Introduction to Financial System Financial system is a mechanism that works for investors and people who want finance. Let’s define financial management as the first part of the introduction to financial management. If you continue browsing the site, you agree to the use of cookies on this website. Obviously, financial management is a critical function in organizations. • Greater emphasis was placed on the day to day problems faced by financial managers in the areas of fund analysis, planning & control. Case Studies in Finance, Bruner.R.F, Tata McGraw Hill, New Delhi. ... INTRODUCTION: In our present day economy, Finance is defined as the provision of money at the time when it is required. Clear your doubts from our Qualified and Experienced Tutors and Trainers, Download Free and Get a Copy in your Email. – A free PowerPoint PPT presentation (displayed as a Flash slide show) on PowerShow.com - id: 3b5d48-M2Q2Z Traditional Phase lasted for four decades. Traditional Phase lasted for four decades. PowerPoint slide on Introduction To Financial Management compiled by Simran. The following were itsimportant features: ••he focus of financial management was mainly on certain episodic events like formation issuance of capital, merger, reorganization & liquidationän the]ife cycle of the firm. Topics to be covered Evolution of Financial Management • Relation of Finance & other Related Disciplines Financial Decisions in a Firm • Goals of Financial Management • Risk & Return Trade-off • Organization of the Finance Function, i. ii. Chapter 1 AN INTRODUCTION TO FINANCIAL MANAGEMENT – THE TIES THAT BIND Chapter Objectives • Identify the goal of the firm. What capital investments should you make? For each approved PPT you will get 25 Credit Points and 25 Activity Score which will increase your profile visibility. Please enter the OTP sent to your mobile number: Post an enquiry and get instant responses from qualified and experienced tutors. Qklhokn 3 CONTENTS Chapter-1: Introduction to Financial Management 5 Chapter-2: Cost of Capital 25 Chapter-3: Operating and Financial Leverage 77 Chapter-4: Capital Budgeting 94 Chapter-5: Capital Budgeting Evaluation Techniques 112 Chapter-6: Capital Budgeting under Risk and Uncertainties 130 Chapter-7: Working Capital Management 165 Chapter-8: Cash Management and Marketable … Introduction to Financial Management Quick Introduction to Finance • F = Fund Raising Decisions • I = Investment The finance manager must see that funds are procured in such a manner that risk, cost and control considerations are properly balanced and there is optimum utilization of funds. Let us learn about the Introduction to Financial Management in detail. See our User Agreement and Privacy Policy. The outsider's point of view was dominant. Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. Download the Financial Accounting pdf Text book given below. Financial Accounting is a specialized branch of accounting that keeps track of a company’s financial transactions. Financial Management Financial management is mainly concerned with the proper management of funds. Introduction to Financial Management. Introduction to financial management 1. Meaning of Financial Management: Financial management is that managerial activity which is concerned with the planning and controlling of a firm’s financial resources. Finance involves the evaluation, disclosure, and management of economic activity and is crucial to the successful operation of firms and markets. Its evolution may be divided into three broad phases: Traditional Phase Transitional Phase Modern Phase. Financial Management is that managerial activity which is concerned with the planning & controlling of the firm's financial resources. Financial Management was viewed mainly from the point of view of the investment bankers, lenders & other outside interests. Ghjgdfjjhg 'At may be short-term orlong term. * Finance Is Fun! For any business, it is important that the finance it procures is invested in a manner that the returns from the investment are higher than the cost of finance. Looks like you’ve clipped this slide to already. The finance manager must see that funds are procured in such a manner that risk, cost and control considerations are properly balanced and there is optimum utilization of funds. Learning Objectives. Differentiate between managerial finance and corporate finance. Goals of Financial Management • Profit Maximisation • Wealth Maximisation In specific operational terms, as applicable to the financial management, the profit maximisation criterion implies that the investment, financing & dividend policy decisions should be oriented to the maximisation of profits/EPS. * Finance Is Fun! View Introduction to FM.ppt from FIN 102 at Ace Institute of Management. Financial management is the most essential requirement of any organized business or activity. Academia.edu is a platform for academics to share research papers. * Finance Is Fun! Introduction to Financial Accounting pdf free download: Here we have provided some details for Introduction to Financial Accounting books and pdf. * Finance Is Fun! The distinctiveffeatures of the modern phase are: • The central concern of financial management is considered to be rational matching of funds to be used so as to maximize the wealth of current shareholders. • The approach was mainly descriptive & institutional. The book is suited to both academics and practitioners. i. ii. Understanding the basic concept about the financial management Introduction to Financial Management. If you have your own PowerPoint Presentations which you think can benefit others, please upload on LearnPick. • How will you handle the day to day financial activities? • The art and science of managing money, or management of money. The instruments of financing, the institutions & procedures used in capital markets, and the legal aspects of financial events formed the core of financial management. Statistics, Economics, Business Studies, Accountan... Financial Statement Analysis & Tool kit of Analysis, Valuation - Discounted Cashflow to Equity. Financial management is concerned with the acquisition, financing, and management of assets with some overall goal in mind. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Introduction To Financial Management Chapter 1 Finance Is Fun! The modern phase began in the mid 1950s & has witnessed an accelerated pace of development with the infusion of ideas from economicftheory & application of quantitative methods of analysis. It is the art and science of managing money. Explain the goals of financial management and why they are relevant for pharmacies, 3. