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decentralizationthis is a company power structure in which authority and decision-making responsibility are diffused throughout various stages of an
debenturedebenture is a document holding an acknowledgment of indebtedness on the part of organizations usually secured by a charge on the companys
estimating working capital requirementsto facilitate estimate the extent of working capital requirement of a firm various factors are to be
factors affecting working capital needs of firmsa large no of reasons influences the working capital requirements of firms a number of them are
types of working capitalworking capital can be split up into two categories on the basis of time they are permanent working capital and temporary
concepts of working capitalthere are two concepts of working capital - net working capital and gross working capital1 gross working capitalgross
working capital managementworking capital relates to the capital required for daily operations of a business enterprise the requirement for
types of dividend policy1 regular dividend policy payment of dividend at standard rate is known as regular dividend policy2 stable dividend policy
forms of dividendcash dividendmany companies pay dividend in cash often cash dividend may be supplemented by a bonus issue stock dividend when
dividend policydividends provide the portion of a firms net earnings which are paid out to the shareholdersthe objective of financial management of
factors influencing capital structuredeterminants of the capital structure1 financial leverage or trading on equityit is the make use of long term
essential features of a sound capital mixa sound or an appropriate capital structure should have the following essential features highest possible
capital structure definitionaccording to gerstenberg capital structure refers to the makeup of a firms capitalisation in other way it signifies
weighted average cost of capitalweighted average cost of capital is the average cost of the costs of several sources of financing weighted average
cost of equity share capital kethe cost of equity capital is the maximum rate of return that the co must earn on equity financed portion of its
you have the following limited information upon which to base your decision as to which is the better of two alternative funding
specific cost of capitalwhen the cost of every source of capital is individually calculated it is known as specific cost of capital example cost of
concepts of cost of capital1 explicit cost and implicit costthe explicit cost of any source of finance may be described as the discount rate that
basic assumptions of cost of capitalthe cost of capital is a dynamic concept affected by a multiplicity of economic and firm factors and assumes the
cost of capitala projects cost of capital is the smallest amount of acceptable rate of returnrequired rate of return on funds committed to the
discounted pay back period dpbp the discounted payback period is the number of periods taken in recovering the investment outlay on the present value
profitability index pi it is a ratio of the present value of the total cash benefits to the present value of the net cash outlay the higher the
internal rate of return irr this rate attempts to find the earnings rate which equates the current value of the streams of earnings to the investment
net present value npv in this technique future cash flows are discounted to the present and then compared with the investment outlay the basic
modern discounting cash flow techniques these methods generally are of more use to businesses in their investment decisions they take into account