We have great pleasure in presenting First edition “Financial Management” written for students of UG courses. The related matters are written in a simple and easily understandable.
This volume is an attempt to pro vide the students with thorough understanding of Financial Management. We have presented the subject matter in a systematic manner with liberal use of charts and diagrams where ever necessary so as to make it interesting and sustain students’ interest.
Contents –
Unit – 1 Introduction to Financial Management
Introduction
Financial Management
Meaning of Financial Management
Definition of Financial Management
Goals of Financial Management
Scope of Financial Management
Functions of Financial Management
Role of Finance Manager
Financial Planning
Meaning of Financial Planning
Need for Financial Planning
Importance of Financial Planning
Steps in Financial Planning
Principles of a Sound Financial Plan
Factors affecting Financial Plan
Source of Funds
Long and Short Term Sources of Funds
Review Questions
Unit – 2 Capital Structures and Leverages
Introduction
Meaning of Capital Structure
Definition of Capital Structure
Factors Determining the Capital Structure
Concept of Optimum
Capital Structure
EBIT
EPS Analysis
Leverages:
Meaning of Leverages
Definition of Leverages
Types of Leverages
Operating Leverage
Financial Leverage
Combined Leverages
Review Questions
Unit – 3 Time Value of Money
Introduction
Meaning of Time Value of Money
Time Preference of Money
Techniques of Time Value of Money:
Compounding Technique
Future Value of Single Flow
Multiple Flow and Annuity
Perpetuity
Discounting Technique
Present Value of Single Flow
Multiple Flow and Annuity
Review Questions
Unit – 4 Capital Budgeting
Introduction
Meaning of Capital Budgeting
Definition of Capital Budgeting
Features of Capital Budgeting
Significance of Capital Budgeting
Steps in Capital Budgeting Process
Techniques of Capital Budgeting:
Traditional Methods
Pay Back Period
Accounting Rate of Return
DCF Methods:
Net Present Value
Internal Rate of Return
Profitability Index
Review Questions
Unit – 5 Working Capital Management
Introduction
Meaning of Working Capital
Definition of Working Capital
Types of Working Capital
Operating Cycle
Determinants of Working Capital Needs
Sources of Working Capital
Merits of Adequate Working Capital
Dangers of Excess
Inadequate Working Capital
Review Questions
Skill Development Activities