In every business setup, the aspect of reporting financial results in an adequate manner is one of the management aspects of a firm. In all cases such report should be based on standard financial requirements where accuracy and validity should highly be monitored. Business finance includes both costs and revenues. The health of the business is determined by the strength of these two components. However, […]

Meaning of Financial Management Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. Scope/Elements Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions. […]

|Ally Zmijeski | |Financial Management Section C | |Homework 2: Integrated Case Questions | Chapter 2 Integrated Case 2-11 A) In a well-functioning economy, capital flows efficiently from those with surplus capital to those who need it in one of three ways: • Direct transfers: occur when a business sells its stocks or bonds directly to savers without going through any type of financial institution. […]

Contents Introduction Profitability Ratios Gross Profit Ratio Net Profit Ratio Return on Capital Employed (ROCE) Liquidity Ratios Current Ratio Quick Ratio/Acid Test Ratio Efficiency Ratios Debtors Days Creditors Days Inventory Turnover Days Gearing Ratios Gearing Ratio Debt to Equity Ratio Interest Cover Investment Ratios Earnings per Share Price Earnings Ratio Dividend Cover Sources of Finance Debt capital Lease and Hire Purchase Share Capital Creditor & […]

There are also reputation threats such as damage to the company’s reputation in the market or from employee loyalty. You also have procedural risk, project, and financial, technical risk. Natural and political risk as well. Company decision makers must think through the systems, organizations or structures they operate, and analyze risks to any part of them. Once the threats have been acknowledged, the next step […]

Refer to Unit Plan, brief the students on learning objectives and learning outcomes of this unit. Refer to Unit Plan, remind students on coursework assessment (mid-term test 1 and 2). Mid-Term Test 1 will be given in WEEK 5 to monitor students’ progress on the understanding of the lectures and tutorials from Topic 1 to 3. Mid Tem test 2 will be given in WEEK […]

Time value of money (15 points) You have just turned 30 years old, have just received your MBA and have accepted your first job. Now, you must decide how much money to put in your retirement plan. The plan works as follows. Every dollar in the plan earns 7% per year. You cannot make withdrawals until you retire on your 65th birthday. After that point, […]

Bonds issues are one way that firms are able to raise money to finance their different projects, specifically long term projects. A bonds issue provides creditors with bonds certificate that allow them to earn fixed interest till the date of maturity along with the principle amount. Most companies prefer issuing bonds over taking loans from banks because they feel that loans are more restrictive and […]

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When on the topic of mergers, many people, for various reasons differentiate between the terms merger, acquisition and take-over. In this essay I will use the terms interchangeably, as most commentators do, because in reality many combinations of companies do not fall into such neat categories, and to many the distinction is debatable. I will work round Glen Arnold’s definition of a merger as the […]