Introduction: Scope of Financial Management, Traditional Approach; Modern Approach;
Objectives of Financial Management; Investment Decisions; Financing decisions; Profit
Maximization vs. Wealth Maximization.
Capital Budgeting: Meaning, importance and various techniques; Pay back methods; Post Payback
period; rate of return method; Net Present value method; Internal rate of return method;
Profitability index method (Numerical questions may be set out of pay-back method and Post
pay-back method only).
Cost of Capital: Introduction; measurement of cost of capital; cost of equity shares; cost of
preference shares; cost of debt; calculation of overall cost of capital based on historical and
market rates (Fundamentals only).
Capital Structure: Introduction; capital structure decisions; NI approach; NOI approach; MM
approach; Traditional approach.