Lovely Professional University, Punjab

Course Code FIN501 Course Category Course Title FINANCIAL MANAGEMENT Courses with numerical and conceptual focus Course Planner 14120::Sumit Goyal Lectures 4.0 Tutorials Practicals Credits 1.0 0.0 5.0

TextBooks Sr No T-1 Title Financial Management Reference Books Sr No R-1 Other Reading Sr No OR-1 OR-2 OR-3 OR-4 OR-5 OR-6 OR-7 OR-8 Journals articles as Compulsary reading (specific articles, complete reference) Mian Sajid, Working Capital Requirements & determining Factors in Pakistan, ICFAI Journal of Applied finance, Vol 15, No 4, April 2009 , Amitabh Gupta, Capital Expenditure & the market value of the firm, ICFAI Journal of Applied Finance, Vol 15, No 12, Dec 2009 , Yamini Aggarwal, Capital structure Decision; A behavioural study on multiple objective framework, FINANCE INDIA, Vol XXIII No. 2, June 2009. , The Finance Function in Global Corporation, Mihir A Desai, Harvard Business Review, July- Aug 2008 , A new approach to funding social enterprises by Antony Bugg-Levine, Harvard Business Review, January-February 2012 , Do you know your cost of capital? By Michael T. Jacobs & Anil Shivdasani, Harvard Business Review, July- August 2012 , Equity or cash? The signal sent by the way you pay by Marie E. Sushka and Ulrich Hege, Harvard Business Review, May 2009 , Identifying firm capital structure by Bo Becker, Harvard Business Review, Nov 2011 , Title Financial Management Author I M Pandey Edition 10th Year 2011 Publisher Name Vikas Publication Author Srivastava R, Misra A Edition 2nd Year 2011 Publisher Name Oxford Higher Education

LTP week distribution: (LTP Weeks) Weeks before MTE Weeks After MTE Spill Over 7 6 2

Detailed Plan For Lectures

Week Number

Lecture Number

Broad Topic(Sub Topic)

Chapters/Sections of Text/reference books

Other Readings, Lecture Description Relevant Websites, Audio Visual Aids, software and Virtual Labs

Learning Outcomes

Pedagogical Tool Demonstration/ Case Study / Images / animation / ppt etc. Planned Power Point Presentation by Teacher

Week 1

Lecture 1

Financial ManagementIntroduction(Objective and scope)

T-1:1 R-1:1

Introduction of financial Student will learn the Management, objectives role of financial and scope Management in an organization

Lecture 2

Financial ManagementIntroduction(Financial goal- Profit Maximization vs. Wealth Maximization) Finance function(Investment Decision) Finance function(Financing Decision)

T-1:1 R-1:1

Financial Goals, Conflict Student will learn about Power Point between Goals the difference between Presentation by Profit and wealth Teacher Maximization Investment Decision Student will learn about Power Point the investment decision Presentation by of the organization Teacher Student will learn that from where the company can finance the Funds Power Point Presentation by Teacher

Lecture 3

T-1:1 R-1:1 T-1:1 R-1:1

Finance decision

Lecture 4

Finance function(Dividend decision) Finance function(Interrelation of Finance Functions)

T-1:1 R-1:1 T-1:1 R-1:1 OR-4

Dividend decision

Students will learn that Power Point what should be paid to Presentation by shareholders Teacher Students will learn Case study of about the key financial Financial Management decision areas at Hero Honda Motors Ltd Students will learn about raising of fund for short term Students will learn about raising of fund for long term Students will learn about raising of fund for long term Power Point Presentation by Teacher Power Point Presentation by Teacher Power Point Presentation by Teacher

Interrelation and dependency of Finance Function Different sources of Finance for short term

Week 2

Lecture 5

Source of Finance(Short term Sources of Finance)

R-1:20/23/27

Lecture 6

Source of Finance(Long term Source of Finance) Source of Finance(Long term Source of Finance) Source of Finance(Leasing as a Source of Finance) Source of Finance(Venture capital)

R-1:20/23/27

Different sources of Finance for long term Different sources of Finance for long term OR-5 Leasing as a source of finance Venture capital as a source of finance

