FINANCIAL MANAGEMENT

FULLY SOLVED BOOK LASY 5 YEARS PAPERS SOLVED PLUS GUESS

FINANCIAL MANAGEMENT 

UNIT- I
Financial Management: An Overview-Evolution of finance-The Basic Goal-Creating Shareholder Value, Agency Issues-Business Ethics and Social Responsibility-Role of Finance manager-Time value of money.

UNIT -II
Investment Decisions: Capital Budgeting Process and Techniques - Payback period, Accounting rate of return, NPV, IRR, MIRR, Profitability index, Discounted payback eriod, Estimation of cash flows, NPV vs. IRR, Risk analysis in Capital Budgeting - Sensitivity analysis, Certainty Equivalent Approach Cost of Capital: Meaning and Concept, Calculation of WACC, The CAPM Approach, Adjusting cost of capital for risk (including problems).

UNIT- III
Financing Decisions: Capital Structure Theories and Value of the firm -Net income approach, Net operating income approach, Traditional approach, Modigliani Miller model, Determining the optimal capital structure, Costs of Bankruptcy and Financial Distress, Pecking Order Theory.
Leverage and EBIT-EPS Analysis: Concept of leverage, Types of leverage: Operating leverage, Financial leverage, Combined leverage; EBIT-EPS Analysis, Guidelines for capital structure planning, Link between capital structure and capital budgeting.

UNIT- IV
Dividend Decisions: Factors determining Dividend Policy-Forms of Dividend-Cash Dividend, Bonus shares, Stock split Theories of Dividend - Gordon model, Walter model, MM Hypothesis,- Dividend policies in practice.

UNIT -V
Working Capital Management: Working capital policies, Risk-Return trade off, Cash management, Receivables management, Inventory management, Credit management, Working capital financing.