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FMMBA

The document outlines the key functions and objectives of financial management, including capital planning, investment decisions, and ensuring adequate returns for shareholders. It discusses the importance of estimating capital requirements, determining capital composition, and managing surplus funds. Additionally, it highlights various financial analysis methods such as net present value and internal rate of return for evaluating investment profitability.

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sandhyasanapala5
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9 views13 pages

FMMBA

The document outlines the key functions and objectives of financial management, including capital planning, investment decisions, and ensuring adequate returns for shareholders. It discusses the importance of estimating capital requirements, determining capital composition, and managing surplus funds. Additionally, it highlights various financial analysis methods such as net present value and internal rate of return for evaluating investment profitability.

Uploaded by

sandhyasanapala5
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
amy Ob% Seeeee@, yoo v ee Cr ie eee eel Finacial Management Finacial ia nt means d controling the and + ° —Macial Manage mant Planning ,o. eo { Oc edistecting 04 such a porocurerrunt ities Ubi tation of f-unds of the enterpriv Functions of -Fioacrat Managerunt 1. art Fmato of capital mequire manlk ‘ stimativn with megads to Capital reese onan, Epected cols & profib Future pore and policies pt o Estimation’ meade which focneme earning capacity of enterpai concern 2. Oclemination of copitat composilion- Chote: oh sae 3 a: Tae of shares ond debenltics r be leant to he yoleenp eon nn ceeen cna ann inshteli . A c toe legen +o «Beanbag ee Se fam of bonds. 4. Tavestmsnl oF fonds 5- Disposal of surplus @ pividend spate 8 eee cagital a ius Retal ned ae bosinws 6 Objectives of Finocsal eens + equate supply {6 fonds, yequiar and a To ensure ae tc come” : to ensvre adequate yeluns tothe shareholders which: will depend pe? The easnig capacity 1 mowe ° pence ot the shave expectations pt the sho xholde coi, hae Ur lretion optimum juods should be Ublieed 10 fords one prrocured « The cot aN * anon eOmRle way ot least -- Ear ensue isabel on tnvedtmunt phe, tueds shooid t adequote “nS i. To ensure yenlures $0 that be mvested i9 sate vote of sielom) con be oxic 5. to plan _o sou copital _shuctbre arte ;shovtd) and 50 thot Oo palance te for composites ot copital preter red VEE debt and equity capital of fingncal Managemant: ape Aotiwavin demons @ Finatial decivon 4 decisions 3. Cividen: 48 share holdew B- pb pivident i: ghcieed ears wealth Maximize ion Baropit ‘loo “IS 2 st ofms at imp710 Eracknes 4 profitability » ~ guatity oad Quantity and maintasning stabil eo uee ag oe and reduce loves hey & in ether of ON By plere A SUN 1. profit moxmirahon fi Ee the OWNEr a. prot maumiraton £6 other. Pe fir ett fala ate > ° 3 3 ~ 3 3 5 > 2 ° ce ceececceceee ast aa Rotung. oe fe) Tat a manag ik i} ale national av trunt mor le pn emont esnocial deuvions ompo” beri dev eee ons pret hoa | agent Jf. Taker eat Ach & makes deciwons Causer’ of paricipal agente costs Compensation 4 of profits cl ransadtion