Financial administration is the study usually sought after by high ranking representatives and directors of organizations. It may very well be a value to the average individual. Assignments can come in numerous structures, and it would all be able to be taken care of effectively on the off chance...
Finance is one of the most important subjects in commerce and management streams. College and university students can find the subject of finance very hard to grasp and understand the complex concepts in the subject. Finance has various concepts and topics that can be hard to wrap heads around....
Equity Capital When a company raises capital through the issue of ordinary shares it is effectively borrowing from the capital markets on a permanent basis. There is no maturity date associated with the shares and hence the loan is never repaid. Since the company is permanently in debt to...
Debt Capital When a company borrows funds, it creates a creditor rather than a shareholder. Debt capital occurs in a variety of forms. The simplest option is a fixed-rate, fixed-term, unsecured bank loan. Alternatively, a company can sell loan stock, either unsecured or in the form of debentures. Mortgage debentures...
How Much Debt should be Borrowed If a person wants to buy a car that costs $10000. He decides to make and down payment of 60% or $6000 and asks a bank to finance the remaining 40%. The bank is quite willing to enter into the deal, since it holds...
Risk-free Investment Suppose there is no risk or a problem that needs to be faced. By claiming that there is no risk, one can assume that if an amount is invested in order to receive a stream of benefits in the future, all those future benefits are certain to arrive....
Financial Performance Companies must be able to measure managerial performance if they are to control operations and achieve organizational goals. As companies grow or their activities become more complex, they often attempt to decentralize decision making as much as possible by restructuring into several divisions and treating each as an...
Finance Budgeting A budget represents a company’s annual financial plan. A comprehensive budget is a formal statement of management’s expectation for sales, expenses, volume and other financial transactions for the coming period. It consists basically of a pro forma income statement, pro forma balance sheet and cash budget. A budget is...
Financial Forecasting Financial forecastingis an essential element in planning. It is the basis for budgeting and for estimating future financing requirements. A company can make finance either from internal or external sources. Internal financing refers to cash flow generated by the company’s normal operating activities. External financing on the other...
Financial Statement Analysis The basic limitation of traditional approach to financial statements comprising balance sheet and the profit and loss account is that they do not give all the information related to the financial operations of a firm. Nevertheless, they provide some extremely useful information to the extent that the...
