Financial Management

FINANCIAL MANAGEMENT

UNIT-I

Financial Management-Scope Finance Functions and its Organization, Objectives of Financial Management; Time Value of Money; Sources of Long Term Finance.

UNIT-II

Investment Decisions Importance, Difficulties, Determining Cash Flows, Methods of Capital Budgeting; Risk Analysis (Risk Adjusted Discount Rate Method and Certainty Equivalent Method); Cost of Different Sources of Raising Capital; Weighted Average Cost of Capital.

UNIT-III

Capital Structure Decisions-Financial and Operating Leverage; Capital Structure Theories - NI, NOI, Traditional and MM Theories; Determinants of Dividend Policy and Dividend Models -Walter, Gordon and MM Models.

UNIT-IV

Working Capital- Meaning, Need, Determinants; Estimation of Working Capital Need; Management of Cash, Inventory and Receivables.

Note: The Topic of Capital Budgeting, Management of Cash, Inventory Management, and Receivable Management will Cover Theoretical Concepts and Simple Numerical Questions.