Financial Management Paper 3 TYBAF Semester VI Manan Prakashan

Content:
1. Business Valuation
Conceptual Framework of Valuation – Book Value, Market Value, Economic Value, Liquidation Value, Replacement Value, Salvage Value, Value of Goodwill and Fair Value
Approaches of Valuation – Assets Based Approach to Valuation, Earnings Based Approach to Valuation, Earnings Measure on Cash Flow Basis, Market Value Added Approach and Economic Value Added
2. Mergers and Acquisitions
Introduction – Basic Modes of Acquiring Another Firm, Synergy Effects, Difference Between Merger and Takeover, Advantages of Mergers and Acquisitions, Benefits of Merger for Acquiring Firm, Reasons of Companies to offer themselves for Sale, Reasons for Failure of Mergers and Reverse Merger
Commonly Used Bases for Determining the Exchange Ratio – EPS, MPS, Book Value and Combination of Measures and Evaluation of Mergers (Practical Problems)
3. Corporate Restructuring and Takeovers
Introduction – Meaning, Need and Importance, Forms of Restructuring, Advantages and Disadvantages
Takeovers – Meaning, SEBI Guidelines, Anti-takeover Defences and Asset and Liability Restructuring (Practical Problems)
4. Lease and Hire Purchase Financing
Introduction – Meaning and Types of Leases, Rationale, Mechanics, Operating Leases, Leasing as Financing Decisions, Calculation of Cash Flows of a Finance Lease
Hire Purchase – Meaning, Need and Importance, Calculation of Hire Purchase Instalments
Choice Between Leasing and Hire Purchase
5. Working Capital Financing
Introduction – Key Features and Characteristics of Trade Credit, Bank Credit, Commercial Papers, Certificate of Deposits and Factoring
Practical Problems Based on Factoring and Calculations of Yield of CP’s and CD’s