Nature and Scope of Financial Management: Finance Function – Objectives of Financial Management – Profit versus Wealth Maximization – Financial Goals and Firm’s Objectives.

Value of the Firm: Determinants of the Value of the Firm – Investment Decision – Financing Decision – Dividend Decision – Relationship between the Value of the Stock and Value of the Firm.

Investment Decision : Capital Budgeting Process – Basic Principles of Capital Expenditure Proposal – Various Appraisal methods – Average Rate of Return – Pay-Back Period – DCF methods – IRR and NPV – Merits and Demerits of these Methods – Investment Appraisal in Practice.

Risk Analysis in Capital Budgeting: Meaning and Nature of Risk – Measures of Risk – Conventional Techniques to handle Risk – Pay – Back Period – Risk Adjusted Discount Rate – Certainty – Equivalent Co-efficient.

Financing Decision: Operating and Financial Leverage – EBIT/EPS Analysis – Cost of Capital and Capital Structure Theories – Determination of the Optimum Capital Structure.

Capitalisation:Over and Under Capitalisation – Consequences of Over and Under Capitalisation – Correction – Fair Capitalisation – Meaning – Determination of the Fiar /Ideal Capitalisation

Dividend Decision: Dividend Theories - M.M.Hypothesis of Dividend Irrelevance – Dividend Policy and Share Valuation – Dividend Policies and Practices in India.

Working Capital Management ; Principles – Concepts – Components – Need for working Capital – Determinants of Working Capital – Optimum level of Current Assets – Estimating Working Capital Needs – Financing of Current Assets.

Working Capital Policy: Overall Considerations – Importance of Working Capital Management – Components of Working Capital – Concepts – Factors influencing the requirements of working capital – Risk – Return trade off – Profitability – Liquidity tangle.

Estimating Working Capital Requirements: Operating Cycle method – Percent Sales method – Correlation Analysis method – Financial Manager’s role in working capital management.

Cash Management : Importance – The Right Proportion – Factors influencing Cash balance – Determining Optimum Cash Balance – Cash Budgeting – Controlling and Monitoring – Collection and Disbursements – cash management Models.

Receivables Management – Credit Policy Variables – Credit Standards Credit Period – Cash Discount and Collection Efforts – Credit Granting Decision – Control of Receivables – Management of Trade – Credit in India.

Inventory Management : Need for Inventories and the Importance of its Management – Techniques for managing inventory – Order Quantity – E.O.Q. Model – Order Point – Safety Stock – Analysis of Investment in Inventory – Selective Inventory Control – ABC Analysis.

Financing Current Assets – Different Approaches to Financing Current Assets – Conservative, Aggressive and Matching Approach – Sources of Finance – Spontaneous Source – Trade Credits – Short term Bank Finance – Commercial Paper – Public Deposits.

Committee on Working Capital Finance : Prevailing Position – Short Term Bank Borrowings – Dehejia Study Group – Tandon Committee – Findings and Recommendations.

Regulation of the Bank Credit: Review of the systems of Cash Credit – Chore Committee Recommendations – Establishments of discount & finance House of India.

Nature and Scope of Investment Management: Investment Management and Security Analysis – Portfolio Management – Managed Portfolios and Portfolio Management Practices in India.

Portfolio Analysis : Risk and Return – Total Risk – Portfolio Risk – How Diversification Helps? – Market Risk – Combining Risky and Risk less – Securities.

Fundamental Security Analysis: Economic Environment Analysis – Industry Analysis – Company Analysis – Growth Stocks.

Technical Analysis : Basic Tenets of Technical Analysis – Dow Theory – Behaviour of Stock Prices – Major Trends – Charts and Trend Lines – Resistance and support Lines – Different Patterns.

Efficient Market Hypothesis: Different Forms – Weak form and Random forms – Semi-Strong and Strong forms – Implications of Different forms of EMH to Security Analysis..

Markowitz Diversification: Mean – Variance Analysis – Efficient Frontier – Leveraged Portfolio – Sharpe’s Market Model Beta Coefficient – Implications.

Capital Asset Pricing Model – Assumptions – the Capital Market Line – Security Market Line – CAPM with Relaxed Assumptions

Portfolio Evaluation: Portfolio Formula Plans – Risk Adjusted Measures – Sharpe’s Reward-to-Variability – Treynor’s Volatility Ratio – Jensen’s Differential Return.

General Introduction: Importance- Rewards and Risks in International Finance – Why International Business Finance? – Importance – Scope – Benefits – Rewards and Risks – Increased Globalisation of Finance and Real Asset Markets – Investment and Capital Markets – Costs of Globalisation of Investment – Increased Volatility of Interest Rates and Exchange Rates.

Introducing Foreign Exchange Markets and Balance Of Payments: Mechanics of Spot and Forward Exchange Markets – Analytical Perspectives of the Market – Balance of International Payments – Principles of BOP Accounting – Determining Credit and Debit Entries – Implications of BOP Accounting Identity – Interpreting the Accounts under Fixed and Flexible Exchange Rate System – Long Run Vs Short Run – Implications of Payment Imbalances – the Firm Vs the Economy an Analogy.

Forward Futures and Options Market: Various Aspects of Forward exchange Market – Currency Futures – The Link between Futures and Forwards Market – Currency Options – Various Facts of Option Contract and market – Difference between Forwards and futures and Options.

Party conditions in International Finance: International Manifestation of Law of One Price, Purchasing Power Party Principles – interest Rate Party Condition – Fisher and International Fisher Effects – Combining PPP and Interest parity – Why Covered Interest Differences persist?

Foreign exchange Risk and Exposure and their management Nature of Exchange Rate Risk and Exposure – Exposure Risk and the Parity Relationship – Real Changes in Exchange rate – Relevance of Translation Exposure.

How to Hedge and Speculate ? Hedging Explained – Hedging Via Forward Markets – Via Futures Market – Options Market – Swaps – Currency of Invoicing etc. Speculation – Meaning – Speculation via all the markets – Speculation on Exchange Rate Volatility.

Financial Dimensions of International Trade: Letters of Credit – Alternative Payment and Guaranteeing Procedures – Financing of International Trade – Bankers Acceptances and Forefeiting – Counter Trade.

International Monetary System and European Monetary System: Recent Trends – A Brief Summary of Bretton Woods System – Reasons for Collapse – Functioning of Floating Exchange Rates – Recent Trends.

International Monetary and Financial System: Bretton Woods – IMF – World Bank – Quotas – Foreign Exchange Rates – European Monetary System – Group of Seven – Euro Markets.

Foreign Exchange Markets : Direct and Indirect Rates – LERMS – Bid and Offered Rates – Spot and Forwards – Exchange Rate calculation.

International Money Markets: Money Market Instruments – Inter-Bank Markets – Floating Rates – Instruments dealt in New York and Tokyo Markets.

International Capital Markets : International Investor – Bond Market Drill – Instruments dealt in New York and Tokyo Markets.

Euro Currency Market: Euro Deposits and Loans – Euro Credit – Spreads and Maturity – Euro – Currency interest Rates – International Bond Market – Foreign Bonds issued in USA and Japan.

Derivatives – Forward Rate Agreements – Currency Futures – Interest Futures – Currency Options – Option Pricing – Currency and Interest Rate Swaps.

Forex Exposures – Types of Exposures – Short Term and Medium Term Exposures – Hedging and Risk in Forex Loans – Risks in Forex Business.

Interest Rate Risk Management – Yield to Maturity – Spot and Forward Rates – Duration and Price Volatility – Interest Rate Risk – Duration of Equity gap – Duration and Interest Rate Swaps.