This book on Financial Management explains various financial concepts in an easy-to-understand style. The book is meant for readers who wish to have an in-depth study of various financial concepts with emphasis on practical applications. The book contains everything about finance from micro to macro level. Multiple case studies are incorporated to familiarize the readers with the real world problems and their solutions. In addition, a number of solved problems are provided to highlight the practical aspect of financial concepts.

The style and structure of the book is lucid and designed to cater the needs of the students of MBA, M. Com, B. Com, and BBA courses. The book will also prove helpful to the CA, CWA, CS, CFA, CFM students, along with corporate managers and entrepreneurs.

Introduction

Financial Management - an Overview

· Introduction

· Definition of Finance

· Scope of Finance

· Functions of Finance

· Organizing Finance Function

· Concept of Financial Management

· Changing Scenario of Financial Management

· Objectives of Financial Management

Long-Term Financing

· Introduction

· Financial Market

· Long-Term Sources of Finance: Shares, Debentures and Term Loans

· Medium-Term Sources of Finance

Short-Term Financing

· Introduction

· Short-Term Financing

· Sources of Short-Term Financing

· Agencies providing Short-Term Financing

· Instruments for Short-Term Financing

· Factoring

Concepts of Organizational Health and Financial Analysis

· Introduction

· Parameters for Determining Organizational Health

· Tools of Financial Analysis

· Solved Illustrations

· Numerical Problems

Cash Flow and Funds Flow Statements

· Introduction

· Cash Flow Statement

· Concept of Fund

· Funds Flow Statement

· Difference between the Cash Flow and Funds Flow Statements

Leverages

· Introduction

· Exploring the Concept of Leverage in Finance

· Numerical Problems

Financial Business Decisions

· Introduction

· Analyzing Financial Business Decisions

· Solved Illustrations

· Summary

· Recapitulation of Formulae

· Key Terms

· Exercise

· Numerical Problems

Budget: Concept and Types

· Introduction

· Concept of Budget

· Types of Budget

· Solved Illustrations

Capital Structure Management

· Introduction

· Capital Structure Management

· Capitalization

· Theories of Capital Structure Management

· Cost of Capital

Concept of Time Value of Money

· Introduction

· Time Value of Money

· Future Value of Cash Flow

· Present Value of Cash Flow

· Net Present Value of Cash Flow

· Determining Internal Rate of Return

· Project Selection and Evaluation

· Capital Rationing

· Capital Budgeting

· Evaluation of Capital Budgeting

· Numerical Questions

Working Capital Management

· Introduction

· Concept of Working Capital Management

· Principles of Working Capital Management

· Factors Affecting Working Capital Management

· Working Capital and Operating Cycle

· Financing of Working Capital Requirement

· Recommendations of Committees on Working Capital Management

Dividend Policy

· Introduction

· Dividend Policy

· Approaches to Dividend Policy

· Factors Determining Dividend Policy

· Types of Dividend Policy

· Forms of Dividend Payment

Receivables and Inventory Management

· Introduction

· Concept of Receivables Management

· Objectives of Receivables Management

· Credit Policies

· Credit Terms

· Collection Policies

· Concept of Inventory Management

· Objectives of Inventory Management

· Tools and Techniques of Inventory Management

· Reorder Point

· Safety Stock

Corporate Restructuring and Mergers

· Introduction

· Concept of Corporate Restructuring

· Types of Mergers

· Benefits of Mergers

· Determining the Organization’s Value

· Financing Techniques in Mergers

· Merger as a Capital Budgeting Decision

· Tax Aspects Related to Merger

· Legal and Procedural Aspects of Mergers

Risk and Return Analysis

· Introduction

· Risk and Return of Single Assets

· Return and Risk of Portfolio

· Selection of Portfolio

· Capital Asset Pricing Model (CAPM)

· Risk Evaluation Methods

Management of Cash and Marketable Securities

· Introduction

· Objectives of Cash Management

· Motives for Holding Cash

· Cash Budgeting

· Factors Determining Cash Needs

· Techniques of Cash Management

· Marketable Securities

Case Studies