Financial Management 4e  
Published by Vijay Nicole Imprints Private Limited
Publication Date:  Available in all formats
ISBN: 9789393161642

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The comprehensive first course textbook provides in depth coverage of the principles and practise of Financial Management. Now in its fourth edition, the book has its emphasis on conceptual clarity, lucid presentation and reckons for students from diverse backgrounds

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The comprehensive first course textbook provides in depth coverage of the principles and practise of Financial Management. Now in its fourth edition, the book has its emphasis on conceptual clarity, lucid presentation and reckons for students from diverse backgrounds

Table of contents
  • Cover
  • Title Page
  • Copyright Page
  • Contents
  • Preface
  • Part I - Introduction
    • 1 Financial Management—Nature, Scope and Basic Concepts
      • Introduction
      • Definition of Financial Management
      • Goals or Objectives of Financial Management
      • Scope and Functions of Financial Management
      • Finance and Other Related Disciplines
      • Organisation of Financial Management
      • Financial Planning
      • Financial Policy
      • Key Strategies of Financial Management
      • (I) Time Value of Money
      • Meaning of Future Value of Money
      • Simple Interest
      • Compound Interest
      • Present Value
      • Annuities
      • (II) Valuation of Securities
      • Valuation of Debenture of Bonds
      • Valuation of Preference Shares
      • Valuation of Equity Shares
      • Amortizing a Loan
      • Capital Recovery
      • Practical Problems
      • Questions
  • Part II - Techniques of Financial Analysis
    • 2 Financial Statements—Analysis and Planning
      • Meaning of Financial Statements
      • Nature of Financial Statements
      • Objectives of Financial Statements
      • Limitations of Financial Statements
      • Analysis and Interpretation of Financial Statements
      • Rearrangement of Income Statements
      • Rearrangement of Balance Sheet
      • Methods or Tools of Analysis and Interpretation
      • Practical Problems
      • Questions
    • 3 Statement of Changes in Financial Position
      • (I) Funds Flow Statement Analysis – Working Capital Basis
      • Introduction
      • Meaning of Funds
      • Statement of Changes in Financial Position (SCFP)
      • Funds Flow Statement (Statement of Changes in Financial Position)
      • Preparation of Funds Flow Statement
      • Components of Sources and Application of Funds
      • Practical Problems
      • (II) Cash Flow Statement Analysis (Cash Basis)
      • Introduction
      • Sources and Applications of Cash
      • Computation of Cash Flow Statement
      • Practical Problems
      • (III) Accounting Standard–AS 3 (Revised) Cash Flow Analysis
      • Introduction
      • Presentation of a Cash Flow Statement
      • Practical Problems
      • Questions
    • 4 Financial Statement Analysis—Ratio Analysis
      • Introduction
      • Analysis or Interpretation of Ratios
      • Principles of Ratio Selection
      • Classification of Ratios
      • Absolute Liquid Ratio
      • Solvency Ratios
      • Practical Problems
      • Questions
  • Part III - Long-term Investment Decisions
    • 5 Capital Budgeting—Principles and Techniques
      • Meaning
      • Definition of Capital Budgeting
      • Capital Budgeting / Expenditure Process
      • Types of Capital Budgeting Proposals
      • Methods of Evaluating Capital Investment Proposals
      • Traditional Methods
      • Discounted Cash Flow Method (or) Time Adjusted Method
      • Practical Problems
      • Questions
    • 6 Ratio Analysis in Capital Budgeting
      • Meaning of Risk in Capital Budgeting
      • Characteristics of Capital Investment
      • Relationship between Risk and Return
      • Techniques for Decision-Making under Risk and Uncertainty–Risk Evaluation Approaches
      • General Techniques
      • Quantitative Techniques
      • Capital Rationing
      • Appraisal of Capital Budgeting Proposal
      • Methods of Handling Risk
      • Practical Problems
      • Questions
    • 7 Analysis of Risk and Return in Portfolio Investments
      • Meaning and Definition of Risk
      • Causes of Business Risk
      • Uncertainty
      • Types of Risk
      • Meaning of Investment
      • Speculation
      • Gambling
      • Risk Analysis in Portfolio Investment
      • Stock Exchange and Portfolio Investment
      • Meaning of Income/Return on Investment
      • Time Value of Money
      • Risk and Return Relationship
      • Risks in Portfolio Investment
      • Unsystematic Risk and Diversification
      • Systematic Risk and Beta Analysis
      • Modern Portfolio Theory (Markowitz Theory)
      • Capital Market Theory
      • Mutual Funds and Portfolio Management
      • Questions
    • 8 Sources of Long-term Finance—Shares, Debentures and Term Loans
      • Introduction
      • Security Financing – Shares and Debentures
      • Issue of Shares
      • Issue of Debentures
      • Loan Financing from Financial Institutions—National
      • Loan Financing from Financial Institutions—International
      • Questions
    • 9 Financing from Capital Markets and Exports Financing
      • Introduction
      • Specified Sources of Financing
      • Export Finance by Commercial Banks
      • Letter of Credit And Financing of Foreign Trade
      • Financial Guarantees for Export Trade
      • Other Financial Instruments
      • New Financial Instruments
      • Factors Governing International Capital Movements
      • Questions
    • 10 Concept and Measurement of Cost of Capital
      • Introduction
      • Classification of Cost of Capital
