ARAVALI INSTITUTE OF MANAGEMENT

An Institute of Marwar Education Foundation Course outline-PGP II (2010-12) Term-II Faculty: Dr. Asha Sharma
MANAGERIAL FINANCE-II Course credit: 1.0
COURSE OBJECTIVE

This course exposes the students to the processes adopted by organisations in recording financial transactions and introduces the students to the language of accounting. Managers deal with issues related to effective utilisation of resources, for which they need a variety of information. Accounting information is an important segment of the information required by managers. The course helps in understanding the mechanics and the process of generating accounting information and imparts an understanding of the basics of financial accounting. The course also discusses the use of accounting information for evaluation and decision making. EVALUTION PARAMETERS1. Internal assessment 2. Mid-term examination 3. Term-end examination Total INTERNAL ASSESSMENT Attendance Class participation Surprise test Case Analysis & Presentation Project Total : 5 marks : 5 marks : 10 marks : 10 marks : 10 marks : 40 marks : 40 marks : 20 marks : 40 marks : 100 marks

Text Books Financial Management I.M. Pandey, Vikas Publishing House Pvt. Ltd. Reference Books Financial Management M.Y.Khan and P.K.Jain, Tata Mc Graw Hill Publishing company Ltd.
NO.OF SESSIONS 1-2

SESSION PLAN PGP-II, TERM-I CONTENT Analysis of Financial Statement Financial Statement and its interpretation Case study of Reliance Industry Limited Inventory Management Introduction Function of Inventory Management Factors affecting level of Inventory Techniques of Inventory Management Cash Management Introduction Cash planning and forecasting Determining optimum cash balance Management of surplus cash in Marketable Securities Dividend policy Concept of dividend forms of dividend Factors affecting Dividend Decisions of firms Types of Dividend Policy Dividend Models Computation of overall cost of capital

3-5

6-10

11-15

16-20

Capital structure Introduction Capital structure theories Net income approach Net operating income approach Modigliani miller approach

21-25

Operating, financial and combined leverage Introduction Operating leverage Financial leverage Combined leverage Sources of finance Long term finance Capital based sources Assets based sources Short term finance

26-30

30-39

Risk and Return

Concept of risk Measurement of risk Concept of return Measurement of return Risk and return for a single security Portfolio and diversification Risk and return of portfolio Beta estimation