Finance Functions: 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.
Financing Decision: Cost of Capital - Cost of Specific Sources of capital - Equity - Preferred stock debt - reserves - weighted average cost of capital, Operating Leverage and Financial Leverage-Case study
Capital Structure - 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: 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- Case study (Theory carries 80 Marks, Problems carry 20 Marks)
Reference Book:
• Prasanna Chandra, “Financial Management, Theory and Practices”, McGraw-Hill,1st Edition, 2021. • Dr.R.P.Rustagi,”Fundamentals of Financial Management”, Taxmann Publishers, 14th Edition, 2021. • Kalpesh Ashar,” Financial Management”, Vibrant Publishers, 4th Edition, 2021. 4.M.Y.Khan and P.K.Jain, “Financial Management”, McGraw Hill Education, 8th Edition, 2021. • Dr.R.P.Rustagi, “Financial Management”, Taxmann Publisher, 6th Edition, 2021. • Narayanasamy,”Financial Management” ,PHI Learning, 6th Edition, 2017. • M.Pandey, “Financial Management”, Vikas Publishing House, 11th Edition, 2021.
Text Book:
Tulsian and Bharat Tulsian,”Financial Management”, McGraw Hill Publishers, 1st Edition, 2020
