How to Master Financial Management: Theory and Practice with Prasanna Chandra's Book (Free PDF)
Financial Management Book by Prasanna Chandra Free Download
Financial management is one of the most important and challenging aspects of business and personal finance. It involves planning, organizing, directing, and controlling the financial activities of an organization or an individual. It helps in achieving the financial goals and objectives of the entity or the person.
financial management book by prasanna chandra free download
If you want to learn more about financial management and its applications, you may want to read the book Financial Management: Theory and Practice by Prasanna Chandra. This book is a comprehensive and up-to-date text that covers the central themes and concerns of corporate financial management. It presents an analytical approach to corporate finance decision making. It is the most contemporary Indian book available.
In this article, we will give you an overview of the book, its author, its features, and its contents. We will also tell you how you can benefit from reading this book and how you can download it for free. Let's get started!
Financial Management: Definition and Scope
Before we dive into the book, let's first understand what financial management is and what it entails. Financial management can be defined as:
"The process of acquiring funds at minimum cost, allocating them among competing uses, and ensuring their effective utilization to maximize shareholders' wealth." (Chandra, 2019, p. 3)
The main objectives of financial management are:
To maximize the value of the firm or the wealth of the shareholders.
To ensure adequate availability of funds for current and future needs.
To ensure optimal allocation of funds among competing projects or activities.
To ensure efficient utilization of funds to generate maximum returns.
To ensure effective management of risks associated with financial decisions.
The scope of financial management covers various areas and functions, such as:
Financial planning: It involves forecasting the financial requirements and resources of the entity or the person.
Financial analysis: It involves analyzing the financial performance and position of the entity or the person using various tools and techniques.
Financial decision making: It involves making various decisions related to investment, financing, dividend, working capital, etc.
Financial control: It involves monitoring and evaluating the financial activities and results of the entity or the person.
The role of financial managers is to perform these functions effectively and efficiently. Financial managers are responsible for:
Raising funds from various sources at minimum cost.
Selecting profitable projects or investments that add value to the firm or the person.
Determining the optimal mix of debt and equity that minimizes the cost of capital.
Deciding how much earnings to retain or distribute as dividends to shareholders.
Managing the current assets and liabilities to ensure liquidity and profitability.
Identifying and mitigating the risks associated with financial decisions.
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