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KMBN204 FINANCIAL MANAGEMENT AND CORPORATE FINANCE

UNIT 1

Introduction to finance, Corporate finance and its Scope, Corporate Governance and Agency Problem
Corporate Valuation Model, Earning Based Valuation Model
CAPM Model, Cash Flow Based Model
APT Model, EVA Model, Introduction of Start-up Finance
Financial Decisions, Time Value Of Money

UNIT 2 Investment Decision

Concept of Opportunity Cost, Cost of Debenture
Preference and Equity Capital
Composite Cost of Capital
Cash Flow as Profit and Components of Cash Flows
Capital Budgeting Decision
Calculation of NPV and IRR, Excel Application in Analyzing Project

UNIT 3 Financial Decision

Capital Structure
Relevance and Irrelevance Theory
Leverage Analysis: Financial, Operating, and Combined Leverage
EBIT EPS Analysis
Point of Indifference

UNIT 4 Divided Relevance

Factor Affecting Dividend Policy
Dividends Model: Walter and Gordon's Model
Forms of Dividends
Types of Dividend policy
Miller-Modigliani (MM) Hypothesis

UNIT 5

Mergers Acquisitions : Introduction
Exchange Ratio
Synergy Benefits
Post-Merger EPS, Post Merger Price of Share
Required Rate of Return of Merged Company, De-Merger

20 Most Important Questions for KMBN204 Financial Management and Corporate Finance