FM (BBA 4th)

Introduction: Scope of Financial Management, Traditional Approach; Modern Approach;

Objectives of Financial Management; Investment Decisions; Financing decisions; Profit

Maximization vs. Wealth Maximization.

Capital Budgeting: Meaning, importance and various techniques; Pay back methods; Post Payback

period; rate of return method; Net Present value method; Internal rate of return method;

Profitability index method (Numerical questions may be set out of pay-back method and Post

pay-back method only).

Cost of Capital: Introduction; measurement of cost of capital; cost of equity shares; cost of

preference shares; cost of debt; calculation of overall cost of capital based on historical and

market rates (Fundamentals only).

Capital Structure: Introduction; capital structure decisions; NI approach; NOI approach; MM

approach; Traditional approach.