Strategic Financial Management

Paper Code: 
MFM 326
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes

Learning and teaching strategies

Assessment Strategies

On completion of this course, the students will be able to;

CO 1:  Practice strategic management to

evaluate the role finance plays in strategic

Approach in teaching: Interactive     Hours                    using whiteboards, Questioning & Discussion,                        Reading assignments, Frequent or unannounced quizzes.

 

Learning activities for the students:

Self-learning assignments, Effective                         questions, presentation,                           Solving problems of unsolved questions

Class test, Semester end examinations, Quiz, Assignments, Class interaction

decision making.

 

CO  2:   Develop   an   understanding   of

 

approaches of corporate valuation.

 

CO 3: Understanding the various methods

 

and process of value based management.

 

CO 4: Perform a valuation on the basis of

 

financial statement information.

 

CO 5: Demonstrate the concept of Financial

 

restructuring.

 

CO  6:       Create awareness  about  the

 

contemporary issues in strategic financial

 

management

 

 

12.00
Unit I: 

Introduction to Strategic Financial Management – Meaning, Characteristics, Scope, Importance

,Success factors and constraints to Strategic Financial management; Strategic Planning Process , components ; Financial Planning: Process and Types of Financial Plan.

 

12.00
Unit II: 

Corporate Valuation- Concept of Value, Objectives, Approaches of Corporate Valuation: Asset approach to valuation, Stock and debt approach, direct comparison approach and discounted cash flow approach. Guidelines for corporate valuation.

 

12.00
Unit III: 

Value Based Management- Meaning , elements, significance, Approaches to value based management- Marakon Approach, Alcar Approach, McKinsey Approach and Stern Stewart Approach. Applications of Value based management, Methods and Process of Value based Management.

 

12.00
Unit IV: 

Expansion and Financial Restructuring – Corporate Restructuring : Needs and Benefits; Mergers and Amalgamations : reasons, Merits and Demerits of Merger; Takeovers ; Business Alliances :Meaning and Types; Demergers: Concept and Types.

 

12.00
Unit V: 

Contemporary Issues in Strategic Financial Management- Issues & Challenges in Strategic Financial Management, Financial Management in Sick Units, Sick Industrial Companies Act: Meaning and Causes, Financial Management in Public Sector Companies: Features.

 

Essential Readings: 
Essential Reading:
  • R. Sofat and P. Hero, Strategic Financial management. PHI
  • Chandra, P., Financial Management. Tata McGraw Hill Education Private Limited.
  • Kothari, R., Dutta,Bobby., Contemporary Financial Management, MACMILLAN
  • Young, S. and O’Byrne, S. (2000).EVA and Value-based management: A practical guide to implementation. New Delhi: Tata McGraw-Hill.

 

Suggested Reading:
  • Sekhar, G.V., Strategic Financial management, Himalaya Publication House.
  • Saravanan, P., Fugavanam, J. and Jaya Prakash, B., Strategic Financial management, OXFORD Higer Education.
  • Kishore, M., Strategic Financial management, TAXMANN

 

References: 
E- resources:

 

Journals:

 

Academic Year: 
2023-2024
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