1. The document outlines the key decisions and principles of financial management. It discusses 10 principles of financial management including risk-return tradeoffs, time value of money, and efficient capital markets.
2. Financial managers are responsible for investment, financing, and asset management decisions. Investment decisions involve allocating money to maximize value, financing decisions cover obtaining and structuring financing, and asset management focuses on efficient use of assets.
3. Financial management aims to efficiently manage an organization's funds to achieve its goals. It involves planning, directing, and controlling financial activities and resources.
,
introduction to financial management
,
what is financial management
,
concept of financial management
,
areas of finance
,
scope/major areas of finance
,
agency theory
,
what is an agency problem
,
introduction to financial management
,
what is financial management
,
concept of financial management
,
areas of finance
,
scope/major areas of finance
,
agency theory
,
what is an agency problem
This presentation is an overview of Capital Structure Theories.
Dr. Soheli Ghose ( Ph.D (University of Calcutta), M.Phil, M.Com, M.B.A., NET (JRF), B. Ed).
Assistant Professor, Department of Commerce,St. Xavier's College, Kolkata.
Guest Faculty, M.B.A. Finance, University of Calcutta, Kolkata
This PPT contains the full detail of topic leverage in financial management
it covers following topics :-
Meaning of Leverage
Types of Leverage
Operating Leverage
Financial Leverage
Difference between Operating & Financial Leverage
Combined Leverage
Illustrations
Exercise
This presentation is an overview of Capital Structure Theories.
Dr. Soheli Ghose ( Ph.D (University of Calcutta), M.Phil, M.Com, M.B.A., NET (JRF), B. Ed).
Assistant Professor, Department of Commerce,St. Xavier's College, Kolkata.
Guest Faculty, M.B.A. Finance, University of Calcutta, Kolkata
This PPT contains the full detail of topic leverage in financial management
it covers following topics :-
Meaning of Leverage
Types of Leverage
Operating Leverage
Financial Leverage
Difference between Operating & Financial Leverage
Combined Leverage
Illustrations
Exercise
How emerging managers can raise capital, hire the best people, sustain profitability and organize for tax efficiency. More here: http://gt-us.co/1qG5Xlu
Finance Q & A Essay
Finance Essay
Financial Services Essays
Corporate Finance Essay
Managing Financial Resources Essay examples
Essay on personal finance goals
Reflection About Finance
Business Finance Essay
Essay on My Personal Financial Plan
Finance Director Essay
Essay Corporate Finance
Essay about Ethics in Finance
Essay on Finance
Finance
Importance of financial management
Overview of Financial Management
Time Value Of Money
Cost of capital
International Financial Management
Return and Risk
Valuation of financial instruments
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
2. 2
Chapter ObjectivesChapter Objectives
What is Financial Management?
10 principles of financial management.
What are the Decisions that Financial
Manager must be Concern?
The Goal of the Firm.
Organization of the Financial
Management Function.
Understand the agency problems.
3. 3
What is FinancialWhat is Financial
Management?Management?
Financial Management means
planning, organizing, directing
and controlling the financial
activities of the organization.
()
It refers the efficient and effective management of
money (funds) in such a manner as to achieve the
goals of the organization.
4. 4
“It is necessary to understand
these principles in order to
understand finance.”
Ten Principles of Financial ManagementTen Principles of Financial Management
5. 5
We won’t take on additional risk unless we
expect to be compensated with additional
return.
Investment choices have different
amounts of risk and expected returns.
The more risk an investment has, the
higher its expected return will be.
Principle 1: The Risk-Principle 1: The Risk-
Return Trade-offReturn Trade-off
6. 6
A dollar received today is worth more than
a dollar received in the future.
Because we can earn interest on money
received today, it is better to receive
money earlier rather than later.
Principle 2: The TimePrinciple 2: The Time
Value of MoneyValue of Money
7. 7
Cash Flow, not accounting profit,
is used as our measurement
tool.
Cash flows, not profits, are
actually can be reinvested.
Principle 3: CashPrinciple 3: Cash——
Not ProfitsNot Profits——Is KingIs King
8. 8
The incremental cash flow is the
difference between the projected
cash flows if the project is
selected, versus what they will
be, if the project is not selected.
