COMMC201.2 - Financial Management and Policy-II (COM 201.2)

Department of Commerce; M.Com. Semester -2; Paper No : COM 201.2;

Financial Management and Policy-II (25 Marks)

Course Objective:

The basic functions of finance could be learned from this subject. The students would understand how the companies make decisions in finance. The adequate theoretical knowledge of how to source finance and to apply efficiently could help them in taking decisions as finance managers in the corporate sector.

Course Outline:

  • Management of Working Capital: Introduction; Operating Cycle Concept; Estimation of Working Capital Requirement; Financing of Working Capital-Various Approaches; Norms of Bank Finance.

  • Management of Various Components of Working Capital: Inventory, Receivables, Cash and Payables Management

  • Dividend Theories And Policies: Dividend and Valuation: M-M Hypothesis; Gordon’s
  • Model; Linter’s Model Etc. Forms of Dividends; Determining Factors of Corporate Dividend Policy; Dividend Policy of Manufacturing Companies in India- Case Study of a Manufacturing Company.

Marking Pattern: In each Unit, there shall be set 2 questions carrying 2 marks, 2 short- answer type questions of 4 marks each with equal number of alternatives and 1 essay type question of 8 marks in each unit. Internal Assessment will carry 5 marks in each unit. For each unit of 25 marks 20 lecture hours are to be delivered.