Unit I: Financial Management and Its Environment 6 hours
Nature of financial management; Finance functions; Role of the financial managers; financial goals; Form of organizations; and an overview of financial institution and markets.
Unit II: Financial statement and analysis 6 hours
Understanding financial statements: Income statement, Cash flow statement and balance sheet; Common size balance sheet; Ratio analysis: Short-term solvency measures, Long-term solvency measure, Asset management measure, Profitability measures, Market value measures, The DuPont identity; Use and Limitation of financial ratios.
Unit III: Time Value of Money 6 hours
Concept of time value of money; Present values and discounting; Future values and compounding; Annuities and perpetuities; Effective interest rate and average percentage return; Application of time value of money in hospitality industry.
Unit IV: Raising Capital 7 hours
Short-term versus long-term loan; Bonds: meaning, types, Bond innovation; preferred stock; Common stock: equity account in balance sheet, Right and privileges of common stockholders; Cost and benefit of debt versus equity; Methods of selling securities; Initial public offerings; Concept and functions of investment bankers; Concept of venture capitals; and concept of lease financing.
Unit V: Cost of Capitals 4 hours
Concept of cost of capitals; Component cost of capital: Debt, Preferred stock. Common stock Retained earnings; Weighted average cost of capital, Application of cost of capitals in financial decision making in hospitality industry.
Unit VI: Capital Budgeting 6 hours
Concept of capital budgeting; Types of projects; Capital budgeting techniques _ payback period, NPV, IRR, Comparison on NPV with IRR, and profitability index; and application of capital budgeting techniques.
Unit VII: Capital structure 4 hours
Concept of capital structure and financial structure; Setting target capital structure; Factors affecting capital structure; Business risk and financial risk; Operating and financial leverage.
Unit VIII: Dividend Decision 4 hour
Concept of dividend; Cash dividend versus stock dividend; Dividend payment process; Stock dividend and stock split.
Unit IX: Working Capital Management 5 hour
Concept and component of working capital; Importance of work capital management; Types of working; Factors affecting working capitals; and working capital flow cycle.