Power Financial Management

UNIT 1: INTRODUCTION TO FINANCIAL MANAGEMENT

Introduction Concept of Financial Management Finance Functions Financial Goal Profit Maximisation vs Wealth Maximisation

UNIT 2: TIME VALUE OF MONEY

Introduction Concept of Time Value Money

Valuation Concept or Techniques Calculation of the Compound Growth Rate

Introduction Short-term Source of Finance Long-term Sources of Financing

UNIT 3: SOURCES OF FINANCE

UNIT 4: LEASING

Introduction Leasing as a Source of Finance Lease Evaluation

UNIT 5: CASE STUDIES UNIT 6: ECONOMIC VALUE ADDED

Introduction Concept of Economic Value Added Economic Value Added (EVA) vs. Earning Per Share (EPS)

UNIT 7: RISK AND RETURN ANALYSIS

Introduction Types of Investment Risk Measurement of Risk Risk and Expected Return Portfolio Diversification and Risk

UNIT 8: CAPM AND SML

Introduction Capital Asset Pricing Model Approach (CAPM) Security Market Line (SML)

UNIT 9: COST OF CAPITAL

Introduction Cost of Capital Concept Classification of Cost Computation of Specific Cost of Capital Weighted Average Cost of Capital (WACC) Steps Involved in Computation of WACC

UNIT 10: CASE STUDIES UNIT 11: CAPITAL STRUCTURE

Introduction Concept of Capital Structure Determinants of Capital Structure

UNIT 12: CAPITAL STRUCTURE THEORIES

Introduction Assumption of Capital Structure Theories Theories of Capital Structure The Trade-off Theory: Cost of Financial Distress and Agency Costs Pecking Order Theory

UNIT 13: LEVERAGES

Introduction Definition of Leverages Types of Leverages

UNIT 14: FUNDAMENTALS OF CAPITAL BUDGETING

Introduction Concept of Capital Budgeting Ranking of Capital Budgeting Proposals or Classification of Investment Proposals

Capital Budgeting Appraisal Methods

UNIT 15: CASE STUDIES UNIT 16: CAPITAL RATIONING

Introduction

Concept of Capital Rationing Steps Involved in Capital Rationing

UNIT 17: RISK ANALYSIS IN CAPITAL BUDGETING

Introduction Need for Risk Analysis in Capital Budgeting General Techniques Quantitative Techniques

UNIT 18: WORKING CAPITAL MANAGEMENT

Introduction Basics of Working Capital Concepts of Working Capital Kinds of Working Capital Operating Cycle and Cash Cycle Factors Influencing Working Capital Determination of Required Working Capital

UNIT 19: FINANCING OF WORKING CAPITAL

Introduction Financing of Working Capital Needs Approaches for Financing Working Capital Trade-off between Profitability, Risk and Liquidity

UNIT 20: CASE STUDIES UNIT 21: ACCOUNTS RECEIVABLE MANAGEMENT

Introduction Concept of Accounts Receivable Management Modes of Payment Factors Influencing the Size of Investment in Receivables Credit Policy Credit Evaluation of Individual Accounts Monitoring Accounts Receivable

UNIT 22: INVENTORY MANAGEMENT

Introduction Concept of Inventory Need for Balanced Investment in Inventory Tools and Techniques of Inventory Management/Control

UNIT 23: CASH MANAGEMENT

Introduction Concept of Cash Management Cash Planning or Cash Budget Managing Cash Flows Computation of Optimum Cash Balance Investment of Surplus Funds

UNIT 24: MANAGEMENT OF SURPLUS & DIVIDEND POLICY

Introduction Management of Profits Dividend Policy Stock Dividend (Bonus Share) and Stock Splits (Shares)

Dividend Policy and Valuation of the Firm Criteria for Delusion in EPS Practical Aspects of Dividend Policy

UNIT 25: CASE STUDIES