Essentials of Financial Management, 5th Edition by Pearson

Contents

Preface

Acknowledgements

About the Author

PART 1 INTRODUCTION

1 Financial Management: Scope and Objectives

Introduction

Nature of Financial Management

Real and Financial Assets

Equity and Borrowed Funds

Finance and other Management Functions

Finance Functions or Decisions

Long-term Finance Decisions

Financial Decisions Inter-relationship

Short-term Finance Decisions

Financial Procedures and Systems

Evolution of the Scope of Financial Management

Traditional Phase

The Transitional Phase

The Modern Phase

Financial Manager’s Role

Financial Goal: Profit Maximization vs Wealth Maximization

Profit Maximization

Maximizing Profit After Taxes

Maximizing EPS

Shareholder Wealth Maximization (SWM)

Financial decision making: Risk-return Trade-off ...