Verify Account

SYLLABUS

UNIT - I

NATURE OF FINANCIAL MANAGEMENT Finance and Relation with Other Disciplines; Scope of Financial Management; Profit Maximization Vs. Wealth Maximization Vs. Value Maximin; Traditional and Modern Approach of FM; Functions of Finance – Objectives of Financial Management; Investment Decision, Financing Decision, Current Assets Management Decision and Dividend Decision – Organisation of Finance Function.

UNIT - II

CONCEPT OF TIME VALUE OF MONEY Concept of Time Value of Money, Compounding, Discounting, Present Value, Future Value, and Annuity; Capital Budgeting – Meaning, Features; Applications of Discounted Cash Flow (DCF) in Capital Budgeting, Calculation of NPV and IRR.

UNIT - III

SOURCES OF LONG TERM FINANCE Sources of Long Term Finance – Features of Equity Shares, Preference Shares, Debentures, Long Term Loans; Capital Structure – Meaning, Determinants of Capital Structure; Cost of Capital – Component Costs of Capital, Weighted Average Cost of Capital; Dividend Policy Decision – Types of Dividend, Determinants of Dividend Policy.

UNIT - IV

WORKING CAPITAL MANAGEMENT Gross Vs Net Working Capital, Determinants of Working Capital; Management of Cash – Preparation of Cash Budgets (Receipts and Payment Method Only); Cash Management Technique (Lock Box, Concentration Banking).

UNIT - V

RECEIVABLES MANAGEMENT – OBJECTIVES Credit Policy, Cash Discount, Debtors Outstanding and Ageing Analysis; Inventory Management (Very Briefly) – ABC Analysis; Minimum Level; Maximum Level; EOQ (Basic Model); Reorder Level; Safety Stock.