SCDL Strategic Finance- SF

sl no.	Strategic Finance	pg no.
	unit 1:-Capital Structuring
1	meaning of capital structuring	2
2	capital	2
3	equity debt	2
4	relation between capital structure and profitability	2
5	optimal capital structure	3
6	capital structure theories	4
7	basic assumptions	4
8	net income approach- NI	4
9	average cost of capital	4
10	increase in value	6
11	decrease in value	6
12	net operating income approach-NOI	7
13	value of the firm	7
14	cost of debt	7
15	explicit cost	7
16	implicit cost	8
17	optimal capital structure	9
18	Modigliani- Miller Theorem	10
19	arbitrage process	11
20	shortcoming of the Modigliani and miller theorem	16
21	corporate taxes	16
22	personal taxes	16
23	noninterest committed tax advantage	17
24	bankruptcy costs	17
25	agency cost	17
26	asymmetric information cost	17
27	transaction cost	18
28	influence of the capital structure on the market of the value of the firm	18
29	traditional or intermediate approach	19
30	other approaches	22
31	free cash flow theory	22
32	pecking order theory	23
33	stakeholder theory	24
34	capital	25
35	capital structure	25
36	mobilize	25
37	reserves	25
38	profits/profitability	25
39	financial decision	25
40	equity	25
41	debt	25
42	weightage	26
43	market value	26
44	risk	26
45	cash flow	26
46	investors	26
	unit 2:-Dividend Theories
1	issues in dividend policy	30
2	dividend & capital gains	30
3	low payout policy	30
4	high payout policy	30
5	dividend relevance :Walter's model	31
6	internal financing	31
7	constant return and cost of capital	31
8	100 percent payout or retention	31
9	constant EPS and DIV	32
10	infinite time	32
11	growth firms	32
12	normal firms	33
13	declining firms	33
14	criticism of Walter's model	33
15	dividend relevance : Gordon's Model	33
16	dividend irrelelvance:MM Hypothesis	35
17	Bird in Hand theory	37
18	Smoothing theory	39
19	Tax differential theory	40
20	Residual theory	40
21	span of control theory	40
22	investor rationality theory	41
23	types of dividend policy	41
24	constant payout policy	41
25	regular and stable dividend payment policy	41
26	multiple increase in dividend	42
27	regular and extra dividend	42
28	dividend payment procedure	42
	unit 3:-Restructuring through
1	share repurchase	48
2	suitability and rationale	48
3	FEI survey of reasons of share repurchase	49
4	reduced dilution	51
5	methods of buyback	52
6	repurchase tender offers	52
7	open market purchases	52
8	privately negotiated repurchases	52
9	forward contracts to buy equity	53
10	open market versus tender offer share repurchase	53
11	explaining repurchases	54
12	legal provisions	55
13	section 77A, 77B,77AA	55
14	section 100-104 of the company's act	55
15	company shall buyback its shares through stock exchange	55
16	buy back through building	57
17	stock repurchase model	58
18	theories behind share repurchase	60
19	dividend on personal taxation hypothesis	60
20	leverage hypothesis	60
21	information or signaling hypothesis	60
22	wealth transfer among shareholders	61
23	defense against put side takeovers	61
24	live example	62
25	capital asset pricing model-CAPM	65
26	risk less return	65
27	beta	65
28	risk premium	65
29	market portfolio	65
30	expected security return	65
31	binomial option pricing model	65
32	black -scholes formula	65
33	assumptions of CAPM	66
34	rationale of CAPM	66
35	Harry Markowitz	67
36	residual risk or alpha	66
37	implication of CAPM	68
38	Limitations of CAPM	69
39	testing CAPM	69
40	stability of BETA	70
	unit 4:- Mergers and Acquisition
1	merger	76
2	absorption	77
3	consolidation	77
4	form of mergers	77
5	horizontal mergers	77
6	vertical mergers	78
7	conglomerate mergers	78
8	financial conglomerate	79
9	managerial conglomerate	79
10	concentric companies	79
11	acquisitions	79
12	friendly take over	80
13	hostile takeover	80
14	motives and benefits of merger	80
15	accelerated growth	81
16	enhanced profitability	82
17	economies of scale	82
18	operating economies	82
19	synergy	82
20	diversification of risk	82
21	reduction of tax liability	83
22	financial benefits	85
23	financial constraints	85
24	surplus cash	85
25	theory of mergers	86
26	differential efficiency and financial synergy	86
27	differential efficiency	86
28	financial synergy	87
29	operating synergy and pure diversification :theory of mergers	87
30	operating synergy	87
31	pure diversification	88
32	employees	88
33	owner mangers	89
34	firm	89
35	goodwill	89
36	financial and tax benefits	89
37	analysis of mergers and acquisition	89
38	planning	89
39	search and screening	90
40	financial evaluation	90
41	value create b mergers	90
42	costs and benefits of merger	91
43	NPV	92
44	financial framework	93
45	determining the firm's value	93
46	book value	94
47	appraisal value	94
48	market value	95
49	DCF valuation of the mergers	95
50	earnings per share	96
51	calculation of exchange ratio	98
52	financing techniques in merger	100
53	ordinary share financing	100
54	pre-merger post merger	101
55	debt and preference share financing	103
56	deferred payment plan	104
57	tender offer	106
58	merger as a capital budgeting decision	106
