Finance is the life blood of any business. A strong understanding of financial management is essential for the smooth conduct of any successful business. Hence it is vital for all stakeholders to have a thorough understanding of the set principles and practices of managing finance. Financial Management is concerned with both acquisition and allocation of funds. Financial management revolves around the three interrelated decision making areas viz: investment decision, financing decision and dividend decision. All these decisions aim to achieve the objective of maximizing the wealth for its shareholders. Unit I outlines the fundamental concepts of Finance, its scope and objectives, time value of money, Risk and returns and their applications in financial decision making . Unit II builds the momentum by focusing on the long term investment decision which is a very crucial and irreversible decision area in financial management. A detailed account on Capital budgeting and the capital budgeting evaluation techniques are elaborated. The most controversial concept; cost of capital and its measurement are also explained.
Unit III comprehends the second important decision- financing decisions. Topics pertaining to financial decisions viz; Leverages , EBIT-EPS analysis and capital structure are detailed in a simple, unambiguous and precise way to help the learners construct an optimum financial mix. The capital structure theories and firm valuation are discussed in detail. It also deals with the dimensions of dividend policy decision and unfurls the theories of dividend. Unit IV focuses on the day today activities of business viz; Working Capital Management. It elaborates on managing the various components of current assets and current liabilities. It includes Cash Management, Inventory Management and Receivables Management which will lead to uninterrupted running of a business organization. Unit V unfolds the structure and functions of primary and secondary market. It also narrates the sources of Long term financing viz; Equity shares, preference shares and debentures and introduces the other asset based financing which includes Leasing, Hire Purchase and Project Financing.
Throughout the study, an analytical approach has been adopted with sound theoretical underpinnings. This course will help the learners attain a fair knowledge about the decision making areas in managing finance and solve the challenges by applying the acquired analytical skills.
