Anda di halaman 1dari 15

http://www.simplybooks.

in/introduction-financial-planning-indian-institute-book-isbn-978-104309

Landmark Store Locations & Store Directions

A)

B) CHENNAI (Apex Plaza)


C) LANDMARK LTD No: 3 N.H.Road Nungambakkam Chennai 600 034 PH: (044) 64523150 to 64523165 FAX: (044) 2825 9047 Email: apex@trent-tata.com Store Timing : 9.00 am - 9.00 pm D)

E) CHENNAI (Spencer Plaza)


LANDMARK LTD 769 Annasalai Chennai 600 002 PH: (044) 64523166 to 64523181 FAX: 4214 0004 Email: spencer@trent-tata.com Store Timing -10.00 am - 9.00 pm F)

CHENNAI (Citi Centre)


LANDMARK LTD No: 10 & 11 DR.Radhakrishnan Road Mylapore Chennai 600 004 PH: (044) 64523500 to 64523515 FAX: 4265 8317 Email: citicentre@trent-tata.com Store Timing - 10.00 am - 9.00 pm

CHENNAI (Ampa Skywalk)


LANDMARK LTD3rd Floor (adjacent to food court) Nelson Manickam Road, Aminijikarai Chennai - 600 029 PH: 64523101 Email: ampa@trent-tata.com Store Timing - 10.00 am - 9.00 pm G)

K) = 10%
A=3b=7T=4

H) I) J) = 50%

Equation to find the growth rate in transiton period







= 50 40*1/4 = 40%
b) the dividend growth rate for first 3 yrs 50% and for the 4th yrs 40% and the 7th onwards 10% hence, before going for the diviend calulation , first find to get the growth rate for the 5th and 6th of the transition period

 


= 50 40*2/4 = 30%


= 50 10*3/4 = 20%

Expected dividend growth rates and dividends for the 4th coming yrs years 1 growth 50 Expected dividend 1.5

2 3 4 5 6 7 8

50 50 40 30 20 10 10

2.25 3.38 4.73 6.14 7.37 8.11 8.92

Therefore the expected dividends for yrs 5 and 6 are Rs 6.14 and Rs7.37

c. Present value as per Hmodel

 

 

 



= [1.00/(o.15 o.10)][1+.10]+2[.50-.10] =Rs 38 Expected return as per Hmodel




 

 



[1/60][1+.10]+2[.50 -.10] + 0.10 =13.2 % Since both the present value and the expected return are less than the market price and the discpunt rate , Mr ramnath should not purchae this stock 58. the growth rate in dividends is shown in the from of a graph as follows

12

10

8 Series 1 Series 2 4 Series 3

0 1 2 3 4 5 6

A, the expected growth rate in yrs 3 (above the graph) is equal to 9% B, the expected dividend in 5 yrs

(1+

) (1+ 

)(1+

)(1+

)(1+

) )


=10(1+.10)(1+.10)(1+.09)(1+.08)(1+.07) = 15.24%

 = 15.24 * 1.07
= 16.30% C,

YEAR Dividend(Rs)

1 1.1

2 1.21

3 1.319

4 1.424

5 1.524

Continuing value in yr 5

PV

.9821

.9646

.9388

.9049

.8647

18.50

Total PV = 23.155 D, The current Market price =20 , Suppose YTM ltd is r then

20 =
 

+

At r= 16% RHS = 20.25 At r= 17% RHS = 19.64 By interpoation R = 16.42% 59. The post tax YTM ltd of the bond is calculated as follows Coupon = 15% Coupon income =0.15 *1000 = 150 Tax rate = 30% Ppost tax coupon = 0.7*150 = 105 Capital gains tax on redemption = (1000 950) * 0.2 = 10

Hence , redemption amount = 1000 10 =990 YTM will be Takng I = 10% we have 105 * 5.65 + 990*0.322 =593.25 + 318.78 =912.03 By interpolation , YTM

= 10 + (12 10)* = 11.34% Duration = *




(1+

)+

= current yield = 105/950 = 11.05%

= YTM


= = 5.806

Hence duration =

* 5.806 * 1.1134 +

Hence duration =
=

6.30 + 0 = 6.30 years B, Interest rate risk = IE * And IE = - Di * = - 6.3 * = - 0.66 Thus , = - 0.66*