59	frame work for evaluating acquisition	107
60	regulations of take overs/mergers/aquisitionms in India	109
61	interest of small shareholders	110
62	realization of economic gains	110
63	no under concentration of market powers	110
64	financial support	110
65	SEBi guidelines	111
66	Anti takeover defense in India	112
67	make preferable allotments	112
68	effect creeping enhancement	112
69	amalgamate group companies	112
70	sell the crown jewels	112
71	search for a white knight	112
	unit 5:- Activity based costing-1
1	purpose	118
2	why ABC	118
3	what is ABC	119
4	disadvantage of traditional accounting methods	121
5	organization element accounting	121
6	budgetary accounting	122
7	traditional cost accounting	122
8	comparative example	122
9	managerial analysis	123
10	additional information	123
11	purchasing department	123
12	traditional cost accounting	123
13	activity based accounting	124
14	total cost per unit output	124
15	results of decision	124
16	alternative decision	125
17	activity based review	125
18	what does ABC provide to the decision maker	126
19	process decision	126
20	decision point	127
21	what can ABC do	128
22	understanding the value chain	129
23	performance measure	129
24	output measure	129
25	cost objects	129
26	bill of activities	129
27	value added and non value added activities	130
28	total cost of activity	130
29	cost driver	130
30	elapsed time	130
31	cycle time	130
32	total cost of the process	130
33	cost of a single iteration	130
34	cost of the output	130
35	identification of change opportunities	131
36	significant cost consumption	131
37	significant time use	131
38	evaluation of change alternative	131
39	cost comparison	131
40	time comparison	131
41	costing for raw materials,products,services	131
	unit 6:-Activity based costing-2
1	how is ABC done	138
2	feasibility and review	138
3	strategic analysis	138
4	value chain analysis	138
5	process analysis	138
6	analyse activities	138
7	the activity market	138
8	the activity	139
9	input	139
10	controls	139
11	output	139
12	mechanism	139
13	developing the activity model	139
14	the scope of the activity market	140
15	total quality management / total quality leadership	140
16	gather costs-cost objects and bills of the activity	142
17	total cost for a cost object	142
18	scope of the cost data	143
19	objective	143
20	credibility of the cost data	143
21	timing	144
22	prior organizational changes	144
23	similar accounting procedures\	144
24	sources	145
25	accounting records	145
26	organizational accounting	145
27	budgetary accounting	145
28	cost accounting	146
29	budgetary control	146
30	miscellaneous records and reports	146
31	categories	146
32	labor	146
33	salaries and hourly wages	147
34	pa increases	147
35	fringe benefits	147
36	overtime	147
37	vacancies	148
38	supplies	148
39	rental equipment	148
40	direct materials	148
41	facilities	148
42	overhead expenses	149
43	tracing costs to activities	149
44	general data flow	150
45	phase 1: identify organization costs	150
46	phase 2:-distribute organizational costs to the organization structure	150
47	phase 3: identify categories of organizational elements	150
48	managerial	150
49	support	151
50	operational	151
51	phase 4: select the appropriate level of the representative costs	151
52	direct costs incremental costs	152
53	full costs	152
54	phase 5:redistribute organization costs to operational elements	152
55	phase 6: allocate final distribution costs to the activity model	153
56	establish output measures	153
57	creating the output measure	154
58	analyse activity output and performance	154
59	select the output measure	154
60	determine the activity output costs per unit of output	155
61	determine the time requirements	155
62	document the output measure	155
63	analyse costs and activity classification	156
64	tools for review process	157
65	pareto analysis	157
66	activity costs	157
67	benchmarking	158
68	best practices	158
69	value added analysis	158
70	comparative analysis	159
71	cost benefit analysis	160
72	economic analysis	160
73	functional economic analysis-FEA	160
74	determination of wastage	161
75	bottom line	161
76	standards	161
77	skills	162
78	activity accounting	162
	unit 7:-Working Capital
1	factors influencing working capital requirements	168
2	nature of business	168
3	seasonality of operations	169
4	production policy	169
5	market conditions	169
6	conditions of supply	169
7	need for working capital	169
8	working capital operating cycle	170
9	two major concepts of working capital	170
10	net working capital	170
11	importance of working capital management	170
12	optimal level of current asset	171
13	flexible or conservative policy	171
14	conservative approach	172
15	aggressive approach	172
16	restrictive or aggressive policy	173
17	matching approach	173
18	hedging maturity matching approach	174
19	permanent working capital	174
20	temporary working capital	174
21	strategies available to a firm for financing its capital requirement	175
22	spontaneous financing	176
23	accounts payable	176
24	notes payable	176
25	advantages of trade credit	177
26	ready availability	177
