Course

Module 1

Module 1: Corporate Governance and Business Ethics (6 hours)

1. Identifying Stakeholders – Internal as well as external.
2. Corporate governance & its objectives.
3. Agency relationships and conflict of interest.
4. Board of Directors -Role, Responsibilities and Constitution.
5. ESG Factors and its impact on a company’s future & valuation.

Module 2

Module 2: Capital Budgeting (6 hours)

1. Capital Projects – Types, evaluation and section methodology.
2. Tools to evaluate Capital projects.
3. Real options and evaluating projects with real options.
4. Models for valuation viz Economic Profit, Residua Income and Claims valuation.
5. Vale Based Management Approach.

Module 3

Module 3: Capital Structure and Cost of Capital (6 hours)

1. Calculating and interpreting WACC and impact of taxes on WACC.
2. Capital Structure and various theories related to it.
3. Understanding Country risk premiums and its impact on cost of capital.
4. Interpreting Beta and valuing equity.
5. Understanding and evaluating various forms leverage and its impact on profitability.

Module 4

Module 4: Dividends and Share Repurchases (6 hours)

1. Calculate and interpret various forms of dividends and its impact on financial ratios.
2. Understanding various methods of share repurchase and its impact on financials of a company.
3. Different dividend actions and its signaling effect and impact of these on clientele.
4. Understanding different dividend policies and interpreting their impact.

Module 5

Module 5: Mergers and Acquisitions (6 hours)

1. Classification and motivation for M&A vis-à-vis Industry life cycles and various types of mergers.
2. Understanding pre- and post-offer takeover defense mechanisms and anti-trust challenges.
3. Understanding and applying various Models for target company valuation.
4. Understanding Restructuring and its need.

Course Description

Strategic financial management refers to specific planning of the usage and management of a company’s financial resources to attain its objectives as a business concern and return maximum value to shareholders over the long run. Strategic financial management involves precisely defining a company’s business objectives or goals, identifying and quantifying its available or potential resources, and devising a plan for utilizing finances and other capital resources to achieve its goals. This course is designed to acquaint the students with concepts of financial management from strategic perspective and help them to familiarize with various Techniques and Models of Strategic Financial Management.

Course Outcomes& Learning levels

At the end of the course, the students will be able to:

1. Be able to apply the appropriate Corporate Governance and ethical management practices (Apply).
2. Evaluate competing projects for optimum resource allocation (Evaluate).
3. Analyze different capital structures and impact of these on the cost of capital (Analyze).
4. Evaluate different approaches to Mergers and Acquisitions (Evaluate).

Evaluation Pattern

* Based on assignments / Tests / Quizzes / Case Studies / Projects / Term paper / Field visit report.

Text Book: 

1. Strategic Financial Management – Managing Value Creation, by Dr Prasanna Chandra, McGraw Hill Edition, 2018
2. A good reference book will be “Corporate Finance – Theory and Practice” by Aswath Damodaran (2nd edition, Wiley, 2014)