Financial Management –Introduction- Nature- scope of Finance-Objectives of Financial Management Profit Maximization Vs Wealth Maximization – Finance Function-Role of Finance Manager.

Financial Decision: Concept of Cost of Capital. Meaning and Significance of Cost Capital- Calculation of Cost of Debt, Equity Share, Preference Share and Retained Earning – Computation of Weight Average Cost of Capital – Leverage – Concept and Importance – Financial Leverage – Operating Leverage – Composite Leverage

Capital structure: Meaning and Features – Theories of Capital Structure – Net Income Approach, Net operating Income Approach, MM Approach, Traditional Approach – Factors Determining Capital Structure – Capitalization : Meaning – Concept – Over and under Capitalization – Merits and Demerits.

Investment Decision: Capital Budgeting – Meaning and Nature – Importance – Capital Budgeting process – Kinds of Capital Budgeting Decisions – Evaluation Methods : Pay Back Method, DCF Methods, NPV, IRR, ARR – Capital Rationing.

Dividend Decision and Valuation of Firms: Dividend Policy – Factors determining Dividend policy – Theories of Dividend policy – Theory of Irrelevance – Residual approach, MM Model- Theory of Relevance – Water approach, Gordon approach.