MFA-102 Financial Management Notes from Unnati Educations cover all 4 units of the GGSIPU MBA (Financial Analysis) Semester 2 core paper in a 71-page printed book: 42 solved illustrations, 8 Excel walkthroughs, 28 diagrams and 88 exam-style questions, mapped to the scheme for batches admitted from 2021-22 onwards.
Written by Prateek Talwar, Founder, Unnati Educations (ACS, ICSI) · Reviewed by Sheetal Kirola, Academic Head, M.Ed. (academic review) · Checked against the MBA (FA) Scheme and Syllabus 2021-22 onwards, 28 October 2026 · Updated 28 October 2026 · Editorial policy
Scheme: MBA (FA) scheme and syllabus 2021-22 onwards | Applies to: batch admitted 2021-22 onwards | Verified against: MBA (Financial Analysis) Scheme and Syllabus 2021-22 onwards (ipu.ac.in), 28 October 2026
MFA-102 Financial Management at a glance: GGSIPU MBA (FA) Sem 2 credits, units and exam pattern
| Code and title | MFA-102 Financial Management |
|---|---|
| Course and semester | MBA (Financial Analysis), Semester 2 |
| Category and credits | Core · 3 credits · 3 lecture hours a week, no tutorial or practical |
| Marks | 100: 50 internal + 50 end-term |
| Internal (50) | Class Test I 15 + Class Test II 15 + assignments, presentation, viva or class participation 20 |
| End-term pattern | 50-mark written university exam. Paper-setter instructions are not printed in the official PDFs. |
| Units and hours | 4 units: I 10 hours, II 10, III 10, IV 12 |
| Applies to | Batch admitted 2021-22 onwards |
| Paired lab | None |
Unit IV gets two extra hours and 10 sections in the notes. The syllabus line "MS-Excel Functions and Formulas to be used" is why every unit has spreadsheet steps, from =PMT to =MIRR. MFA-102 sits with ten other GGSIPU MBA (FA) Semester 2 papers.
MFA-102 Financial Management Notes unit-wise: 42 solved illustrations and 8 Excel walkthroughs across 4 units
These MFA-102 Financial Management IPU notes run to 71 pages. The official PDF numbers units without titles, so the unit names below are the notes' own. Other papers: GGSIPU MBA (FA) notes.
MFA-102 Unit 1: Financial Objectives, Time Value of Money, Funds Flow and Cash Flow Analysis
Wealth versus profit maximisation, EVA and the agency problem, then how the repo rate and inflation shape financing. The money maths follows: compounding, discounting, effective rate, annuity, annuity due, perpetuity, EMI and amortisation, ending with funds flow and an AS-3 cash flow statement read through its CFO, CFI and CFF signs.
Pages 4-23 · 8 sections · 12 solved illustrations · 3 Excel walkthroughs · 8 figures · 22 exam questions.
| Year | Opening (₹) | Interest (₹) | Principal (₹) | Closing (₹) |
|---|---|---|---|---|
| 1 | 1,00,000.00 | 10,000.00 | 30,211.48 | 69,788.52 |
| 2 | 69,788.52 | 6,978.85 | 33,232.63 | 36,555.89 |
| 3 | 36,555.89 | 3,655.59 | 36,555.89 | 0.00 |
Quick look: ₹1,00,000 loan at 10% repaid in 3 annual instalments of ₹40,211.48 (from page 15)
- Year
- 1
- Opening (₹)
- 1,00,000.00
- Interest (₹)
- 10,000.00
- Principal (₹)
- 30,211.48
- Closing (₹)
- 69,788.52
- Year
- 2
- Opening (₹)
- 69,788.52
- Interest (₹)
- 6,978.85
- Principal (₹)
- 33,232.63
- Closing (₹)
- 36,555.89
- Year
- 3
- Opening (₹)
- 36,555.89
- Interest (₹)
- 3,655.59
- Principal (₹)
- 36,555.89
- Closing (₹)
- 0.00
MFA-102 Unit 2: Capital Structure, Cost of Capital, Leverage and EBIT-EPS Analysis
Does the debt-equity mix change firm value? Four worked answers: NI, NOI, the U-shaped Traditional approach and MM, with Mr Raj's arbitrage trade and the tax shield (VL = VU + tD). Then specific costs and WACC on book and market weights, leverage, a three-plan EBIT-EPS indifference problem and capital gearing.
