Financial Management | MBA 2nd Sem | JNTUK

C-201: FINANCIAL MANAGEMENT

UNIT -I

Financial Management: Concept - Nature and Scope - Evolution of Financial Management - The New Role in the Contemporary Scenario – Goals and Objectives of Financial Management - Firm’s Mission and Objectives - Profit Maximization Vs. Wealth Maximization – Maximization Vs Satisfying - Major Decisions of Financial Manager.

UNIT -II

Financing Decision: Sources of Finance - Concept and Financial Effects of Leverage – EBIT – EPS Analysis. Cost of Capital: Weighted Average Cost of Capital– Theories of Capital Structure.

UNIT -III

Investment Decision: Concept and Techniques of Time Value of Money – Nature and Significance of Investment Decision – Estimation of Cash flows – Capital Budgeting Process – Techniques of Investment Appraisal – Discounting and Non Discounting Methods.

UNIT -IV

Dividend Decision: Meaning and Significance – Major Forms of Dividends – Theories of Dividends – Determinants of Dividend – Dividends Policy and Dividend Valuation – Bonus Shares –Stock Splits – Dividend Policies of Indian Corporate.  

UNIT -V

Liquidity Decision: Meaning - Classification and Significance of Working Capital – Components of Working Capital – Factors Determining the Working Capital – Estimating Working Capital Requirement – Cash Management Models – Accounts Receivables –Credit Policies – Inventory Management.

Relevant cases have to be discussed in each unit and in examination case is compulsory from any unit.