Initially, the functions of financial management was limited upto the collection of funds. But, the area of finance functions has expanded now. As business activities continued to grow in all developed and newly industrialized countries, the functions of financial management have also been duly expanded. Now, it covers a wide area of business operation including management of financing, investment, hedging, trading etc. The basic functions of financial management are as follows:
1. Financial planning and controlling
2. Financial statement analysis
3. Raising capital
4. Working capital management
5. Capital budgeting
6. Investment management
7. Options and futures
8. Cost of capital analysis
9. Capital structure analysis
10. Dividend policy.
Beside these basic corporate financial functions, financial management is also involved in specialized financial issues, such as manager, corporate restructure, foreign exchange management and international risk management.
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