Financial Management

Financial Management is the process of planning, organizing, directing and controlling the financial events such as procurement and utilization of funds of the organization. It means applying universal management philosophies to financial resources of the organization.


Financial Management Notes

There are two main objectives of financial management; Profit maximization  Shareholders wealth maximization  There are two schools of thought in this favour  Traditional Approach Modern Approach The modern scholars favours shareholders wealth maximization as key obj... read more

financial management

October 02, 2017

Introduction to Financial Management: Financial management is as emerged as an interesting and stimulating area for academic studies as well as for the real-world finance managers. Financial management covers all decisions, taken by an individual or a company, which have financial implications. In our simple understa... read more

financial management

August 26, 2017

Objectives of Capital Budgeting   Following are the objectives of capital budgeting;1. Shareholder’s wealth maximization: In tune with objectives of financial management, its aim is selecting those projects that maximize shareholder’s wealth. The decision should avoid over/under investment in fixed asse... read more

financial management

May 27, 2017

Introduction: A firm incurs two types of expenses i.e.  1. Revenue Expenditure:The benefits of which are supposed to be exhausted within the year concerned and their planning and control is done through various functional departments.2. Capital Expenditure:The benefits of which are expected to be received over long ... read more

financial management

May 26, 2017

Classification of the cost of capital are as under: Cost of debt: The cost of debt is computed by taking the rate on a risk free bond whose duration matches the term structure of the corporate debt, then adding a default premium. This default premium will increase as the amount of debt increases (since, all other thi... read more

financial management

May 24, 2017

Introduction:In finance, capital structure states the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. A firm's capital structure is formerly the composition or 'structure' of its liabilities. E.g. a firm that sells Rs.20 billion in equity and Rs.80 billion in debt is... read more

financial management

May 24, 2017

Introduction:Every profit seeking corporations has its own risk return characteristics. Each group of investors in the corporation-bond holders, preferred stock holders, and common stock holders needs a minimum rate of return commensurate with the risks it accepts by investing in the firm. The minimum rate of return that... read more

financial management

May 24, 2017

There are two main sources of financing a project i.e. Own funds and  Loan funds.  The cost of a project depends on the nature of project i.e. a project set up for the first time, expansion project, modernization project, diversification project, take over project joint venture project, merger project etc.   The cor... read more

financial management

May 23, 2017

In financial management, finance manager is chief authority. Not only to raise the finance of business, finance manager will also do many other works for business. Following are the main roles of financial manager. Raising Funds of Company: Finance manager analyze different sources of business. He didn’t get fund fr... read more

financial management

February 23, 2017

The scope of financial management includes three clusters. First – concerning to finance and cash, second – increasing of fund and their administration, third – along with the activities of rising funds, these are part and section of total management, Isra Salomon fingered that in view of funds utilization thi... read more

financial management

January 26, 2017

Advertisment