Introduction to Financial Management

Expense Ratio Expense ratio is the Percentage of total management expenses to gross premiums. This ratio relates level of the ma ...

outstanding ratio is considerably very high when compared to the industry average; this hinders the effective use of company ass ...

Introduction to Financial Management Abdul Karim Bangura (Phd) ...

This ratio compares the liabilities of the company to its capital. The rationale is to depict the financing components (equity a ...

Table of contents Introduction 3 - Pages Financial markets and institutions 7 - Financial planning and budgeting 12 - Capital s ...

iii) Ex-Dividend Date takes effects in four business days prior to holder-of record date. Stock purchased after this date does n ...

❖ INTRODUCTION The management process and financial management The purpose of management has been described as making people cap ...

owns remain the same. A stock split involves issuing a substantial amount of additional shares and reducing the per-value of the ...

Figure 1 An overview of financial management (An extract from I.M. Pandey Pg 16) T ypical goal of firm from figure 1 include Sto ...

Selection decisions concerning proposed projects (for investment in long-term assets) and (2) replacement decisions. Many other ...

choosing ‘best’ dividend policy choosing ‘best’ mix of financing sources choosing ‘best’ organizational structure: flat vs. hie ...

across the entire firm. The differences of the cash flows in the base and the alternative scenario are the incremental cash flow ...

o The interests/objectives of the decision makers in the firm conflict with the interests of stockholders. o Bondholders (Lender ...

The rule is that for mutually exclusive projects with different lives it is not appropriate to compare the PVs of cash flows of ...

❖ FINANCIAL MARKETS AND INSTITUTIONS A financial market is a mechanism by which investors (firms, individuals, government) excha ...

methods come to the same conclusion. The IRR ignores the relative sizes of alternative projects and is not always a single uniqu ...

▪ Financial markets are shortsighted, and do not consider the long-term implications of actions taken by the firm. o The Financi ...

decomposed into a risk-free rate, which is a compensation for the time value of money, and a risk premium, which rewards investo ...

Capital markets: long-term corporate debt and equity than are long term more than one year maturity period. Besides the function ...

Another capital budgeting technique, the profitability index, is used when firms have only a limited supply of capital with whic ...