Revised Syllabus of Financial Management – Paper – II

Revised Syllabus of Financial Management – Paper – II



3.5.3. Financial Management – Paper – II

Modules at a Glance


Sr. No. Modules No. of Lectures
1 Risk and Return 15
2 Leverage 07
3 Capital Structure Decisions 08
4 Cash Management 15
5 Receivable Management 15
Total 60


Sr. No. Modules / Units
1 Risk and Return
  IntroductionMeaning of Return

Types of Return- Holding Period Return, Annualized Return, Expected Return

Meaning of Risk

Types of Risk- Business Risk, Financial Risk, Interest Rate risk, Market Risk and Liquidity Risk

(Including Practical Problems)

2 Leverage
  IntroductionEBIT & EPS Analysis

Types of Leverages: Operating Leverage, Financial Leverage & Composite Leverage

Relationship between Operating Leverage and Financial Leverage

(Including Practical Problems)

3 Capital Structure Decisions
  MeaningChoice of Capital Structure. Importance

Optimal capital Structure

EBIT-EPS Analysis

Cost of Capital, Capital structure and Market Price of Share

Capital Structure Theories

Dividend Policy – Payout Ratio

4 Cash Management
  IntroductionMotives for holding cash

Aspects of cash management

Long terms cash forecasting

Reason for cash surplus

Cash management: Basic strategies, Cash Management Techniques/Processes, Marketable Securities

(Including Practical Problems)

5 Receivable Management
  IntroductionAspects of Receivable Management

Credit Policy, Credit Evaluation, Credit Granting decision, Control on Accounts Receivable

(Including Practical Problems)


By BAF team

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