introduction to financial management by bedaduri rama murthy
TRANSCRIPT
![Page 1: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/1.jpg)
Introduction to Financial Management
BEDADURI RAMA MURTHY
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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.
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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
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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
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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
![Page 6: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/6.jpg)
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
![Page 7: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/7.jpg)
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
![Page 8: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/8.jpg)
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
![Page 9: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/9.jpg)
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
![Page 10: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/10.jpg)
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
![Page 11: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/11.jpg)
Scope Of Financial Management
Traditional Approach
Modern Approach
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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
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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.
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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
![Page 15: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/15.jpg)
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
![Page 16: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/16.jpg)
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
![Page 17: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/17.jpg)
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
![Page 18: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/18.jpg)
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
![Page 19: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/19.jpg)
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
![Page 20: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/20.jpg)
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
![Page 21: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/21.jpg)
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
![Page 22: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/22.jpg)
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
![Page 23: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/23.jpg)
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
![Page 24: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/24.jpg)
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
![Page 25: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/25.jpg)
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
![Page 26: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/26.jpg)
The new Roll in Contemporary scenario
Greeter Impact on Capitalist World
Economical Resources
More Effective Management (Wealth management)
Financial Risk by Institutional
Global Economy
![Page 27: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/27.jpg)
The new Roll in Contemporary scenario
Greeter Impact on Capitalist World
Economical Resources
More Effective Management (Wealth management)
Financial Risk by Institutional
Global Economy
![Page 28: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/28.jpg)
The new Roll in Contemporary scenario
Greeter Impact on Capitalist World
Economical Resources
More Effective Management (Wealth management)
Financial Risk by Institutional
Global Economy
![Page 29: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/29.jpg)
The new Roll in Contemporary scenario
Greeter Impact on Capitalist World
Economical Resources
More Effective Management (Wealth management)
Financial Risk by Institutional
Global Economy
![Page 30: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/30.jpg)
The new Roll in Contemporary scenario
Greeter Impact on Capitalist World
Economical Resources
More Effective Management (Wealth management)
Financial Risk by Institutional
Global Economy
![Page 31: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/31.jpg)
The new Roll in Contemporary scenario
Greeter Impact on Capitalist World
Economical Resources
More Effective Management (Wealth management)
Financial Risk by Institutional
Global Economy
![Page 32: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/32.jpg)
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
![Page 33: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/33.jpg)
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
![Page 34: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/34.jpg)
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
![Page 35: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/35.jpg)
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
![Page 36: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/36.jpg)
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
![Page 37: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/37.jpg)
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
![Page 38: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/38.jpg)
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
![Page 39: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/39.jpg)
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
![Page 40: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/40.jpg)
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
![Page 41: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/41.jpg)
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
![Page 42: Introduction to Financial Management by Bedaduri Rama Murthy](https://reader038.vdocument.in/reader038/viewer/2022110122/55a530881a28ab67348b46bb/html5/thumbnails/42.jpg)
Thanking You