Cotls hace of tyanapaste ney 10 Collaboration with ~the pmineipals interest —making poor deaWwons +H ond been done » e € é é € 2. e e }| ¢ c © . . . "0 a eee aaaeeyl = fe v qe f Budgeting & va = =” f ae 1 nee = ° a v : > Bo t \ Bo ' \ \ come tee > = point ulated Jing the init @° t r by vnnual ¢ ‘ = 1 c Anke = «=; Know as tf acteunting vate of velous (eam @ 4. mebe that anon on ayertnnuncty pas a by company the average cinruul Po sad > d : ee initial investment cont expresed a O percen - jal ability Dndex 2 g The probtability Trdes cen) alvo known ithe value a i. savestment Ratio cvt®) LE > net poet value (NPY) o >. we fs uted to alcutate the Coment total Value! d- e 2 a ¢ store conn hows i B Tatirnal Rote of Return (Tee mq B The Dee is oO meme used nr fanacial onalyrs tb ie O estimate the pnoftobility of potealial tovestrunbs 2 ia 3 lei) = fe annual wr vo of Iver = } tate #ormal is 7 “= eae “= “= +t, 4 (AEP) e u a ; " drmngeucennipl Bagh Ge a - ae Aeage sEnveatment -a | = Lense cat ) SES poy back pesiod 3a the giv P val investment 1s 20000F% state Proposal 6 | paoporal.& | | 1as00 vaso (ps00 13950 | 19500 2 1ascv0 3 wBVeFxvUveLUUELYU - only inf toe late Annual ‘© drint 4 Aceumul parojest year Accomutale Annual sadnin{low ot Jowe! Ite le aso 5= 1asD ve sal +0 asidering. . on) tavern Pomohons C buildings Y mill 4 control the project wi the facility have a Life ore and no — value . The compony’s s psi. the frm uses straight line method. The timation Carh{tows befrre Propose project |S giv BOF PN0j giver % belov, Cash Flow bepsie { . Sle + 10000 SS 11000 ' 4000 'sv0D a s000 PHHHHMHOHOHMAMHOKMHOHOHSCSEITSSEE ee mnmmeeeeeeeeeeeeEn! H 7 ee ed... — ae — a amy wy ay —~ ey oy a. cS c| Bx Bo c Bpe e a = rm. i j = ot a z -umulated annual yeas Anflow sf tov umulale annuol h, inftow of yea! accumulate annual coh ingtow of lower yerr ighes 5p 0Pxo eau q+ SO ee Glasd — YUsod ut BOS - yaa yeas ted aH tem __ ctr annual € ating rake of aloo (ntl) o I ‘ sa x100 on 100 ay annual ) 4 1800 + 2OSO eaming — us0o-4 1600 s dasb ; bee © tol docount factor Calculate of Net Pw — =e ——+ ; ree { ( | | i ae 704 4 1430 : 0-540 4304 o: tut aq Dos o-6t } 0-949 qaoa | 601 10402 0-249 Jiasio— | , } "scrar [ys3s3 PY 6 CEAT 5 085} i pent Vee patent valued eatin La fulbre Cash Flows a” I US353— 50000 pct * pore - 4643 5 A yur © - Calcutate of Niet p2wsent Value @ 64s Oiswunt factoy Yeas 4 2 Saale s | es value | ogy a — ———_ @ -4u3]'* pao] + bi @ cif. 890] —— qaqa +743 cal Tee CPucear [eu char - lof > lof Pv chat HOF Is Ditherena of factor Ctol: 6) Dnvest | A it ‘Stoo © ce e e e ¢ ¢ € “S ¢ €. e e ec < c < . © . < « &. a ao" meee An YOGdONROHOCHECF ~~ é ees mopotal A =0000 200000 asbo00 50000 100000 1D) (140-14) ov & ei O-88 oa) O-Ga O+sq Ovsa SPVCEA —* PuctaT @ af 132000 154000 16950 gESOO 59000 Gauood) ? SSS S/o ROO AAAAAAAAAPAGDUOUCADEK SE . SPPPOSIUCUUCUUHKEKTKEOVUE EEC EC EE > erRRE ECBO wm P'S eee ceeeee ecee Be eh a a a A ly Meee es 6sse68 = 2 ; ane 7] ’ } a> 5 4 Machine ¢ rn > ql > 11600 toon¢ tsv0 > > ox rrequid to S ie bat Year Di@pding fader 67, fil macdune using Net potent Value i 0. $93 ™ oe a . TN vethod the compond) ame lee 0:74 a ., utes oe the > 0-749 oa “ pavent Value o & 2 alk tty a 0636 2 i s 0-564 ae . end d Sym cee

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