Capital budgeting Capital budgeting means making investment decisions in capital expenditure. Capital expenditure means making expenditure at present but the benefit of which is going
There are mainly 3 approaches to determine financing of working capital. Let us discuss them one by one: 1) Hedging approach or matching approach: this
The firm has many options available for financing there permanent, fixed or long term working capital as well as for the temporary or variable working
The following are the 4 principles of working capital management policy: 1) Principle of equity position: as per this principle every investment in the current
Working capital is also called revolving, circulating or short term capital. Every business require the funds for its establishment which is called fixed capital and
Advantages of adequate working capital i) Helps in maintaining goodwill of the firm. ii) Helps in maintaining solvency of the firm. iii) Helps the firm
The working capital can be classified on the basis of concept and on the basis of time. Types of working capital On the basis of
Working capital management Working capital is also called revolving, circulating or short term capital. Every business require the funds for its establishment which is called
When dividend is paid out of profit it is called “profit dividend” and when it is paid out of capital it is called “liquidation”. Usually
There are basically 4 types of dividend policy. Let us discuss them on by one: 1.) Regular dividend policy: in this type of dividend policy
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