MI4601 Financial Management – I Syllabus:

MI4601 Financial Management – I Syllabus – Anna University PG Syllabus Regulation 2021

COURSE OBJECTIVES:

 Acquaint the students with the basic concepts of Financial Management and its pivotal role in the corporate world.
 Encourage students to think critically about issues in corporate financial management.
 Understand some of the approaches used by a Finance Manager with respect to financial analysis, profit planning, control and management of current resources.

UNIT I OVERVIEW OF FINANCIAL MANAGEMENT

Financial Management – Meaning, Scope and Functions – Objectives of Financial Management – Profit maximization Vs wealth maximization-Agency problems-Managers Vs Shareholders. Role of finance manager-current issues of finance manager-financial ethics and corporate social Responsibility.

UNIT II SOURCES OF FINANCE

Long term finance- Shares, Debentures, Preference stock and term loans- Features, Rights, Advantages and Disadvantages- Short Term sources-Trade credit, Commercial paper, Certificate of deposit and Bank Finance.

UNIT III FINANCING DECISION

Leverages- Operating, Financial and Combined Leverages – Measurement of leverages. EBITEPS Analysis- Indifference point. Capital structure – Factors influencing Capital structure – Optimal
capital structure.

UNIT IV DIVIDEND DECISION

Objectives of Dividend policies-Types- Determinants of dividend policy – forms of dividend- Bonus shares- Share split- Reverse split-Buy back of shares.

UNIT V WORKING CAPITAL MANAGEMENT

Meaning, Types and Sources of Working Capital – Factors affecting Working Capital – Computation of Working Capital – Management of Cash, Receivables and Inventory – Concept, Need and Techniques.

TOTAL : 45 PERIODS

COURSE OUTCOME:

 Possess the techniques of managing finance in an organization.

TEXT BOOKS :

1. M.Y.Khan and P.K.Jain, Financial Management: Text, Problems and Cases, 7th Edition, McGraw-Hill Education (INDIA) Pvt. Ltd., New Delhi. Year 2017.
2. I.M.Pandey, Financial Management, 11th Edition, Vikas Publishing House Pvt. Ltd., New Delhi. Year 2015.
3. Prasanna Chandra, Financial Management: theory and practice, 9th Edition, McGraw-Hill Education (INDIA) Pvt. Ltd. Company Ltd., New Delhi. Year 2015.