aims to provide an in depth

understanding about financial management functions of a business organisation. It gives
insights about how decisions of a finance manager play an important role in maximizing
shareholders wealth which is considered as the main objective of financial management.

Learning Objectives:
1. Toimpart in depth knowledge and understanding about financial management concepts and
practice.
2.To equip students to use tools of qualitative and quantitative analysis for effective decision
making in today’s dynamic business environment.
3. To develop the skill to apply different financial management concepts with an end
objective of business value maximization.

Learning Outcomes ( LO ):

1. To demonstrate knowledge and understanding of the financial management concepts in

the following areas:

 Financial planning and forecasting

 Capital structuring decision

 Project appraisal and Financing

 Bond and stock valuation

 Role of investment banks in raising funds

 Credit rating methodology

 Risk Management in a Global scenario

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2. To develop an eye for detail and apply the concepts learnt for in depth qualitative and
quantitative analysis of a business organization

3. To appreciate and evaluate the role of different financial management functions in creating
long run value for the various stakeholders of a business organization.

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   
LO 2  
LO 3 

Recommended Readings / Books / Websites / Videos:

1. Brigham, E. F., & Houston, J. F. (2019). Fundamentals of financial management.

Boston, MA, USA: Cengage.
2. Brealey, R. A., Myers, S. C., & Allen, F. (2020). Principles of corporate finance.
New York, NY: McGraw-Hill Education.
3. Chandra, P. (2014). Projects: Planning, analysis, selection, financing,
implementation, and review. New Delhi: McGraw Hill Education (India) Private
Limited.
4. Khan, M. Y., & Jain, P. K. (2007). Financial management. New Delhi: Tata
McGraw-Hill.
5. Pandey, I. M. (2015). Financial management. New Delhi: Vikas Publishing House
PVT.
6. Ross, S. A., Westerfield, R., Jaffe, J. F., & Jordan, B. D. (2019). Corporate finance.
New York: McGraw-Hill Education.
7. Case studies/articles/handouts

Session Plan:

Details of Syllabus Delivery for Subject ‘Advanced Financial Management ‘

Pedagogy

Suggested pedagogical tools are : (Articles / Case

Session Topics to be Covered Study / Presentations/ Videos/ Quiz/ Assignments /
etc )

Pre Reading :
Financial Analysis : 1. BH - Ch.1,3,4
1.  Revision of ratio analysis 2.KJ - Ch. 6
3.PC – Ch. 4
 Case study discussion

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  Pedagogy:
 Quiz for revision
 Lecture and case study discussion -
 Case : Bajaj Auto Limited : The unprecedented
growth story
Pre Reading :
Financial Planning and
Forecasting: 1. BH - Ch.17
2. PC – Ch. 5
 What and why of 3.IMP – Ch.26
financial planning
Problem solving / Case study (using spreadsheets)
2
 Proforma financial
statements – Financial
modeling case study
 Assessment of external
financing requirement

Title of the topic : Pre Reading :

1. BH - Ch.14
Capital Structuring Decision :
2.KJ - Ch. 18,19,20
 The basic concept
3.PC- Ch. 19-20
 Leverage and firm value
Pedagogy:
3,4 :DOL,DFL & DTL
 Lecture and Problem solving
 Capital structure theory -
NI,NOI ,MM ,Pecking  Mini cases on Divya electronics and S Ltd.
order, Signaling theory
 Costs of financial distress

Valuation and capital Pre Reading :

budgeting for the levered firm : 1.S.Ross (10th edition) Ch.18

 Adjusted Present Value 2.PC (Ch. 15 – APV-Page 399)

Approach
Pedagogy:
5  Free cash flow to equity  Lecture and Problem solving
Approach
 Weighted Average Cost
of Capital Method

Bond Valuation : 1.BH (12th edition),

Ch.7
 Types of Bonds
6,7 th
 Inflation and interest rates 2.PC- ( 7 edition) Ch. 7
 Determinants of Bond
3.KJ (7th edition) Ch.4

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 Yields
 Valuation of Bonds
Problems from BH and PC

Stock Valuation: 1.BH - Ch. 9

 Basic issues in valuation 2.PC - Ch. 7

of equity
3.KJ - Ch.4
 Methods of valuation –
8,9
 DCF approach Problem solving, Case study
 Dividend Discount model
 Relative Valuation

Project Financing and 1BH- Ch.12

Appraisal :
2.Projects by Prasanna Chandra :chapter 6,11,18
 Sources of Long term
Finance
2.PC- Ch. 12,13,17
 Forecasting project cash
10 - 12
flows
 Problems from PC(sensitivity analysis)
 Project Appraisal with
Sensitivities.  Case study : Mini Case : Projects :Prasanna
Chandra-Ch. 6 :Magna Industries (using
spreadsheet model)

Infrastructure Financing :

 Basic Issues in Projects by Prasanna Chandra –

Infrastructure Projects Ch. 19
 Financing Options and
13-14 Guest session by Industry person
challenges
 Types of risks
 Tariff Fixation

Investment Banking:

 Role and Functions of

Investment Banks 1.PC - Ch. 18 , 23
 Raising funds- IPO, FPO,
2.Relevant chapters from M.Y. Khan,PratapGiri
Private Placement,
15 -16
External funding options Industry guest speakers for:
 Credit Rating Agencies 1. Credit rating mechanism
and Methodology of 2. Investment Banking
Rating
 Securitisation

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 Risk Management in a Global 1.BH –Ch. 19
Scenario :
2. Corporate Finance : S.Ross – Ch. 31
 Measuring and managing
3.Principles of Corporate Finance – B.Myres
translation, transaction and
economic exposure
17-18
 Designing ways of
mitigating risks through
production, marketing and
financing strategies

Presentations Group presentations by students: Fundamental analysis

19-20 of a company including qualitative and quantitative
analysis using ratios, forecasting and valuation.

Evaluation Schedule

Evaluation Methodology % of marks assigned The Learning

Objective that it
will measure *
1. Surprise quizzes 10 LO1
2. Case evaluation 10 LO1,LO2,LO3
3. Group presentations 20 LO1,LO2,LO3
4. Mid Term Evaluation
5. Project
6. Any other evaluation
method : Please specify
7. End Term Exam 60

Objective of the project:

Qualitative and quantitative analysis of a company in a given sector with the end objective of
assessment of performance and financial position over a time period and also in comparison
with other players in the industry in addition to application of valuation concepts for the
selected company.

Methodology to be adopted by the students:

 Applying tool of ratio analysis for trend analysis over a period and with peer
companies.
 Financial forecasting and basic valuation of the company using different approaches.

Outcome of the project:

A detailed project report and group presentation followed by group viva.:

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 Approved By
TLP submitted by Dean – Specialization
Name of the Prof.VandanaSohoni Prof. Vanita Patel
Faculty

Signature

Date