Category Archives for "Financial Management"

Dividend Policy : Meaning, Types, Determinants & Constraints ( Complete Notes pdf )

Dividend Policy is another important concept of Financial Management. To understand Dividend Policy, you must be aware of the term DIVIDEND. So let’s stat from the zero level… Meaning of Dividend Dividend refers to the portion of a firm’s profit ( after tax ) which is distributed among the owners or shareholders. The profit which is […]

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Financial Management : Meaning, Scope, Functions & Objectives

What is Financial Management? Financial Management means planning, organizing, directing and controlling the financial activities such as procurement of funds in the most economic manner and employment of those funds in the most optimum way. It means applying general management principles to financial resources of the enterprise. Scope / Elements of Financial Management : 1. […]

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Cost of Capital : Meaning, Significance, Factors affecting Cost of Capital, Types of Cost of Capital, Measurement of Cost of Capital : FINANCIAL MANAGEMENT

Cost of capital ( k ) is the minimum rate of return that a firm must earn in order to satisfy the expectations of it’s investors. In other words, It is the minimum rate of return required on the investment projects to keep the market value per share unchanged. Significance or Importance of Cost of […]

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Leverage : Meaning, Types of Leverages, Importance of Leverage in financial Management

Leverage in Financial Management can be defined as deciding the proper mix between the fixed cost and variable cost. Leverage is a practice that can help a firm to drive up it’s gains or losses. Basically, Leverage in Financial Management is the relationship between two interrelated variables. These variables may be cost, output, sales, revenue, […]

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