Professional Documents
Culture Documents
LEARNING OBJECTIVES
List out 7 Ms of management. Give the meaning and definition of financial management. Trace the evolution of financial management. Explain the scope of financial management. Give the interface of financial management with other disciplines. Explain the different financial decisions. Extract the inter-relationship among financial decisions. Bring out Aims of Finance Function. Elucidate the objectives of financial management. Debate on organisation of finance function.
Financial Management: Principles and Practice By G. Sudarsana Reddy
Seven Ms of Management
Men Money Machines Materials Methods Minutes and Management
Financial Management
Financial Management is concerned with the acquisition, financing and management of assets to achieve organizational goal
Financial Decisions
1. Investment Decision: Decision which is related to the selection of assets 2. Financing Decision: Determination of proportion of debt and equity in capital structure 3. Dividend Decision: It involves determination of portion of EPS to be declared as dividend per share.
Financial Decisions
Investment Decision
Financing Decision
Dividend Decision
2. Wealth Maximisation
Goals of FM Conted.
CIF1 CIF2 CIF3 CIFn W = ----------- + ----------- + ----------- + - - - - + -------- -ICo (1+r)1 (1+r)2 (1+r)3 (1+r)n
Goals of FM Conted.
3. Alternative goals Maximisation of ROE Maximisation of EPS Management of reserves for growth and expansion
Board of Directors
Managing Director
Vice-President Finance
Vice-President Sales
Treasurer
Controller
Capital Budgeting
Cash Management
Credit Management
Tax Manager
Internal Audit