Lecture 7

R-1:20/23/27

R-1:20/23/27

Students will learn that Power Point how leasing is a source Presentation by of finance Teacher Students will learn that Power Point how Venture capital Presentation by can be used a s a source Teacher of finance Present value and future value of the money Power Point Presentation by Teacher, Lecture cum demonstrations

R-1:20/23/27

OR-7

Lecture 8

Concept of Time Value of Money (Present & future value of annuities & Single Amount)

T-1:4 R-1:2

Compounding and discounting techniques

Week 3

Lecture 10

Concept of Time Value of Money (Present & future value of annuities & Single Amount) Concept of Time Value of Money (Present & future value of annuities & Single Amount) Concept of Time Value of Money (Perpetuity)

T-1:4 R-1:2

Compounding and discounting techniques

Present value and future value of the money Present value and future value of the money Students will learn to calculate EMIs

Power Point Presentation by Teacher, Lecture cum demonstrations Power Point Presentation by Teacher, Lecture cum demonstrations Power Point Presentation by Teacher, Lecture cum demonstrations Case study Bharat Engineering Works Power Point Presentation by Teacher, Lecture cum demonstrations Power Point Presentation by Teacher Power Point Presentation by Teacher, Lecture cum demonstrations Power Point Presentation by Teacher, Lecture cum demonstrations Power Point Presentation by Teacher, Lecture cum demonstrations, Case study Acme Consultancy Ltd Power Point Presentation by Teacher Power Point Presentation by Teacher, Lecture cum demonstrations

Lecture 11

T-1:4 R-1:2

Compounding and discounting techniques

Lecture 12

T-1:4 R-1:2

Calculation of EMI

Lecture 9

Concept of Time Value of Money (Present & future value of annuities & Single Amount) Cost of Capital(Concept and its Significance)

T-1:4 R-1:2

Compounding and discounting techniques

Present value and future value of the money Students will understand the importance of cost of capital in a firm Students will learn how to calculate the cost of different sources of finance and Students will learn how to calculate the cost of different sources of finance and Students will learn that how to do trade off between the different cost of capital

Week 4

Lecture 13

T-1:13 R-1:9

OR-6

Introduction and Relevance

Lecture 14

Cost of Capital(Measurement of cost of capital of various source of funds i.e. Equity Shares, Preference Shares, Debentures, Retained Earnings) Cost of Capital(Measurement of cost of capital of various source of funds i.e. Equity Shares, Preference Shares, Debentures, Retained Earnings) Cost of Capital(Weighted Average Cost of Capital)

T-1:13 R-1:9

Calculation of Cost of different sources of capital

Lecture 15

T-1:13 R-1:9

Calculation of Cost of different sources of capital

Lecture 16

T-1:13 R-1:9

Calculation of weighted average cost of capital

Week 5

Lecture 17

Capital budgeting(Meaning and Process)

T-1:11 R-1:8

OR-2

Introduction and process Students will learn the of capital budgeting role of capital budgeting in the investment decision Traditional methods of capital budgeting Students will understand the various techniques of evaluation of investment proposals

Lecture 18

Capital budgeting(Traditional Methods of analyze capital budgeting decisions)

T-1:11 R-1:8

Week 5

Lecture 19

Capital budgeting(Discounting methods of analyze capital budgeting decisions)

T-1:11 R-1:8

Discounting methods of capital budgeting

Students will understand the various discounting techniques of evaluation of investment proposals Students will understand the various discounting techniques of evaluation of investment proposals Students will understand the various discounting techniques of evaluation of investment proposals

Power Point Presentation by Teacher, Lecture cum demonstrations

Lecture 20

Capital budgeting(Discounting methods of analyze capital budgeting decisions)

T-1:11 R-1:8

Discounting methods of capital budgeting

Power Point Presentation by Teacher, Lecture cum demonstrations

Week 6

Lecture 21

Capital budgeting(Discounting methods of analyze capital budgeting decisions)

T-1:11 R-1:8

Discounting methods of capital budgeting

Power Point Presentation by Teacher, Lecture cum demonstrations

Lecture 22

Capital budgeting(Simulation Analysis)

T-1:12 R-1:8

Risk management techniques of capital Budgeting Risk management techniques of capital Budgeting Risk management techniques of capital Budgeting Quiz,Test,Mini project 1

