it is good exercise for examinationDeskripsi lengkap
Financial management , test bank, chapter8, RiskFull description
it is good exercise for examination
chapter 1Full description
financial management notes as per MBA 2nd Sem.Full description
This is an assignment in my college.
Full description
Full description
Financial Management
This will be very helpful for Anna University MBA Examination. I Did M.B.A 2011-2013 at Jei Mathaajee College of Engineering (Affiliated to Anna University).Full description
I WILL START DIGGING FROM THIS SIDE OF THE MOUNTAIN. YOU START DIGGING FROM THE OTHER SIDE . WHEN WE MEET IN THE MIDDLE , WE WILL HAVE HAVE MADE A TUNNEL . AND IF WE DO NOT MEET , WE WILL HAVE HAVE MADE TWO TUNNEL !
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PROF. N.N.PANDEY
11
FINANCIAL DECISION RECTANGLE
INVESTMENT DECISION
DIVIDEND DECISION
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FINANCING DECISION
WORKING CAP.DECIS ION PROF. N.N.PANDEY
22
DEFINITION ,NATURE AND SCOPE OF FINANCIAL MANAGEMENT
Financial management is all a ll about managing the financial resources in the most optimal manner towards desired organizational organizational objectives . Financial Management includes – anticipating financial needs , acquiring financial resources and allocating funds in business ( three A’s of Financial Management ) The scope of Financial Management extends to four key decisions areas :Ø
Investment decisions
Ø
Financing decisions
Ø
Dividend decisions
Ø
Working capital decisions
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PROF. N.N.PANDEY
33
KEY ISSUES IN FINANCIAL DECISION MAKING
INVESTMENT DECISION : Ø
What business to be in ?
Ø
What growth rate is appropriate ?
Ø
What assets to acquire ?
§
FINANCING DECISION
Ø
What mix of debt and equity to be used ?
Ø
Ø
Can we change the value of the firm by changing the capital mix ? Is there an optimal debt-equity mix ?
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PROF. N.N.PANDEY
44
KEY ISSUES IN FINANCIAL DECISION MAKING
DIVEDEND DECISIONS : Ø
Ø
How much of the profit should be retained in the business and how ho w much to be distributed as dividend ? Can we change the value of the firm by changing the amount of dividend ?
Ø
What should be the mode of dividend payment ?
§
WORKING CAPITAL DECISIONS :
Ø
What level of inventory of goods is ideal ?
Ø
What level of credit should be given to the customers ?
Ø
What level of cash should be maintained ?
Ø
How can the blockage of funds in the current assets be minimized without compromising profits ?
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PROF. N.N.PANDEY
55
RELATIONSHIP BETWEEN FINANCIAL ACCOUNTING RELATIONSHIP ACCOUN TING MANAGEMENT ACCOUNTING AND FINANCIAL MANAGEMENT
Recording and Financial Reporting of Management information Relating to diff. Financial decisions Finance functions Financialtodecisions Analyzed facilitate Performance Analyzed to facilitate Future decision Of the firm Future decision making making Information As per Tools and Financial statement Techniques Management Financial To facilitate accounting accounting Financial decisions 6/17/10
PROF. N.N.PANDEY
66
Organization chart of finance function Finance director / CFO
SHARES DEBENTURES COMMERCIAL PAPERS CERTIFICATE OF DEPOSITES PUBLIC DEPOSITES MUTUAL FUND UNITS INSURANCE POLICIES GOVERNMENT BONDS
MERCHANT BANKING PROJECT CONSULTANCY UNDERWRITING
CAPITAL MARKET
PROF. N.N.PANDEY
1111
FLOW OF FUNDS THROUGH THROUGH THE FINANCIAL SYSTEM SAVERS / LENDERS SHARES/BONDS Ø HOUSE HOLDERS Ø BUSINESS FIRMS DEPOSITS/POLICIES Ø GOVERNMENT Ø FOREIGNERS