Project/Slides/Presentation Transcript Subject: Financial management Topic: RISK AND RETURN ANALYSIS OF BEER AND ALCOHOL INDUSTRY Slide 1 – RISK AND RETURN ANALYSIS OF BEER AND ALCOHOL INDUSTRY Slide 2 – OBJECTIVE & METHODOLOGY OF THE PROJECT Objective of this project is to analyze the risk and returns of our Indian beer and alcoholRead More →
What is Cost? It refers to the monetary expenditure which a firm has to incur in order to purchase or hire the factors of production. It is the expense of purchasing or hiring factor services for production and other business activities. Classification of Cost / Types of Cost There areRead More →
The Cost of Capital is the minimum rate of return, that a company requires from its investments in order to ensure that the market value of its shares either increase or remain at the same level. It simply refers to the minimum profit a firm requires from its investment inRead More →
The Working Capital Requirement of a business is the sum of current assets or the amount of funds necessary to cover the cost of operating expenses of the business. The two main components of working capital are current assets and current liabilities. The excess of current assets over current liabilitiesRead More →
Capital refers to the total investment of a business in terms of money and assets. Capital requirements for a business can be determined on the basis of size and nature of the business concern. It is the integral and major part of all business activities and may be acquired fromRead More →
A firm must decide whether to distribute all profits, retain them, or distribute a portion and retain the balance. Dividend decision is essentially a trade-off between retained earnings and issue of new shares. Dividend decision model helps a firm to make a profitable choice between the two. Dividend decisionRead More →
According to the Institute of Chartered Accountant of India, dividend is defined as “a distribution to shareholders out of profits or reserves available for this purpose”. Dividend refers to that portion of profits after tax which is distributed among the owners/shareholders of the firm. It is the return thatRead More →
Long term Sources of Finance Long-term Financing involves long-term debts and financial obligations on a business which last for a period of more than a year, usually 5 to 10 years. Features of Long-term Sources of Finance – It involves financing for fixed capital required for investment in fixed Assets ItRead More →
According to James Horne Leverage is, “the employment of an asset or fund for which the firm pays a fixed cost or fixed return” It refers to the use of fixed cost assets to maximize the potential return for shareholders of a company. It helps to examine the debt-equity mixRead More →
Basic rule of Time value of Money “Money received today is worth more than the same money received in the future” Time Value of Money – Shareholders of a business make sacrifices by investing funds into the business now, to reap its benefits in the future, either as dividend alongRead More →
The two main Goals/Objectives of Financial Management are – Profit Maximization [Traditional] Shareholders wealth Maximization [Modern] Profit Maximization It is a traditional and narrow approach which aims at maximization of returns by the firm in terms of monetary resources and increasing the earning per share of the shareholders. Under suchRead More →
The various decisions under financial management can be categorized under the following four heads – Investment Decision Finance Decision Dividend Decision Liquidity Decision Various Decisions under Financial Management are – (1) Investment Decision: The investment decisions are concerned with identification of investment opportunities and efficient allocation and utilization ofRead More →