Students will learn that Power Point how to handle risk Presentation by in investment decision Teacher, Lecture cum demonstrations Students will learn that Power Point how to handle risk Presentation by in investment decision Teacher, Lecture cum demonstrations Students will learn that Power Point how to handle risk Presentation by in investment decision Teacher, Lecture cum demonstrations Students will learn the risk factors Power Point Presentation by Teacher, Case study Union Banks Business

Capital budgeting(Scenario Analysis)

T-1:12 R-1:8

Lecture 23

Capital budgeting(Sensitivity Analysis)

T-1:12 R-1:8

Lecture 24 Week 7 Lecture 25 Risk and return analysis(Risk Measurement) T-1:5 R-1:4/5

Different types of risk Systematic and unsystematic risk

Lecture 26

Risk and return analysis(Beta Meaning and Calculation)

T-1:5 R-1:4/5

Calculation of risk measuring techniques

Students will learn how Power Point to calculate risk Presentation by Teacher, Lecture cum demonstrations Students will learn how Power Point to calculate risk Presentation by Teacher, Lecture cum demonstrations Students will learn how Power Point to calculate risk Presentation by Teacher, Lecture cum demonstrations

Lecture 27

Risk and return analysis(Standard Deviation as a measure of risk)

T-1:5 R-1:4/5

Calculation of risk measuring techniques

Lecture 28

Risk and return analysis(Standard Deviation as a measure of risk)

T-1:5 R-1:4/5

Calculation of risk measuring techniques

MID-TERM
Week 8 Lecture 29 Leverage(Operating Leverage) T-1:17 R-1:14 Meaning and calculation Students will come to know about operating leverage and their impact on the earnings and capital structure Meaning and calculation Students will come to know about Financial leverage and their impact on the earnings and capital structure Meaning and calculation Students will come to know about Financial leverage and their impact on the earnings and capital structure Meaning and calculation Students will come to know about Combined leverage and their impact on the earnings and capital structure Introduction, Factors Effecting capital structure decision Power Point Presentation by Teacher, Lecture cum demonstrations

Leverage(Financial Leverage)

T-1:17 R-1:14

Power Point Presentation by Teacher, Lecture cum demonstrations

Lecture 30

Leverage(Financial Leverage)

T-1:17 R-1:14

Power Point Presentation by Teacher, Lecture cum demonstrations

Leverage(Combined Leverage)

T-1:17 R-1:14

Power Point Presentation by Teacher, Lecture cum demonstrations, Case study Premier Casting Limited Who casts the benefit

Lecture 31

Capital Structure Decision (Introduction, Factors Effecting capital structure decision)

T-1:16 R-1:15

students will be able to Power Point grasp the basic Presentation by knowledge which they Teacher should consider while designing capital structure of the firm Students will understand that how different theories have a impact on the value of the firm Students will understand that how different theories have a impact on the value of the firm Students will understand that how different theories have a impact on the value of the firm Power Point Presentation by Teacher, Lecture cum demonstrations Power Point Presentation by Teacher, Lecture cum demonstrations Power Point Presentation by Teacher, Lecture cum demonstrations

Lecture 32

Capital Structure Decision (Theories of Capital Structure)

T-1:16 R-1:15

Theories and the implication of the theories in Financing Decision Theories and the implication of the theories in Financing Decision Theories and the implication of the theories in Financing Decision

Week 9

Lecture 33

Capital Structure Decision (Theories of Capital Structure)

T-1:16 R-1:15

Lecture 34

Capital Structure Decision (Theories of Capital Structure)

T-1:16 R-1:15

Week 9

Lecture 35

Capital Structure Decision (Optimum Capital Structure, Understanding debt and equity mix)

T-1:16 R-1:15

Use of debt along with Students will learn that equity and other sources how to design the of finance optimum capital structure for the firm

Power Point Presentation by Teacher, Lecture cum demonstrations, Case study Space Technologies Limited Adding Value Power Point Presentation by Teacher

Lecture 36

Management of Surplus; Dividend policy(Retained earnings and Dividend policy)