Pages 24-40 · 8 sections · 12 solved illustrations · 2 Excel walkthroughs · 5 figures · 22 exam questions.
| Measure | Working | Result |
|---|---|---|
| DOL | Contribution 2,00,000 ÷ EBIT 1,00,000 | 2.00 |
| DFL | EBIT 1,00,000 ÷ EBT 60,000 | 1.67 |
| DCL | Contribution 2,00,000 ÷ EBT 60,000 | 3.33: sales +10% lifts EPS from ₹4.50 to ₹6.00 |
Quick look: leverages at 10,000 units, ₹1,00,000 fixed cost and ₹4,00,000 of 10% debt (from page 35)
- Measure
- DOL
- Working
- Contribution 2,00,000 ÷ EBIT 1,00,000
- Result
- 2.00
- Measure
- DFL
- Working
- EBIT 1,00,000 ÷ EBT 60,000
- Result
- 1.67
- Measure
- DCL
- Working
- Contribution 2,00,000 ÷ EBT 60,000
- Result
- 3.33: sales +10% lifts EPS from ₹4.50 to ₹6.00
MFA-102 Unit 3: Capital Budgeting and Risk Analysis
One ₹5,00,000 project runs through payback (3.13 years), ARR, NPV, PI, IRR (15.56%), discounted payback and MIRR. The risk half covers certainty equivalent versus RADR, a big-or-small plant decision tree, Hillier's independent and dependent cash flows, replacement, equivalent annual cost and sensitivity.
Pages 41-55 · 8 sections · 8 solved illustrations · 2 Excel walkthroughs · 7 figures · 22 exam questions.
| Variable | Change to NPV zero | Sensitivity |
|---|---|---|
| Annual cash flow | -12.07% | Highest (critical) |
| Initial cost | +13.72% | High |
| Project life | -15% | High |
| Discount rate | +52.4% (to IRR 15.24%) | Low |
Quick look: change that pulls an NPV of ₹68,618 to zero (from page 52)
- Variable
- Annual cash flow
- Change to NPV zero
- -12.07%
- Sensitivity
- Highest (critical)
- Variable
- Initial cost
- Change to NPV zero
- +13.72%
- Sensitivity
- High
- Variable
- Project life
- Change to NPV zero
- -15%
- Sensitivity
- High
- Variable
- Discount rate
- Change to NPV zero
- +52.4% (to IRR 15.24%)
- Sensitivity
- Low
MFA-102 Unit 4: Dividend Policy and Working Capital Management
Walter and Gordon face MM's proof that a ₹1 crore firm value holds with or without a ₹5 dividend, plus Lintner. Working capital covers the operating cycle, three financing approaches, a ₹13,75,000 estimate, EOQ, ABC to JIT, Baumol, Miller-Orr, credit policy and marketable securities.
Pages 56-71 · 10 sections · 10 solved illustrations · 1 Excel walkthrough · 8 figures · 22 exam questions.
Quick look: Baumol optimum cash balance in four steps (from page 66)
- Inputs: annual cash need ₹32,00,000, cost per securities sale ₹100, interest 10%.
- C* = √(2 × 100 × 32,00,000 ÷ 0.10) = ₹80,000.
- 40 conversions × ₹100 = ₹4,000 transaction cost.
- Holding cost (80,000 ÷ 2) × 10% = ₹4,000; total ₹8,000 is the minimum.
MFA-102 exam corner: 60 two-and-a-half-mark and 28 twelve-and-a-half-mark exam questions by unit
Each unit ends with 15 questions marked "2.5 Marks" and 7 marked "12.5 Marks" (the notes' labels; the official PDFs print no pattern).
| Unit | Short (2.5 Marks) | Long (12.5 Marks) | Solved illustrations |
|---|---|---|---|
| Unit 1 | 15 | 7 | 12 |
| Unit 2 | 15 | 7 | 12 |
| Unit 3 | 15 | 7 | 8 |
| Unit 4 | 15 | 7 | 10 |
| Total | 60 | 28 | 42 |
MFA-102 exam questions and solved illustrations by unit
- Unit
- Unit 1
- Short (2.5 Marks)
- 15
- Long (12.5 Marks)
- 7
- Solved illustrations
- 12
- Unit
- Unit 2
- Short (2.5 Marks)
- 15
- Long (12.5 Marks)
- 7
- Solved illustrations
- 12
- Unit
- Unit 3
- Short (2.5 Marks)
- 15
- Long (12.5 Marks)
- 7
- Solved illustrations
- 8
- Unit
- Unit 4
- Short (2.5 Marks)
- 15
- Long (12.5 Marks)
- 7
- Solved illustrations
- 10
- Unit
- Total
- Short (2.5 Marks)
- 60
- Long (12.5 Marks)
- 28
- Solved illustrations
- 42
- Unit 1 (12.5 Marks): A ₹5,00,000 loan at 10% is repayable in 4 equal annual instalments. Find the instalment and prepare the schedule. Pointer: loan ÷ PVIFA(10%, 4); interest on each opening balance.
