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
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
FINANCIAL MANAGEMENT PRIMARILY DEALS WITH CORPORATE FINANCE
MEANING OF FINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT REFERS TO THAT PART OF MANAGEMENT ACTIVITY WHICH IS CONCERNED WITH THE PLANNING AND CONTROLLING OF FIRMS FINANCIAL RESOURCES FINANCIAL MANAGEMENT IS THE STUDY OF SOURCING, ALLOCATINGAND USING FUNDS IN MOST EFFICIENT MANNER
AND ASKING FOLLOWING QUESTIONS: How to source funds?
How to allocate them?
How to use them?
PRINCIPLES OF FINANCIAL MANAGEMENT
RISK AND RETIRN
WEALTH MAXIMISATION FINANCIAL MANAGEME NT
TIME VALUE OF MONEY
INCREMENTAL CASH FLOW ANALYSIS CASH FLOW CONCEPT
SCOPE OF FINANCIAL MANAGEMENT
Modern scope of financial management is divided into three important decisions which may also be called functions of financial management. These are-: Investment decisions Financing decisions Dividend decisions
OBJECTIVES OF FINANCIAL MANAGEMENT
Profit maximization
Wealth maximization
PROFIT MAXIMIZATION
Arg um ents in fa vou r ☺
When pro fit is the aim of bus iness then pro fir m axim iz ation sh ould b e t he obviou s ob je ctive
☺
Profitability i ic s the barom r of m eaente su ring efficie and e con om prosp erity ete of business rprise ☺
Profits a re main sourc business
☺
Profitability
e of fina nce for the grow
is essentia l for fulfilling
nc y
th of
so cial go als
A rgu m ents aga inst pro fit m axim iz ation ☻
The term profit is vague and cannot be precisely defined. Does it mean total profit or EPS? Should we take profit before tax or after tax? Should we take operating profit or profits available for shareholders
☻ ☻
Ignores time value of money Ignores risk factor
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Profitability is based upon accounting concept
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It focuses on profit and does not take any step towards maximizing the wealth of shareholders
Profit Vs wealth maximization Profit maximization
It judges the performance of an organization through profits
It ignores time value of money
It considers accounting profits and not cash flows It takes decisions on the basis of quantitative analysis
It does not take any analysis on the qualitative aspect of organization
Wealth maximization
It judges not only firm’s performance but also EPS of shareholders
It considers time value of money for finding out present and future value
It takes into account cash flows
It takes investment, financial and dividend decisions on the basis of quantitative and qualitative aspects
It analyze social and legal aspect of running an enterprise
