Fundamentals of Financial Management 3rd Semester Osmania University BBA 2025-26 Notes

Unit 1
Meaning of Finance, Money VIEW
Business Finance VIEW
Finance Function VIEW
Organization Structure of Finance VIEW
Financial Management, Goals of Financial Management VIEW
Financial Decisions VIEW
Role of a Financial Manager VIEW
Time Value of Money VIEW
Future value and Present Value VIEW
Unit 2  
Meaning, Importance of Finance Structure VIEW
Capital Structure VIEW
Classification of Capital Structure VIEW
Factors Influencing Capital Structure VIEW
Optimum Capital Structure VIEW
EBIT-EPS Analysis VIEW
Leverages VIEW
Operating Leverages VIEW
Financial Leverages VIEW
Combined Leverages VIEW
Cost of Capital: Concept and Importance, Types VIEW
Calculation of Cost of Capital VIEW
Unit 3  
Meaning and Importance of Capital Budgeting, Features, Process VIEW
Techniques of Capital Budgeting VIEW
Concept and Computation of Payback Period VIEW
Accounting Rate of Return VIEW
Net Present Value VIEW
Internal Rate of Return VIEW
Profitability Index VIEW
Unit 4
Concepts Types of Working Capital, Determinants VIEW
Significance of Working Capital VIEW
Sources of Working Capital VIEW
Calculating Operating Cycle Period VIEW
Estimation of Working Capital Requirements VIEW
Unit 5
Dividend, Meaning and Types VIEW
Dividend Policy: Meaning and Objectives, Types of Dividend Policy, Issues Involved in Dividend Policy VIEW
Determinants of Dividend Policy VIEW
Dividend Policy and Value of Firm VIEW
Relevance theory VIEW
Water’s Model VIEW
Gordon’s Model VIEW
Irrelevance Theory VIEW
MM hypothesis VIEW

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