Meaning, Nature, scope and objectives – Role and functions of financial management–Financial decisions – Relationship between risk and return–sources of finance– short-term and Long-term finance.

Meaning and importance –Cost of debt, preference, equity and retained earnings – Weighted average cost of capital – Capital budgeting – Techniques – ROI, payback period and discounted cash flow.

Financial Leverage – Operating leverage – EBIT and EPS analysis – Theories of Capital Structure Net income approach –Net operating income Approach.MM Hypothesis– Determinants of capital structure- Capitalisation – Over and Undercapitalization - Merits and Demerits.

Nature and Types- Advantages and Disadvantages- Dividend Theories: Walter’s model – Gordon and MM’s models – Dividend policy -Forms of Dividend –Determinants of dividend policy.

Working Capital Management – Cash Management – Receivables Management –Inventory Management – Determinants and Computation of Working Capital.