Financial Management - Meaning – Importance – Aims – Scope – Objectives - Financial Decisions – Functions of Manager – Functional areas of Financial Management.

Cost of Capital - Meaning – Significance – Classification, Computation of Cost of Capital – Cost of Debt, Cost of Preference Capital, Cost of Equity Capital, Cost of Retained Earnings – Leverage - Meanings – Types – Significance.

Capital Structure - Meaning – Forms – Importance - Theories of Capital Structure – Net Income Approach, Net Operating Income Approach, Traditional Approach, MM Approach - Factors determining Capital Structure.

Capital Budgeting - Meaning – Importance – Capital Budgeting Process – Kinds of Capital Budgeting decisions – Methods of Capital Budgeting – Payback period - Rate of Return Method - Net Present Value – Internal Rate of Return – Profitability Index method.

Dividend Policy - Meaning – Dividend Decisions - Walter Model - Gorden Approach - MM Approach - Determinants of Dividend Policy - Forms of Dividend.