FINANCIAL MANAGEMENT II

FINANCIAL MANAGEMENT II - Transcript

FINANCIAL MANAGEMENT II

TOPIC COVERAGE
Risk Analysis and Optimal Capital

Expenditure Decisions Financial Forecasting Leverage Capital Structure Theories Capital Structure Policy Dividend Policy

Estimation of Working Capital Needs


Inventory Management Receivable Management Financing Current Assets

Financial Statement Analysis Current Developments

CONTINUAL EVALUATION
TOPICS Presentation Case Study Analysis Assignment Class Test Class Test WEIGHTAGE 10 10 10 10 10

WARM UP SESSION

Capital Expenditure Decisions
What are Capital Expenditure Decisions Importance of Capital Budgeting Techniques of Capital Budgeting

Techniques
Non Discounting


Discounting


Pay Back Period Average Return



NPV IRR Profitability Index BCR Capital Rationing Equal Annual Cost Method

Aplex Limited invested in a project with initial

outlay of Rs 8 00 000 The project life is 4 years with inflows as follow YEAR INFLOW 1 2L 2 3L 3 3 5 L 4 1 5 L Check the acceptability of project by various techniques if discount rate is 15