Table of contents
Biographical note
Excerpt
- Cover
- Title Page
- Copyright Page
- 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
- Annexure - I Time Value Index Factor Table
- Annexure - II Glossary
- Annexure - III University Question Paper of Recent Years
- Cover
- Title Page
- Copyright Page
- 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
- Annexure - I Time Value Index Factor Table
- Annexure - II Glossary
- Annexure - III University Question Paper of Recent Years
Dr. T. Srinivasan
Professor of Commerce
Annamalai University
Chidambaram
Vijay Nicole Imprints Private Limited
CHENNAI
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Financial Management
ISBN (Print): 978-93-95245-83-8
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ISBN e-PDF: 978-93-95245-84-5
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CHAPTER 1FINANCIAL MANAGEMENT — AN OVERVIEW
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
Future Value / Compound Value Techniques
Present Value / Discounting Value Techniques
CHAPTER 3 VALUATION OF SECURITIES
Valuation of Normal Preference Shares
Valuation of Perpetual Preference Shares
Objectives of Capital Budgeting
Significance of Capital Budgeting
Advantages of Capital Budgeting
Types of Capital Budgeting Decisions
Factors Influencing Capital Budgeting Decisions
Methods of Evaluation of Capital Budgeting Proposals
Discounted Cash Flow Method (DCF)
Definitions of Cost of Capital
Factors Influencing Cost of Capital
Computation of Cost of Capital
Capital Asset Pricing Model (CAPM)
Weighted Average Cost of Capital (WACC)
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
Difference between Capital Structure and Financial Structure
