Nature of Financial Management • Value and Return • Valuation of Bonds and Shares • Risk and Return • Portfolio Theory and Assets Pricing Models • Beta Estimation and the Cost of Equity • Options and their Valuation • Capital Budgeting Decisions • The Cost of Capital • Cash Flows for Investment Analysis • Complex Investment Decisions • Risk Analysis in Capital Budgeting • Real Options, Investment Strategy and Process • Financial and Operating Leverage • Capital Structure: Theory and Policy • Valuation and Financing • Dividend Theory • Dividend Policy • Capital Market Efficiency and Capital Markets in India • Long-Term Finance: Shares, Debentures and Term Loans • Convertible Debentures and Warrants • Asset-Based Financing: Lease, Hire Purchase and Project Financing • Venture Capital Financing • Financial Statements • Financial Statement Analysis • Financial Planning and Strategy • Principles of Working Capital Management • Receivables Management and Factoring • Inventory Management • Cash Management • Working Capital Finance • Corporate Restructuring, Mergers and Acquisitions • Derivatives for Managing Financial Risk • International Financial Management • Shareholder Value and Corporate Governance • Comprehensive Cases • Tables

The book highlights the modern, analytical approach to corporate finance decision-making. Its aim is:
• to help readers develop a thorough understanding of the theories and concepts underlying financial management in a systematic way
• to make the subject of finance interesting to learn, simple to comprehend and relevant in practice
• to help readers appreciate the logic for making better financial decisions
The book has excellent pedagogical tools like Excel applications, Illustrative problems, Real-life examples, Cases, and Practical projects, and distinctly differentiates itself from other textbooks in terms of coverage, presentation, and equal focus on theory and practice. Many chapters have been updated. New concepts, like consumption beta, simulation in capital budgeting, and three-factor model, have been added. A number of new real-life examples of companies and cases have also been included. Many chapters have been updated. New concepts, like consumption beta, simulation in capital budgeting, and three-factor model, have been added. A number of new real-life examples of companies and cases have also been included.