Description
Vertical – 2 : Minor
Corporate Finance – I
TYBCOM Semester V
As Per NEP 2020 (w.e.f. the Academic Year 2026-27)
Syllabus
1. Fundamental Concepts and Framework of Corporate Finance 15 Hours
♦ Scope and Objectives of Corporate Finance
♦ Role of Financial Managers and CFO
♦ Agency Problem and Stakeholder Approach
♦ Core Financial Decisions : Investment, Financing, Dividend
♦ Interface of Corporate Finance with Financial Markets
♦ Concept and Significance of Time Value of Money
♦ Compounding and Discounting Techniques
♦ Present and Future Value of Single Sums and Annuities
♦ Estimation of Relevant Corporate Cash Flows
l Distinction Between Accounting Profits and Cash Flows
2. Capital Budgeting 15 Hours
l Nature and Importance of Capital Budgeting
l Project Evaluation Techniques:
– Payback Period
– Net Present Value (NPV)
– Internal Rate of Return (IRR)
– Profitability Index (PI)
♦ Mutually Exclusive Projects
♦ Capital Rationing
♦ Risk-adjusted Discount Rate and Certainty Equivalent Approach
3. Cost of Capital 15 Hours
♦ Meaning and Components of Cost of Capital
♦ Cost of Debt, Equity, and Preference Capital
♦ Weighted Average Cost of Capital (WACC)
♦ Marginal Cost of Capital
♦ Role of Cost of Capital in Decision-Making
4. Capital Structure Theories 15 Hours
♦ Capital Structure Theories:
– Net Income and Net Operating Income Approaches
– Modigliani-Miller (With and Without Taxes)
– Trade-off and Pecking Order Theories
– Optimal Capital Structure and Firm Value
♦ Capital Structure Practices in Indian Companies
Reviews
There are no reviews yet.