77
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PLO1 PLO2 PLO3 PLO4 PLO5 PLO6
CLO1 2 3 3 1 1 3
CLO2 3 3 3 2 1 3
CLO3 2 3 3 2 2 2
CLO4 3 3 2 2 3 3
Mapping Course Learning Outcomes with the Teaching-Learning & Assessment Strategy
CLOs Teaching-Learning Strategy Assessment Strategy
CLO1 Lecture Test
CLO2 Lecture, Group work, Individual work Test/Class Performance CLO3 Lecture, Group work, Individual work Test/Assignment CLO4 Lecture, Presentation, Open Discussion Test
Course Code : FIN 6102 Course Title: Working Capital Management Credit: 03
Rationale of the Course:
After completing this course, the students will be able to evaluate comparative working capital management policy; learn about firms’ profitability, liquidity, and risk and operating flexibility, investigate cash flow cycles & working capital cycles; formulate optimum inventory and receivables management plan; understand the impact of working capital policy on firm’s operations, etc.
Course Content:
Introduction, meaning, concepts, classification and importance of working capital, Relevance of current assets and current liabilities in the balance sheet, Objectives of WCM. Over- capitalization, under- capitalization, zero working capital, Short-term v/s long term financing-A risk-return trade-off. Liquidity v/s profitability trade-off. Cost trade-off, working capital approaches, working capital management in some companies. Relevance of current assets and current liabilities and their inter-relationship, Management of different current assets, Management of Inventory. Relevance and scope, Deciding the optimum level of inventory in a firm, Purpose and benefits of holding inventory. Risk and cost of holding inventory, Inventory management - tools, techniques, Inventory management. Cash flow presentation as per IFRS, NOCF & priority outflows, Management of liquidity-Shiftability theory, Liquidity newly defined, liquidity crises 7 firm level action, Measurement of liquidity. Window dressing, Certainty model by Baumol, Uncertainty model by Miller & Orr, Cash flow forecasting, Cash collection system.
Financing Working Capital Gap, Sources of working capital finance, Bank finance, Other sources
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of working capital finance and deciding a suitable mix. Managing Payables and Accruals, The Payment System and Financial Institution Relationships Analysis of Solvency and Financial Flexibility
Course Learning Outcomes (CLOs) and mapping of CLOs to Program Learning Outcomes (PLOs):-
CLO1 Identify and summarize the essential theories and concepts of modern working capital Management
CLO2
Constitute a comprehensive introduction to basic concepts of working capital management. The course will help to be involved with the management of a business to acquire some knowledge of short-term financial management.
CLO3 Apply the theories learned to the real world and use them in short-term financial decision makings.
CLO4 Design optimal working capital policies (cash, inventory, etc), given the characteristics of the industry and the firm; an optimal overall working capital management policy for the firm
CLO 5
Balance firms’ profitability, liquidity, risk and operating flexibility
PLO1 PLO2 PLO3 PLO4 PLO5 PLO6
CLO1 3 2 2 1 2 1
CLO2 3 3 2 2 1 1
CLO3 3 2 3 1 3 2
CLO4 3 2 3 1 2 1
CLO 5 3 3 3 2 1 1
Course Learning Outcomes with the Teaching-Learning & Assessment Strategy
CLOs Teaching-Learning Strategy Assessment Strategy CLO1 Lecture, Exercise Test
CLO2 Lecture, Exercise, presentation Test/Class Performance CLO3 Lecture, Exercise, assignment Test/Assignment CLO4 Lecture, Exercise, assignment Test
CLO5 Viva Voce, Class Performance Test
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Course Code: FIN 6103 Course Title: Capital Budgeting Credits: 03 Rationale of the Course:
The course is designed to make the students equipped with essential knowledge, skills regarding valuation of investment projects and decision making on projects.
Course Content:
Agency Theory: Shareholder Wealth Maximization, Stockholder-Manager Conflicts and Firm Value,
‘The Global Financial Crisis of 2008: What Went Wrong, Time Value of Money and DCF Valuation.
Key motives for capital expenditure, the steps in the capital budgeting process, Basic capital budgeting terminology, major components of relevant cash flows, calculation of the initial investment, relevant operating cash inflows and terminal cash flow. Role of capital budgeting techniques, calculation and interpretation of capital budgeting techniques, (PBP, NPV, IRR, PI). Net present value profiles to compare NPV and IRR techniques. Conflicting rankings and the theoretical and practical strengths of NPV & IRR Importance of explicitly recognizing risk in the analysis of capital budgeting projects.
Discuss breakeven cash inflow, sensitivity and scenario analysis, and simulation as behavioral approaches for dealing with risk. Basic concept of cost of capital, specific sources of capital. Calculation of components of cost of capital, weighted average cost of capital (WACC), weighted marginal cost of capital (WMCC).
Course Learning Outcomes (CLOs) and mapping of CLOs to Program Learning Outcomes (PLOs):-
CLO 1 Understand the basic concept underlying capital budgeting, different cash flows, approach to capital budgeting,
CLO 2 Understand various approaches used in finding relevant cash flows, CLO3 Applying techniques for capital budgeting
CLO4 Analyze projects using capital budgeting techniques.
