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Advanced Financial Management

Module I: Working Capital Management

  • Determination of level of current assets
  • Sources for financing working capital
  • Bank finance for working capital
  • Working capital financing
  • Short term financing of working capital, long term financing of working capital
  • Working capital leverages

Module II: Cash Management

  • Forecasting cash flows
  • Cash budgets
  • Long-term cash forecasting
  • Monitoring collections and receivables
  • Optimal cash balances
  • Baumol model, Miller-orr model
  • Strategies for managing surplus fund

Module III: Receivables Management

  • Credit management through credit policy variables, marginal analysis
  • Credit evaluation : Numerical credit scoring and Discriminate analysis
  • Control of accounts receivables
  • Problems on credit granting decision

Module IV: Inventory Management

  • Determinations of inventory control levels
  • Ordering, reordering, danger level
  • EOQ model
  • Pricing of raw material
  • Monitoring and control of inventories
  • ABC Analysis

Module V: Capital Structure Decisions

  • Capital structure & market value of a firm.
  • Theories of capital structure
  • NI approach
  • NOI approach
  • Modigliani Miller approach
  • Traditional approach
  • Arbitrage process in capital structure
  • Planning the capital structure: EBIT and EPS analysis
  • ROI & ROE analysis
  • Capital structure policy

Module VI: Dividend 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 Corporate Dividend Tax

Module VII: Mergers and Acquisitions

  • Meaning and definition
  • Types of merger
  • Motives behind mergers
  • Theories of mergers: operating, financial and managerial synergy of mergers
  • Value creation in horizontal, vertical and conglomerate mergers
  • Internal and external change forces contributing to M & A activities

Module VIII: Corporate financial modeling

  • Agency problem and consideration
  • Effect of inflation on: Asset value, firm value, returns
  • 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), components of EVA
  • Market Value Added (MVA)