      • Assumptions of the Cost of Capital
      • Methods of Computation of Cost of Capital
      • Practical Problems
      • Questions
    • 11 Mergers, Amalgamations and Acquisitions/Takeovers
      • Introduction
      • Steps Involved in Merger or Acquisition
      • Methods of Determination of a Firm’s Value
      • Meaning of Amalgamation
      • Questions
    • 12 Lease Financing
      • Meaning of Lease
      • Types of Lease
      • Financial Evaluation—Lessee’s Perspective
      • Financial Evaluation—Lessor’s Perspective
      • Questions
    • 13 Hire-purchase Financing
      • Meaning
      • Features of Hire-purchase Arrangement
      • Lease Financing Vs. Hire-purchase financing
      • Questions
    • 14 Venture Capital
      • Meaning and Definition of Venture Capital
      • Features of Venture Capital
      • Stages in Venture Financing
      • Buy-outs
      • Types of Buy-outs
      • Development of Venture Capital in India
      • Questions
  • Part IV - Financial Decisions
    • 15 Operating, Financial and Combined Leverage
      • (I) Operating Leverage—Marginal Costing and Cost-Volume-Profit Analysis
      • Meaning of Marginal Cost
      • Marginal Costing
      • Cost-Volume-Profit Analysis
      • Break-Even Analysis
      • (II) Financial Leverage
      • Combined or Composite Leverage (Total Risk)
      • EBIT-EPS Analysis
      • EBIT-EPS Breakeven or Indifference Analysis
      • Practical Problems
      • Questions
    • 16 Capital and Capitalisation
      • Meaning of Capital
      • Theories of Capitalisation
      • Fair Capitalisation
      • Over-Capitalisation
      • Under-Capitalisation
      • Watered Capital
      • Over-trading and Under-trading
      • Questions
    • 17 Capital Structure Planning
      • Introduction
      • Patterns of Capital Structure
      • Optimum or Ideal Capital Structure
      • Theories of Capital Structure
      • Practical Problems
      • Questions
    • 18 Designing Capital Structure (Approaches to Establish Target Capital Structure)
      • Introduction
      • EBIT—EPS Analysis
      • Cost of Capital and Valuation Approach
      • Cash Flow Approach
      • Packing Order Hypothesis
      • Trade-off Theory
      • Questions
  • Part V - Dividend Policy Decisions
    • 19 Dividend and Valuation
      • Introduction
      • Factors Affecting Dividend Policy
      • Bonus Shares
      • Stock Splits
      • Ratio Analysis for Dividend Policy
      • Theories of Dividend Policy
      • I. Walter Model
      • II. Gordon’s Model
      • Questions
  • Part VI - Current Assets Management
    • 20 Working Capital Management-Nature and Scope
      • Introduction
      • Components of Working Capital
      • Operating Cycle
      • Types of Working Capital
      • Determination of Working Capital
      • Assessment of Working Capital Requirements
      • Practical Problems
      • Questions
    • 21 Planning and Financing of Working Capital
      • Objectives of Working Capital
      • Elements of Working Capital
      • Sources of Working Capital
      • Working Capital Control and Banking Policy
      • Liquidity and its Test
      • Questions
    • 22 Management of Cash and Marketable Securities
      • Introduction
      • Meaning of Cash
      • Motives for Holding Cash
      • Objectives of Cash Management
      • Factors Determining Cash Needs
      • Issues of Cash Management
      • Cash Cycles and Cash Turnover
      • Functions of Cash Management
      • Cash Forecasts
      • Marketable Securities
      • Questions
    • 23 Management of Accounts Receivable
      • Meaning and Definition
      • Objectives of Accounts Receivable Management
      • Advantages or Benefits of Accounts Receivable Management
      • Cost of Maintaining Accounts Receivables
      • Formulation of Credit Policies
      • Factors Influencing the Size of Receivables
      • Factoring of Receivables
      • Practical Problems
      • Questions
    • 24 Inventory Management
      • Introduction
      • Meaning and Definition of Inventory Control
      • Inventory Control Techniques
      • Fixation or Determination of Stock Levels
      • ABC Analysis
      • VED Analysis
      • FSN Analysis
      • Pareto Analysis
      • Just-in-Time (JIT) Inventory System
      • Classification and Codification of Materials
      • Inventory System
      • Material Storage Losses
      • Inventory Turnover Ratio
      • Pricing of Raw Materials and Valuation of Stock
      • Practical Problems
      • Questions
    • 25 Budgeting and Budgetary Control
      • Introduction
      • Definition of Budget
      • Essentials of a Budget
      • Forecast Vs Budget
      • Budgetary Control
      • Organisations for Budgetary Control
      • Advantages of Budgetary Control
      • Limitations of Budgetary Control
      • Types of Budgets
      • Performance of Budgeting
      • Some Important Budget
      • Production Budget
      • Cost of Production Budget
      • Material Purchase Budget
      • Master Budget
      • Fixed Budget
      • Flexible Budget
      • Zero Base Budgeting
      • Questions
      • Exercises
    • 26 Reporting to Management
      • Introduction
      • Classification of Management Reporting
      • Questions
  • Glossary
  • Objective Type Questions and Keys
  • Annexure A
  • Annexure B
  • Bibliography
  • Index
Biographical note

Dr. P Periasamy is Reader in the Department of Business Management, Erode Arts College (Autonomous), Erode. He has more than 25 years of teaching and research experience. He has contributed innumerable research papers published in various reputed journals. He has authored books like Financial Management, Insurance: Principles & Practice, Risk and Insurance Management and Working Capital Management.

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