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 provide 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
Introduction
Meaning of Financial Management
Nature of Financial Management
Scope of Financial Management
Objectives of Financial Management
Functions of Finance
Profit Maximization vs. Wealth Maximization
Role of Financial Manager in Modern Business Organizations
Risk, Return Trade off
Review Questions
Unit – 2 Investment Decisions
Introduction
Capital Budgeting Process
Cash Flow Estimation and Measurement
Investment Criterion
Methods of Appraisal
Traditional Techniques
Discounted Cash Flow Methods
Capital rationing
Risk Analysis in Capital Budgeting
Review Questions
Unit – 3 Financing Decisions
Introduction
Concept of Leverage
Types of Leverages
EBIT Analysis
EPS Analysis
Capital Structure
Determinants of Capital Structure
Theories Net Income Approach
Net Operating Income Approach
Traditional view MM Hypothesis
Cost of Capital
Types of Cost of Capital
Weighted Average Cost of Capital
Review Questions
Unit – 4 Dividend Decisions
Introduction
Kinds of Dividends
Types of Dividend Policy
Dividend Theories
Walter`s Model
Gordon’s Model
M-M Hypothesis
Retained Earnings Policies
Bonus Shares
Review Questions
Unit – 5 Working Capital Management
Introduction
Concept of Working Capital
Determinants of Working Capital
Determination of Optimum Level of Current
Assets Liquidity vs. Profitability
Risk Return Tangle
Estimating Working Capital Needs
Financing Strategies of Working Capital
Inventory Management Inventory Control Techniques
Receivables Management
Cash Management
Review Questions