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Financial Management also developed as corporate finance, business finance, financial economics, financial mathematics and financial engineering. Academia.edu is a platform for academics to share research papers. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Ignores Time value of money, • Quality of Benefits Quality refers to the degree Of certainty With whiff) benefits can be expected. Capital budgeting (deciding on whether to expand a manufacturing plant), capital structure (deciding whether to issue new equity and use the proceeds to retire outstanding debt), and working capital management (modifying the firm’s credit collection policy with its customers). Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. The following were itsimportant features: ••he focus of financial management was mainly on certain episodic events like formation issuance of capital, merger, reorganization & liquidationän the]ife cycle of the firm. See our Privacy Policy and User Agreement for details. • Based on the concept of cash flows generated rather than accounting profit. ( avoids ambiguity) • Considers both quantity & quality of benefits An, Investment Decisions Financing Decisions Dividend Decision Risk & Return Trade-off Return Market Value of the Firm Risk, Organization of the Finance Function Board of Directors — Managing Director/Chairman Chief Finance Officer Treasurer Fund Cash raising Manager Manager Capital Expenditure Manager Credit Manager Pension Fund Manager Tax Manager Controller Cost Accounting Manager Corporate Accounting Manager Financial Accounting Manager, Cost Accounting and Financial Management, Financial Management. You can change your ad preferences anytime. • How will you raise money to pay for the proposed capital investments? • The approach of financial management has become more analytical & quantitative. Financial Management Financial management is mainly concerned with the proper management of funds. As the business is going to be a part of today's modern education so business finance is one of the major part of business education Financial Management has become a vital part of the business concern and they are concentrating more in the field of Financial Management. Successful leadership and management of others requires successful leadership and management of oneself. It is a permanent and continuous process for every business concern. Profits) State of economy Recession Normal Boom Total Uncertainty about Expected Benefits ( Profit (Rs crore) Alternative A 9 10 11 30 Alternative B 10 20 30, Wealth Maximisation/VaIue Maximisation/Net Present Worth Maximisation • Satisfies all the three requirements o a suitable operational objective of financial course of action namely: exactness, quality of benefits & the time value of money. Introduction to Financial Management - Free download as Powerpoint Presentation (.ppt), PDF File (.pdf), Text File (.txt) or view presentation slides online. Financial Management – Text and cases, Bingham & Earhart, Cengage. Now customize the name of a clipboard to store your clips. INTRODUCTION TO FINANCIAL MANAGEMENT Basic 1. Financial Management is about preparing, directing and managing the money activities of a company such as buying, selling and using money to its best results to maximise wealth or produce best value for money. Introduction to Financial Management Author: Kent P. Ragan Last modified by: foliver Created Date: 2/2/2003 7:12:35 PM Document presentation format: On-screen Show (4:3) Company: Missouri State University Other titles The Importance of Finance. Introduction to Personal Financial Management. INTRODUCTION Introduction Overview of financial management The term financial management simply means effectively managing your utility’s financial functions. Discuss the importance of financial management to pharmacists, 2. International Finance - Introduction - International Finance is an important part of financial economics. It mainly discusses the issues related with monetary interactions of at least two or more cou ... (FDI), and other important issues associated with international financial management. iii. • The transitional phase began around the early 1940s & continued through the early 1 950s. * Finance Is Fun! • Compare the various legal forms of business organization and explain why the corporate form of business is the most logical choice for a firm that is large or growing. If you continue browsing the site, you agree to the use of cookies on this website. Introduction To Financial Management. Financial Decisions in a Firm Investment Decision Capital Budgeting Working Capital Management Capital Structure/Financing Decision Dividend Decision. Ambiguity Profitis a vague & ambiguous concept. 2. It is an interaction of various intermediaries, market instruments, policy makers, and various regulations to aid the flow of savings from savers to investors and managing the proper functioning of the system. What is Finance? Introduction to Financial Management CHAPTER 1 1 OBJECTIVES After completing this chapter, the student should be able to: 1. Principles of Financial Management - MIT School of Distance Education - There are some principles of financial management that all financial manager should know. Chapter 1 - Introduction to Corporate Financial Management - Free download as Powerpoint Presentation (.ppt), PDF File (.pdf), Text File (.txt) or view presentation slides online. It means applying general management principles to financial resources of the enterprise. • Describe the corporate tax features that affect business decisions. Evolution of Financial Management Financial Management was a branch of 890, as a separate ordiscipline it is of recent origin—lt emerged as a distinct field of study at the turn of the 20th century. This book provides the student with an introduction to financial management, especially of central and provincial government departments. Clipping is a handy way to collect important slides you want to go back to later. [email_address]. Beforeftax or aftertax Timing otBenefits ' Ignores the differences in the time pattern of the benefits received over the working of the life of the asset/ project. ' • It is the study of value. Financial Management 1. The focus shifted to working capital management. No public clipboards found for this slide. [email_address] Power Group - For Friends By the Friends, 1. Finance is the cornerstone of every business so companies look for finance managers … Relevant for pharmacies, 3 as corporate Finance, financial management ignores time value of money the... 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