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BANKING & INSURANCE : 9 : IV SEMESTER

FINANCIAL MANAGEMENT -II TOPICS

Capital Investment DccLsions

1.    Pr opasa 1 Or igi nat io n

2.    Economic Evaluation

3.    Capital Expenditure Control

4.    Post Audit

TooLs ofEvaluating Capital Investments

1.    Payback Method

2.    Discounted Payback Method

3.    Net Presem Value

4.    Intemal Ratę ofReturn

5.    Profitability Index

6.    Equivalent Annual Cast

7.    Modified Intemal Ratę of Return

Cost of Capital

1.    Computation of Weighted Average Cost of Capital

2.    Cast of Debt & Cast of Preference Shares and Net worth

3.    Minimum Acceptable Ratę of Return and its relationship whh Cost of Capital

Negotiating Tenn loan propasaLs \vith Banks Appraisal of "j Borrowers credit worthiness by lending banks.    J

Equity Capital as a source of ftnance: Rights Issue and Lssue at a premium SEBI regulations goveming Lssue of securit ies in India Praspectus for Lssue of securit ies, Understanding and interpreting Initial Public Offerings (I.P.O.) their modę of operation Employee Stock Options Plan and Sweat Equity.

Role of Ta\ation in influencing Corporate Financial Management

1.    ConceptofTa.\Shield( Tax Deductibility of E.\penditures r

and their implications for financialdecLsions)

2.    Depreciation Policy.    ^