Cover
Half-title
Title
Copyright
Contents
Preface
Chapter 1: Financial Management — An overview
Meaning and Definition
Objectives of Financial Management
Status and Role of Finance Manager
Functions of Financial Management
Significance of Financial Management
Functions of Treasurer and Financial Controller
Interface between Finance and Other Domain Functions
Approaches to Financial Management
Finance Function
Objective Type Questions
Review Questions
Chapter 2: Time Value of Money
Reasons for Time Preference
Future Value / Compound Value Techniques
Present Value / Discounting Value Techniques
Illustrations
Exercises
Objective Type Questions
Review Questions
Chapter 3: Valuation of Securities
Introduction
Concept of Value
Valuation of Bond / Debenture
Valuation of Normal Preference Shares
Valuation of Perpetual Preference Shares
Valuation of Equity Shares
Illustrations
Exercises
Objective Type Questions
Review Questions
Chapter 4: Risk and Return
Meaning of Return
Meaning of Risk
Types of Risk
Risk and Return Relationship
Tools to Measure the Risk
Illustrations
Exercises
Objective Type Questions
Review Questions
Chapter 5: Capital Budgeting
Meaning
Definitions
Features of Capital Budgeting
Objectives of Capital Budgeting
Significance of Capital Budgeting
Advantages of Capital Budgeting
Types of Capital Budgeting Decisions
Factors Influencing Capital Budgeting Decisions
Capital Budgeting Process
Methods of Evaluation of Capital Budgeting Proposals
Upgradation of Payback Period
Discounted Cash Flow Method (Dcf)
Accept or Reject Criterion
Comparison of Npv, IRR and PI
Illustrations
Exercises
Objective Type Questions
Review Questions
Chapter 6: Cost of Capital
Meaning
Definitions of Cost of Capital
Components of Cost of Capital
Importance of Cost of Capital
Factors Influencing Cost of Capital
Types of Cost of Capital
Computation of Cost of Capital
Capital Asset Pricing Model (Capm)
Weighted Average Cost of Capital (Wacc)
Marginal Cost of Capital
Illustrations
Exercises
Objective Type Questions
Review Questions
Chapter 7: Financial Planning
Meaning
Definitions
Purpose of Financial Planning
Scope of Financial Planning
Objectives of Financial Planning
Factors to be Considered while Formulating a Financial Plan
Characteristics of Financial Planning
Essentials of Sound Financial Planning
Significance of Financial Planning
Limitations of Financial Planning
Estimation of Capital Requirements
Working Capital
Fixed Capital
Capitalisation
Capital and Capitalisation
Over Capitalisation
Under Capitalisation
Objective Type Questions
Review Questions
Chapter 8: Capital Structure
Meaning
Definitions
Pattern of Capital Structure
Difference between Capital Structure and Financial Structure
Difference between Capital Structure and Capitalisation
Features of Optimum Capital Structure
Factors Governing a Capital Structure
Technique of Planning the Capital Structure
Theories of Capital Structure
Illustrations
Exercises
Objective Type Questions
Review Questions
Chapter 9: Leverage
Meaning
Definitions
Types of Leverage
Illustrations
Exercises
Objective Type Questions
Review Questions
Chapter 10: Sources of Finance
Internal and External Sources of Financing
Classification of Sources of Financing
Types of Sources of Fund
Factors Affecting the Choice of Sources of Fund
Objective Type Questions
Review Questions
Chapter 11: Dividend Policy
Introduction
Major Dimensions of Dividend Policy
Meaning of Dividend
Rules Relating to Dividend
A Snapshot of Different Types of Dividend or Forms
of Dividend
Source of Dividends
Objectives of Dividend Policy
Factors Determining / Influencing / Impacting Dividend Policy
Types of Dividend Policies
Stable Dividend Policy
Bonus Shares
Stock Split
Difference between Bonus Issue and Stock Split
Reverse Split
Right Issue
Dividend Theories
Comparison of Walter and Gordon Model
Irrelevant Concept of Dividend
Illustrations
Exercises
Objective Type Questions
Review Questions
Chapter 12: Working Capital Management
Current Assets
Current Liability
A Snapshot of Component of Current Asset and Current Liability
Definitions
Annual Survey of Industries (1961)
Concept of Working Capital
Types of Working Capital
Need for Working Capital or Objects of Working Capital
Significance or Advantages of Working Capital
Dangers/Drawbacks of Excessive Working Capital
Drawbacks of Inadequate Working Capital
Working Capital Management
Working Capital Finance Mix
Estimating / Forecasting Working Capital Requirements
Computation of Working Capital Required
Sources of Working Capital
Factors Determining Working Capital Requirements
Illustrations
Exercises
Objective Type Questions
Review Questions
Chapter 13: Cash Management
Meaning of Cash
Cash Management
Motives of Holding Cash
Dimensions of Cash Management
Benefits of Cash Budget
Cash Management Models
Illustrations
Exercises
Objective Type Questions
Review Questions
Chapter 14: Receivables Management
Meaning of Receivables
Purpose of Receivables
Receivables Management
Optimum Size of Receivables
Dimensions of Receivables / Aspects of Receivables
Control of Receivables
Illustrations
Exercises
Objective Type Questions
Review Questions
Chapter 15: Inventory Management
Introduction
Definitions
Meaning of the Term ‘Inventory’
Need or Purpose of Holding Inventory
Benefits of Holding Inventory
Risks / Dangers / Cost of Holding Inventory
Objectives of Inventory Control
Techniques of Inventory Control
Illustrations
Exercises
Objective Type Questions
Review Questions
Chapter 15: Inventory Management
Introduction
Definitions
Meaning of the Term ‘Inventory’
Need or Purpose of Holding Inventory
Benefits of Holding Inventory
Risks / Dangers / Cost of Holding Inventory
Objectives of Inventory Control
Techniques of Inventory Control
Illustrations
Exercises
Objective Type Questions
Review Questions
Annexure - I Time Value Index Factor Table
Annexure - II Glossary
Annexure - III University Question Paper of Recent Years
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