1Preface
844.2.2 Meaning of Working Capital
2Chapter - 1 Introduction of Business Finance
854.2.3 Need for Working Capital
31.1 Introduction
864.2.4 Sources of Working Capital
41.2 Evolution of Business Finance
874.2.5 Working Capital Efficiency
51.2.1 Meaning of Business Finance
884.2.6 Importance of Working Capital
61.2.2 Scope of Finance
894.2.7 Operating Cycle
71.2.3 Finance Functions
904.2.8 Optimum Level of Working Capital
81.2.4 Importance of Business Finance
914.2.9 Determinants of Working Capital
91.2.5 Relationship between Business Finance and Accounting
924.2.10 Computation of Working Capital Level
101.3 The Role of Financial Managers
934.2.11 Best Tips for Managing Working Capital
111.3.1 Capital Investment Decisions
944.3 Working Capital Management Definition
121.3.2 Types of Financial Managers
954.3.1 Objectives of Working Capital Management
131.3.3 Important Skills for Financial Managers
964.3.2 Importance of Effective Working Capital Management
141.4 Financial Goal
974.3.3 Working Capital Management Policies
151.4.1 Profit Versus Wealth
984.3.4 Working Capital Management Strategies
161.4.2 Management Versus Owners
994.3.5 Advantages of Working Capital Management
171.5 Sources of Finance
1004.3.6 Disadvantages of Working Capital Management
181.5.1 Long-term Sources of Finance
1014.4 Management of Cash
191.5.2 Medium-term Sources of Finance
1024.4.1 Different Types of Cash Management Services
201.5.3 Short-term Sources of Finance
1034.4.2 Motives for Holding Cash
211.5.4 Owned Capital
1044.4.3 Functions of Cash Management
221.5.5 Borrowed Capital
1054.4.4 Process of Cash Management
231.5.6 Internal Sources
1064.4.5 Cash Management Techniques
241.5.7 External Sources
1074.4.6 General Principles of Cash Management
251.6 Exercise
1084.5 Receivable Management
261.7 Further Readings
1094.5.1 Meaning of the Receivables Management
27Chapter - 2 Capital Structure and Leverage
1104.5.2 Objectives of Receivable Management
282.1 Introduction
1114.6 Exercise
292.2 Perception of Capital structure
1124.7 Further Readings
302.2.1 Meaning of Capital Structures
113Chapter - 5 Inventory Management
312.2.2 Features of an Appropriate Capital Structures of a Company
1145.1 Introduction
322.2.3 Determinants of Capital Structure
1155.2 Inventory Valuation
332.2.4 Different Types of Capital Structure Policy
1165.2.1 Meaning of Inventory Valuation
342.2.5 Components of Capital Structure
1175.2.2 Objective of Inventory Valuation
352.2.6 Factors Determining Capital Structure
1185.2.3 Economic Order Quality (EOQ)
362.2.7 Connection between Leverage and Capital Structure
1195.3 Methods of Inventory Valuation
372.2.8 Importance of Capital Structure
1205.3.1 Last-in, First-out Method (LIFO)
382.3 Financial Leverage
1215.3.2 First-in, First-out (FIFO)
392.3.1 Factors Affecting Financial Leverage
1225.3.3 Average Cost Method
402.3.2 Measures of Financial Leverage
1235.3.4 Difference between FIFO and LIFO
412.3.3 Benefits of Financial Leverage
1245.4 Capital Budgeting
422.3.4 Limitations of Financial Leverage
1255.4.1 Meaning of Capital Budgeting
432.3.5 Financial Leverage and Shareholders Return
1265.4.2 Importance of Capital Budgeting
442.4 Operating Leverage
1275.4.3 Nature of Capital Budgeting
452.4.1 Definition: What is Operating Leverage?
1285.4.4 Capital Budgeting Techniques
462.4.2 Operating Ratio
1295.4.5 Capital Budgeting Process
472.4.3 Degree of Operating Leverage
1305.4.6 Best Tips for Capital Budgeting Analysis
482.4.4 Connection between Operating and Financial Leverage
1315.4.7 Connection between NPV and Capital Budgeting
492.5 Venture Capital Financing
1325.5 Discounted Cash Flow Techniques
502.5.1 Meaning of Venture Capital
1335.5.1 Discounting
512.5.2 Characteristics of Venture Capital
1345.5.2 Profitability Index (PI)
522.5.3 Dimensions of Venture Capital
1355.5.3 Net Present Value (NPV)
532.5.4 Functions of Venture Capital
1365.5.4 Internal Rate of Return (IRR)
542.5.5 Importance of Venture Capital Financing
1375.6 Non-discounted Cash Flow Techniques
552.5.6 Methods of Venture Capital Financing
1385.6.1 Payback Period
562.5.7 Stages of Venture Capital Financing
1395.6.2 Average Rate of Return (ARR)
572.5.8 Process of Venture Capital Financing
1405.7 Exercise
582.6 Exercise
1415.8 Further Readings
592.7 Further Readings
142Chapter - 6 Dividend Policy
60Chapter - 3 Cost of Capital
1436.1 Introduction
613.1 Introduction
1446.2 Basic Concept of Dividend Policy
623.2 Cost of Capital
1456.2.1 Meaning of Dividend
633.2.1 Meaning of Cost of Capital
1466.2.2 Kinds of Dividend
643.2.2 Significance of Cost of Capital
1476.2.3 Meaning of Dividend Policy
653.2.3 Opportunity Cost of Capital
1486.2.4 Objective of Dividend Policy
663.2.4 Average Cost of Capital
1496.2.5 Factors Affecting Dividend Policy
673.2.5 Different Ways to Reduce Cost of Capital
1506.2.6 Types of Dividend Policies
683.2.6 Methods for Measuring Cost of Capital
1516.2.7 Essentials of a Sound Dividend Policy
693.3 Component of the Cost of Capital
1526.2.8 Importance of Dividend Policy
703.3.1 Cost of Debt
1536.2.9 Dividend Models
713.3.2 Cost of Preference Capital
1546.2.10 Dividend Payment Procedure
723.3.3 Cost of Equity Capital
1556.2.11 Dividend and Firm’s Life Cycle
733.4 Weighted Average Cost of Capital (WACC)
1566.3 Stock Exchange
743.4.1 Calculate the Weighted Average Cost of Capital
1576.3.1 Meaning of Stock Exchange
753.4.2 Weighted Average Cost of Capital (WACC) Used For
1586.3.2 Functions of Stock Exchange
763.4.3 Flotation Costs
1596.3.3 Features of Stock Exchange
773.4.4 Capital Investment Analysis
1606.3.4 Types of Stock Exchange
783.5 Exercise
1616.3.5 Listing of Securities
793.6 Further Readings
1626.3.6 The Trading Procedure on a Stock Exchange
80Chapter - 4 Working Capital Management
1636.4 Exercise
814.1 Introduction
1646.5 Further Readings
824.2 Basics of Working Capital
165Glossary
834.2.1 Working Capital Turnover
166Index
