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 Introduction to Financial Management
Introduction
Meaning of Finance
Definition of Finance
Business Finance
Sources of Finance
Financial Management
Meaning of Financial Management
Definition of Financial Management
Goals of Financial Management
Functions of Financial Management
Financial Planning
Steps in Financial Planning
Essentials of Effective Financial Planning
Factors influencing a Financial Plan
Recent Trends in Financial Management
Fintech, Sustainable Finance and ESG Investing
Crypto Currency Market
AI in Financial Management
Review Questions
Module – 2 Time Value of Money & Cost of Capital
Introduction
Meaning of Time Value of Money
Definition of Time Value of Money
Need for Time Value of Money
Future Value
Single Flow of Future Value
Uneven Flow of Future Value
Annuity of Future Value
Present Value
Single Flow of Present Value
Uneven Flow of Present Value
Annuity of Present Value
Doubling Period
Cost of Capital
Meaning of Cost of Capital
Definition of Cost of Capital
Computation of Cost of Capital
Cost of Equity
Debt Equity
Preference Shares
Weighted Average Cost of Capital
Review Questions
Module – 3 Financing Decisions
Introduction
Meaning of Financing Decision
Definition of Financing Decision
Importance of Financing Decision
Capital Structure
Meaning of Capital Structure
Definition of Capital Structure
Factors influencing Capital Structure
Optimum Capital Structure
Leverages
Meaning of Leverages
Types of Leverages
Computation of Leverages
Implications of Leverages
Computation of Leverages
Analysis of EBIT, EBT, EPS
Review Questions
Module – 4 Investment and Dividend Decisions
Introduction
Meaning of Capital Budgeting
Definition of Capital Budgeting
Objectives of Capital Budgeting
Significance of Capital Budgeting
Factors affecting Capital Budgeting
Techniques of Capital Budgeting
Traditional Methods
Payback Period
Accounting Rate of Return
Discounted Cash Flow Methods
Net Present Value
Internal Rate of Return
Profitability Index
Dividend Decisions
Meaning of Dividend Decisions
Definition of Dividend Decisions
Types of Dividends
Determinants of Dividend Policy
Review Questions
Module – 5 Working Capital Management
Introduction
Meaning of Working Capital
Definition of Working Capital
Significance of Adequate Working Capital
Consequences of Excess or Inadequate Working Capital
Determinants of Working Capital
Sources of Working Capital
Cash Management
Meaning of Cash Management
Definition of Cash Management
Motives of Holding Cash
Cash Management Tools
Cash Budget
Lock-box System
Playing the Float
Receivables Management
Meaning of Receivables Management
Definition of Receivables Management
Importance of Receivables Management
Purpose of Receivables Management
Inventory Management
Meaning of Inventory Management
Definition of Inventory Management
Importance of Inventory Management
Purpose of Inventory Management
Review Questions
