Bsc Financial Management Sem 5

Factors Determining Capital Structure Trading on Equity- The word “equity” denotes the ownership of the company. Trading on equity means taking advantage of equity share capital...

The Cost Indifference Point A cost indifference point is the point at which total cost (fixed and variable) of two alternatives under consideration is the...

WORKING CAPITAL The capital of a business which is used in its day-by-day trading operations, calculated as thecurrent assets minus the current liabilities. Working capital...

Concept of Working Capital: Gross and Net Working Capital There are two concepts or senses used for working capital. These are: 1. Gross Working Capital 2. Net working...

FACTORS AFFECTING WORKING CAPITAL 1. Nature of business2. Production policy3. Credit policy4. Inventory policy5. Abnormal factor6. Market conditions7. Conditions of supply8. Business cycle9. Taxation policy10....

Over trading and Under Trading Over-trading and under-trading are facets of over and under-capitalization. Over trading is a curse to the business.OVER TRADING :A company which is under-capitalized will try to...

What is Capital Budgeting? Capital budgeting is defined as the process of planning for projects on assets with cash flows of a period greater than...

IMPORTANCE OF CAPITAL BUDGETING 1. Long-term Implications of Capital Budgeting A capital budgeting decision has its effect over a long time span and inevitably affects the company’s future...

Capital Investment Appraisal Techniques The capital investment appraisal techniques used to measure capital investment appraisal of a business project include: Net present valueAccounting rate of returnInternal...

Payback Period Payback period basically pays attention to the speed at which the initial investment made in a project will be recovered by subsequent cash...