- Unit 2 (2.5 Marks): Why is cost of debt adjusted for tax but not cost of preference capital? Pointer: interest is tax-deductible, so kd = I(1 - t) ÷ NP; preference dividend comes from after-tax profit.
- Unit 3 (2.5 Marks): Why may NPV and IRR give conflicting rankings? Pointer: size, timing or life differences; prefer NPV; name Fisher's rate.
- Unit 4 (2.5 Marks): Find EOQ for 8,000 units, ordering cost ₹100, carrying cost ₹4. Pointer: √(2 × 8,000 × 100 ÷ 4) = about 632 units.
The MFA-102 notes list 60 short-answer (2.5 Marks) and 28 long-answer (12.5 Marks) exam-style questions across 4 units, plus 42 solved illustrations.
More practice sits in the MFA-102 important questions.
Funds flow analysis in corporate finance: excerpt from page 16 of the MFA-102 notes
Excerpt from page 16
A funds flow statement shows where the funds of a firm came from and where they went between two balance sheet dates. Here "funds" means working capital, that is, current assets minus current liabilities. The statement explains why working capital rose or fell during the year, which is why it was once called the "where got, where gone" statement. Foulke describes it as a technical device designed to analyse the changes in the financial condition of a business between two dates.
When does a flow of funds happen?
Funds flow only when a transaction touches one current account and one non-current account. Issuing shares for cash is a source of funds, because share capital is non-current and cash is current. Buying machinery for cash is an application for the same reason.
Collecting cash from debtors moves money between two current accounts, so working capital does not change and there is no flow. Buying a building by issuing shares links two non-current accounts, so again there is no flow.
Four steps to prepare the statement
First, draw up a schedule of changes in working capital by comparing the current assets and current liabilities of the two years. Second, work out funds from operations: net profit adjusted for non-cash and non-operating items.
Third, prepare the fixed asset, investment and provision accounts to bring out hidden information such as purchases, sales and depreciation. Fourth, prepare the funds flow statement itself, where total sources equal total applications once the change in working capital is included.
Funds from operations (adjusted P&L method)
Start with the net profit for the year: the closing P&L balance minus the opening balance. Add back non-cash and non-operating charges such as depreciation, goodwill written off, loss on sale of assets and transfer to reserves, plus proposed dividend and provision for tax where they are treated as appropriations.
Then deduct non-operating incomes such as profit on sale of assets, dividend received and refund of tax. What is left is the working capital the business generated from its own trading during the year.
Do the MFA-102 notes cover the full GGSIPU syllabus?
Yes. Every topic listed for Units I to IV has its own section, and the MS-Excel note is covered by 8 Excel walkthroughs.