= -0.0582 0r the bond price wil decrease by 5.82%


FINANCE AND ACCOUNTING

MBA 311: CORPORATE TAX PLANNING Course Objectives

Credit Units: 03

At the end of the course, the students should be able to understand Indian accounting Standards and the impact of USGAAP on Financial Statements. To create an understanding of the accounting of Mergers and Acquisitions and Valuation of goodwill & Shares. In addition to Corporate Accounting the students should be able to demonstrate an understanding of the tax provisions enabling them to make use of legitimate tax shelters, deductions, exceptions, rebates and allowances; with the ultimate aim of minimizing the corporate tax liability.

Course Contents:

Module I: Accounting Norms Various Accounting Standards in India and comparison with International accounting Standards and US.GAAP.

Module II: Accounting for Merger and Acquisitions Accounting for Acquisition of Business, Calculation of Purchase consideration and Profit (Loss) Prior to Incorporation. Accounting for Amalgamation in the nature of Merger and in the nature of Purchase.

Module III: Valuation of Goodwill and Shares Valuation of Goodwill Different Methods of Valuation of Goodwill, Valuation of Shares Backing Method and Yield Method. Net Asset

Module IV: Basic Concepts of Income Tax Introduction to Income Tax Act, 1961, Residential Status, Exempted Incomes of Companies overview of various provisions of Business & profession & Capital gains

An

Module V: Assessment of Companies Computation of taxable income, MAT , Set off & carry forward of losses in companies, Deductions from Gross total income applicable to companies, Tax planning with reference to new projects/expansions/rehabilitation plans including mergers, amalgamation or de-mergers of companies.

Examination Scheme Components Weightage (%) CPA 5 TP 5 Q/S 5 A 5 ME 10 EE 70

References

y y y y y y

Singhania V.K. & Singhania Kapil , Direct taxes law & practices, Taxmann Ravi M Kishore, Advanced Accounting, Taxmann. Lakhotia , R.N. & Lakhotia, Corporate Tax Planning, Vision books Singhania, V.K., Student s guide to Income Tax, Taxmann International dictionary of taxation by Indian Tax Institute, 1st Edition. Maheshwari S.N and Maheshwari S.K Advanced Accountancy, Vikas Publishing House.

Wealth Management

Course Code:

312

Credit Units: 04

Course Objective: To equip students with skill sets required for managing wealth of high net worth individuals and mass affluents and to familiarize them with vital aspects of wealth management wealth accumulation, wealth preservation and wealth transfer Module 1

Introduction

to

Wealth

Management:

World s Wealth Statistics and Forecast - World Wealth Report - Key Drivers of Wealth Management The Players Global and Indian - Wealth management Scenario - Wealth management Indian Perspective.

Module 2

Understanding the Wealth management Process: Savings Cycle and Wealth Creation Cycle - Client Segmentation, Ultra high net worth individuals, High net worth individuals, Mass Affluent, Client Expectations - Wealth Accumulation, Wealth Preservation, and Wealth Transfer - Private banking, Family office, Offshore, Onshore, International investment, Wealth management tools - Ethical principals relevant to wealth management

Module 3

Client Profiling and Lifestyle Guide to Investing: Asset Allocation Principles - The Life-cycle Investment Guide - Private Banking and Client Characteristics - Identifying Client Needs - Proforma financial statement - NRIs as Clients

Module 4

Financial Planning: Need and Steps - Tax Planning: Fundamentals, Basic income tax saving techniques, Capital gains tax, Charity and tax; Insurance Planning: Human Life Value, Life Insurance, Health Insurance; Retirement Planning: Basics of retirement planning, Economic problems of retirement years, Steps in planning for retirement income, Sources of retirement income, Pension plans, Annuities and annuity schemes; Estate Planning: Need, objectives, methods of property disposition, using wills and trusts, settling the estate

Module 5

Investment and Investment Products: Basics of Investing - Investment Objectives - Investment constraints - Investor Categorization- Investment styles and factors determining them - Fixed Income Products: Money Market -Instruments, Bonds, Corporate Securities, Debt Securities - Variable Income Products: Equity and Equity Mutual Funds - Derivatives - Structured products -Credit cards. Risk Analysis of Investment Products.

