Financial management / I. M. Pandey.

Contents

Part 1: Valuation
1. Nature of financial management
Scope of finance
Finance functions
Financial manager's role
Financial goal: Profit maximization versus wealth maximization
etc.

2. Concepts of value and return
Time preference for money
Future value
Future value of a single cash flow
Future value of an annuity
etc.

3. Valuation of bonds and shares
Concepts of value
Features of a bond
Bonds values and yields
Yield to maturity
etc.

4. Risk and return: An overview of capital market theory
Return on a single asset
Risk of rates of return: Variance and standard deviation
Calculation of variance and standard deviation
Historical capital market returns
etc.

5. Risk and return: Portfolio theory and assets pricing models
Portfolio return: Two-asset case
Portfolio risk: Two-asset case
Portfolio risk - return analysis: Two-asset case
Efficient portfolio and mean-variance criterion
etc.

6. Beta estimation and the cost of equity
Beta estimation
Beta estimation in practice
Beta estimation
Determinants of beta
etc.

7. Options and their valuation
Options
Call options
Put options
Options trading in India
etc.

Part 2: Investment decisions
8. Capital budgeting decisions
Nature of investment decisions
Types of investment decisions
Investment evaluation criteria
Net present value method
etc.

9. The cost of capital
Significance of the cost of capital
The concept of the opportunity cost of capital
Determining component costs of capital
Cost of debt
etc.

10. Determining cash flows for investment analysis
Cash flow versus profit
Incremental cash flows
Components of cash flows
Calculation of depreciation for tax purposes
etc.

11. Complex investment decisions
Projects with different lives
Investment timing and duration
Replacement of an existing asset
Investment decisions under capital rationing
etc.

12. Risk analysis in capital budgeting
Nature of risk
Statistical techniques for risk analysis
Conventional techniques of risk analysis
etc.

13. Real options, investment strategy and process
Capital investments
Capital investments planning and control
Qualitative factors and judgement in capital budgeting
Investments decisions and corporate strategy
etc.

Part 3: Financing and dividend decisions
14. Financial and operating leverage
Capital structure defined
meaning of financial leverage
Measures of financial leverage
etc.

15. Capital structure
Relevance of capital structure: Net income and the traditional views
Irrelevance of capital structure: NOI approach and the MM hypothesis without taxes
etc.

16. Valuation and financing
Beta, cost of capital and capital structure
Free cash flow and WACC
Capital cash flows and the opportunity cost of capital
etc.

17. Dividend theory
Issues in dividend policy
Dividend relevance: Walter's model
Dividend relevance: Gordon's model
etc.

Part 4: Long-term financing
19. Capital market efficiency and capital markets in India
Capital market efficiency
Capital markets in India
Primary capital markets in India
etc.

20. Long-term finance: shares, debentures and term loans
Ordinary shares
Right issue of equity shares
Preference shares
etc.

21. Convertible debentures and warrants
Convertible debentures
Convertible zero-interest debentures
Secure premium notes with warrants

22. Asset-based financing: Lease, hire purchase and project financing
Lease financing
Evaluating a financial lease
Can a lease benefit both lessor and lessee?
etc.

23. Venture capital financing
Notion of venture capital
etc.

Part 5: Financial and profit analysis
24. Financial statements and cash flow analysis

25. Financial statements analysis

26. Financial planning and strategy

Part 6: Working capital management
27. Principles of working capital management

28. Receivables management and factoring

29. Inventory management

30. Cash management

31. Working capital finance

Part 7: Managing value and risk
32. Corporate restructuring. mergers, and acquisitions

33. Derivatives for managing financial risk

34. International financial management

35. Shareholder value and corporate governance

36. Financial management in government companies

Part 8: Annexure

Author index : p. 777-778 . _ Subject index : p. 779-787