IV SEMESTER : BBA. Financial Management. Unit-I: Financial Management: meaning, nature and scope of finance; financial goals; profit maximization, wealth.
(iv) Management alone enjoy certain benefits. (v) The ultimate aim of the wealth maximization objectives is to maximize the profit. ion, which involves the(vi).
Module IV Financial Planning. 10. Financial Planning. 234. Module V Financial Policy and Corporate Strategy. 11. Financial Policy and Corporate Strategy. 253.
28 Aug 2020 — 28 Aug 2020Introduction to Financial Management,meaning , definition, profit and wealth maximization, significance, financing decision and investment.
UNIT-IV Financing Decisions: Capital Structure Theories, taxation and capital structure; Planning the capital structure, Factors affecting capital structure.
IV Sem BBA - FINACIAL MANAGEMENT CUStudents. FINANCIAL MANAGEMENT In the modern world every organization, private and public runs on money.
Course : BBA IV. MCQ. 1. Objective of financial management is: A. profit . Time Value of Money. B. Sensitivity Analysis. C. Net Assets Value Method. D. Cash.
Register to study through Unisa. Financial Management IV - FMA401V. Baccalareus Technologiae Degree,Diploma, Year module, NQF level: 7, Credits: 24.
Financial Management IV. 94. Directors Fees( Post). -------------. 8,00,000. Interest on Purchase consideration. (2:1). 4,00,000. 2,00,000. Total Expenses (B).
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Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
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From Financial Management
Wealth maximisation is preferred because it:
Hence, wealth maximisation supports long-term value creation.
CAPM: Ke = Rf + β(Rm − Rf)
Beta effect: higher β increases the risk premium β(Rm−Rf), so required return rises.
Flow: β ↑ → risk premium ↑ → Ke ↑
Arises due to fixed operating costs. DOL = Contribution/EBIT. Higher DOL → higher operating risk.
Arises due to interest/fixed finance charges. DFL = EBIT/(EBIT − Interest). Higher DFL → higher financial risk.
Captures total sensitivity of EPS to sales. DCL = DOL × DFL.
Higher leverage increases potential return but also increases variability of profits/EPS.