Meaning - Definition and scope of finance functions - Objectives of Financial management - profit maximization and wealth maximization. Sources of Finance - Short term - Bank sources – Long term - Shares - debentures, preferred stock - debt.

Cost of Capital - Cost of Specific Sources of capital - Equity - Preferred stock debt - reserves - weighted average cost of capital, Operating Leverage and Financial Leverage.

- Factors influencing capital structure – optimal capital structure - Dividend and Dividend policy: Meaning, classification - sources available for dividends - Dividend policy general, determinants of dividend policy.

Working capital management - concepts - importance - Determinants of Working capital. Cash Management: Motives for holding cash - Objectives and Strategies of cash management. Receivables Management: Objectives - Cost of Credit Extension, benefits - credit policies - credit terms - collection policies.

Capital budgeting-meaning-objectives-preparation of various types capital budgeting.