Introduction to Financial Management

examination and evaluation of the relationships between the data that are reported in the financial statements. Analysis can be ...

Bibliography and References Jae K. shim, Jeol G.Siegel, Theory and problems of Financial Management, Second Edition, Shaum’s ou ...

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 ...

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

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

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

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

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

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

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

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

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

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

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 ...

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

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

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

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

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