Time Value of Money

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 →

Various Decisions under Financial Management

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 →

Capital Budgeting and Various techniques of Capital Budgeting

According to G.C. Lyrich “Capital budgeting is concerned with the allocation of firm`s financial resources among the available opportunities.  The consideration of investment opportunities involves the comparison of the expected future streams of earnings from a project with the immediate and subsequent streams of earnings from a project, with theRead More →

corporate restructuring

Corporate Restructuring Corporate Restructuring implies activities related to – ♦ Expansion/contraction of a firm’s operations or ♦ Changes in its Assets or Financial or Ownership structure ♦ Changes in Corporate control     Forms of Corporate Restructuring The most common forms of corporate restructuring are mergers/amalgamations, acquisitions/take overs, financial restructuring, divestitures/demergers andRead More →

Financial Planning and Financial Planning Process

Financial Planning   Financial management helps to determine the financial requirement of the business concern and leads to financial planning.  Financing Planning plays a major role in the areas of financial management such as capitalization, financial structure, leverage and forecasting.  It includes the following important parts – (a) Estimating theRead More →