BHALLA,V K creator text ANMOL PUBLICATIONS monographic Financial Management and Policy: An Overview Introduction; The Finance Function; Evolution of Financial Management: Traditional Concept of Finance. Transition to the New Approval; The Objective of the Firm; Assumptions Underlying the Financial Objective: Managerial Actions to Influence Value; Financial Management and Other Disciplines; The Marketing. Production, and Quantitative Methods; Specific Responsibilities of Finance Manager; Questions. Financial Statements Introduction: Objectives of Financial Statements; Three Basic Financial Statements: Balance Sheet; Income Statement; Statement of Changes in Financial Position; Cash Flow Statement; Illustrative Problems; Questions; Problems. Financial Analysis and Planning Introduction; Analytical Process: Information Needed for Financial Analysis and Planning: Basic Procedures; Common Size Analysis; Ratio Analysis; Dupont System of Financial Analysis; Illustrative Problems; Questions; Problems. Profit Planning and Control Introduction; Break-Even Analysis; Break-Even Analysis; Determining the Breakeven Point: Cash Breakeven Analysis; Obtaining Information Necessary for Breakeven Models: Applications of Breakeven Analysis; Comparison of Differ- ent Production Techniques; Profit Analysis and the Growth/Share Matrix; Evalu-ation of Breakeven Models; Break-Even for Individual Products, Plants, and Sales Territories; Optimum Combination; Illustrative Problems; Questions; Problems. ' VALUATION The Time Value of Money Introduction; Interest Calculations; Present Value Discounting; Annuity: Perpetuities; Illustrative Problems; Questions; Problems. Risk and Return Introduction: Investment Returns; Risk; Quantitative Measure ofRisk; Probability: A Measure of Likelihood; Expected Value; Measures of Dispersion; Standard Deviation; Variance; Other Measures of Dispersion; Standard error ofthe estimate; Skewness: Coefficient of Variation; Individual Investor's Required Rate of Return; Required Rates of Return in the Market; Illustrative Problems; Questions; Problems Securities and Their Valuation Introduction; Basic Determinants of Value; Bond Valuation; Preference Share Valuation; Equity Valuation; Valuation of Dividends Per Share, Not Total Dividends; Valuation Based on Dividends, not Earnings; Zero Dividend Growth Model; Constant Growth Rate of Dividends; Variable Growth Rate of Dividends; The Relationship of Risk, Return, and Market Price; Risk Assessment Approach to Cost of Equity; Capital Asset Pricing Model; Change in General Economic Risk; Changes in inflation Risk; Change in Firm or Issue-specific Risk; Change in International Risk; Similarities Between Security Valuation and Capital Budgeting; Illustrative Problems; Questions CAPITAL BUDGETING DECISIONS Capital Budgeting Decisions and Cash Flow Principles Introduction: Meaning of Capital Budgeting; Significance of Capital Budgeting: Capital Budgeting Decision Process; Guidelines for Capital Budgeting; Methods of Classifying Investments; Identifying Relevant Cash Flows; Cash Flow Esti-mates; Illustrative Problems; Questions; Problems. Capital Budgeting Decisions Under Conditions of Certainty Introduction; Capital Budgeting: Analytical Methods; Relationship between the IRR and NPV: Independent Projects; Ranking Investment Proposals; Relationship between IRR and NPV: Dependent Projects; Non conventional Investment : Multiple Rates of Return Problem; Appropriate Decision Criterion; Illustrative Problems; Questions; Problems. Capital Budgeting Decisions Under Conditions of Capital Rationing Introduction: Meaning of Capital Rationing; An Unresolved Problem; Single Period Constraints; Mu ltiperiod Capital Constraint; Causes ofCapital Constraints; Artifically High Discount Rates; A Profit-Planning Model; Integer Programming Applied to the Capital Budgeting Problem; Illustrative Problems; Questions; Problems. . Capital Budgeting Decisions Under Conditions of Uncertainty-I Introduction; Certainty, Risk, and Uncertainty; Causes of Risk and Uncertainty; Analysing Risky Investments; Crude Procedures - Payback Period; Expected Monetary Value; Refined Procedures For Analysing Risky Investments; Risk-Adjusted Discount Rate Approach; Certainty-Equivalent Approach; Impact of Inflation on Capital Budgeting Procedures; Illustrative Problems; Questions; Problems. . Capital Budgeting Decisions Under Conditions of Uncertainty-II Introduction; Conceptual Method: The Shackle Approach; Probabilstic Method: Single Project; Investment- Decisions with the Derivation of Probability Information.: Hillier's Model, Hertz's Model; Sensitivity Analysis; Decision Trees and Sequential Investment Decisions: Abandonment Value in Capital Budgeting: Utility Theory and Capital Budgeting; Portfolio Theory and Capital Budgeting; Goal Programming; Miscellaneous Decisions Rules for Complete. Uncertainty: Maximum or Minimax Rule, Maximax or Minimum Rule, Laplace Principle or Rule, Hurwicz Principle or Rule, Minimax Regret