Introduction to Financial Management

b) Information Technology - widely available information c) Decreased Regulation - leads to international competition d) Increas ...

Time value of money is a critical consideration in financial and investment decisions. Discounting, or the calculation of presen ...

These are deposits and loans made through their branch network at published rates of interest. The branches are like retail outl ...

rj = rf+b(rm-rf) = 6% +1.5 (12% - 6%) = 15% The project’s NPV can be computed using 15% as the discount rate: Yr Cash flow(Le) P ...

pension holders requested voluntarily for the insurance Companies to make payment to them. This terminate the pension contract w ...

The real options paradigm entails identifying the strategic options inherent in the proposed project alongside the project’s for ...

Financial forecasting, an essential element of planning, is the basis for budgeting activities and estimating future financing n ...

Acquisitions can be categorized either based on the levels of economic activity involved according to Horizontal merger -similar ...

the Fees and other charges payable by insurers and Intermediaries (i.e. 1% and 0.5% fees levy as income to SLICOM) and estimated ...

According to a study by Smolowitz and Hillger, the following factors were ranked as reasons for acquisitions poor performance in ...

The Theory of Capital Structure This is closely related to the firms cost of capital. Capital structure is the risk of the long- ...

When a business fails, it can either be reorganized or dissolved depending on the circumstances. A number of ways exist for busi ...

COST OF CAPITAL Cost of capital is defined as the rate of return that is necessary to maintain the market value of the firm (or ...

After claims have been met in priority order and an accounting made of the proceedings, there may than be instituted an applicat ...

leverage, the higher the financial risk, and the higher the cost of capital. Cost of capital rises because it costs more to rais ...

The exchange rate fluctuations increase the riskiness of the investment (when the contract is written in terms of the foreign cu ...

for certain restrictions, on the company such as a limitation on dividends and minimum working capital requirements. If a provis ...

Foreign-currency gains and losses can also result from the uses of various currency contracts, such as forwards, futures, option ...

bonds allows the company to refund the debt over the life of the issue. A call feature (in corporate bonds) in a bond enables th ...

prevent loss or transfer the risk. WR risk assessment is based upon reaching the beneficiaries at the arm of the cost effective ...