Unit 1: Financial Management
This unit explains the meaning and scope of financial management. It examines the goal of corporate financial management.
Unit 2: Financial Planning
This unit discusses the meaning and need for financial planning.
Unit 3: Time Value of Money
This unit introduces the concepts of time value of money, compounding and discounting of cash flow.
Unit 4: Valuation of Bonds and Shares
This unit explains the principles behind the valuation of bonds and equity shares.
Unit 5: Cost of Capital
This unit describes the concept of cost of capital and the computation of the weighted average cost of capital.
Unit 6: Leverage
This unit distinguishes the concepts of operating, financial, and combined leverage and computes the different types of leverage.
Unit 7: Capital Structure
This unit evaluates the concept of capital structure and the importance thereof. It also summarises the various theories of capital structure.
Unit 8: Capital Budgeting
This unit interprets the meaning and significance of capital budgeting decisions. It also presents a detailed account of various investment appraisal techniques.
Unit 9: Risk Analysis in Capital Budgeting
This unit interprets the meaning of risk and the types and sources of risk in capital budgeting decisions. It also analyses the various approaches for handling the risk factor in investment decisions.
Unit 10: Capital Rationing
This unit evaluates the meaning of capital rationing. It also examines the steps involved in capital rationing process.
Unit 11: Working Capital Management
This unit assesses the meaning of various concepts of working capital. Itpresents a detailed account of the factors that influence the working capital requirements of a firm.
Unit 12: Cash Management
This unit evaluates the different cash management tools. Cash is an important component of working capital. It needs to be managed efficiently so as to avoid either excess cash balances or cash shortages.
Unit 13: Inventory Management
This unit briefly describes the various forms of inventory that a firm keeps. A brief description of pricing of inventory along with the determination of stock levels is also explained.
Unit 14: Receivable Management
This unit explains the meaning of receivables management. Costs of maintaining receivables, formulation of credit policy, and determination of an optimal credit period are also discussed.
Unit 15: Dividend Decisions
This unit describes the different types of dividends and also discusses the dividend policy matters of a business firm. Dividends are payments made by the firm to its shareholders. Dividends form a part of the returns expected by the shareholders.