| Official unit | Official topics | Where in the notes | Status |
|---|---|---|---|
| Unit I | Financial Objectives; Impact of Financial and Economic Environment on Financial Management; Time Value of Money, Computation of EMI, Annuity, Annuity Due, Funds Flow Analysis, Cash Flow Statement and its Interpretation (AS-3) | Sections 1-8, pages 4-22 | Covered |
| Unit II | Capital Structure: Net Income Approach, Net Operating Income Approach, Traditional Approach and MM Approach, Cost of Capital: Leverage Analysis, Operating Leverage, Financial Leverage, Combined Leverage. EBIT-EPS Analysis, Capital Gearing | Sections 1-8, pages 24-38 | Covered |
| Unit III | Capital Budgeting, Conventional and DCF Methods, Risk Analysis: Certainty Equivalent Factor, Risk Adjusted Discounting Rate, Decision Tree, Independent and Dependent Risk Analysis, Replacement Decisions, Sensitivity Analysis | Sections 1-8, pages 41-53 | Covered |
| Unit IV | Dividend Policy: Walter Model, Gordon Model, MM Approach, Lintner Model; Working Capital Management: approaches, estimation; Management of Inventories; Management of Cash (Various Theoretical Models); Management of Receivables and Marketing Securities | Sections 1-10, pages 56-69 | Covered |
| Note | MS-Excel Functions and Formulas to be used | Pages 11, 14, 15, 33, 37, 46, 53, 64 | Covered |
MFA-102 official syllabus topics mapped to the notes
- Official unit
- Unit I
- Official topics
- Financial Objectives; Impact of Financial and Economic Environment on Financial Management; Time Value of Money, Computation of EMI, Annuity, Annuity Due, Funds Flow Analysis, Cash Flow Statement and its Interpretation (AS-3)
- Where in the notes
- Sections 1-8, pages 4-22
- Status
- Covered
- Official unit
- Unit II
- Official topics
- Capital Structure: Net Income Approach, Net Operating Income Approach, Traditional Approach and MM Approach, Cost of Capital: Leverage Analysis, Operating Leverage, Financial Leverage, Combined Leverage. EBIT-EPS Analysis, Capital Gearing
- Where in the notes
- Sections 1-8, pages 24-38
- Status
- Covered
- Official unit
- Unit III
- Official topics
- Capital Budgeting, Conventional and DCF Methods, Risk Analysis: Certainty Equivalent Factor, Risk Adjusted Discounting Rate, Decision Tree, Independent and Dependent Risk Analysis, Replacement Decisions, Sensitivity Analysis
- Where in the notes
- Sections 1-8, pages 41-53
- Status
- Covered
- Official unit
- Unit IV
- Official topics
- Dividend Policy: Walter Model, Gordon Model, MM Approach, Lintner Model; Working Capital Management: approaches, estimation; Management of Inventories; Management of Cash (Various Theoretical Models); Management of Receivables and Marketing Securities
- Where in the notes
- Sections 1-10, pages 56-69
- Status
- Covered
- Official unit
- Note
- Official topics
- MS-Excel Functions and Formulas to be used
- Where in the notes
- Pages 11, 14, 15, 33, 37, 46, 53, 64
- Status
- Covered
Official source: MBA (Financial Analysis) Scheme and Syllabus, 2021-22 onwards (ipu.ac.in). Its "Marketing Securities" is covered as marketable securities on page 69.
Each course in GGSIPU notes is mapped to its official PDF this way.
Who writes and checks the MFA-102 FM notes?
- Prateek Talwar, author. Founder, Unnati Educations. Associate Company Secretary (ACS), ICSI, membership no. 58704, since 15 May 2019. B.Com, University of Delhi (School of Open Learning), 2012. Author bio.
- Sheetal Kirola, academic reviewer. Academic Head, Unnati Educations. M.Ed., 7 years of experience. Checks language, structure and syllabus mapping. Reviewer bio.
The GGSIPU MBA (FA) Sem 2 Financial Management notes follow the 2021-22 onwards scheme. The 2026-27 edition has Excel steps per unit and Indian examples such as the 2022-23 repo rate rise and the MSMED Act 45-day rule. See our editorial policy.
The same team prepares GGSIPU important questions for every course it covers.
MFA-102 and the GGSIPU MBA (FA) Sem 2 papers it connects to
MFA-102 has no paired lab. For every paper and credit, see the GGSIPU MBA (FA) syllabus.
Same-semester papers: MFA-104 Investment Analysis and Portfolio Management, MFA-106 Business Analytics, MFA-108 Macro and Mathematical Economics, MFA-110 Business Research, MFA-112 Marketing Management, MFA-114 Human Resource Management, MFA-116 Minor Project, MFA-118 Professional Skill Development (NUES), MFA-120 Business Analytics Lab and MFA-122 MOOC/Open Elective.
Unit 2's CAPM cost of equity (beta via =SLOPE) uses the beta and CAPM built in MFA-104 Units I and II. The Goal Seek and Data Table steps in Units 2 and 3 are the what-if tools the MFA-120 lab practises.
How to write MFA-102 answers: working-note numericals and twelve-and-a-half-mark theory answers
Every numerical in the notes runs formula, working, decision ("NPV is positive, accept"), so never stop at the figure. Balancing figures, like plant purchased in the page 18 funds flow problem, go in a working note, not the main statement.
For long theory answers the notes give a fixed skeleton:
- Wealth versus profit maximisation: criticism of profit maximisation, the NPV formula of wealth, the comparison table, then the agency problem.
- MM approach: assumptions, three propositions, the U and L arbitrage example, tax shield, criticism.
