KUK - LMS

Syllabus

MODULE NO / UNIT	COURSE SYLLABUS CONTENTS OF MODULE	NOTES
Course Code: M-BECOE -035 Course Name: Group - II Financial Economics) - Economics of Corporate Finance-I
1	Finance and Capital Budgeting Nature and Scope of Financial Economics; 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.
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.
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. 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.
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.