Syllabus - Advance Finance (CB803-(B))

Computer Science and Business Systems (CSBS)

Advance Finance (CB803-(B))

VIII

UNIT – I

Sources of Funds (including regulatory framework): Types of securities - Issuing the capital in market - Pricing of issue - Valuation of Stocks and bonds.

Evaluation of Lease Contracts: Leasing – Importance, Types, Tax Considerations, and Accounting Considerations – Evaluation of Lease from the point of view of Lessor and Lessee – Lease versus Buy Decision.

Dividend Decisions: Traditional Approach, Dividend Relevance Model, Miller and Modigliani Model, Stability of Dividends, Forms of Dividends, Issue of bonus shares, Stock Split

UNIT – II

Restructuring

UNIT – III

Corporate Restructuring: Mergers and Acquisitions- Types of Mergers, Evaluation of Merger Proposal, Take-overs, Amalgamation, Leverage buy-out, management buy-out, Corporate Failure and Liquidation.

UNIT – IV

Working Capital Management: Working Capital Management: Working Capital Planning - Monitoring and Control of Working Capital -Working Capital Financing ¬Managing the Components of Working Capital-Cash Management -Receivable Management -Inventory Management.

Introduction to derivatives: Basics of Futures, Forwards, Options, Swaps -Interest rate Payoff Diagrams, Pricing of Futures, Put Call Parity, Option Pricing using Binomial Model and Black Scholes Model -Use of Derivatives for Risk-Return Management- Credit Default Swaps.

UNIT – VII

Practicals

Reference Books

  • Brealey, Myers and Allen, Principles of Corporate Finance

  • Jonathan Berk, Peter DeMarzo, and Ashok Thampi, Financial Management, Pearson Education in South Asia

  • Damodaran, Corporate Finance Theory and Practice, John Wiley & Sons

  • Rajiv Srivastava and Anil Misra, Financial Management, Oxford University Press

  • James C Van Horne, and John M. Wachowicz, Fundamentals of Financial Management, PHI

  • Kevin K. Boeh and Paul W. Beamish, Mergers and Acquisitions: Text and Cases, Sage Publications

  • John C Hull, Fundamentals of Futures and Options Markets, Cambridge University Press