CLO5 Evaluate investment projects with consideration of risk
PLO 1 PLO 2 PLO 3 PLO 4 PLO 5 PLO 6
CLO 1 3 1 1
CLO 2 2 3 1
CLO 3 2 1 3 1
CLO 4 1 2 1 3
CLO 5 1 2 3 2
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Mapping Course Learning Outcomes with the Teaching-Learning & Assessment Strategy
CLOs Teaching-Learning Strategy Assessment Strategy CLO1 Lecture/Exercise Test
CLO2 Lecture Test/Class Performance CLO3 Lecture, Group Work Test/Assignment CLO4 Lecture/Exercise Test
Course Code: FIN 6104 Course Title: Financial Statement Analysis and Interpretation Credits: 03
Rationale of the Course:
The objective of this course is to provide students with a framework for analyzing a firm’s past performance, estimating its future performance, and valuing its equity. The course integrates key concepts from accounting, finance, economics, and business strategy and applies them to financial decision- making. The course focuses on teaching you to interpret numbers in the financial statements.
Course Content:
Introduction to Financial Statements Analysis: Financial Statements and their Users; Components of the Financial Statements; Sources of Financial Information; Additional Information Accompanying Financial Statements; Measurement in the Financial Statements;
Financial Analysis Tools: Horizontal and Vertical Analysis: Comparative Financial Statement Analysis:
Ratio Analysis: Common Sets of Financial Measures and Ratios Profitability Analysis: The Analysis of Return on Common Equity, Various-Level Breakdown: Profit Margin Drivers, Turnover Drivers, Borrowing Cost Drivers, Profitability including DuPont analysis. Business Analysis and Valuation Tools: Strategy Analysis: Industry structure and Profitability, Bargaining Power of Buyer and Supplier, Competitive Strategy analysis, Strategies for Creating Competitive Advantage, Accounting Analysis:
Accrual Accounting, Factors Influencing Accounting Quality, steps in doing Accounting Analysis, Identify Potential Red Flags, Accounting Analysis Pitfalls, How Financial Statements Are Used in Valuation: Multiple Analysis: Method of Comparable and Screening of Multiples Fundamental Analysis:
The Process of Fundamental Analysis, Financial Statement Analysis, and Pro-Forma Analysis, the Valuation Model, the Terminal Value Calculation, Capital Asset Pricing Model (CAPM) and the Choice of Discount Rate. Redefining Financial Statements for Valuation: Defining Net Operating Assets, Net Financial Obligations and Common Stock Equity; Operating Income and Net Financial Expenses; Return on Common Equity and its Decomposition between Profitability of Net Operating Assets and Net Borrowing Costs. Analysis of the Quality of Earnings: Earnings Quality; Definition, Measuring Earnings
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Quality, Balance Sheet Analysis of Earnings Quality, External Factors and Earnings Quality; Credit Analysis and Distress Prediction: Financial Statement Analysis for Credit Evaluation, Financing Risk;
Leverages and Taxes; Leverages and its Effects on Residual Earnings; Leverages and Residual Earnings Model. Cash Flow Analysis and Equity Valuation Models: Cash Flows, Earnings and Accrual Accounting; Valuation Models: Modigliani-Miller (MM) Approach to Valuation and the Role of Leverage; Dividend Discount Model, Earnings Capitalization Model, Residual Earnings Model and Free Cash Flow Model. Accrual Accounting and Price-to-Book Ratio; Relation between Price-to-Book (P/B) Ratio and Price-Earnings (P/E) Multiple. Residual Earnings Model of Equity Valuation:
Course Learning Outcomes (CLOs) and mapping of CLOs to Program Learning Outcomes (PLOs): -
CLO 1 Develop their understanding about basic concepts of financial statement analysis for investment and credit decisions;
CLO 2 Solve the business problems by analyzing and interpreting the accounting information supplied mainly through financial statements;
CLO 3 Analyze competitive strategy of an organization and identify financial distortion;
CLO 4 Help understand the role of accounting rate of return (ARR) in the security valuation process;
CLO 5 demonstrate the underlying interdependency between cash accounting and accrual accounting in judging the quality of accrual earnings and the culture of earnings management by firms;
CLO 6 Predict financial distress and credit risk of an organization
CLO 7 Analyze cash flows of an organization and its impact on financial statement analysis;
PLO 1 PLO 2 PLO 3 PLO 4 PLO 5 PLO 6 PLO 7
CLO 1 2
CLO 2 2
CLO 3 3
CLO 4 3
CLO 5 2
CLO 6 3
CLO 7 3
Mapping Course Learning Outcomes with the Teaching-Learning & Assessment Strategy CLOs Teaching-Learning Strategy Assessment Strategy
CLO 1 Lecture, Test
CLO 2 Lecture, presentation Test/Class Performance CLO 3 Lecture, open discussion Test/Assignment CLO 4 Lecture, Viva voce Test
CLO 5 Lecture/ Exercise Test
CLO 6 Lecture Test
CLO 7 Lecture Test/Assignment
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