Financial Management for Managers

By Prof. Anil K. Sharma | IIT Roorkee

Learners enrolled: 3189

Financial Management is an interesting area of learning for the management graduates, working professionals, chartered accountants and similar other professionals working in the related areas. Investment and financing decisions in the business are quite complex and risky and require a detailed analysis and investigations before finalizing any investment proposal by any existing or a new business organization/firm. Further, it involves complex capital structure related decisions, working out cost of capital and ways and means about maximizing the value of the firm. Finalizing any investment proposal, arranging for the required amount of funds from different sources of finance and deciding the optimum capital structure are some very complex and peculiar decisions that need a strong background of finance and financial management for the decision makers in the industry. Value maximization being the ultimate objective of any business, requires learning about rigorous and thorough investment decision making and evaluation process which may be facilitated after learning about the tools and techniques of financial management. In this subject I will discuss all about the investment, financing and dividend decisions process in the business firms and the process of value maximization of any business firm.

INTENDED AUDIENCE : B. Com, BBA, M. Com, MBA, MFC, CA, ICWA, CS, Working professionals in the area of finance.

PREREQUISITES : Nil

INDUSTRY SUPPORT : All companies working in any area would value this course

Summary

Course Status :	Completed
Course Type :	Elective
Language for course content :	English
Duration :	12 weeks
Category :	Management Studies
Credit Points :	3
Level :	Undergraduate/Postgraduate
Start Date :	18 Jan 2021
End Date :	09 Apr 2021
Enrollment Ends :	01 Feb 2021
Exam Date :	25 Apr 2021 IST

Note: This exam date is subject to change based on seat availability. You can check final exam date on your hall ticket.

Page Visits

Course layout

Week 1 : Financial management-an overview, Financial decisions in the firms, the fundamental principles of finance, goals of

financial management, building blocks of modern finance.

Week 2 : Risk-return trade off, Organization of finance functions, Emerging role of financial managers’ in India, Over view

of financial statements – Income statement, Balance Sheet, Cash flow statement, Analysis of financial statements

Week 3 : Financial Planning & forecasting, Tools & techniques of Financial Planning &Forecasting, Sources of finance.

Week 4 : Time Value of Money, Future value of a single amount, Present value of a single amount, Future value of Annuity,

Present value of Annuity & Perpetuity

Week 5 : Capital Budgeting –Concept and overview, Capital budgeting process, Project classification, Techniques of capital budgeting,

Investment criteria

Week 6 : Net present value, internal rate of return, Modified Internal rate of return, Benefit cost ratio, Pay-back period method

Week 7 : Accounting rate of return, Investment appraisal in practice, Estimation of project cash flows – overview, Estimation of

project cash flows-tools & techniques, Estimation of project cash flows-tools & techniques

Week 8 : Accounting rate of return, Investment appraisal in practice, Estimation of project cash flows – overview, Estimation of

project cash flows-tools & techniques, Estimation of project cash flows-tools & techniques

Week 9 : Break-even analysis, some other models and tools of risk analysis, Project selection under risk, cost of Capital-Overview,

Cost of debt & preference capital.

Week 10 : Cost of equity, Determining the proportions, WACC, WA Marginal cost of capital, Determining the optimum capital budget

Week 11 : Capital structure of firms-An overview, Net income approach, Net operating income approach, Traditional proposition, MM Proposition

Week 12 : Dividend decisions-An overview, Relevance of dividend, Dividend policy formulation, Dimensions of divined policy, Legal &

procedural aspects of dividend decisions

Books and references

1. Prasanna Chandra “Financial Management: Theory and Practice” 9th Edition, McGraw Hill Education Publishers.

2. Van Horne, J.C, “Fundamentals of Financial Management”, 13th Edition, Prentice Hall Publishers.

3. Brealey and Myers,” Principles of Corporate Finance”, 11th Edition, McGraw Hill Education Publishers

4. Pandey I.M., “Financial Management”, 11th Edition, Vikas Publishers.

5. Khan, M.Y. and Jain, P.K., “Financial Management”, 7th Edition, McGraw-Hill Education Publishers.

Instructor bio

Prof. Anil K. Sharma

IIT Roorkee

Dr. Anil K. Sharma a Professor in the area of Finance & Accounting in the Department of Management Studies, IIT Roorkee is M. Com and M. Phil, First Class First and Gold Medalist and Ph.D. in Financial Management from Panjab University Chandigarh. He is working at IIT Roorkee for the past more than 17 years and has more than 24 years teaching experience in total. His area of interest is finance and accounting and he has equally goods interest in research in the same area. He has published more than 125 research papers in International and National refereed journals and refereed conferences. He has been awarded best paper award for his paper presented in an international conference in Thailand. He is the editorial board member for three International Journals and reviewer to more than twenty International and national Journals.

Course certificate

The course is free to enroll and learn from. But if you want a certificate, you have to register and write the proctored exam conducted by us in person at any of the designated exam centres.
The exam is optional for a fee of Rs 1000/- (Rupees one thousand only).
Date and Time of Exams: 25 April 2021 Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.
Registration url: Announcements will be made when the registration form is open for registrations.
The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published. If there are any changes, it will be mentioned then.
Please check the form for more details on the cities where the exams will be held, the conditions you agree to when you fill the form etc.

CRITERIA TO GET A CERTIFICATE

Average assignment score = 25% of average of best 8 assignments out of the total 12 assignments given in the course.
Exam score = 75% of the proctored certification exam score out of 100

Final score = Average assignment score + Exam score

YOU WILL BE ELIGIBLE FOR A CERTIFICATE ONLY IF AVERAGE ASSIGNMENT SCORE >=10/25 AND EXAM SCORE >= 30/75. If one of the 2 criteria is not met, you will not get the certificate even if the Final score >= 40/100.

Certificate will have your name, photograph and the score in the final exam with the breakup.It will have the logos of NPTEL and IIT Roorkee.It will be e-verifiable at nptel.ac.in/noc.

Only the e-certificate will be made available. Hard copies will not be dispatched.

Once again, thanks for your interest in our online courses and certification. Happy learning.

- NPTEL team

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