FINANCIAL MANAGEMENT

FULLY SOLVED BOOK LASY 5 YEARS PAPERS SOLVED PLUS GUESS

4.4 FINANCIAL MANAGEMENT

OBJECTIVE
The objective is to enable students to understand the basic concepts of Financial Management and the role
of Financial Management in decision-making.
Unit 1: INTRODUCTION TO FINANCIAL MANAGEMENT 10 Hrs
Introduction – Meaning of Finance – Business Finance – Finance Function – Aims of Finance Function –
Organization structure of finance - Financial Management – Goals of Financial Management – Financial
Decisions – Role of a Financial Manager – Financial Planning – Steps in Financial Planning – Principles of
a Sound Financial Planning.
Unit 2: TIME VALUE OF MONEY 10 Hrs
Introduction – Meaning & Definition – Need – Future Value (Single Flow – Uneven Flow & Annuity) –
Present Value (Single Flow – Uneven Flow & Annuity)– Doubling Period – Concept of Valuation –
Valuation of Bonds & Debentures – Preference Shares – Equity Shares – Simple Problems.
Unit 3: FINANCING DECISIONAND INVESTMENT DECISION 16Hrs
Financing Decisions: Introduction – Meaning of Capital Structure – Factors influencing Capital Structure
– Optimum Capital Structure – EBIT – EBT – EPS – Analysis – Leverages – Types of Leverages – Simple
Problems.
Investment Decisions: Introduction – Meaning and Definition of Capital Budgeting – Features –
Significance – Process – Techniques – Payback Period – Accounting Rate of Return – Net Present Value –
Internal Rate of Return – Profitability Index - Simple Problems
Unit 4: DIVIDEND DECISION 08 Hrs
Introduction – Meaning and Definition – Determinants of Dividend Policy – Types of Dividends –
Provisions under Campiness Act in relation to dividends.
Unit 5: WORKING CAPITAL MANAGEMENT 12 Hrs
Introduction – Concept of Working Capital – Significance of Adequate Working Capital – Evils of Excess
or Inadequate Working Capital – Determinants of Working Capital – Sources of Working Capital –Cash
Management – Receivables Management – Inventory Management,