Corporate Finance MCOM Semester II Manan Prakashan

Corporate Finance
MCOM Part 1 Semester II
Content:
1. Scope and Objectives of Financial Management (15 Lec.)
l Introduction, Meaning, Importance, Scope, Objectives, Profit v/s Value Maximization
2. Time Value of Money (15 Lec.)
l Concept, Present Value, Annuity, Techniques of Discounting, Techniques of Compounding, Bond Valuation and YTM
3. Financial Analysis – Application of Ratio Analysis in Financial Decision Making (15 Lec.)
Management Analysis
l Profitability Ratios : Gross Profit Ratio, Operating Profit Ratio, Return on Capital Employed
l Efficiency Ratios : Sales to Capital Employed, Sales to Fixed Assets, Profit to Fixed Assets, Stock Turnover Ratio, Debtors Turnover Ratio, Creditors Turnover Ratio
l Liquidity Ratios : Current Ratio, Quick Ratio
l Stability Ratios : Capital Gearing Ratio, Interest Coverage Ratio
l Investor’s Analysis
l Earnings per Share, P/E Ratio, Dividend Yield
4. Financial Decisions (15 Lec.)
l Cost of Capital – Introduction, Definition of Cost of Capital, Measurement of Cost of Capital, WACC, Marginal Cost of Capital
l Capital Structure Decisions – Meaning, Choice of Capital Structure, Importance, Optimal Capital Structure, EBIT-EPS Analysis, Cost of Capital, Capital Structure and Market Price of Share, Capital Structure Theories, Dividend Policy – Pay Out Ratio
l Business Risk and Financial Risk – Introduction, Debt v/s Equity Financing, Types of Leverage, Investment Objective/Criteria for Individuals/Non-business Purpose