Syllabus - Modified Scheme of Study

Strategic Level-2


[S5] STRATEGIC FINANCIAL MANAGEMENT

PART - A WEIGHTAGE 10%
Formulation of Financial Strategy
1. Objectives of organizations
• Objectives of Companies
• Stakeholders and Objectives
• Objectives of public owned
• Objectives of non‐commercial bodies
2. Constraints on Financial Strategy
• Constraint Factors
• Economic Constraints
• International Constraints
• Regulatory bodies
3. Forecasting and Analysis
• Performance Analysis
• Cash Forecasts
• Financial Statements Forecast
• Sensitivity Analysis and Changes in Variables
4. Financial Strategies
• Working Capital Management
• Dividend Policy
PART - B WEIGHTAGE 45%
Financing Decisions
5. Equity finance
• Capital Markets
• Rights Issues
• Scrip Dividends, Bonus Issues and Share Splits
• Share Prices and Investment Returns
• Efficient Market Hypothesis
6. Debt finance
• Medium Term Finance
• Long Term Debt
• Convertible Securities
• Warrants
• International Debt Finance
7. Leasing
• Leasing as a Source of Finance
• Lease or Buy decision
8. The cost of capital
• Investment decisions
• Financing and the Cost of Capital
• Dividend Valuation Model
• CAPM
• Cost of debt
• Weighted average cost of capital
9. The capital structure
• Capital Structure decision
• Effect of Capital Structure on ratios
• Theories of Capital Structure
• Project Specific Cost of Capital
• Leverage: Concept and Application
10. Treasury Management
• Treasury Functions
• Risk and Reward
• Hedging Financial Risk
• Use of Financial Derivatives
PART - C WEIGHTAGE 45%
Investment Decisions and Project Control
11. Investment appraisal techniques
• Capital Investment Appraisal
• Risk and Uncertainty
12. International investment
• International Investment: Basis and Risk
• International Investment: Appraisal
13. Specific investment appraisal scenarios
• Capital Rationing
• Equivalent Annual Cost
• Real Options
• Adjusted Present Value
14. Control of investment projects
• Investments and Projects
• Feasibility Study
• Project Control
• Investment Performance
• Post‐Completion Audits
15. Business valuations
• Reasons for Valuations
• Asset Valuation bases
• Earning Valuation bases
• Dividend Valuation bases
• Cash Flow Valuation Method
• Valuation issues
16. Amalgamations and restructuring
• Mergers and Acquisitions
• Conduct of a takeover
• Payment Methods
• Valuation of Mergers and Amalgamations
• Regulation of Acquisitions
• Post‐acquisition integration
• Impact of mergers and acquisition on stakeholders
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