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Introduction to financial management:
Meaning and defecation of the financial business: financial may be defined as a provision of the money at the time when it is required. Finance refers to the flow of the funds of money through the organization. It concerns with the application of the skills in the manipulation, use and control of the money different authority have interpreted the term finance differently. However, there are three main approaches to the finance. According to Soloman, "Financial management is concerned with the efficient use of an important economic resource, namely, Capital Funds."
According to J.F. Bradley, "Financial management is the area of business management devoted to the judicious use of capital & careful selection of sources of capital in order to enable a spending unit to move in the direction of reaching its goals."
According to Howard & Upton, "Financial management is the application of the planning & control functions of the finance functions."
According to Weston & Bingham, "Financial management is an area of financial decision making harmonizing individual motives & enterprise goals". "Financial management is concerned with the effective use of an important economic resource, namely capital funds".
Specific Cost of Capital When the Cost of every source of capital is individually calculated, it is known as Specific Cost of Capital example Cost of equity, cost of debt, etc
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