T-1:18 R-1:17/18

Introduction and role of dividend decision

Students will learn about the relevance of dividend decision for the value of the firm Students will learn that how dividend decision can impact on the value of the firm Students will learn that how dividend decision can impact on the value of the firm Students will learn that how dividend decision can impact on the value of the firm Students will come to know about various forms of dividend

Management of Surplus; Dividend policy(Theories of dividend)

T-1:18 R-1:17/18

Theories of Dividend

Power Point Presentation by Teacher, Lecture cum demonstrations Power Point Presentation by Teacher, Lecture cum demonstrations Power Point Presentation by Teacher, Lecture cum demonstrations Power Point Presentation by Teacher, Case study ICI India Limited Buyback of shares Power Point Presentation by Teacher, Case study Maruti Udyog Limited1

Week 10

Lecture 37

Management of Surplus; Dividend policy(Theories of dividend)

T-1:18 R-1:17/18

Theories of Dividend

Lecture 38

Management of Surplus; Dividend policy(Theories of dividend)

T-1:18 R-1:17/18

Theories of Dividend

Lecture 39

Management of Surplus; Dividend policy(Forms of dividend)

T-1:18 R-1:17/18

Various Forms of dividend

Lecture 40 Week 11 Lecture 41 Working Capital Management- I (Concept and significance) T-1:29 R-1:27

Quiz,Test,Mini project 2 Introduction and Importance of the Working capital Students will learn the concept of operating cycle

Working Capital Management- I (Financing of Working Capital Needs) Lecture 42 Working Capital Management- I (Determining working capital requirements)

T-1:29 R-1:27

Short term sources of finance

Students will come to Power Point know that how working Presentation by capital needs can be Teacher financed Students will come to know that how to estimate the working capital requirement of the firm Power Point Presentation by Teacher, Lecture cum demonstrations

T-1:29 R-1:27

Estimation of working capital requirement

Week 11

Lecture 43

Working Capital Management- I (Determining working capital requirements)

T-1:29 R-1:27

Estimation of working capital requirement

Students will come to know that how to estimate the working capital requirement of the firm

Power Point Presentation by Teacher, Lecture cum demonstrations

Lecture 44

Working Capital Management- I (Factors affecting Working Capital Requirements)

T-1:29 R-1:27

Factors affecting working capital Requirements

Students will come to Power Point know about the various Presentation by factors which can affect Teacher the working capital requirements Students will learn that what should be the optimum level of cash in working capital management Students will learn that what should be the optimum level of cash in working capital management Student will learn the basic issues in inventory management and the underlying principles that guide management of inventory Student will learn the basic issues in inventory management and the underlying principles that guide management of inventory Student will learn the basic issues in inventory management and the underlying principles that guide management of inventory Students will learn about the credit policy and its constituents and role of factoring in management of receivables Power Point Presentation by Teacher, Lecture cum demonstrations Power Point Presentation by Teacher, Lecture cum demonstrations Power Point Presentation by Teacher, Lecture cum demonstrations, Case study Maruti Udyog Limited II Power Point Presentation by Teacher, Lecture cum demonstrations, Case study Maruti Udyog Limited II Power Point Presentation by Teacher, Lecture cum demonstrations, Case study Maruti Udyog Limited II Power Point Presentation by Teacher, Lecture cum demonstrations, Case Study Neer Udyog Limited

Working Capital Management- I (Cash Management- Models and Cash Budget)

T-1:24 R-1:30

Meanings Motives Principles Baumols Model Miller and Orr Model of cash Management Meanings Motives Principles Baumols Model Miller and Orr Model of cash Management Meaning Motives and Models for Inventory Management

Week 12

Lecture 45

Working Capital Management- I (Cash Management- Models and Cash Budget)

T-1:24 R-1:30

Lecture 46

Working Capital Management- II (Inventory Management- Meaning, Techniques of Inventory Management.)

T-1:22 R-1:29

Lecture 47

Working Capital Management- II (Inventory Management- Meaning, Techniques of Inventory Management.)

T-1:22 R-1:29

Meaning Motives and Models for Inventory Management

Lecture 48

Working Capital Management- II (Inventory Management- Meaning, Techniques of Inventory Management.)