Mutual Funds: Income funds, Growth funds, Balanced funds, Sector funds, Index funds, Private equity funds, Fund of funds, Thematic funds, Systematic Investment Planning.

Alternate Investment Options Art, Gold, Antiques, Commodities, Real Estate, REITS, Real Estate Related Mutual Funds, Charity. Asset Allocation: Definition - Asset Allocation Process - Partitioning Criteria, Asset Classes - Strategic Asset Allocation - Tactical Asset allocation. Portfolio Management Options and Performance Measurement of Portfolios: Direct Investing, Mutual Funds, Financial Planner s Advice, Stock brokers Research and Advice, Portfolio Tracking, Private Banking Options of Different Banks, and Discretionary Portfolio Management Services - Sharpe s ratio, Treynor s ratio, Jensen s measure, Information Ratio.

Module 6

Marketing of Financial Products: Relationship Marketing Selling in a competitive environment - Steps

in the relationship management process Segment, Profile, Expose, Strategize, Execute, Monitor and review - Personal Selling skills.Behavioral Skills for Wealth Management Time Management, Negotiation skills, Convincing skills, Etiquettes and Manners. Understanding Investor Psychology: Customer hesitancy, Client objection handling, Closing a deal.

Module 7

Financial Scams and Frauds: Know your customer, Money laundering, Investor Awareness, Regulation, Corporate Responsibility Act (SOX).

Learning Methods: Tutorials, Interactive sessions, Case studies, Field visits, Management games, Extensive research projects, Seminars, Weekend experience in companies - the course is covered by adopting a combination of lecture methods, class presentation by groups of students, self study sessions. Each student is required to do the back ground reading from the specified chapters of the prescribed book before coming to class. Cases are also to be analyzed, discussed in groups (teams) outside the class as preparatory work.

Examination Scheme:

Components Weightage (%)

P1 10

C1 10

CT1 10

EE 70

SUGGESTED READINGS : y y y y y y y y Indian Institute of Bankers : Introduction to Financial Planning Gitman et al. South-Western College Pub 2007 : Personal Financial Planning, 11th edition Keown, Arthur J. Pearson Education : Personal Finance Hallman, G. Victor / Rosenbloom, Jerry S. Mcgraw-Hill 2003 : Personal Financial Planning, 7th edition Katz, Deena. Bloomberg Press : Practice Management for Financial Advisors, Planners, and Wealth Managers John Wiley and Sons : The Citibank Guide to Building Personal Wealth Cap Gemini and Merrill Lynch : World Wealth Report Garner, Robert J / Coplan, Robert B 2002 : Ernst & Young Personal Financial Planning Guide

MBA 313: SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT Credit Units: 03

Course Objectives This course aims at providing a clear understanding of the changing domestic and global investment scenario in general and Indian capital market in particular with reference to availability of various financial products and operations of stock exchanges. Important theories, techniques, regulations and certain advancements in theory of investment will be covered with an aim of helping the participants make sound investment decisions. Course Contents Module I: Background of Capital market/Corporate Governance and Methods of Fund Raising Importance of Strong Capital market in Economy, Investment opportunities available to Investors, relation of demographic characteristics with investment pattern of individuals, Process of investment in Financial assets, intermediaries and Role of SEBIOTCEI//ROC/Stock exchanges-Listing agreemen. Salient features and operation of stock exchanges,Trading arrangements, Changing scenario of Indian stock market.Relationship of Primary market with Secondary market, raising of Funds by IPO/FPO/Right issue and intermediaries involved.

