Scope
of MBA Finance MBA
finance helps organization to manage the finances of
the company effectively. MBA finance professionals unlike
CA's are more into management field doing study of market
economics, investment strategies, raising capital and
its effective utilisation. An
MBA Finance degree offers a much wider scope of career
enhancement and prospects compared to other accounting
degrees, as it covers various aspects of accounting
and managing finance like investments, securities, business,
banking and risk management. Main role of the financial
manager is to oversee financial reports which help the
company with decision making, business development,
strategic planning, and alliance management. |
Importance
of MBA Finance
MBA
finance professionals assess feasibility of business
projects according to funds available. Explore strategies
to raise money and plan new areas for investment.
MBA finance professionals have good reasoning ability
with problem solving skill which gives them ability
to make and implement correct financial decisions. The
accounting manager is focused more on financial reporting,
while the financial manager is focused on strategy and
money management. Cash management strategies developed
and implemented by the financial analyst help the company
to grow efficiently and allow for maximum profitability
in its investments
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Course
Contents for MBA Finance
- Financial Management - Meaning and Objectives, A's of
Financial Management, Scope and Functions of Financial Management,
Financial Planning and Forecasting.
- Capitalization - Under and Over Capitalization, Capital
Structures - Computation of cost of capital, Trading on
Equity, Leverages - Type and Significance
- Capital Budgeting - Nature and Significance, Time value
of money- Discounting and Compounding - Methods of evaluating
Capital Expenditure proposals. Analysis and interpretation
of Financial Statements using the techniques of Ratio Analysis
and Fund Flow analysis.
- Working Capital Management - Nature of Working Capital
Management, Need for working capital - operating cycle,
estimation of working capital requirement - Management of
Cash and Receivables, Cash Budget.
- Management of Profits-Dividend Policy, Procedural and
Legal formalities involved in the payment of dividend-Bonus
Shares.
- Advanced Financial Management - Accounting Standards,
Capital Structure Theories, Dividend Distribution Theories,
Capital Budgeting, Economic Value Added (EVA) and Financial
Analysis using tools such as Cash Flow and Fund Flow.
- The Finance function : Nature and Scope. Evolution of
finance function - The new role in the contemporary scenario
- Goals of finance function - maximizing vs. satisfying
(School); Profit vs. Wealth Vs. Welfare ; the agency relationship
and costs - The new debate on maximizing - Vs- satisficing.
Wealth maximization and Risk-Return trade off.
- The Investment Decision: Investment decision process-
Project generation, project evaluation, project selection
and project implementation. Developing Cash Flow Data. Using
Evaluation Techniques - Traditional and DCF methods. The
NPV vs. IRR Debate. Approaches for reconciliation. Capital
budgeting decision under conditions of risk and uncertainty;
Measurement of Risk - Risk adjusted Discount Rate, Certainty
Equivalents and Beta Coefficients , Probability tree approach
- Sensitivity analysis.
- The Financing Decision: Sources of finance - a brief survey
of financial instruments. Concept and financial effects
of leverage. The capital structure decision in practice:
EBIT - EPS analysis. Cost of Capital: The concept - Average
vs. Marginal Cost of Capital. Measurement of Cost of Capital
- Component Costs and Weighted Average Cost. The Dividend
Decision: Major forms of dividends - Cash and Bonus shares.
The theoretical backdrop - Dividends and valuation; Major
theories centered on the works of Gordon, Walter and Lintner
- The basic dividend theorems for valuation. Dividend policies
of Indian Companies.
- Current Assets Management : Concepts and characteristics
of working capital. Factors determining the working capital.
Estimating working capital requirements. Working capital
policy. Management of current assets - Cash, Receivables
and Inventory. Cash budget, Receivables policy, Credit terms
- Financing current assets - Customers credit. Short term
bank finance - Bank norms for working - Capital financing.
- Corporate Restructures: Corporate Mergers and acquisitions
and take-overs - Types of Mergers - Economic rationale for
Mergers, motives for mergers, Financial Evaluation of Mergers
- different approaches for valuation.. Corporate Value based
management systems - Approaches - Principles of good corporate
Governance.
- Advance Financial Services - Overview of Indian Financial
System, Capital Market, Secondary Markets - Stocks Exchanges
in India, Money Market and Credit rating
- Banking and financial Institutions -Developments since
1991 -Types of bank -Instruments, Study of various interest
rates, RBI-Role played, Commercial Banking and Non-Banking
Financial Companies.
- Security Analysis & Portfolio Management - Investment
Scenario, Risk and Return, Security Market Indicators, Equity
stock valuation models, Bond valuation, Efficient market
hypothesis, Emerging trend of Security Analysis in global
market, Portfolio analysis and portfolio selection and Personal
Financial Management
- Risk and Insurance Management - Introduction to Risk Management,
Instruments of External techniques of Risk Management, Life
Insurance General Insurance and Legal framework and documentation
- Strategic Financial Management and Cost Management
- International Financial Management - Foreign Exchange
Markets, Multinational Banking Market Efficiency, Foreign
Direct Investment and Capital market theory in International
context.
Books for MBA
Finance
- Financial Management - I.M.Pandey
- Financial Management - Khan & Jain
- Financial Institutions & Markets- L.M. Bhole
- Indian Financial System- M.Y.Khan
- Indian Financial System- H.R. Machiraju
- Levi, Maurice. International Finance
- Richard A Brealey et al., 2007, Principles of Corporate
Finance, Tata McGraw Hill
- Gitman.L.J., 2006, Managerial Finance, 11th Edition, Pearson
Education.
- Brigham, E.F. and Ehrhardt.M.C.,2006 , Financial Management
Theory and Practice, 10th Edition, Thomson South-Western.
- Vishwanath.S.R., 2007, Corporate Finance: Theory and
Practice, 2nd Edition, Response books, Sage Publications.
- Bruner.R.F.,2007, Case Studies in Finance, 5th Edition,
Tata McGraw Hill, New Delhi-8.
- Prasanna Chandra, 2006, Financial Management Theory and
Practice, 6th Edition, Tata McGraw Hill.
- I.M. Pandey : Financial Management, Vikas Publishers.
Jobs for MBA
Finance
MBA
finance professionals get employment in investment banks,
corporations, and securities firms. Some of the top financial
job responsibilities held by MBA finance are -
- Financial Analysts and planner
- Corporate Controllers
- Chief Financial Officers (CFO)
- Risk and Insurance Managers
- Investment Banking Associates
- Investment Sales Associates and Traders
- Credit Managers
- portfolio manager
- financial reporting analyst
- international controlle
- mutual fund analyst
- director of investor relations
- procurement specialist
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