Go to Part 1 Goals/Objectives of Financial Management – Profit Maximization [Traditional] Shareholders wealth Maximization [Modern] Profit Maximization – It is a traditional and narrow approach which aims at maximization of returns by the firm in terms of monetary resources and increasing the earning per share of the shareholders. UnderRead More →
Finance is the art and science of managing money. The discipline of finance is concerned with the procurement, allocation, application and disbursement of money by a business entity in order to maximize its return on invested capital. It includes financial services and financial instruments. The subject of finance is dividedRead More →
According to G.C. Lyrich “Capital budgeting is concerned with the allocation of firm`s financial resources among the available opportunities. The consideration of investment opportunities involves the comparison of the expected future streams of earnings from a project with the immediate and subsequent streams of earnings from a project, with theRead More →
Corporate Restructuring Corporate Restructuring implies activities related to – ♦ Expansion/contraction of a firm’s operations or ♦ Changes in its Assets or Financial or Ownership structure ♦ Changes in Corporate control Forms of Corporate Restructuring The most common forms of corporate restructuring are mergers/amalgamations, acquisitions/take overs, financial restructuring, divestitures/demergers andRead More →
Financial Planning Financial management helps to determine the financial requirement of the business concern and leads to financial planning. Financing Planning plays a major role in the areas of financial management such as capitalization, financial structure, leverage and forecasting. It includes the following important parts – (a) Estimating theRead More →