Authors: Dr. Shalini Singh, Dr. Sarika Singh, and Mrs. Rachana Singh

ISBN: 978-81-999190-2-0

DOI: https://doi.org/10.59646/609

Date of Publication: February 23, 2026

Cite this book: Shalini S, Sarika S, and Rachana S, (2026), Business Finance, San International Scientific Publications, ISBN: 978-81-999190-2-0, doi: https://doi.org/10.59646/609

Preface

Business finance is the backbone of every enterprise, guiding decisions that shape its growth, stability, and long-term success. This book provides a comprehensive introduction to the nature and scope of business finance and financial management, clearly explaining its objectives and core functions. It examines the fundamental financial decisions—investment, financing, and dividend decisions—while highlighting the debate between profitability and shareholder wealth maximization and emphasizing the significance of the time value of money through compounding and discounting techniques. The text offers an in-depth understanding of capital budgeting methods such as Payback Period, IRR, NPV, and ARR, along with their practical applications in real-world decision-making. It further explores financing decisions, capitalization concepts, over and undercapitalization, and the computation of various components of cost of capital, including the weighted average cost of capital. Theories and determinants of capital structure, dividend decision models, and dividend policies are discussed in a clear and analytical manner. Additionally, the book covers sources of long-term and short-term funds, working capital management, and the structure of Indian capital and money markets, including the role of stock exchanges such as BSE and NSE. Designed for students and aspiring finance professionals, this book aims to build a strong conceptual foundation while encouraging analytical thinking and practical application in the dynamic field of business finance.