Finance is the system or study of creating, circulating and managing money.
Its is divided in 3 categories:
- Personal Finance.
- All financial decisions and activities of an individual, like insurance, loans, mortgages, etc.
- Public Finance.
- Tax system.
- Government Expenditures.
- Budgeting procedures.
- Corporate Finance (Business finance).
- Managing assets, liabilities, debts and revenues for a business.
Corporate Finance (Is the subfield of finance that deals with how companies/businesses address funding sources, capital structuring and investment decisions).
1) Financial Management
Week 1 : Financial management-an overview, Financial decisions in the firms, the fundamental
principles of finance, goals of financial management, building blocks of modern finance.
Week 2 : Risk-return trade off, Organization of finance functions, Emerging role of financial
managers’ in India, Over view of financial statements – Income statement, Balance Sheet,
Cash flow statement, Analysis of financial statements
Week 3 : Financial Planning & forecasting, Tools & techniques of Financial Planning
& Forecasting, Sources of finance.
Week 4 : Time Value of Money, Future value of a single amount, Present value of a single
amount, Future value of Annuity, Present value of Annuity & Perpetuity
Week 5 : Capital Budgeting –Concept and overview, Capital budgeting process,
Project classification, Techniquesof capital budgeting, Investment criteria
Week 6 : Net present value, internal rate of return, Modified Internal rate of return,
Benefit cost ratio,Pay-back period method
Week 7 : Accounting rate of return, Investment appraisal in practice, Estimation of
project cash flows – overview, Estimation of project cash flows-tools & techniques,
Estimation of project cash flows-tools & techniques
Week 8 : Accounting rate of return, Investment appraisal in practice, Estimation
of project cash flows – overview, Estimation of project cash flows-tools & techniques,
Estimation of project cash flows-tools & techniques
Week 9 : Break-even analysis, some other models and tools of risk analysis,
Project selection under risk, cost of Capital-Overview, Cost of debt & preference capital.
Week 10 : Cost of equity, Determining the proportions, WACC, WA Marginal cost of capital,
Determining the optimum capital budget
Week 11 : Capital structure of firms-An overview, Net income approach, Net operating
income approach, Traditional proposition, MM Proposition
Week 12 : Dividend decisions-An overview, Relevance of dividend, Dividend policy
formulation, Dimensions of divined policy, Legal & procedural
aspects of dividend decisions.
2) Financial Analysis (Is the process of evaluating businesses)
Week 1 : Introduction, Indian Economy, Industry & Industrial scenario in India,
Forms of business organizations, Sole Proprietorship, Partnership firms and private
companies, Public and Govt. Companies.
Week 2 : Content of annual reports, Quality of financial reporting, Reporting
regulation in India, Reporting regulations for Partnership firms, Reporting
regulations of Companies.
Week 3 : Nature & objectives of Financial Statements, Uses & Limitations of
Financial Statements, Stakeholders of financial statements, Income Statement,
Income Statement.
Week 4 : Income Statement, Income Statement, Balance Sheet, Balance Sheet, Balance Sheet.
Week 5 : Balance Sheet, Cash Flow Statement, Sources of financial information,
Tools and techniques of financial statement analysis, Tools and techniques of
financial statement analysis.
Week 6 : Tools and techniques of financial statement analysis, Ratio Analysis, Ratio Analysis,
Ratio Analysis, Ratio Analysis.
Week 7 : Ratio Analysis, Ratio Analysis, Cash flow statement, Cash flow statement,
Cash flow statement.
Week 8 : Cash flow statement, Comparative Statement, Common Size Statement, Du-Pont
Analysis, Concepts on sickness, distress.
Week 9 : Report preparation of financial statement analysis, Types of business combinations,
Consolidated financial statements, Consolidated financial atements, Consolidated financial
statements.
Week 10 : Inter-company transactions and profit confirmations, Inter-company transactions and
profit confirmations, Minority interest, consolidated net income and consolidated retained
earnings, Minority interest, consolidated net income and consolidated retained earnings, Minority
interest, consolidated net income and consolidated retained earnings.
Week 11 : Balance Sheet Under Income Tax Act, Balance Sheet Under Income Tax Act, Balance
Sheet Under Companies Act, Balance Sheet Under Companies Act, Balance Sheet Under Companies Act.
Week 12 : Window dressing, Window dressing, Recent scandals in financial reporting, Recent
scandals in financial reporting, Recent scandals in financial reporting.
3) Investment Analysis (Is the process of evaluating an investment for profitability & risk).
Week 1: Introduction to financial markets, institutions, and assets;Investment as a process;
and Investment philosophies
Week 2: Fixed income securities: Term structure of interest rates; Bonds, their valuation,
pricing, yield and duration, convexity, and their inter-relationships
Week 3: Equity as an asset class: risk-return tradeoff; Valuation approaches, DCF versus
multipliers; Equity investment strategies
Week 4: Pricing of equity assets: Index models; Capital asset pricing model (CAPM) and
arbitrage pricing theory (APT)
Week 5: Mutual funds as investment; Advantages and disadvantages of investing in mutual
funds; Hedge funds, index funds, ETFs, and other categories
Week 6: Security Analysis and portfolio management; Fundamental and technical analyses;
Portfolio theory and asset allocation; Investment strategies
Week 7: New asset classes and alternative investments; Introducing new-age assets in a
portfolio; Cryptocurrencies as an asset class
Week 8: Portfolio performance evaluation; Factors driving portfolio performance;
Investment strategies and market timing.
4) Mergers & Acquisitions
Week 1 : Introduction to Mergers, Acquisitions (M&A), Business Valuation
Merger types
Merger as a business strategy
Merger as a process of value creation
Theories of Mergers and Acquisitions (Merger Motives) Analyzing the strategy behind
recent merger and acquisition
Week 2 : Takeover Tactics and Anti-takeover Defenses
The M&A Process
Acquisition Search and Due Diligence Studying different takeover tactics and defenses
undertaken by companies in recent times.
Week 3 : Valuation in M&A: Cash Flow Based Approach
Valuation of company
Week 4 : Valuation in M&A: Cash Flow Based Approach, Valuation of Synergies, Valuation
of company
Week 5 : Valuation in M&A: Relative Valuation Approach (Comparable Company Approach)
and other Valuation Approaches Valuation of company
Week 6 : M&A Deal Structuring Critically evaluating a recent deal structure
Week 7 : Legal aspects of M&A, Accounting aspects of M&A
Week 8 : Alternative Exit and Restructuring Strategies:
Spin-offs, Splits, Equity Carve outs and other restructuring strategies.Analyzing the
strategy behind recent corporate restructuring.
5) Securities (a financial instrument that hold some monetary value) market.
