Syllabus
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Course Code: M-ECOE -015 Course Name: Financial Economics-I |
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| MODULE NO / UNIT | COURSE SYLLABUS CONTENTS OF MODULE | NOTES |
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| 1 | Capital Budgeting Time Value of Money; Goals of Finance; Economics of capital Budgeting - Investment Criteria, Estimation of project Cash Flows, Risk Analysis in Capital Budgeting, Computation of Cost of Capital. Reading List • Chandra, Prasanna (2011). Financial Management: Theory and Practice. Tata McGraw Hill. • Harold Bierman, Jr. & Smidt, Seymour (2007). The Capital Budgeting Decision: Economic Analysis of Investment Projects. Routledge. • Van Horne, J.C. (2002). Financial Management and Policy. Pearson Education. |
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| 2 | Capital Structure and Firm Value Economics of Capital Structure and Firm Value - Net Income Approach, Net Operating income Approach, Modigliani and Miller Approach; Analysis of Optimal Capital structure – EBIT & EPS Analysis, ROI & ROE Analysis, Operating and Financial Leverage. Reading List • Chandra, Prasanna (2011). Financial Management: Theory and Practice. Tata McGraw Hill. • Kent Baker, H. & and Martin, Gerald S. (2011). Capital Structure and Corporate Financing Decisions. Wiley Publishers. • Van Horne, J.C. (2002). Financial Management and Policy. Pearson Education. |
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| 3 | Dividends and Working Capital Economics of Dividends- Walter Model, Gordon Model, Modigliani and Miller Model; Economics of Working Capital- Estimation of Working Capital, Financing of working Capital. Cost-Volume-Profit Analysis. Reading List • Brittain, J.A. (1978). Corporate Dividend Policy. Brookings Institution, USA. • Chandra, Prasanna (2011). Financial Management: Theory and Practice. Tata McGraw Hill. • Mehta, D. R. (1974). Working Capital Management. Prentice- Hall. • Van Horne, J.C. (2002). Financial Management and Policy. Pearson Education. |
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| 4 | Cash, Receivables and Inventory Economics of Cash – Cash Budgeting and its Simulation, Optimal Cash balance, Baumol Model, Miller and Orr Model; Economics of Receivables; Economics of Inventory – EOQ Model, Pricing of Raw materials, Monitoring and Control of Inventories. Reading List • Chandra, Prasanna (2011). Financial Management: Theory and Practice. Tata McGraw Hill. • Mehta, D. R. (1974). Working Capital Management. Prentice- Hall. • Van Horne, J.C. (2002). Financial Management and Policy. Pearson Education. |
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