Elective Financial Management

Financial Management notes

8 chapter notes, in syllabus order. Each starts with the key points.

Unit 1

Financial Mgmt: Goals, Functions, Environments & Decision-MakingUnit 1 of Financial Management introduces core concepts like financial management’s objectives, functions, and decision-making frameworks, explains its role in corporate strategy, and contrasts financial vs. accounting management. It covers the financial environment (internal vs. external) and the decision-making proce10 min read

Unit 2

Financial Analysis & Planning: Tools, Ratios, Budgets & ForecastingUnit 2 of Financial Management explores how businesses evaluate past performance (financial statements, ratios), plan for the future (budgets, forecasts), and link analysis to strategic decisions—using Nepali examples like Ncell’s debt ratios or Daraz’s inventory turnover.13 min read

Unit 3

Cost of Capital · note coming

Unit 4

Capital Budgeting · note coming

Unit 5

Risk in Capital Budgeting: Types, Techniques & NPV AdjustmentsUnit 5 of Financial Management explores how businesses evaluate and mitigate risks in long-term investment decisions, covering risk measurement (standard deviation, beta), risk-adjusted discount rates (SML, CAPM), sensitivity analysis, scenario analysis, and Monte Carlo simulation—with real-world applications in Nepali14 min read

Unit 6

Capital Structure: Theory, Models, Trade-offs & Real-World ImpactUnit 6 of Financial Management explores how firms structure debt vs. equity, evaluates Modigliani-Miller (MM) propositions, examines trade-off theory, and analyzes capital structure decisions using real Nepali business cases (e.g., Ncell’s debt financing, Daraz’s equity mix).11 min read

Unit 7

Leverage: Types, Effects, and Strategic Use in FinanceUnit 7 of Financial Management explores the concept of leverage—operating, financial, and combined—its impact on profitability, risk, and capital structure, with real-world applications in Nepali businesses and global firms.10 min read

Unit 8

Dividend Policy: Types, Theories, Factors & DecisionsUnit 8 of Financial Management explores dividend policy—how firms decide on dividend payouts, its theories, types (cash, stock, liquidating), and real-world trade-offs between dividends and retained earnings, illustrated with Nepali business examples and exam-focused visuals.12 min read

Unit 9

Working Capital Management: Policies, Techniques & OptimizationUnit 9 of Financial Management explores how businesses manage short-term assets (cash, inventory, receivables) and liabilities (payables, loans) to ensure liquidity, profitability, and operational efficiency—with real-world Nepali examples like eSewa’s cash flow and Daraz’s inventory turnover.15 min read

Unit 10

Cash & Receivables: Management, Analysis & OptimizationUnit 10 of Financial Management explores how businesses optimize cash flows and manage accounts receivable to ensure liquidity, minimize costs, and maximize profitability—using tools like cash budgets, aging schedules, and credit policies.12 min read