UNIT-I
Financial Management- goals of financial management – financial decisions – financial
planning – objectives and principles of sound financial planning – long term and short term
financial plan – factors affecting financial plan.
UNIT-II
Financing Decisions – capital structure – factors influencing capital structure – EBIT – EBTEPS
–analysis .Financial and Operating Leverages.Dividend Decisions – dividend policy –
determinants of dividend policy – types of dividend policy– forms of dividend. Walter’s
Model- Gordon’s Model- MM’s Hypothesis (problems)
UNIT-III
Cost of Capital.Investment Decisions – capital budgeting – significance – techniques of
evaluation of investment proposals- payback method – return on investment method, net
present value method and IRR Methods. Risk Analysis- probability approach, expected
values – standard deviation – sensitivity Analysis – decision tree Analysis (Problems)
UNIT-IV
Planning and forecasting of working capital, importance of adequate working capital- excess
or inadequate working capital – determinants of working capital requirement – cash
management, receivable management and inventory management – sources of working
capital.