Financial Management

Unit No.

Unit Title

Contents

1

Sources of Finance

1.1 Long Term Sources of Finance- Owned Funds & Borrowed Funds, Equity Shares, Preference Shares, Debentures, Term Loan, Lease Financing, Hire Financing.

1.2 Short Term Sources of Finance- Bank Overdraft, Cash Credit, Bills Discounting, Ploughing Back of Profit.

2

Capital Structure

2.1 Meaning, Concept, Importance,

2.2 Factors Affecting Capital Structure-Internal Factors, External Factors & General Factors.

2.3 Cost of Capital- Meaning, Weighted Average  Cost, Operating Leverages.

2.4 Financial Leverages, Combined Leverages (Problem on Leverages).

3

Capitalisation

3.1   Meaning, Modern Concept of Capitalisation, Need,

3.2 Under Capitalisation-Meaning, Causes & Remedies

3.3 Over Capitalisation- Meaning, Causes, & Remedies

4

Capital Budgeting

4.1 Meaning,

4.2 Techniques of Capital Budgeting,

4.3 Mutually Exclusive Proposals