Corporate

Finance
Module-1
Meaning Of Finance

 Finance is the Science of the study of the

management of funds and the management of the
fund as the system that includes the circulation of
money, the granting of credit, the making of
investments, and the provision of banking
facilities.
Scope of Financial Management

1. Financial Management and Economics

2. Financial Management and Accounting
3. Financial Management and Marketing
4. Financial Management and Human Resource
5. Financial Management and Mathematics
Finance Manager Decisions

1. Financing

2. Investment

3. Dividend
Functions of Finance Manager

 Forecasting Financial Requirements

 Acquiring Necessary Capital
 Investment Decision
 Working Capital Management
Objectives Of Financial Management

1. Profit maximization.

2. Wealth maximization.
Article: Excerpt
 Today’s FM needs more technical and strategic skills.
 Working with small firms: Broad view of the business.
 Companies weak in a particular domain, e.g. marketing, suffer. Proper
balance is required.
 Company value may be derived from intangible assets.
 More valuable companies’ cash forecasts are always certain.
 Creativity of FM creates value: Hedging is one example.
 Investing and financing activity: if efficient, creates more value.
 Improper management of the firm is an opportunity for takeovers.
 Discipline: Planning and control function at the top level is required to create
operating efficiency.