Financial Management: Theory and Practice

Part-I Introduction
1.Financial Management: An Overview
2.The Financial System

Part-II Financial Analysis and Planning
3. Financial Statements, Taxes, and Cash Flow
4. Analysis of Financial Statements
5. Financial Planning and Forecasting

Part-III Fundamental Valuation Concepts
6. The Time Value of Money
7. Valuation of Bonds and Stocks
8. Risk and Return
9. Risk and Return: Portfolio Theory and Asset Pricing Models
10. Options and Their Valuation

Part-IV Capital Budgeting
11. Techniques of Capital Budgeting
12. Estimation of Project Cash Flows
13. Risk Analysis in Capital Budgeting
14. The Cost of Capital
15. Capital Budgeting: Extensions

Part-V Long Term Financing
16. Market Efficiency and Behavioural Paradigm
17. Sources of Long-Term Finance
18. Raising Long Term Finance

Part-VI Capital Structure and Dividend Decisions
19. Capital Structure and Firm Value
20. Capital Structure Decision
21. Dividend Policy and Firm Value
22. Dividend Decision

Part-VII Working Capital Management
23. Working Capital Policy
24. Cash and Liquidity Management
25. Credit Management
26. Inventory Management
27. Working Capital Financing
28. Working Capital Management: Extensions

Part-VIII Debt and Hybrid Financing
29. Debt Analysis and Management
30. Leasing, Hire-Purchase, Infrastructure Finance and Project Finance
31. Hybrid Financing

Part-IX Corporate Valuation, Restructuring and Value Creation
32.Corporate Valuation
33.Value Based Management
34.Mergers, Acquisitions, and Restructuring

Part-X — Corporate Governance and Performance Management
35.Corporate Governance and Executive Compensation
36.Performance Management and Organisational Architecture

Part-XI — International Finance and Risk Management
37.International Financial Management
38.Derivatives and Risk Management

Part-XII — Special Topics
39.Financial Management in Companies with Special Characteristics
40.Financial Management in Sick Units
41.Behavioural Corporate Finance
42.The State of Our Knowledge

Appendix-A. Tables
Appendix-B. Solutions to End-of-Chapter Problems and Mini Cases
Appendix-C. Sources of Financial Information
Glossary
Index

About the Book:

This book provides a comprehensive understanding of the key concepts, principles, and practices of corporate finance. Blending theory with real-world applications, it enables students to make informed financial decisions in the dynamic business environments.
This edition has been revised and updated to reflect current developments in the field. It includes new sections on The Value of a Company, Free Cash Flow, Capital Rationing, Empirical Evidence on Capital Structure, Corporate Governance, Organizational Architecture, Corporate Culture, Sustainability and ESG in Financial Management, and Finance for Startups. These additions make the book contemporary and aligned with current business realities.
Widely accepted across top Indian management institutes, this book is trusted by students and instructors. It is an essential text for MBA/PGDM courses and a valuable reference for finance professionals, analysts, and entrepreneurs seeking a solid grounding in financial decision-making and corporate value creation.


Key Features:

• Comprehensive Coverage
• Builds understanding of the central ideas and theories of modern finance. 
• Decisional Focus and Analytical Approach 
• Excel Applications 
• Emphasis on Behavioural Dimension 
• New feature called Beyond the Pages offers a collection of short articles on various topics.