Principle 4: IncrementalPrinciple 4: Incremental
Cash FlowsCash Flows
9. 9
It is hard to find exceptionally profitable
projects
If an industry is generating large profits,
new entrants are usually attracted. The
additional competition and added capacity
can result in profits being driven down to
the required rate of return.
Product Differentiation, Service and
Quality can separate products from
competition
Principle 5: The Curse ofPrinciple 5: The Curse of
Competitive MarketsCompetitive Markets
10. 10
The markets are quick and the
prices are right.
The values of all assets and
securities at any instant in time
fully reflect all available
information.
Principle 6: EfficientPrinciple 6: Efficient
Capital MarketsCapital Markets
11. 11
Managers won’t work for the owners
unless it is in their best interest
A agency problem resulting from conflicts
of interest between the manager/agent and
the stockholder/owners.
Managers may make decisions that are not in
line with the goal of maximization of
shareholder wealth.
Principle 7: ThePrinciple 7: The
Agency ProblemAgency Problem
12. 12
The cash flows we consider
are the after-tax incremental
cash flows to the firm as a
whole.
Principle 8: Taxes BiasPrinciple 8: Taxes Bias
Business DecisionsBusiness Decisions
13. 13
Some risk can be diversified
away, and some cannot
The process of diversification
can reduce risk, and as a result,
measuring a project’s or an
asset’s risk is very difficult.
Principle 9: All Risk isPrinciple 9: All Risk is
Not EqualNot Equal
14. 14
Each person has his or her own
set of values, which forms the
basis for personal judgments
about what is the right thing
Principle 10: Ethical Behavior is DoingPrinciple 10: Ethical Behavior is Doing
the Right Thing, and Ethical Dilemmasthe Right Thing, and Ethical Dilemmas
Are Everywhere in FinanceAre Everywhere in Finance
15. 15
Investment Decisions (Capital Budgeting)
(Investment decisions revolve around how to best
allocate money to maximize their value.)
Financing Decisions (Capital Structure)
(Financing decisions revolve around how to pay
for investments and expenses)
Asset Management Decisions
(Working Capital Management Decisions)
Decisions of FinancialDecisions of Financial
ManagerManager
16. 16
Investment DecisionsInvestment Decisions
how, when, where and how much
money will be spent on
investment opportunities.
A firm has many options to invest
their funds but firm has to select
the most appropriate assets for
investment which will bring
maximum benefit for the firm.
18. 18
Financing DecisionsFinancing Decisions
A company can raise finance from various
sources such as by issue of shares,
debentures or by taking loan and advances.
These sources of finance can be divided into
two categories: owners fund (no risk involve)
and borrowers fund (risk involve).
Find the least expensive sources of fund.
Determine how the assets will be financed.Determine how the assets will be financed.
19. 19
Financing DecisionsFinancing Decisions
What is the best type of financing?
Mix type financing.
What is the best financing mix?
Mixer debt and equity.
What is the best dividend policy?
Paying a consistent percentage of net earnings.
How will the funds be physically
acquired?
20. 20
Asset ManagementAsset Management
DecisionsDecisions
How do we manage existing assets
efficiently?
Financial Manager has varying degrees
of operating responsibility over assets.
Greater emphasis on current asset
management than fixed asset
management.
21. 21 1-21
Interrelationship of the decisionsInterrelationship of the decisions
made by a Financial Managermade by a Financial Manager
Editor's Notes
A firm has many options to invest their funds but firm has to select the most appropriate assets for investment which will bring maximum benefit for the firm.
how, when, where and how much capital will be spent on investment opportunities.
How much cash and inventory should be keep on hand?
Should we sell on credit? If so, what terms will we offer, and to whom will we extend them?
How will we obtain any needed short-term financing? If so, will we purchase on credit or will we borrow in the short-term and pay cash?
Adding depreciation and amortization expenses to earnings
Funds from Operations = Net Income + Depreciation + Amortization - Gains on Sales of Property .
Amortization Expenses: capital expenses for intangible assets over a specific period of time
Example: Broadcast licenses, Copyrights, Patents, Taxi licenses, Trademarks