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q what do you mean by working capitalmeaning of working capital- working capital management is a significant aspect of financial management in
q define working capitalans introduction - working capital plays the similar role in the business as the role of heart in the human body just like
example - mm foam company at present has 5000 outstanding shares selling at rs 100 each the firm suppose to have a net earning of rs 50000 as well as
q computation of the value of the firmthe argument given by mm in favour of their hypothesis is that whatever increase in the value of the firm
q show the supposition of mm hypothesissupposition of mm hypothesis-i there are ideal capital marketsii investors act rationallyiii information
q miller approach of irrelevance of dividendsdiscuss the modigliani as well as miller approach of irrelevance of dividends what are its drawbacksans
q implications of gordons fundamental valuationexplanation - the implications of gordons fundamental valuation may be as below1 while the rate of
q describes the gordons dividend modelgordons model - gordons model is one more theory which contends that dividend policy is relevant for the value
i no external financing - walter model presume that the firms investment are financed exclusively by retained earnings and no external financing is
q what are assumptions of walters dividend model1 constant return and cost of capital - the walter model presume that the firms rate of return and
the walters model thus relates the question of distributing the dividends and retaining the earnings to the investment opportunities that are
q describe the walters dividend modelwalters model - walters model maintains the doctrine that the dividend policy is relevant for the value of the
q factors determining dividend policy1 financial needs of the firm - financial requirement of a firm are directly related to the investment
q explain a variety of factors determining dividend policydividend - dividend demotes to that part of net profits of a company which is distributed
q drawbacks or criticism of mm approachrisk perceptions of personal as well as corporate leverages are different - it is incorrect to presume that
example - two firm u as well as l is identical in every respect except that u is unlevered and l is levered l has rs 20lakh of 8 debt outstanding the
q example on modigliani and miller approachthe subsequent is the data regarding two companies x and y belonging to the same risk classcompany x
q define arbitrage process the basic theory of the mm approach if we ignore the taxes is that the total value of a firm should be constant
q what is usual approach of capital structureans traditional approach - the traditional approach establishes middle among the net income approach and
q computation of value of the q computation of value of the
q show the net operating income approach the noi net operating income approach advocates that the cost of equity increases with the increase in the
q describes net operating income approach to capital structurenoi net operating income approach- this is another speculation of capital structure
q computation of overall cost of capitalcomputation of value of the firm v amp overall cost of capital when debt is lowered to rs 1 00000when the
q computation of value of the firmcomputation of value of the firm v amp overall cost of capital-ni
net income approach says that a raise in the proportion of debt financing in capital structure results in an increase in the proportion of a cheaper