Basic Financial Management is a comprehensive, authentic & well-illustrated book.

This book aims to fulfil the requirement of students of undergraduate courses in commerce and management, particularly the B.Com. under the CBCS Programme, Non-Collegiate Women’s Education Board (NCWEB), and School of Open Learning (University of Delhi). This book will also be applicable for undergraduate commerce & management courses at various Central Universities throughout India.

The Present Publication is the 3^rd Edition, authored by Prof. (Dr.) Vanita Tripathi, with the following noteworthy features:

• [Elementary but Comprehensive Understanding of Concepts] and techniques related to financial management and financial decision making
• [Examples & Illustrations] have been incorporated throughout this book to make the understanding of the concepts easy
• [Student-Oriented Book] This book has been developed, keeping in mind the following factors:
  • Interaction of the author/teacher with their students in the classroom
  • Shaped by the author/teachers experience of teaching the subject-matter at different levels for about 17+ years
  • Reaction and responses of students have also been incorporated at different places in the book
• [Solved Previous Exam Question Papers]  are covered at the end of the book for the last few years. This will help the students to have a clear idea of the questions usually asked
• The structure of this book is as follows:
  • [Learning Outcomes] Every chapter begins with a list of learning outcomes that the reader will achieve after completing the chapter. It sets the broad framework for the chapter
  • [Main Text] Various concepts and techniques have been explained in a lucid and well-knit manner. Wherever required, the explanation is supplemented by suitable illustrations and examples
  • [170+ Solved Problems] Each chapter provides a sufficient number of solved problems for better understanding and application of the concepts explained in the main text
  • [Summary] Each chapter provides a sufficient number of solved problems for better understanding and application of the concepts explained in the main text
  • [Test Yourself] Each chapter provides sufficient number of solved problems for better understanding and application of the concepts explained in the main text
  • [Excel Applications in Financial Management] The book also contains excel applications in financial management in relevant chapters using a spreadsheet
• The contents of the book are as follows:
  • [Financial Management & Time Value of Money] The first unit deals with the overview of financial management and the concept of time value of money. It comprises of two chapters:
    • Chapter 1 explains the evolution, nature, scope and objectives of financial management
    • Chapter 2 explains the concept and techniques of time value of money
  • [Capital Budgeting] The second unit provides a detailed discussion on capital budgeting and the cost of capital. It comprises of three chapters:
    • Chapter 3 explains the importance of capital budgeting decisions and estimation of cash flows,
    • Chapter 4 discusses elementary techniques of evaluating capital projects, and
    • Chapter 5 presents the concept and calculation of the cost of capital
  • [Financial Leverage & Capital Structure] The third unit comprehensively explains leverage analysis and financing decisions in a firm, popularly known as capital structure decision. It has two chapters:
    • Chapter 6 presents the concept and calculation of various types of leverages, and
    • Chapter 7 provides theories of capital structure and factors affecting capital structure choice in an organisation
  • [Dividend Decision] The fourth unit comprehensively discusses dividend decisions. Theories of dividend and dividend policies form the core part of this chapter. Students are also explained the importance of a stable dividend policy and various factors affecting dividend decisions in an organisation
  • [Working Capital Management] The last unit deals with working capital management, which spans over four chapters:
    • Chapter 9 provides an overview of working capital and explains estimation of the net working capital requirement in a firm, and
    • Chapters 10, 11 and 12 explain cash management, receivables management and Inventory management, respectively