- Dividend models: formula, assumptions, a small numerical and criticism for Walter, Gordon and MM, then the comparison table and Lintner.
- Cash flow statement: end by reconciling opening and closing cash.
Never deduct interest from project cash flows; page 42 shows it is already in the discount rate.
Worked example (page 6): EVA
NOPAT ₹30 crore, capital employed ₹200 crore, WACC 12%. Capital charge = 12% × ₹200 crore = ₹24 crore. EVA = ₹30 crore - ₹24 crore = ₹6 crore. Decision: EVA is positive, so the firm earns more than its cost of capital and creates value.
Practise this format on GGSIPU MBA (FA) important questions.
MFA-102 FM notes FAQs
How do I get the full MFA-102 notes?
Send a WhatsApp message to 9899436384 using the "Get Full Notes" button on this page. The full MFA-102 notes come as a printed book only; they are not available as a PDF. Once your order is confirmed, delivery takes a maximum of 5-7 days, depending on your location.
What is the passing mark for MFA-102?
MFA-102 is marked out of 100: 50 internal assessment and 50 in the end-term university exam. The MBA (FA) scheme of examination does not print a pass percentage, so we do not state one. For minimum end-term marks, re-appear and result rules, check GGSIPU Ordinance 11 on ipu.ac.in and the notices issued by your institute.
Which MFA-102 unit has the most numericals?
Units 1 and 2 have 12 solved illustrations each, the most in the book. Unit 1 is also the longest at 20 pages, because time value of money, EMI, funds flow and cash flow all need full worked tables. Unit 4 has 10 illustrations across dividends, inventory, cash and credit, and Unit 3 has 8, led by one ₹5,00,000 project worked through seven methods.
Do the MFA-102 notes show the Excel functions the syllabus asks for?
Yes. Eight Excel boxes in the book give the exact formula with its answer: FV, PV, NPV and EFFECT in Unit 1, PMT, IPMT and PPMT for EMI, RATE, SLOPE and SUMPRODUCT for cost of capital, IRR and MIRR for projects, and Goal Seek, Data Table and Scenario Manager for EBIT-EPS and sensitivity.
Is there a lab paper with MFA-102?
No. MFA-102 is a 3-credit core theory paper with 3 lecture hours a week and no practical. The only lab in the MBA (FA) second semester is MFA-120 Business Analytics Lab, a separate 1-credit skill enhancement paper, though its spreadsheet what-if work overlaps with the Goal Seek and Data Table steps in MFA-102 Units 2 and 3.
Are the MFA-102 exam questions in the notes solved?
The 88 end-of-unit questions (60 short, 28 long) are a practice set. Their answers come from the theory sections and the 42 solved illustrations in the same unit; for example, the Unit 4 EOQ question follows the EOQ illustration on page 64. The questions carry no year tags, so treat them as exam-style practice, not past papers.
Get the full MFA-102 Financial Management Notes on WhatsApp
| Part | Pages | Solved illustrations |
|---|---|---|
| Cover and index | 3 | - |
| Unit 1 | 20 | 12 |
| Unit 2 | 17 | 12 |
| Unit 3 | 15 | 8 |
| Unit 4 | 16 | 10 |
| Total | 71 | 42 |
What is in the full MFA-102 notes book
- Part
- Cover and index
- Pages
- 3
- Solved illustrations
- -
- Part
- Unit 1
- Pages
- 20
- Solved illustrations
- 12
- Part
- Unit 2
- Pages
- 17
- Solved illustrations
- 12
- Part
- Unit 3
- Pages
- 15
- Solved illustrations
- 8
- Part
- Unit 4
- Pages
- 16
- Solved illustrations
- 10
- Part
- Total
- Pages
- 71
- Solved illustrations
- 42
These are Financial Management notes in English with 88 exam questions, 28 diagrams and 8 Excel walkthroughs. Format: printed book only; the full notes are not available as a PDF. Delivery: a maximum of 5-7 days after your order is confirmed, depending on your location.
Get the full MFA-102 Financial Management Notes book on WhatsApp (4 units, 71 pages)Unnati Educations is an independent education provider based in Vikaspuri, Delhi. We are not affiliated with, authorised by, or endorsed by Guru Gobind Singh Indraprastha University (GGSIPU). 'GGSIPU' and 'IPU' are used only to describe the syllabus our notes follow. For official information, visit ipu.ac.in.
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