HS 426 : Theory and Policy of Managerial Finance

Introduction to financial statements. Concepts of compounding and discounting, Valuation of securities.

Sources of finance - Trade credit. Bank finance. Term finance. Stock market. Dividend policy. Share valuation. Leverages.  Theories of capital structure.  Cost of capital.

Capital budgeting.  Cash flow analysis. Methods of depreciation. Methods of capital appraisal. Risk and uncertainty in capital budgeting.

Introduction to working capital management.  Issues in financial planning. Tax planning.  Break-even analysis.  International aspects of financial management. Foreign exchange Market. Exchange rates. Currency risks etc. 

Texts/References:

R. Brealey and S. Myers, S., Principles of Corporate Finance, McGraw-Hill, 1987.

J.C. Van Horne, Financial Management and Policy, Prentice Hall, 1971.

L.M. Bhole, Financial Markets and Institutions, Second Edition, Tata McGraw-Hill, 1992.

Prasanna Chandra, Financial Management, Third Edition, Tata McGraw-Hill, 1993.