Easy Education Bangladesh

Financial Management In English

Categories: BBA 4th Year, Management

Course Content

Chapter-1 Goals and Functions of Finance
Meaning of Financial Management; Financial Goal: Maximize Shareholder Wealth; Maximization of EPS; Corporate decisions, Importance of Financial Management, Factors influencing financial decisions. Agency Problems, Dealing with Agency Problems; Principle of Financial Management; Social Responsibility; Corporate governance.

Chapter-2 Capital Budgeting and Risk Analysis
Risk Evaluation Approaches-Certainty Equivalents (CE), Risk-adjusted Discounted Rates (RADR), CE vs RADR., Probability Distribution Approach, Decision Tree Approach, Behavioral Approach for Dealing with Risk-Sensitivity Analysis, Simulation.

Chapter-3 Theory of Capital Structure
Introduction to the Theory; Assumptions and Definitions; NI Approach, NOI Approach and Traditional Approach; Modigliani-Miller (MM) Position; Arbitrage process; Taxes and Capital Structure; Corporate plus Personal Taxes; Merton Miller’s Equilibrium; Effects of Bankruptcy Costs, Tradeoff model, Pecking order theory.

Chapter-4 Dividend Policy
Procedural Aspects of Paying Dividends; Types of Dividend Policies; Factors Affecting Dividend Policy; Dividend Payout Irrelevance; Arguments for Dividend Payout Mattering; Impact of Other Imperfections; Financial Signaling; Share Repurchase; Method of Repurchase; Repurchasing as Part of a Dividend Decision; Stock Dividends; Stock Splits.

Chapter-5 Capital Market Financing
Public Offering of Securities; Traditional Underwriting, Best Efforts Offering, Making a Market, Shelf Registrations, Flotation Costs, Government Regulations for Issuing Securities, SEC Review, SEC Regulations in the Secondary Market, Selling Common Stock Through a Rights Issue, Value of Rights, Success of the Offering, Standby Underwriting, Oversubscriptions, Rights Issue vs. Public Offering, Green Shoe Provision, Financing a Fledgling, Initial Public Offerings, Information Effects of Announcing a Security Issue; Types of Long-term Debt Instruments; Retirement of Bonds; Preferred Stock and its Features; Common Stock and its Features; Bond Refunding.

Chapter-6 Lease Financing
Definition of Lease, Types of Leases, Leasing Arrangements, Advantages and Disadvantages of Lease, Lease versus Purchase Decision, Leasing in Bangladesh-Problems and Prospects.

Chapter-7 Working Capital Management
Importance, Determinants of Working capital, Policies for Financing Current Assets, Operating Cycle and Cash Conversion Cycle, Estimating Working Capital Requirement.

Scroll to Top