Rule; Real Options; Illustrative Problems; Questions; Problems. LONG-TERM FINANCING AND REQUIRED RATE OF RETURN Cost of Capital Introduction; Factors Determining the Cost of Capital; General Economic Conditions; Risk and Cost of Capital; Amount of Financing Required; Flotation Costs; Taxes; Assumptions; Constant Business Risk; Constant Financial Risk; Constant Dividend Policy; Components of Cost of Capital ; Cost of Debt; Yield to Maturity (YTM); Cost of Preference Share; Cost of Retained Earnings; Cost of Equity; Weighted Marginal Cost ofCapital (WMCC); Use of WMCC for Decision Making; Alternative Approach: The Capital Asset Pricing Model (CAPM) in Capital Budgeting; Using the Cost of Capital in Special Situations; Illustrative Problems; Questions; Problems. Leverage Introduction; Risk; Business Risk versus Financial Risk; Operating Leverage; Fixed Expenses and the level of Net Income; Fixed Versus Variable Expenses; Fixed Expenses and the Rate of Change of Net Income; Measuring the Degree of Operating Leverage (DOL); Financial Leverage; Fixed Cost Securities and EPS; Financial Leverage and the Rate of EPS; Measuring the Degree of Financial Leverage (DFL); Financial Breakeven Point; Combining Operating and Financial Leverage: Total Leverage; Implications; Review Problems; Illustrative Problems; Questions; Problems. . Theory of Capital Structure Introduction; Financial Structure versus Capital Structure; Three Levels of Complexity; Ciapital Strucutre Theory; Definition and Assumptions; Capital Structure and Valuation: Three Approaches: Net Income Approach, Net Operating. Income Approach, Traditional Approach; Modigliani-Miller Position; Arguments Against the Modigl iani-M i I ler Hypothesis; Subsitution of Personal for Corporate Leverage; Different Cost of Borrowing; Institutional Restrictions; The MM Propositions with Corporate Taxes; Bankruptcy Costs; Agency Costs; Capital Structure Decisions in Practice; Personal Tax Effects; Industry Effects; Signaling Effects; Managerial Preference Effects: A Pecking Order Theory; Ethical Issues: LBO Stakeholder Impacts; Managerial Implications of Capital Structure Theory; Illustrative Problems; Questions; Problems. Basic Tools of Capital-Structure Management Introduction; EBIT-EPS Analysis; Computing the Indifference Points; Uncommitted Earnings per Share and Indifference Points; Weakness of EBIT-EPS Analysis; Earning Coverage Standard; Graphic Analysis; Earnings Coverage Standard; Cash Adequacy Standard; Computing the Indifference Points; Uncommitted Earnings Per Share and Indifference Points; Nondiscretionary Cash Disbursements and Testing for Cash Inadequacy; Discretionary Cash Disbursements and Testing for Cash Inadequacy; Timing the Security Issue; Illustrative Problems; Questions; Problems. Dividend Theories Introduction; Dividend:payout Ratio; Walter's Formula; Dividends as a Passive Residual; Irrelevance of Dividends; Relevance of Dividends; Resolving Investor Uncertainty; Clientele Effects; Information Cost; Information Content; Divisibility, of Securities; Tax Effects; Other Market imperfections; Illustrative Problems; Question; Problems. Dividend Policy Arguments for the Relevance of Dividends; Alternative Practical Dividend Policies; Stock Dividends and Stock Splits; Institutional and Administrative Aspects of Dividend Policy; Dividend Payment procedures; Illustrative Problems; Questions; Problems. Leasing Introduction; The Concept of Leasing; Types of Leasing; Advantages and Disadvantages; The Leasing Agreement; The Risk in Leasing; Lease Proposal Analysis; Lease Versus Purchase: A Financing Decision; Lease Versus Purchase: A Capital Budgeting Decision; Illustrative Problems; Questions; Problems. Working Capital Management Introduction; Concept of Working Capital; Importance of Working Capital; Levels of Working Capital Investment; Optimal Level of Working Capital Investment; Proportions of Short-Term and Long-Term Financing; Cost of Short-Term Versus Long-Term Debt; Risk of Long-Term Versus Short-Term Debt; Profitability Versus Risk Tradeoff for Alternative Financing Plans; Overall Working Capital policy; Illustrative Problems; Questions; Problems. . Management of Cash and Marketable Securities • Introduction; Motives for Holding Cash and Marketable Securities; Cash Management Systems: Collection Systems, Cash Concentration Strategies; Disbursement Systems: Investment in Marketable Securities; Determining the Optimum Levels of Cash and Marketable Securities; The Baumol Model; The Beranek Model; The Miller-Orr Model; The Stone Model; Illustrative Problems; Questions; Problems. . Forecasting Cash Flows Introduction; Objectives of Cash Forecasting; Designing Forecasting System; Methods of Financial Forecasting; Forecasting Collections from Accounts Receivable; Spreadsheet Cash Forecast; Forecasting Daily Cash Flows; Sources of Uncertainty in Cash Forecasting; Estimating Uncertaintly in Casts Forecasts; Illustrative Problems; Questions; Problems. . Receivables Management I