Lecture Notes || SNS Courseware

Lecture Notes

UNIT 1:

Scope of Financial Management

Objectives of Financial Management

Functions of Financial Management

Role of Financial Manager

UNIT 2:

Nature and Importance of Capital Budgetary Process

, Basic Principles in Estimating Costs

Average Rate of Return

Net Present Value

Benefit Cost Ratio

UNIT 3:

Cost of Capital - Cost of Debt

Cost of Equity, Cost of Preferred Stock

Weighted Average Cost of Capital

Capital Structure- Introduction, Factors Affecting Capital Structure

Capital Structure Theories: Net Income Approach

Net Operating Income Approach

Miller and Modigliani Propositions I and II

UNIT 4:

Introduction, dividend decisions

Dividend Theories - Relevance and Irrelevance

Determinants of Dividend policy

Walter, Gordon

MM Hypothesis

Introduction, dividend decisions

Bonus Issues, Stock Split

UNIT 5:

Concepts of Working Capital

Needs of Working Capital

Issues of Working Capital

Estimation of Working Capital

Working Capital Finance

Estimation of Working Capital

Trade Credit