Module II: Debt Malkiels's Law, Interrelationship of Bond Market and Stock market, International events and its impact on security market Risk and return in the context of Portfolio, , Common stock valuation models, Term structure of Interest Rates,Role of FII"S, DII/MF /QIB in Capital market.Participatory notes and its Impact, index formation.. Module III: Fundamental analysis-Economic &industry analysis, concept of Business Cycles, Indicators of economic prosperity, Industry analysis, Company analysis, Company valuation.DOW"s Theory, Various Technical analysis tools like Moving averages, Volume Analysis, Indicators, RSI, Patten analysis,Candle sicks,Market breadth analysis, Trend analysis,Elliot wave Rules Fibonacci numbers, ROC/RSI, CAPM and Fama and French challenge, lagging indicators and leading indicators analysis, reading and interpretations of technical patterns and charts. Module IV: Arbitrage pricing theory, Efficient market theory, Valuation by PE ratio /Book value to price value analysis, Markowitz Risk. Types of Mutual Funds--SIP/ELSS, Tax Implications, Role of Fund Manager, Portfolio management services, Sharpe "performance Index, Trennor"performance Index, Jensen's performance Index. Examination Scheme

Components Weightage (%)

CPA 5

TP 5

Q/S 5

A 5

ME 10

EE 70

References y y y y y y y Chandra, P.(2002), Investment Analysis, Tata McGraw Hill Fischer, D.E. and Jordan, R.J. (1995), Security Analysis & Portfolio Management, Prentice Hall of India Bhat, Sudhindra;(2009); Security Analysis & Portfolio Management; Excel Books Dash, A.P.;(2009); Security Analysis & Portfolio Management; I.K. International Bhatt, S.N.;(2011); Security Analysis & Portfolio Management; Biztantra Rangnatham M., Madhumalathi, R.,(2006); Security Analysis & Portfolio Management; Pearson Education Khatri, Dhanesh;(2010); Security Analysis & Portfolio Management; MacMillan India Ltd.

STRATEGIC MANAGEMENT

Course Code:

MBA 301

Credit Units: 03

Course Objectives The course is designed to help students to understand the concept of strategy and strategic management process. Acquaint students with basic concepts and principles of strategic management, develop and prepare organizational strategies that will be effective for the current dynamic environment and likewise to impart the strategic management conceptual framework.

Course Contents

Module I: Purpose of Strategy Formulation Evolution and Introduction of strategic management. Concept and Classification of Corporate and Business Strategy with Hierarchy definition; Purpose of Strategy Formulation: Concept of Vision, Mission and Business Definition.

Module II: Strategic Analysis

PESTLE Analysis, Environmental Threat and Opportunity Profile (ETOP), Strategic Advantage Profile (SAP), Porter s Value Chain Analysis, Resource Based View of the Firm-VRIO Framework; Market Analysis-David Aaker Model,Competitor Analysis, Industry Analysis using Porter s five forces Model; Scenario analysis and SWOT Analysis. Strategic implications of company decisions and Strategic response to changes in business environment.

Module III: Strategic Choice Traditional Approach Portfolio Analysis using BCG, GE Nine Cell Matrix, Hofer s Model, Making Strategic Choices using Strickland s Grand Strategy Selection Matrix; Ansoff s Product Market Grid; Choosing Generic Strategies using Porter s Model of competitive advantage.

Module IV: Industry Structures and Competitive Strategies Industry Structures and Lifecycle stages, Marketing Warfare and Dominance Strategies: Advantages and Disadvantages of Defensive and Offensive strategies; Innovation as Blue Ocean Strategy.

Examination Scheme

Components Weightage (%)

CPA 5

TP 5

Q/S 5

A 5

ME 10

EE 70

References

y y y y y y

Wheelen and Hunger,(2008), Essentials of Strategic Management, Prentice Hall India. Ramaswamy and Namakumari,(1999), Strategic Planning: Formulation of Corporate Strategy Text and Cases, Macmillan India Ltd., Jausch & Glueck,(1988), Business Policy and Strategic Management, (5th Ed.), McGraw Hill. Thomson & Strickland,(2008), Business Policy and Strategic Management, (12th Ed.), McGraw Hill. Pearce John A & Robinson R.B,(1997), Strategic Management: Strategy Formulation and Implementation, (3rd Ed.), AI.T.B.S. Publishers & Distributors Regular reading of all latest Business journals: HBR, Business World, Business India, Business Today