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IE 648: Quantitative Analysis in Finance and Marketing

Prerequisite:  Exposure to relevant concepts at undergraduate level and instructor consent


Objectives of financial management. Risk aversion, utility and gambling. Financial analysis and planning, balances sheet, income statement funds flow analysis, financial ratio analysis, discriminate analysis, Limitations of ratio analysis, cost volume-profit analysis; operation and financial leverages.

Investment decision under certainty and uncertainty. Resolution of inconsistency between NPV and IRR as ranking criteria. Portfolio selection and capital budgeting. Analysis of selected investment decisions.

Working capital management cash, marketable securities, receivables, inventories. Short term financing

Cost of capital under certainly/uncertainty and perfect capital market/capital rationing, cost of debt, preferred stock, convertibles, common equity under static and growth conditions.

Capital structure theories, determinants and planning, Dividend decision, theories and practical considerations. Demand and sales forecasting, short term and long term pricing. Product policy, Product evaluation. Product mix analysis.

Allocation of resources to products. Marketing mix analysis.

Sales force planning. Designing and assigning sales territories. Determining call norms. Setting sales quotes and commissions. Market segmentation; consumers and products.

New product policy. Screening new products. Assessing user reaction to new products. Estimating market response. Consumer behaviour Attribute perception analysis. Stochastic behaviour analysis.

Advertising strategy. Measuring response to advertising. Allocation of advertising budget.


  • I.M. Pandey (1979), Financial Management, Vikas.
  • G.M. Samuels and F.M. Wikes (1975), Management of Company Finance, Neison.
  • J.C.T Mao (1969), Quantitative Analysis of Financial Decisions, Mac Millan.
  • H. Bierman (1970), Financial Policy Decisions, MacMillan.
  • P.T Fitzroy (1976), Analytical Methods for Marketing Management, McGraw Hill.