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
Meaning of Finance
Business Finance
Finance Functions
Organization Structure of Finance Department
Financial Management:
Meaning of Financial Management
Objectives of Financial Management
Financial Decisions:
Meaning of Financial Decisions
Types of Financial Decisions
Role of a Financial Manager
Financial Planning:
Meaning of Financial Planning
Principles of a Sound Financial Plan
Steps in Financial Planning
Review Questions
Unit – 2 Time Value of Money
Introduction
Meaning of Time Value of Money
Need for Time Value of Money
Future Value (Single Flow, Uneven Flow & Annuity)
Present Value (Single Flow, Uneven Flow & Annuity)
Doubling Period (Simple Problems)
Review Questions
Unit – 3 Financing and Dividend Decisions
Introduction
Financing Decision:
Sources of Long-Term Finance
Meaning of Capital Structure
Optimum Capital Structure
Factors Influencing Capital Structure
Leverages
Meaning of Leverages
Types of Leverages
EBIT
EPS Analysis
Dividend Decision:
Meaning of Dividend Policy
Determinants of Dividend Policy
Types of Dividends
Bonus Shares
Review Questions
Unit – 4 Investment Decision
Introduction
Capital Budgeting
Meaning of Capital Budgeting
Features of Capital Budgeting
Significance of Capital Budgeting
Techniques of Capital Budgeting
Payback Period
Accounting Rate of Return
Net Present Value
Internal Rate of Return
Profitability Index
Review Questions
Unit – 5 Working Capital Management
Introduction
Working Capital:
Meaning of Working Capital
Concepts of Working Capital
Significance of Adequate Working Capital
Consequences of Excess or Inadequate Working Capital
Determinants of Working Capital Requirements
Sources of Working Capital
Problems on Estimation of Working Capital
Review Questions
