MI4701 Financial Management – II Syllabus:

MI4701 Financial Management – II Syllabus – Anna University PG Syllabus Regulation 2021

COURSE OBJECTIVES:

Facilitate student to
 Understand the operational nuances of a Finance Manager.
 Comprehend the technique of making decisions related to finance functions.

UNIT I FUNDAMENTAL VALUATION CONCEPTS

Time value of money – compounding and discounting techniques-valuation of Annuity – Multi
period compounding – Valuation of securities – valuation of shares and bonds – Concept of risk
and return – single asset and portfolio.

UNIT II INVESTMENT DECISIONS – CAPITAL BUDGETING

Capital budgeting: Principles and techniques – Nature of capital budgeting – ldentifying relevant
cash flows – Evaluation Techniques: Payback, Accounting rate of return, Net Present Value,
Internal Rate of Return, Profitability Index – Comparison of DCF techniques

UNIT III INVESTMENT DECISIONS – COST OF CAPITAL

Cost of Capital – Meaning, Features and Importance – Classification of Cost of Capital –
Computation of Cost of Capital – Debt, Preference and Equity Shares and Retained Earnings –
Weighted Average Cost of Capital.

UNIT IV CAPITAL STRUCTURE AND DIVIDEND THEORIES

Capital Structure Theories – Definition and Assumptions – NI, NOI, MM and Traditional
Approaches – Capital structure planning in practice – Dividend Theory and Policy – Meaning –
Water, Gordan, MM Models – Rights evaluation and Effect of Bonus issue.

UNIT V FINANCIAL MARKETS

Financial Markets – Capital Market – New Issues market – Secondary Market, Money Market and
Government Securities Market – Asset based financing – Lease, Hire Purchase, Venture Capital
Financing.

TOTAL: 45 PERIODS

COURSE OUTCOME :

 Possess the techniques of managing finance in an organization.

REFERENCES :

1. I M. Pandey Financial Management, Vikas Publishing House Pvt. Ltd., 11th edition, 2018
2. M.Y. Khan and P.K.Jain Financial management, Text, Problems and cases Tata McGraw Hill, 8th edition, 2017.
3. Aswath Damodaran, Corporate Finance Theory and practice, John Wiley & Sons, 2011.
4. James C. Vanhorne –Fundamentals of Financial Management– PHI Learning, 13th Edition, 2014.
5. Brigham, Ehrhardt, Financial Management Theory and Practice, 14th edition, Cengage Learning 2015.
6. Prasanna Chandra, Financial Management, 9th edition, Tata McGrawHill, 2017.
7. Srivatsava, Mishra, Financial Management, Oxford University Press, 2012.