T-1:22 R-1:29

Meaning Motives and Models for Inventory Management

Week 13

Lecture 49

Working Capital Management- II (Receivable ManagementMeaning and Credit Policy)

T-1:23 R-1:26

Introduction, Credit Policy, Factoring

Week 13

Lecture 50

Working Capital Management- II (Receivable ManagementMeaning and Credit Policy)

T-1:23 R-1:26

Introduction, Credit Policy, Factoring

Students will learn about the credit policy and its constituents and role of factoring in management of receivables Students will come to know that how monetary policy is used in order to maintain the liquidity in the economy Students will come to know that how Government use the fiscal policy

Power Point Presentation by Teacher, Lecture cum demonstrations, Case Study Neer Udyog Limited Power Point Presentation by Teacher, Lecture cum demonstrations

Lecture 51

Contemporary Issues related to Financial Management(Monetary Policy)

Discussion on the Monetary policy

Lecture 52

Contemporary Issues related to Financial Management(Fiscal Policy) Contemporary Issues related to Financial Management(Corporate Governance)

Discussion on the fiscal policy

Power Point Presentation by Teacher, Lecture cum demonstrations

Discussion on corporate Student will learn the Power Point governance importance of corporate Presentation by governance in the Teacher financial management

SPILL OVER
Week 14 Lecture 53 Economic Value added Student will Come to know about the importance of EVA in Business Students will come to know about the underpricing and overpricing of the securities Power Point Presentation by Teacher Power Point Presentation by Teacher

Lecture 54

Capital Asset Pricing Model, Security Market Line, Capital Market Line

Scheme for CA:

Component Quiz,Test,Mini project Frequency 2 Total :Out Of 3 Each Marks Total Marks 10 10 20 20

Details of Academic Task(s)

AT No. Objective Topic of the Academic Task Nature of Academic Task (group/individuals/field work Evaluation Mode Allottment / submission Week 8 / 10

Quiz 1

To check the learning of the students.

Quiz will contain minimum 25 questions of 1 or 2 marks each. Individual The syllabus for the quiz would be from lecture no 29 to 39. (Unit 6 to unit 8)

Marks will be given as per the answer of the students

Test 1

To check the understanding of the students in regrads to numerical ability

All questions of 5 marks each or in multiples of 5. 2 questions can contain multiple questions of 1 to 2 marks each but all questions should not be of this nature. Max. Weightage of multiple questions can be 10 marks. The syllabus of the test would be up to lecture no 23 (Unit 1 to Unit 4)

Individual

All questions of 5 marks each or in multiples of 5. Marks should be alloted as per the answer and thier should be step marking. On the basis of best combination of sources of finance, On the basis of inventory techniques suggested by the students

3/5

Mini project 1

To check the practical learning regrading the concepts of financial management

Faculty member will make a group of 5-6 students. A live Project/ Group Situation/case will be given in a group and students will submit the report on the basis of their understanding. Example of the live projects are 1. Project financing planning e.g. Tramway project in LPU in which students will find the best and cheapest source of finance for the tramway project and payback period 2. Inventory management e.g Shopping Mall in LPU in which students will find the inventory management techniques for minimizing the cost

2 / 10

Plan for Tutorial: (Please do not use these time slots for syllabus coverage)
Tutorial No. Lecture Topic Type of pedagogical tool(s) planned (case analysis,problem solving test,role play,business game etc)

Tutorial 1 Tutorial 2 Tutorial 3 Tutorial 4 Tutorial 5 Tutorial 6 Tutorial 7

Discussion on the Current issues related to Financial Management to build the base for the students Role of Finance Manager, Sources of Finance Practical problems on Time Value of Money Practical problems on Cost of Capital Practical problems on Capital budgeting Practical problems on Capital budgeting and risk management techniques Revision

Role play Case analysis Problem solving Problem solving Problem solving Problem solving Problem solving

After Mid-Term
Tutorial 8 Tutorial 9 Tutorial 10 Tutorial 11 Practical problems on Leverage Practical problems on Capital Structure Problems on the Dividend policy Practical problems on estimation of working capital requirement Problem solving Problem solving Problem solving Problem solving

Tutorial 12 Tutorial 13

Practical problems on cash Budget and inventory management techniques Revision

Problem solving Problem solving