Determination of level of current assets. Sources for financing workingcapital. Bank finance for working capital. (No problems on estimation of working capital)Working capital financing: Short term financing of working capital, long term financing of working capital.Working capital leverages
Forecasting cash flows – Cash budgets, long-term cash forecasting, monitoringcollections and receivables, optimal cash balances – Baumol model, Miller-orr model, stone model. Strategiesfor managing surplus fund.
Credit management through credit policy variables, marginal analysis, Creditevaluation : Numerical credit scoring and Discriminate analysis. Control of accounts receivables, Factoring.
Determinations of inventory control levels : ordering, reordering, danger level. EOQmodel. Pricing of raw material. Monitoring and control of inventories, ABC Analysis.
capital structure & market value of a firm. Theories of capital structure – NIapproach, NOI approach, Modigliani Miller approach, traditional approach. Arbitrage process in capitalstructure. Planning the capital structure: EBIT and EPS analysis. ROI & ROE analysis. Capital structure policy
Theories of dividend policy : relevance and irrelevance dividend decision. Walter’s &Gordon’s model, Modigliani & Miller approach. Dividend policies – stable dividend, stable payout and growth.Bonus shares and stock split corporate dividend behavior. Legal and procedural aspects of dividends CorporateDividend Tax.
Preferred stock, Warrants and convertibles, Private equity. Venture funds, Angel financingFinancial management in intangible – intensive companies. Characteristics of intangiblies, implications forfinancial managements, Types and approaches to valuations of intangible assets.
Corporate financial modeling – Agency problem and consideration. Effect of inflation on ; Asset value, firm value, returns,Financial planning – Basis of financial planning, sales forecast method, pro-forma P & L account method, pro-forma balance sheet method, determination of External Financing Requirement (EFR).Financial Management of sick units: Definition of sickness, causes, symptoms, predictions, revival strategies, institutions for revival of sick units.Economic Value Added (EVA) – concept, components of EVA. Market Value Added (MVA)