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 –
Module – 1 Overview of Financial Management
Introduction
Meaning of Finance
Finance Function
Objectives of Finance Function
Organization of Finance Function
Meaning of Financial Management
Definition of Financial Management
Objectives of Financial Management
Functions of Financial Management
Financial Decisions
Role of Finance Manager
Financial Planning
Steps in Financial Planning
Principles of a Sound Financial Plan
Factors affecting Financial Plan
Review Questions
Module – 2 Time Value of Money
Introduction
Meaning of Time Value of Money
Definition of Time Value of Money
Importance of Time Value of Money
Future Value
Single Flow
Uneven Flow & Annuity
Present Value
Single Flow
Uneven Flow & Annuity
Doubling Period
Concept of Valuation
Valuation of Bonds & Debentures
Preference Shares
Equity Shares
Review Questions
Module – 3 Financing Decisions
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
Module – 4 Investment Decision
Introduction
Investment Decision
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 under Trail
Error Method using Interpolation
Extrapolation and Profitability Index
Review Questions
Module – 5 Dividend Decisions & Excel Utility
Introduction
Dividend Decision
Meaning of Dividend Decision
Types of Dividends
Types of Dividends Polices
Significance of Stable Dividend Policy
Determinants of Dividend Policy
Dividend Theories
Theories of Relevance
Walter’s Model
Gordon’s Model
Excel Utility (Only adopted for Internal Assessment & Should not Consider for University Examination)
Creation of Organization Chart for Finance using Excel Shapes
Designing a Financial Plan for Startup with Variables
Calculation of PV
PVAF and IRR, PBP
DCF Methods using Excel Utilities and Formulas
Annuity Vs Lumpsum Analysis
Leverage Calculator
Capital Budgeting Calculations
Review Questions
