UNIT - I (Theory only)
Finance Functions: Meaning - Definition and scope of finance functions - Objectives of
Financial management - profit maximization and wealth maximisation. Sources of
Finance - Short term - Bank sources – Long term - Shares - debentures, preferred stock -
UNIT - II (Problem & Theory questions)
Financing Decision: Cost of Capital - Cost of Specific Sources of capital - Equity -
preferred stock debt - reserves - weighted average cost of capital, Operating Leverage and
UNIT - III (Theory only)
Capital Structure - Factors influencing capital structure – optimal capital structure -
Dividend and Dividend policy: Meaning, classification - sources available for dividends -
Dividend policy general, determinants of dividend policy.
UNIT - IV (Theory only)
Working capital management: Working capital management - concepts - importance -
Determinants of Working capital. Cash Management: Motives for holding cash -
Objectives and Strategies of cash management. Receivables Management: Objectives -
Cost of Credit Extension, benefits - credit policies - credit terms - collection policies.
UNIT - V (Problems& theory questions)
Capital budgeting-meaning-objectives-preparation of various types capital budgeting.