Description

Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. Financial management may be defined as the area or function in an organization which is concerned with profitability, expenses, cash and credit, so that the “organization may have the means to carry out its objective as satisfactorily as possible;” the latter often defined as maximizing the value of the firm for stockholders. Financial Management is an essential part of the economic and non-economic activities which leads to decide the efficient procurement and utilization of finance with profitable manner. In the olden days the subject Financial Management was a part of accountancy with the traditional approaches. Now a days it has been enlarged with innovative and multi-dimensional functions in the field of business with the effect of industrialization, Financial Management has become a vital part of the business concern and they are concentrating more in the field of Financial Management. Financial Management also developed as corporate finance, business finance, financial economics, financial mathematics and financial engineering. Understanding the basic concept about the financial management becomes an essential part for the students of economics, commerce and management.
This book provides detailed information about the finance and finance related area with simple language and the concepts are explained with easy examples. The objectives of this is to familiarise with fundamentals of financial management in an organization, Time value of money, risk Management, various sources of financing business investment, cost of capital, investment decisions, capital structure planning, working capital management and dividend policy.
The book has been divided into five modules:
First module helps to understand the concept, functions and objectives of Financial Management.
Second module examine the sources of business finance and their significance. Third module analyze projects on their risk and financial feasibility.
Fourth module assess the impact of working capital. Fifth module analyze the dividend policy of a firm