UNIT 3 ASPECTS OF CORPORATE FINANCIAL STRUCTURE Financial Management introduces students to the fundamental tools and concepts of corporate finance by explaining the reasoning behind various financial concepts. The book prepares students for life outside the classroom through snapshots from contemporary organizations, solved examples and application-based problems.
Salient Features * Finance in Practice introduces key chapter concepts by presenting short vignettes about the financial practices of organizations such as Steel Authority of India Limited, Hindalco Industries Limited, Amazon.com and Tata Motors. * Business Insights and Business Snapshots present useful facts and rules of thumb, and provide insights into financial practices in organizations like Godrej Industries Ltd, Infosys Technologies Ltd and ICICI Bank. * Solved Examples, Solved Problems and Excel Worksheets help enhance students’ understanding of numerical and MS Excel-based problems. * Concept Check questions, Classroom Exercises, Unsolved Problems and Case Applications assist student learning by providing ample opportunity for practice.
Table of contents
Preface About the Author UNIT 1 INTRODUCTION TO CORPORATE FINANCE * Introduction to Financial Management * Fundamentals of Financial Statements * Cash Flow Statements * Cost Concepts for Managers * Cost-Volume-Profit Analysis
UNIT 2 TOOLS OF CORPORATE FINANCE * Time Value of Money * Ratio Analysis * Investment Risk and Return * Beta: Determination and Implications * Bonds and Equity Valuation * Understanding Options
UNIT 3 ASPECTS OF CORPORATE FINANCIAL STRUCTURE * Leverages * Cost of Capital * Capital Structure * Dividend Theory * Dividend Policy
UNIT 4 DIMENSIONS OF INVESTMENT * Principles of Capital Budgeting * Capital Budgeting Techniques * Capital Budgeting Under Risk and Uncertainty
UNIT 5 DIMENSIONS OF FINANCIAL OPERATIONS * Working Capital Management * Short-term Sources of Financing * Cash Management * Receivables Management * Inventory Management
UNIT 6 UNDERSTANDING THE FINANCIAL MARKET * Understanding the Capital Market * Understanding the Primary Market * Traditional Financial Instruments * New Financial Instruments and Derivatives * Venture Capital * Hedge Funds and Mutual Funds
UNIT 7 INFLUENCES FROM BEYOND THE BORDER * International Finance * Foreign Direct Investment
UNIT 8 STRATEGIC DIMENSIONS FOR VALUE CREATION * Corporate Governance * Mergers and Acquisitions * Business Valuation * Brand Valuation * Strategic Financial Decisions