Financial Management Notes is the process of planning, organizing, directing and controlling financial resources to achieve the organization’s objectives. It involves the management of assets, liabilities, revenues, expenses and investments to ensure optimal utilization of financial resources.
“Financial Management Notes” It also focuses on assessing financial risks, analyzing financial performance and making strategic decisions to maximize shareholder value. It also provides valuable insights into resource utilization and cost-saving All notes provided by Study Hub Zone
Financial Management Notes: ALL UNITS
Unit 1: Introduction to Financial Management
Introduction to Financial Management focuses on the effective planning, organizing, directing and controlling of financial resources to achieve an organization’s objectives.
Unit 2: Capital Budgeting
Capital Budgeting is the process of evaluating and selecting long-term investment projects that align with an organization’s financial goals.
Unit 3: Financing Decisions
Financing Decisions involve determining the best sources of funds to finance an organization’s activities and investments.
Unit 4: Working Capital Management
Working Capital Management refers to the process of managing a company’s short-term assets and liabilities to ensure its operational efficiency and financial stability.
Unit 5: Dividend Policy and Financial Analysis
Dividend Policy and Financial Analysis explores the strategic decision-making process regarding the distribution of a company’s profits.
Syllabus: Financial Management
UNIT – 1
(a) Introduction to Financial Management:
Meaning, nature, objectives, and scope of financial management
Financial goals – profit maximization vs. wealth maximization
Functions and role of financial manager in an organization
(b) Time Value of Money:
Concept of present value and future value
Annuities and perpetuities – simple numerical problems
Applications in financial decision-making
UNIT – 2
Investment Decisions (Capital Budgeting):
Meaning and significance of capital budgeting
Methods of investment appraisal –
(i) Payback Period
(ii) Net Present Value (NPV)
(iii) Internal Rate of Return (IRR)
(iv) Profitability Index
Advantages and limitations of each method
UNIT – 3
Financing Decisions:
Sources of finance – long-term and short-term
Capital structure – meaning and factors affecting capital structure
Cost of capital – concept and computation of cost of debt, equity, and weighted average cost of capital (WACC)
UNIT – 4
Dividend Decisions:
Dividend policy – concept and factors influencing dividend policy
Types of dividends – cash, stock, interim
Theories of dividend – Walter’s Model, Gordon’s Model (basic level understanding)
Retention ratio vs. payout ratio
UNIT – 5
Working Capital Management:
Meaning, need, and types of working capital
Determinants of working capital
Management of components –
(i) Cash
(ii) Inventory
(iii) Receivables
(iv) Payables
Operating cycle concept and estimation of working capital requirement