introduction to financial management by bedaduri rama murthy

Introduction to Financial Management

BEDADURI RAMA MURTHY

BEDADURI RAMA MURTHY B. Com, B.ED, MBA, ( M. Com ), AP-SET,

Associate Professor

Dept. MBA , GIVC

And

Teaching Associate ,

Academy Of Basic Concepts Zone (ABCZ)Room No 26, Metro Complex, Near Girls College, Madanapalli.

brmurthy.mba@gmail.com

Financial Management Financial Management is an Integral are of Business

Transactions and Management. The Financial Management canbe defined as Financial Management is an area of financialdecision-making harmonizing individuals and enterprise goals.

Weston and Brigham

Financial Management is the area of business managementdevoted to a judicious use of capital and a careful selection ofsources of capital in order to enable a spending unit to move inthe direction of reaching its goals. J.F. Bradley

Financial Management as concerned with the acquisition,financing and management of assets with some overall goal inmind. James C. Van Horne

Nature of Financial Management

Estimating Financial Requirement

Selecting a Sources of Finance

Selecting a patron of Investment

Proper Cash Management

Implementing Financial Control

Proper Use of Surplus

It’s determined Growth of the Firm

Nature of Financial Management Estimating Financial Requirement

Selecting a Sources of Finance

Selecting a patron of Investment

Proper Cash Management

Implementing Financial Control

Proper Use of Surplus

It’s determined Growth of the Firm

Nature of Financial Management

Estimating Financial Requirement

Selecting a Sources of Finance

Selecting a patron of Investment

Proper Cash Management

Implementing Financial Control

Proper Use of Surplus

It’s determined Growth of the Firm

Nature of Financial Management

Estimating Financial Requirement

Selecting a Sources of Finance

Selecting a patron of Investment

Proper Cash Management

Implementing Financial Control

Proper Use of Surplus

It’s determined Growth of the Firm

Nature of Financial Management

Estimating Financial Requirement

Selecting a Sources of Finance

Selecting a patron of Investment

Proper Cash Management

Implementing Financial Control

Proper Use of Surplus

It’s determined Growth of the Firm

Nature of Financial Management

Estimating Financial Requirement

Selecting a Sources of Finance

Selecting a patron of Investment

Proper Cash Management

Implementing Financial Control

Proper Use of Surplus

It’s determined Growth of the Firm

Nature of Financial Management

Estimating Financial Requirement

Selecting a Sources of Finance

Selecting a patron of Investment

Proper Cash Management

Implementing Financial Control

Proper Use of Surplus

It’s determined Growth of the Firm

Scope Of Financial Management

Traditional Approach

Modern Approach

Scope Of Financial Management

Modern Approach

Investment Decision,

Financing Decision,

Capital Decision,

Working Capital Decisions

Dividend Policy Decision,

Interest rate decision and

Exchange rate decision

Scope Of Financial Management

Traditional Approach (1920-1930) (Institutional sources of finance, Issue of financial instruments and legal relationship)

Procurement of short-term, medium-term and long-term funds from different sources of financial Institutions.

Funds are raising through financial instruments like Equty Share, Preference Shares, Debentures, Bonds Etc.

Looking after the legal and accounting relationship between a company and its sources of funds.

Redistribution of income and assets among these resources.

Importance Of Finance FunctionsFinancial management has special significance in the origin

Growth of corporation in modern times.

Significant part of Business Management

Liquidity and Profitability

Value of the Firm

Centralized Nature

Benefit to Investors

Processing at Minimum Cost

Best Mixer of Investment

Controlling Expenditure

Stable Growth through Exposition

Importance Of Finance FunctionsFinancial management has special significance in the origin

Growth of corporation in modern times.

Significant part of Business Management

Liquidity and Profitability

Value of the Firm

Centralized Nature

Benefit to Investors

Processing at Minimum Cost

Best Mixer of Investment

Controlling Expenditure

Stable Growth through Exposition

Importance Of Finance FunctionsFinancial management has special significance in the origin

Growth of corporation in modern times.

Significant part of Business Management

Liquidity and Profitability

Value of the Firm

Centralized Nature

Benefit to Investors

Processing at Minimum Cost

Best Mixer of Investment

Controlling Expenditure

Stable Growth through Exposition

Importance Of Finance FunctionsFinancial management has special significance in the origin

Growth of corporation in modern times.

Significant part of Business Management

Liquidity and Profitability

Value of the Firm

Centralized Nature

Benefit to Investors

Processing at Minimum Cost

Best Mixer of Investment

Controlling Expenditure

Stable Growth through Exposition

Importance Of Finance FunctionsFinancial management has special significance in the origin

Growth of corporation in modern times.

Significant part of Business Management

Liquidity and Profitability

Value of the Firm

Centralized Nature

Benefit to Investors

Processing at Minimum Cost

Best Mixer of Investment

Controlling Expenditure

Stable Growth through Exposition

Importance Of Finance FunctionsFinancial management has special significance in the origin

Growth of corporation in modern times.

Significant part of Business Management

Liquidity and Profitability

Value of the Firm

Centralized Nature

Benefit to Investors

Processing at Minimum Cost

Best Mixer of Investment

Controlling Expenditure

Stable Growth through Exposition

Importance Of Finance FunctionsFinancial management has special significance in the origin

Growth of corporation in modern times.

Significant part of Business Management

Liquidity and Profitability

Value of the Firm

Centralized Nature

Benefit to Investors

Processing at Minimum Cost

Best Mixer of Investment

Controlling Expenditure

Stable Growth through Exposition

Importance Of Finance FunctionsFinancial management has special significance in the origin

Growth of corporation in modern times.

