What is Dividend? Types: Cash, Stock, Property, Scrip, Liquidating
What is Dividend? Dividend is that portion of the firm's earnings which is paid to the shareholders/ owners of the firm. Dividends provides an added incentive (in the form of…
What is Cost of Capital? Importance, Concept
What is Cost of Capital? Cost of capital is defined "as the minimum rate of return that a firm must earn on its investment so that market value per share…
What is Capital Budgeting? Definition, Importance, Techniques
What is Capital Budgeting? Capital budgeting (or investment appraisal) is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants,…
What is Capital Rationing? Types, Process
What is Capital Rationing? Capital rationing is a process of selecting the mix of acceptable projects that provides the highest overall Net Present Value (NPV) when a company has a…
What is Capital Assets Pricing Model (CAPM)? Assumptions, Inputs
What is Capital Assets Pricing Model (CAPM)? Capital Asset Pricing Model (CAPM) is a financial model used to rate risky securities, which explain the link between risk and anticipated return.…
What is Time Value of Money? Techniques
What is Time Value of Money? One of the most fundamental concepts in finance is that money has "time value." That is to say that money in hand today is…
Short Term Financing
Short Term financing is very important for any organization. It includes the borrowing and lending of funds for a shorter period of time usually one year or less that. Short…
External Sources of Finance
External Sources of Finance Equity SharesPreference SharesDebentures and BondsVenture capitalTerm LoansLease financing Equity Shares Every company has a statutory right to issue shares to raise funds. Also known as ordinary…
What is Inventory Management? Functions, Control Techniques
What is Inventory Management? Inventory management is the process of efficiently managing the constant flow of inventories into the business processes. This process usually involves controlling the transfer of units…
Long Term Financing
Long Term Finance Long term financing is a form of financing that is provided for a period of more than a year which may extends up to 30 years. Long…
