FULLY SOLVED BOOK LASY 5 YEARS PAPERS SOLVED PLUS GUESS

UNIT I FOUNDATIONS OF FINANCE: 9
Introduction to finance- Financial Management – Nature, scope and functions of Finance, organization
of financial functions, objectives of Financial management, Major financial decisions – Time value of
money – features and valuation of shares and bonds – Concept of risk and return – single asset and
of a portfolio.
UNIT II INVESTMENT DECISIONS: 9
Capital Budgeting: Principles and techniques - Nature of capital budgeting- Identifying relevant cash
flows - Evaluation Techniques: Payback, Accounting rate of return, Net Present Value, Internal Rate of
Return, Profitability Index - Comparison of DCF techniques Concept and measurement of cost of
capital - Specific cost and overall cost of capital.
UNIT III FINANCING AND DIVIDEND DECISION: 9
Leverages - Operating and Financial leverage – measurement of leverages – degree of Operating &
Financial leverage – Combined leverage, EBIT – EPS Analysis- Indifference point.
Capital structure – Theories – Net Income Approach, Net Operating Income Approach, MM Approach
– Determinants of Capital structure.
Dividend decision- Issues in dividend decisions, Importance, Relevance & Irrelevance theories –
Walter‟s – Model, Gordon‟s model and MM model. – Factors determining dividend policy – Types of
dividend policies – forms of dividend
UNIT IV WORKING CAPITAL MANAGEMENT: 9
Principles of working capital: Concepts, Needs, Determinants, issues and estimation of working capital
- Accounts Receivables Management and factoring - Inventory management - Cash management -
Working capital finance : Trade credit, Bank finance and Commercial paper.

UNIT V LONG TERM SOURCES OF FINANCE: 9
Indian capital and stock market, New issues market Long term finance: Shares, debentures and term
loans, lease, hire purchase, venture capital financing, Private Equity.