Financial management

1.Introduction to financial management

2 Marks

1.Finance function – meaning

2.Meaning of financial management

3.Wealth maximization- meaning

4. Draw the organization structure of the finance function

5 marks

1. Objectives of finance function

2. Scope of financial management
3. Objectives of Financial Management
4. Functions of Financial Management
5. Steps in Financial Planning
6. Principles of sound financial plan
7. Factors affecting financial plan
8. Role of Finance manager

15 marks

1. Functions of Financial Management

2. Steps in financial planning and principles of a sound financial plan

2.Time Value of Money

2 marks
1. Meaning of Time value of money
2. Meaning of Time preference of money
3. Doubling technique- Rule 72 or Rule 69
5 marks
1. Problems on Future value of Annuity
2. Problems on Present value of Annuity

3.Financing Decision

2 marks
1. Meaning of capital structure
2. Meaning of Optimal capital structure
3. Short problems of leverages
5 marks
1.Problems of leverages
15 marks
1.Factors determining the capital
Structure
 2. Problems on EBIT-EPS analysis- Single EBIT with different financial plans
3. Problems on all leverages

4.Investment Decisions

2 marks
1.Meaning of Capital Budgeting
2.Features of Capital Budgeting
3.Types of capital budgeting decisions

5 marks
1 . Features of Capital budgeting
2.Steps in the process of capital budgeting
3.Problems on NPV or PI
4.Problems on Internal rate of return when the PV factor is given
15 marks
1.Problems on Capital budgeting Techniques – 2 or 3 methods maximum (with PV factor values
given in the question)

5.Working Capital Management

2 Marks
1.Meaning of working capital
2.Meaning of cash management
3.Meaning of receivable management
4.Meaning of Inventory management
5.Problems on % to sales method
5 marks
1. Types of working capital
2. Dangers of Excess working capital
3.Dangers of inadequate working capita
4.Problems on operating cycle method
15 marks
1.Problems on Components of working capital method
2.Factors affecting working capital