Day- 8.
Learning Unit - 4
Forenoon and Afternoon Session
Time & Subject Activities/Process Support and Role
of Facilitators
9.30 p.m. to 5.30 p.m.
Capital Management
- Investment
criteria - CAPM
- MM
- WACC
- Valuations
- Risk
measurement - Capital budgeting
Assignment of tasks to
groups
Recap on L.U.
Commencement of LU- 4
Faculty to make a brief
presentation to explain concepts of
investment criteria, CAPM
approach, MM approach, WACC,
valuations, risk measurement
DEMAT system and the working
of depository system in India; and
capital budgeting.
Group Activities
The existing four groups will be
converted into 3 groups
Each group will be assigned with
two sub-units
Group 1: (a) Capital structure
analysis, (b) Capital structure
Decisions
Group 2: (a) Measurement of risk
(b) Cost of capital, including
CAPM.
Group 3: (a) Valuation of fixed
income securities, (b) Valuation of
bonds and stocks
Based on the books borrowed from
the library and the reading
materials, the groups will have
discussion with reference to: (a)
conceptual clarity, (b) meaning, (c)
utility or scope for application, (d)
illustrations and examples.
Faculty to preferably
use the 9 visual aids
provided in the reading
material for LU-4.
Details should be
explained as per
contents in the handout
on ‘Instructions to
faculty on Capital
Management'.
Faculty to supply the
reading materials a day
in advance.
Faculty/facilitator to
guide the groups on the
reading material
available for reference.
Focus to be on 24
questions listed in the
Handout on Capital
Management in LU-4.
Faculty to give clues to
the references for the 24
questions.