27	no restriction	177
28	no lead time	177
29	flexibility	177
30	accrued expenses	177
31	concept of float	180
32	accelerate cash collections	180
33	delay cash payments	181
34	negotiated financing	182
35	unsecured sources	182
36	commercial paper	182
37	cost	183
38	unsecured bank loan	183
39	cost	184
40	secured loans	185
41	inter-corporate deposit	185
42	bank credit	185
43	amount of assistance	185
44	loan	186
45	overdraft	186
46	cash credit	186
47	bills purchased/discounted	186
48	working capital term loans	186
49	banker's acceptance	187
50	hypothecation	187
51	pledge	187
52	mortgage	187
53	lien	188
54	accounts recievable backed loans loans	188
55	quality of receivables	188
56	size of receivables	188
57	inventory backed-loans	189
58	floating lien	189
59	chattel mortgage	189
60	trust receipt	189
61	terminal warehouse receipt	189
62	field warehouse receipt	190
63	export financing	190
64	forfaiting	190
65	current providers	190
66	British American forfaiting company	191
67	conclusion	191
68	bank finance	191
69	commercial paper	192
70	short term privately placed debenture	192
71	bill discounting	192
72	factoring/forfaiting	192
73	flexibility	192
74	time	193
75	cost	193
76	creditworthiness of the issue or the corporate	193
77	amount of funds required	193
78	urgency of funds required	193
79	expected cash inflows	193
80	period for which funds are required	193
81	availability of funds in the market	193
82	RBI regulation and general government policy	193
	unit 8:-Accounting standards-1
1	definitions	198
2	investment	198
3	asset	198
4	classification of investment	199
5	cost of investment	200
6	carrying amount of investment	201
7	current investment	201
8	carrying amount of investment	202
9	long-term investment	202
10	disposal of investment	202
11	reclassification of investment	203
12	disclosure	203
13	effective date	204
14	statement of accounting standards AS23]	204
15	objective scope	205
16	definitions	205
17	control	205
18	consolidated financial statement	206
19	equity	206
20	accounting for investment equity method	207
21	application of the equity method	208
22	contingencies	209
23	disclosure	209
24	investment account	209
25	profit and loss account	209
26	accounting standard 19 for leases	212
27	useful life	214
28	guaranteed residual	214
29	unguaranteed residual value	214
30	gross investment	214
31	unearned finance income	214
32	net investment	214
33	interest rate	214
34	classification of leases	215
35	leases in the financial statement of leases	216
36	finance leases	216
37	operating leases	217
38	leases in the financial statement of lessors	217
39	finance lease	217
40	operating leases	222
41	sale and leaseback transactions	223
	unit 9:-accounting standards-ii
1	accounting standards for valuation of investors	228
2	objective	228
3	scope	228
4	definition	228
5	measurement of inventories	228
6	cost of inventories	228
7	costs of purchase	229
8	costs of conversion	229
9	other costs	230
10	exclusion from the cost of inventories	230
11	cost formula	230
12	techniques for the measurement of cost	231
13	net reliable value	231
14	disclosure	232
15	accounting standards AS17 for segment reporting	233
16	meaning and objective	233
17	objective	234
18	scope	234
19	definition	234
20	reportable segment	235
21	enterprise revenue	235
22	segment review	235
23	segment revenue	236
24	segment expense	236
25	segment expense	236
26	identifying reportable segments:primary and secondary segment reporting formats	239
27	business and geographical segments	240
28	reportable segments	240
29	identifying reportable segments : segment accounting policies	241
30	primary reporting format	242
31	secondary segment information	244
32	other disclosure	245
33	extraordinary items AS5	247
34	accounting standards for depreciation accounting	248
35	depreciation is loss of value of an asset	248
36	definition	249
37	explanation	249
38	disclosure	249
	unit 10:-human Resource Accounting
1	HRA scenario	260
2	on balance sheet	261
3	the deterrents	262
4	the challenge	262
5	defining human resource accounting	263
6	man unanswered questions	263
7	the policy dimension	264
8	conceptual frame	264
9	training and selection cost analysis	266
10	concept	266
11	treatment from a financial accounting perspective	267
12	treatment from a managerial accounting perspective	268
13	historical costs	268
14	substitution costs	268
15	opportunity cost	269
16	exit cost analysis	269
17	concept	269
18	treatment	269
19	human resource accounting	271
20	investors in people	272
21	ownership and employer-employee relationship	273
22	accounting for employees	273
23	human asset accounting	274
24	beyond the wages bill	274
25	employees as balance sheet	275
26	performance ratios/indicators for HRM	276
27	staffing performance indicators	276
28	internal	276
29	sales per employee	276
30	recovery rate	276
31	utilization %	277
32	external	277
33	profit per head	277
34	compensation per Re.profit	277
35	are we getting VFM from personnel/HRM services	277
36	personnel services expenses	278
37	personnel services headcount-PSH	278
38	personnel service cost %-PSC	278