Principles of Financial Management

Syllabus

Principles of Financial Management

Unit-I

Introduction of Business Finance: Meaning, Scope and importance of Business Finance. Finance Functions. Goals & Objectives of Financial Management.

Unit-II

Sources of Financing: LONG TERM: Equity Shares, Preference Shares, Debentures,/ Bonds (Types, Features & Utility), Term Loans, Lease & Hire Purchase, Retained Earnings,; SHORT TERM: Trade Credit, Bank Finance, Commercial Paper, Factoring & Bills Discounting.

Unit-III

Cost of Capital: Cost of Capital, Cost of Different Sources of Finance, Weighted Average Cost of Capital, Concept of Leverage, Concepts of Capital Structure.

Unit IV

Working Capital Management: Meaning, Scope, Importance, and Limitations of Working Capital, Factors Affecting Working Capital Needs, Various Approaches for Financing Working Capital. Concept of Operating Cycle, Estimation of Working Capital Requirement.