Financial Management BCOM Notes BCOM University 5th SEM BCOM 3rd Year | BCOM - COM.5.1 notes

Scheme & Syllabus Copy of Financial Management BCOM Notes

Bachelor of Commerce (B.Com.)

Course Code: COM.5.1

Name of the Course: Financial Management

Module No. 1: Introduction to Financial Management (10 hours)

• Introduction to Finance:
  • Meaning of Finance
  • Finance Function
  • Objectives of Finance Function
  • Organization of the Finance Function
• Financial Management:
  • Meaning and Definition of Financial Management
  • Goals of Financial Management
  • Scope of Financial Management
  • Functions of Financial Management
  • Role of the Finance Manager in India
• Financial Planning:
  • Meaning of Financial Planning
  • Need and Importance of Financial Planning
  • Steps in Financial Planning
  • Principles of a Sound Financial Plan
  • Factors Affecting Financial Planning

Module No. 2: Time Value of Money (10 hours)

• Introduction to Time Value of Money:
  • Meaning of Time Value of Money
  • Time Preference of Money
• Techniques of Time Value of Money:
  • Compounding Technique:
    • Future Value of Single Flow
    • Multiple Flows and Annuity
    • Perpetuity
  • Discounting Technique:
    • Present Value of Single Flow
    • Multiple Flows and Annuity
  • (Theory and Problems)

Module No. 3: Capital Structure and Leverages (12 hours)

• Capital Structure:
  • Meaning and Definition of Capital Structure
  • Factors Determining the Capital Structure
  • Concept of Optimum Capital Structure
  • EBIT-EPS Analysis
• Leverages:
  • Meaning and Definition of Leverages
  • Types of Leverages:
    • Operating Leverage
    • Financial Leverage
    • Combined Leverage
  • (Theory and Problems)

Module No. 4: Capital Budgeting (14 hours)

• Introduction to Capital Budgeting:
  • Meaning and Definition of Capital Budgeting
  • Features of Capital Budgeting
  • Significance of Capital Budgeting
  • Steps in Capital Budgeting Process
• Techniques of Capital Budgeting:
  • Traditional Methods:
    • Payback Period
    • Accounting Rate of Return (ARR)
  • Discounted Cash Flow (DCF) Methods:
    • Net Present Value (NPV)
    • Internal Rate of Return (IRR)
    • Profitability Index
  • (Theory and Problems)

Module No. 5: Working Capital Management (10 hours)

• Introduction to Working Capital Management:
  • Meaning and Definition of Working Capital
  • Types of Working Capital
  • Operating Cycle
  • Determinants of Working Capital Needs
  • Sources of Working Capital
  • Merits of Adequate Working Capital
  • Dangers of Excess and Inadequate Working Capital
  • (Theory Only)