Here you can download the free lecture Notes of Advanced Financial Management Notes Pdf – AFM Notes pdf materials with multiple file links to download. Advanced Financial Management pdf notes book starts with the topics covering Working capital management, Determination of the level of current Assets Sources for financing working capital. Bank finance for working capital (No problems on the estimation of working capital) Working capital financing: Short-term financing of working capital, long-term financing of working capital, etc.
Advanced Financial Management Notes pdf – AFM Notes of Total Modules
Please find the download links of Advanced Financial Management Notes pdf | AFM Notes are listed below:
Advanced financial management book
Advanced Financial Management Pdf Details
MODULE – 1
Working capital management, Determination of the level of current Assets Sources for financing working capital. Bank finance for working capital (No problems on the estimation of working capital) Working capital financing: Short term financing of working capital, long term financing of working capital. Working capital leverages.
MODULE – 2
Cash Management, Forecasting cash flows – Cash budgets, long-term cash forecasting, monitoring collections and receivables, optimal cash balances – Baumol model, Miller-or model, and stone model. Strategies for managing a surplus fund.
MODULE – 3
Receivables Management, Credit management through credit policy variables, marginal analysis, and Credit evaluation: Numerical credit scoring and discriminate analysis. Control of accounts receivables, Factoring.
MODULE – 4
Inventory Management, Determinations of inventory control levels: Ordering, reordering, danger level. EOQ model. Pricing of raw material. Monitoring and control of inventories, ABC Analysis.
Advanced Financial Management Pdf – AFM Module Details
MODULE – 5
Capital structure decisions, capital structure & market value of a firm. Theories of capital structure – NI approach, NOI approach, Modigliani Miller approach, traditional approach. Arbitrage process in the capital structure. Planning the capital structure: EBIT and EPS analysis. ROI & ROE analysis. Capital structure policy.
MODULE – 6
Dividend policy, Theories of dividend policy: relevance and irrelevance dividend decision. Walter‟s & Gordon‟s model, Modigliani & Miller approach. Dividend policies – stable dividend, stable payout, and growth. Bonus shares and stock split corporate dividend behavior. Legal and procedural aspects of dividends Corporate Dividend Tax.
MODULE – 7
Special issues in financial management, Corporate financial modeling Agency problem, and consideration. Effect of inflation on Asset value, firm value, returns Financial planning – Basis of financial planning, sales forecast method, Pro-forma P & L account method, pro-forma balance sheet method, determination of External, Financing Requirement (EFR).
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Q1: Where do I download free lecture Notes of Advanced Financial Management Pdf?
A1: In Smartzworld, the AFM notes is available and here is the link – https://www.smartzworld.com/notes/advanced-financial-management-notes-pdf-afm/ . You may find it on other websites too.
Q2: What contents do Modules of Advanced Financial Management include?
A2: AFM module includes Working capital management, Cash Management, Receivables Management, Inventory Management, Capital structure decisions, Dividend policy, Special issues in financial management.
Q3: What is working capital management?
A3: Working capital management refers to the funds held in current assets. Current assets are very much essential to use fixed assets.
Q4: What are the phases of working capital?
Q5: What is cash management?
A5: Cash management is an umbrella term under which cash collection, handling and usage falls. Cash management involves assessing cash flow, market liquidity and investments.
Q6: What are the equational Representation in Baumol Model of cash management?
A6: Below are the equational representation in Baumol Model of cash management
- Holding cost = k(C/2)
- Transaction cost = c(T/C)
- Total Cost = k(C/2) + c(T/C)
Q7: What is Capital structure?
A7: A combination or mix of equity and debt used by a company to finance its long term operations.
Q8: What are the essentials of a sound or optimal capital structure?
A8: Below are the essentials of a sound or optimal capital structure: Safety, Flexibility, Simplicity, Commensurate to Legal Requirements, Minimum cost of capital, Maximum return, Minimum risk, Maximum control, Attractive rules.
Q9: What is Financial modelling?
A9: Financial modelling is a task of building a model as an abstract representation of a real world financial situation.
Q10: What is Industrial sickness?
A10: An industrial company which has been registered for not less than five years, has suffered cash losses and accumulated losses exceeding or equal to its entire net worth at the end of any financial year. If the same process has been repeated in the preceding financial year too, then it is called as Industrial sickness. The reasons could be shortage of key inputs, unfavorable environment, natural calamities, changes in governmental policies, shift in consumer preferences etc.