FUNDAMENTALS OF FINANCIAL MANAGEMENT

By: CHANDRA PRASANNA
Material type: TextTextPublisher: TATA McGRAW-HILL ISBN: 978-0070700796Subject(s): FINANCIAL MANAGEMENT .AN OVERVIEW. FINANCIAL SYSTEM. FINANCIAL ANALYSIS AND PLANNING. FINANCIAL STATEMENT ,TAXES AND , AND CASH FLOW , FINANCIAL STATEMENT ANALYSIS, FUND FLOW ANALYSIS .BREAK-EVEN ANALYSIS AND LEVERAGES. FINANCIAL PLANNING AND FORECASTING. FUNDAMENTAL VALUATION CONCEPTS . VALUATION OF SECURITIES. RISK AND RETURNS. CAPITAL BUDGETING. PROJECT CASH FLOWS. RISK ANALYSIS IN CAPITAL BUDGETING. COST OF CAPITAL. CAPITAL STRICTURE AND DIVIDEND POLICIES.PRACTICAL ASPECTS, LONG TERM FINANCE -- Overview and Financial Environment Financial Management: An Overview Forms of Business Organisation Financial Decisions in a Firm Goal of the Firm Fundamental Principle of Finance Organisation of the Finance Function Relationship of Finance to Economics and Accounting Regulatory Framework c... The Financial System Functions of the Financial System Financial Assets Financial Markets Financial Market Returns Financial Intermediaries Regulatory Framework - Growth and Trends in the Indian Financial System Summary Questions Financial Analysis and Planning Financial Statements, Taxes, and Cash Flow Balance Sheet Profit and Loss Account ▪ Profits Versus Cash Flow Taxes Financial Statement Analysis Financial Ratios Comparative Analysis Du Pont Analysis Standardised Financial Statements. Problems in Financial Statement Analysis Guidelines for Financial Statement Analysis • Funds Flow Analysis Funds Flow Statement Funds Flow Statement: Working Capital Basis Funds Flow Statement: Cash Basis Cash Flow Statement: Classified Version Break-Even Analysis and Leverages Income Statement Relationships Operating Leverage Cost-Volume-Profit Analysis Financial Leverage Combined Leverage or Total Leverage Summary Questions Solved Problems Problems '. Financial Planning and Forecasting What and Why of Financial Planning - Sales Forecast Pro Forma Profit and Loss Account Pro Forma Balance Sheet Computerised Financial Planning Systems Additional Funds Needed Sustainable Growth Rate : Fundamental Valuation Concepts . Time Value of Money ▪ Future Value of a Single Amount Future Value of an Annuity • Present Value of a Single Amount. Present Value of an Annuity valuation of Securities Basic Valuation Model Bond Valuation Equity Valuation: Dividend Capitalization Approach Equity Valuation: Other Approaches risk and Return Risk and Return of a Single Asset Risk and Return of a Portfolio Measurement of Market Risk Relationship Between Risk and Return Implications Capital Budgeting 'techniques of Capital Budgeting Capital Budgeting Process Project Classification Investment Criteria Net Present Value Benefit Cost Ratio Internal Rate of Return Payback Period Accounting Rate of Return Summary Questions Solved Problems Problems project Cash Flows Rationale for Considering Cash Flows Basic Principles in Cash Flow Estimation Elements of the Cash Flow Stream. Cash Flow Illustrations Risk Analysis in Capital Budgeting Sensitivity Analysis Scenario Analysis Break-Even Analysis Decision Tree Analysis Selection of a Project Value of Options • The Cost Of Capital Some Preliminaries Cost of Debt and Preference • Cost of Equity Determining the Proportions • Weighted Average Cost of Capital Weighted Marginal Cost of Capital Schedule ' Capital Structre and Dividend Policies . Capital Structure and Cost of Capital Assumptions and Definitions Net Income Approach • Net Operating Income Approach Traditional Position Modigliani and Miller Position Taxation and Capital Structure Other Imperfections and Capital Structure Overall Picture. Planning the Capital Structure EBIT-EPS Analysis Assessment of Debt Capacity Explaining Financing Choices Checklist for Capital Structure Decisions .dividend Policy and Share Valuation Traditional Position Walter Model Gordon Model Miller and Modigliani Position Radical Position Overall Picture Dividend Policy: Practical Aspects Dividend Policy: Payout Ratio Dividend Policy: Stability Dividend as a Residual Payment Corporate Dividend Behaviour Legal and Procedural Aspects Bonus Shares and Stock Splits Share Buybacks Long-Term Financing Sources of Long-Term Finance Equity Capital Internal Accruals Preference Capital Term Loans Debentures Comparative Picture. Raising Long-Term Finance - Venture Capital Initial Public Offer Secondary Public Offer Rights Issue Private Placement Obtaining a Term Loan Investment Banking . Securities Market Participants in the Securities Market Primary Equity Market Secondary Equity Market (Stock Market) Trading and Settlement Stock Market Quotations and Stock Market Indices SEBI and Future Challenges Government Securities Market Corporate Debt Market Money Market Options Market Futures Market : Working Capital Management ' , Working Capital Policy Characteristics of Current Assets • Factors influencing Working Capital Requirements • Level of Current Assets Current Assets Financing Policy Operating Cycle and Cash Cycle Cash Requirement for Working Capital . Cash Management Cash Budgeting. Long-Term Cash Forecasting Monitoring Collections and Receivables Optimal Cash Balance Investment of Surplus Funds Credit Management Terms of Payment Credit Policy Variables Credit Evaluation Credit Granting Decision Control of Accounts Receivable Inventory Management Need for Inventories Order Quantity—EOQ Model Order Point Monitoring and Control of Inventories Working Capital Financing Accruals Trade Credit Working Capital Advance by Commercial Banks Regulation of Bank Finance Public Deposits Inter-Corporate Deposits Short-Term Loans from Financial Institutions Rights Debentures for Working Capital Commercial Paper Factoring. Special Topics . Leasing, Hire Purchase and Project Finance Types of Lease Arrangements Mechanics of Leasing Financial Evaluation of a Lease Other Considerations in Leasing Hire Purchase Arrangement 3 Project Finance . Mergers, Acquisitions, and Restructuring Reasons for Mergers Mechanics of a Merger Financial Aspects of a Merger Purchase of a Division/Plant Takeovers Divestitures Demergers . International Financial Management World Monetary System Multinational Corporations (MNCs) Foreign Exchange Market Raising Foreign Currency Finance International Capital Budgeting Financing and Insuring Exports Documents in International Trade Foreign Exchange Exposure Management of Foreign Exchange Exposure
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