Significant part of Business Management

Liquidity and Profitability

Value of the Firm

Centralized Nature

Benefit to Investors

Processing at Minimum Cost

Best Mixer of Investment

Controlling Expenditure

Stable Growth through Exposition

Importance Of Finance Functions

Financial management has special significance in the origin Growth of corporation in modern times.

Significant part of Business Management

Liquidity and Profitability

Value of the Firm

Centralized Nature

Benefit to Investors

Processing at Minimum Cost

Best Mixer of Investment

Controlling Expenditure

Stable Growth through Exposition

Importance Of Finance Functions

Financial management has special significance in the origin Growth of corporation in modern times.

Significant part of Business Management

Liquidity and Profitability

Value of the Firm

Centralized Nature

Benefit to Investors

Processing at Minimum Cost

Best Mixer of Investment

Controlling Expenditure

Stable Growth through Exposition

Importance Of Finance Functions

Financial management has special significance in the origin Growth of corporation in modern times.

Significant part of Business Management

Liquidity and Profitability

Value of the Firm

Centralized Nature

Benefit to Investors

Processing at Minimum Cost

Best Mixer of Investment

Controlling Expenditure

Stable Growth through Exposition

Importance Of Finance Functions

Financial management has special significance in the origin Growth of corporation in modern times.

Significant part of Business Management

Liquidity and Profitability

Value of the Firm

Centralized Nature

Benefit to Investors

Processing at Minimum Cost

Best Mixer of Investment

Controlling Expenditure

Stable Growth through Exposition

The new Roll in Contemporary scenario

Greeter Impact on Capitalist World

Economical Resources

More Effective Management (Wealth management)

Financial Risk by Institutional

Global Economy

The new Roll in Contemporary scenario

Greeter Impact on Capitalist World

Economical Resources

More Effective Management (Wealth management)

Financial Risk by Institutional

Global Economy

The new Roll in Contemporary scenario

Greeter Impact on Capitalist World

Economical Resources

More Effective Management (Wealth management)

Financial Risk by Institutional

Global Economy

The new Roll in Contemporary scenario

Greeter Impact on Capitalist World

Economical Resources

More Effective Management (Wealth management)

Financial Risk by Institutional

Global Economy

The new Roll in Contemporary scenario

Greeter Impact on Capitalist World

Economical Resources

More Effective Management (Wealth management)

Financial Risk by Institutional

Global Economy

The new Roll in Contemporary scenario

Greeter Impact on Capitalist World

Economical Resources

More Effective Management (Wealth management)

Financial Risk by Institutional

Global Economy

Goals of Finance Functions

Profit Maximization

Maximizing shareholders wealth

Maximizing Profitability

Maximizing Profit Subject to cash constraint

Maximizing Net present wroth and

Seeking an optimum position along a risk-return frontier

Target Market share

Sustaining and maintaining the business position

Maintaining financial liquidity and Solvency

Goals of Finance Functions

Profit Maximization

Maximizing shareholders wealth

Maximizing Profitability

Maximizing Profit Subject to cash constraint

Maximizing Net present wroth and

Seeking an optimum position along a risk-return frontier

Target Market share

Sustaining and maintaining the business position

Maintaining financial liquidity and Solvency

Goals of Finance Functions

Profit Maximization

Maximizing shareholders wealth

Maximizing Profitability

Maximizing Profit Subject to cash constraint

Maximizing Net present wroth and

Seeking an optimum position along a risk-return frontier

Target Market share

Sustaining and maintaining the business position

Maintaining financial liquidity and Solvency

Goals of Finance Functions

Profit Maximization

Maximizing shareholders wealth

Maximizing Profitability

Maximizing Profit Subject to cash constraint

Maximizing Net present wroth and

Seeking an optimum position along a risk-return

frontier

Target Market share

Sustaining and maintaining the business position

Maintaining financial liquidity and Solvency

Goals of Finance Functions

Profit Maximization

Maximizing shareholders wealth

Maximizing Profitability

Maximizing Profit Subject to cash constraint

Maximizing Net present wroth and

Seeking an optimum position along a risk-return frontier

Target Market share

Sustaining and maintaining the business position

Maintaining financial liquidity and Solvency

Goals of Finance Functions

Profit Maximization

Maximizing shareholders wealth

Maximizing Profitability

Maximizing Profit Subject to cash constraint

Maximizing Net present wroth and

Seeking an optimum position along a risk-return frontier

Target Market share

Sustaining and maintaining the business position

Maintaining financial liquidity and Solvency

Goals of Finance Functions

Profit Maximization

Maximizing shareholders wealth

Maximizing Profitability

Maximizing Profit Subject to cash constraint

Maximizing Net present wroth

Seeking an optimum position along a risk-return frontier

Target Market share

Sustaining and maintaining the business position

Maintaining financial liquidity and Solvency

Goals of Finance Functions

Profit Maximization

Maximizing shareholders wealth

Maximizing Profitability

Maximizing Profit Subject to cash constraint

Maximizing Net present wroth and

Seeking an optimum position along a risk-return frontier

Target Market share

Sustaining and maintaining the business position

Maintaining financial liquidity and Solvency

Goals of Finance Functions

Profit Maximization

Maximizing shareholders wealth

Maximizing Profitability

Maximizing Profit Subject to cash constraint

Maximizing Net present wroth and

Seeking an optimum position along a risk-return frontier

Target Market share

Sustaining and maintaining the business position

Maintaining financial liquidity and Solvency

Goals of Finance Functions

Profit Maximization

Maximizing shareholders wealth

Maximizing Profitability

Maximizing Profit Subject to cash constraint

Maximizing Net present wroth

Seeking an optimum position along a risk-return frontier

Target Market share

Sustaining and maintaining the business position

Maintaining financial liquidity and Solvency

Thanking You