Master of Management Studies (M.M.S) Corporate Finance Syllabus - Mumbai University 2026

Course objectives

• 1 To introduce core financial concepts, instruments, and the role of corporate finance in business decision-making.
• 2 To equip students with practical tools for analyzing working capital, capital structure, and investment alternatives.
• 3 To develop analytical skills for interpreting financial statements and applying ratio, leverage, and valuation models.
• 4 To enable students to evaluate strategic financial decisions related to dividend policy, financing, and investment planning.
• 5 To guide students in preparing financial analysis reports using real company data and presenting actionable financial insights.

Course outcomes

• CO1: Recall basic terminologies in relation to financial system, sources of finance, Leverages, Ratio, capital structure, investment decisions, dividends, financial planning, inventory and working capital management.
• CO2: Explain the concepts & formulas pertaining to corporate finance, financial system, functions of financial management and financial practices to understand its relevance in current scenario.
• CO3: Make use of different models, formulas and frameworks related to ratios, Leverage Analysis, Capital structure, Capital budgeting, Working Capital and Dividend models.
• CO4: Examine and analyse various corporate financial statements of companies based on ratios, capital structure, capital budgeting, working capital management and dividend policies of companies and study its implications on the profits and valuation of firms
• CO5: Evaluate financial results to take managerial decisions related to financial planning, capital investments, dividend distribution, choice of capital structure and working capital decisions.
• CO6: Create an analytical report on capital structure, working capital management and dividend policy of a public listed company.

Unit 1 CO1, CO2 · 4 hours

Corporate Finance Objectives of Corporate Finance Role and responsibilities of the financial manager, corporate finance decisions, Functions of corporate finance, Sources of Finance - Short Term and Long Term Goals of firm-profit maximisation v/s Shareholders wealth concepts of Economic value addition .market value addition (EVA/MVA)

Unit 2 CO1, CO2 · 4 hours

Indian Financial system - Financial Markets: Capital Market (Equity and Debt market), Money market Financial Intermediaries Financial Assets, Regulatory system

Unit 3 CO3 · 6 hours

Working Capital Management and Short-Term Planning: Components of working capital, working capital cycle, Inventory Management, Receivables Management, Cash Management

Unit 4 CO3, CO4 · 4 hours

Financial Planning and Forecasting, Meaning and importance of financial planning, Preparation of Pro- forma Income Statement and Balance Sheet, Computation of external financing requirements

Unit 5 CO2, CO3 · 4 hours

Banking and Financial Institutions types: Commercial banks, Investment Banks Understanding banking Finances: Sources, Deposits, Loans, Advances, NPA, gross net, Basic overview of BASEL Norms, use of AI in Banking sector

Unit 6 CO2, CO3, CO4 · 4 hours

Leverage Analysis: Operating, financial and total leverage, Business risk, Operating and financial Risk and other types of risks

Unit 7 CO2, CO3, CO4,CO5 · 6 hours

Capital Structure, Cost of Capital, WACC, Determination of optimal capital structure, Decision making based on parameters PE ,ROI, EBIT and EPS/MPS approach

Unit 8 CO2, CO3, CO4, CO5 · 4 hours

Valuation Concepts: Future values and compound interest; present values; level cash flows: perpetuities and annuities Financial needs and suggestions for various investment options

Unit 9 CO3, CO4, CO5 · 8 hours hours

Investment in Capital Assets: Capital budgeting and estimating cash flows; capital budgeting techniques; multiple internal rates of return Decision making about best alternative project for investment use various evaluation techniques like NPV, IRR, PI,ARR, Modified IRR payback period etc.

Unit 10 CO3, CO4, CO5 · 6 hours

Dividend policy; Factors affecting dividend decision; theories of relevance and irrelevance of dividend policy Dividend decision models; Walter model; Gordon model; Walter model MM approach

Unit 11 CO3, CO4,CO5 · 4 hours

Ratio Analysis : Financial performance analysis using Ratios of few companies and banks

Unit 12 CO6 · 03 hours

Presentations and Assignments

Unit 13 CO6 · 03 hours

Presentation and Assignment

Text Books

• 1 Financial Management – M.Y. Khan and P.K. Jain
• 2 Financial Management – Prasanna Chandra
• 3 Financial Management – I. M. Pandey

Reference Books

• 1 Principles of Corporate Finance – Myers and Brealey
• 2 Fundamentals of Financial Management – James Van Horne
• 3 Fundamentals of Financial Management by Eugene F. Brigham, Joel F. Houston (2011), South Western (Cengage Learning)