Financial Management

Financial management is efficient use of resource for maximization of wealth of share holders.

“Financial Management is the Operational Activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation.” by Joseph Massie
“Business finance deals primarily with rising administering and disbursing funds by privately owned business units operating in non-financial fields of industry.” – by Kuldeep Roy
“Financial Management is an area of financial decision making, harmonizing individual motives and enterprise goals.” By Weston and Brigham
“Financial management is the area of business management devoted to a judicious use of capital and a careful selection of sources of capital in order to enable a business firm to move in the direction of reaching its goals.” – by J.F.Bradlery
“Financial management is the application of the planning and control function to the finance function.” – by K.D. Willson
“Financial management may be defined as that area or set of administrative function in an organization which relate with arrangement of cash and credit so that organization may have the means to carry out its objective as satisfactorily as possible .“ – by Howard & Opton.
Business finance can be broadly defined as the activity concerned with planning, raising, controlling and administering of funds and in the business. “ by H.G Gathman & H.E Dougall

Financial management – Cost of capital

Cost of equity
Cost of debt / Cost of irredeemable debt / Cost of debt redeemable at market value
Cost of redeemable debt
Cost of convertible instruments
Cost of preference shares
Weighted average cost of capital (WACC)
Pure play method
Modigliani and Miller capital structure theories

Financial management – Investment appraisal