COURSE OUTLINE
COURSE: FINANCIAL MANAGEMENT I
INSTRUCTOR: AMIT PARAKH
Introduction
This course is designed on the premise that every managerial decision-
irrespective of the functional domain from which it originates- has an impact, either very
directly or indirectly, on the financial position, and thus the value, of a firm. The impact
could be in the form of changes in revenue stream, cost structure, investment mix, risk
profile, growth prospects, or strategic direction of the firm. Extending this argument,
every manager would, perforce, have to possess a good understanding of basic financial
analysis and management.
This course is therefore designed to equip you with the concepts, tools, techniques
and terminology that will help you evaluate business decisions from a (financial) value
perspective, irrespective of the functional domain you choose to make a career in; it is not
a course designed to cater solely to the needs of those intending to specialize in finance.
Session-wise Plan
Session Topic Chapter of Text
1&2 Introduction to the concept of Present Value Chapter 1, 2, 3
3 Valuation of Bonds and Stocks Chapter 4
4 NPV versus IRR Chapter 5
5 Measuring Cash Flows. Chapter 6, 11
6 Risk and Return Chapter 7
7 Risk and Return Chapters 8
8 Capital Budgeting & Risk Chapter 9
9&10 Payout Policy and Capital Structure Chapter 16, 17
Evaluation
2 Quizzes (After 5th and 10th sessions) 50%
End Term 50%