Professional Documents
Culture Documents
FM 1
FM 1
(PGDM: 2022-24)
Sriranga Vishnu
Faculty (F&A Area)
Financial Management– Topics
• Introduction to Financial Management
– Stock Valuation
• Dividend Policy
• Quizzes - 20%
– Dividend decisions
Financial Management– Introduction
• Finance functions or decisions can be divided as follows:
• Long-term financial decisions:-
– Long-term asset-mix or investment decision or capital
budgeting decisions
• Profit maximization:-
– Maximizing the rupee income of firm
– Agency costs include the less than optimum share value for
shareholders and costs incurred by them to monitor the
actions of managers and control their behaviour
Financial Management– Introduction
• Conflict between Managers and Shareholders:-
– Managers are naturally inclined to act in their own best
interests (which are not always the same as the interest of
stockholders)