ADVANCED FINANCIAL MANAGEMENT

FULLY SOLVED BOOK LASY 5 YEARS PAPERS SOLVED PLUS GUESS

F. N 5.5 ADVANCED FINANCIAL MANAGEMENT
OBJECTIVE
The objective is to familiarize the students with Advanced Financial Analysis and Decisions.
Unit 1: INVESTMENT DECISIONS AND RISK ANALYSIS
Risk Analysis – Types of Risks – Risk and Uncertainty – Techniques of Measuring Risks – Risk adjusted
Discount Rate Approach – Certainty Equivalent Approach – Sensitivity Analysis - Probability Approach -
Standard Deviation and Co-efficient of Variation – Decision Tree Analysis –Problems.
Unit 2: COST OF CAPITAL AND CAPITAL STRUCTURE
Part 1:Capital Structure: Meaning and Significance of Cost of Capital – Types of Capital – Computation
of Cost of Capital – Specific Cost – Cost of Debt – Cost of Preference Share Capital – Cost of Equity Share
Capital – Weighted Average Cost of Capital – Problems.
Part 2: Capital Structure: Introduction to Capital Structure – Capital Structure Theories - Net Income
Approach - Net Operating Income Approach - Traditional Approach – MM Approach – Problems.
Unit 3: DIVIDEND THEORIES 
Introduction – Irrelevance Theory – MM Model. Relevance Theories - Walter Model - Gordon Model –
Problems on Dividend Theories.
Unit 4: PLANNING AND FORECASTING OF WORKING CAPITAL 
Concept of Working Capital – Determinants of Working Capital – Estimating Working Capital Needs –
Operating Cycle – Cash Management – Motives of Holding Cash – Cash Management Techniques –
Preparation of Cash Budget – Receivables Management – Preparation of Ageing Schedule and Debtors
Turnover Ratio – Inventory Management Techniques – Problems on EOQ.
UNIT 5: CORPORATE VALUATION 
DCF method, relative valuation method, net asset method, value based management. (Only concepts)