Finance

What are the Determinants of Investment in Receivables?

What are the Determinants of Investment in Receivables?

Determinants of Investment in Receivables – Receivables represent the amounts owed to the company as a result of sales of goods and services in the normal course of business.  The size of investment in receivables is influenced by a number of factors. Among them two factors, the volume of .....

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Concept of Time Value of Money

Concept of Time Value of Money

The concept of Time Value of Money The concept of tome value of money suggests that the money received at a different point of time has a different value. It is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning ca.....

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Significance of Time Value of Money

Significance of Time Value of Money

The significance of Time Value of Money – The time value of money is the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. Time value of money is a widely used concept in the literature of finance. Financial.....

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Concept of Dividend Policy

Concept of Dividend Policy

Concept of Dividend Policy Dividend policy is the policy which concerns quantum of profits to be distributed by way of dividend. Dividend refers to the portion of net income paid out to shareholders. It is paid in cash and/or stock for making an investment and bearing risk. Dividend decision of t.....

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Dividend Payment Procedures of a Company

Dividend Payment Procedures of a Company

Dividend Payment Procedures of a Company A dividend is a distribution of a percentage of a firm’s earnings, decided by the board of owners, to a class of its investors. Dividends can always be issued as funds payments, as gives of stock, or other property. The dividend payment procedures of a f.....

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Factors that affecting Dividend Policy of a company

Factors that affecting Dividend Policy of a company

Factors that affecting Dividend Policy of a company Dividend Policy is a financial decision that refers to the proportion of the firm’s earnings to be paid out to the shareholders. A firm’s dividend policy is influenced by large numbers of factors. The goal of the policy is to aim for s.....

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Concept of Stock Splits and its Value

Concept of Stock Splits and its Value

The concept of Stock Splits and its Value to Shareholders A stock split is similar to a stock dividend in an economic sense. It is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. When a company announces stock splits, it.....

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Concept of Reverse Stock Splits

Concept of Reverse Stock Splits

The concept of Reverse Stock Splits When a company completes a reverse stock split, each outstanding share of the company is converted into a fraction of a share. The company may want to reduce the number of share outstanding if its share price falls substantially. The number of shares is reduced.....

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Concept of Stock Repurchase

Concept of Stock Repurchase

The concept of Stock Repurchase Repurchase of stock refers to the buyback by the firm of outstanding shares of its common stock in the market place. It is a program by which a company buys back its own shares from the marketplace, usually because management thinks the shares are undervalued, and.....

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Concept of Corporate Finance

Concept of Corporate Finance

The concept of Corporate Finance Business firms and government organizations do need to implement various programs to achieve their goals. Corporate Finance is the area of finance that deals with providing money for businesses and the sources that provide them. It is one of the most important su.....

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Functions of Finance

Functions of Finance

Functions of Finance Generally, finance functions are carried on to achieve the goals of the firm. The Finance Function is a part of financial management. Finance functions are mainly viewed from two approaches; ‘raising of funds’ and ‘raising and allocation of funds’. In.....

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Common Managerial Finance Functions

Common Managerial Finance Functions

Common Managerial Finance Functions Financial management is that managerial activity which is concerned with the planning and controlling of the firm’s financial resources. Managerial finance functions are functions that require managerial skills in their planning, execution, and control. Manag.....

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