Introduction to financial management

Introduction to financial Management
Scope /Approaches
objectives & goals
Role of Finance manager
Nature of Finance Function
Investment decision
Divident decision
Financing decision
relates to efficient allocation and utilisation of company's fund to invest in selected investment proposals .
Revolves around the acquisition of funds from various sources of finances available to the company.
Relates to companys dividend policy inorder to maximise shareholders wealth
Traditional school of thought
Modern school of thought
Limitations
Outsider - Looking in Approach
Overlooked regular issue
Overlooked non corporate enterprises
Ignored allocation of funds
Functions
Investment decisions
Financing Decisions
Divident policy Decision
Liquidity Decision
Short term assets
Long Term Assets
two main categories
Capital Budgeting Decisions
Working Capital Decisions
Profit maximisation
Wealth Maximisation
Sub Topic
Sub Topic
Sub Topic
Sub Topic
Sub Topic
Sub Topic
International Financial decision
Raising Funds of company Finance
Investment decisions
Taking maximum benefits from leverage
Risk management
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