Functions of finance. Investment decision Financing decision Dividend decision Liquidity decision
|
|
- Rosemary Hall
- 5 years ago
- Views:
Transcription
1 Functions of finance Investment decision Financing decision Dividend decision Liquidity decision
2 Relationship to accounting Accounting and finance are both forms of managing the money of the business, but they are used for two very different purposes. One of the ways to distinguish between the two is to realize that accounting is part of finance, and that finance has a much broader scope than accounting.
3 Definition Purpose Goal Tools Determination of funds Accounting Preparation of accounting records Measuring, preparation, analyzing, and interpretation of financial statements. To collect and present financial information. To see how the company is performing, to monitor day to day accounting operations, and for taxation. Balance sheets, profit and loss ledgers, positional declarations, and cash flow statements. Revenue is acknowledged at the point of sale and not when it was collected. Expenses are acknowledged when they are incurred than when they are Finance Efficient and productive management of assets and liabilities based on existing information Decision making regarding working capital issues such as level of inventory, cash holding, credit levels, financial strategy, managing and controlling cash flow. To forecast the future performance of the business. Performance reports, ratio analysis, risk analysis, estimating break evens, returns on investment, etc. Revenues are acknowledged during the actual receipt in cash as in cash flow and the expenses are acknowledged when the actual payment is
4 Investment decision Capital budgeting decision allocation of funds to long-term investments that would yield positive cash flows in future Evaluation of prospective profitability of new investments Evaluation of size, timing and risk of cash flows Measurement of a cut-off rate for acceptance/rejection
5 Financing decision Where from, when and how to acquire funds for investment needs? Capital structure is the specific mixture of long-term debt and equity the firm uses to finance its operations (financing mix) At what price should the firm offer its securities? What proportion of debt and equity? Which specific instruments of debt and equity should the firm employ (effect on return and risk) Financial leverage change in shareholders return caused by change in profits
6 Dividend decision Relating to distribution of profits as dividends or decision to plough them back into the business Dividend payout ratio Retention ratio Optimum dividend policy maximizes market value of firm s shares Cash dividend, bonus shares
7 Liquidity decision Concerned with management of current assets (working capital management) Profitability-liquidity trade-off What is the optimal level of inventory for firm s operations? Should credit be offered and what are the terms of credit? How much cash to carry on hand? Where to invest the temporary cash surplus? What sources of short term credit are appropriate for the firm?
8 The Goal of Financial Management Profit maximization vs. Shareholders wealth maximization The wealth maximization goal focuses on a longer term horizon. It gives priority to the creation of value since it is a function of all long-term yields to the stakeholders. Profit maximization is short-term horizon.
9 Emphasis on Time and Revenue Wealth maximization goal highly focuses on cash flow over time. It focuses on the present values of inflows and outflows. One of its components is that money has time value and, therefore, can sacrifice today's profits for tomorrow's super profits and future success. Profit maximization considers today's revenues. It does not deliberate on the element's time or risk in the profits.
10 Management vs. Shareholders Shareholders, being the owners of an entity, will focus on the wealth maximization goal. They would sacrifice current revenues to reinvest for the future wealth maximization. Management, on the other hand, highly focuses on the present-day revenues of an entity. They prefer profit maximization goals that are more concerned with their earnings.
11 Value Wealth maximization goal is the value of an entity expressed in terms of the market value of its common stock, i.e., the current trading market price per share times the number of common shares outstanding. Profit maximization measures the value of an entity in terms of the currency profits that it makes.
Aims of Financial Financial Management:
CHAPTER 9 Financial Management Introduction Business Finance = Money or funds available for a business for its operations (that is, for some specific purpose) is called finance. It is indispensable for
More informationFINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT Question 1: What is financial management? Explain the functions of financial management. (May 13, Nov 11) (Mark 7) Answer: Financial management is that specialized activity which is
More informationApplied Corporate Finance. Unit 5
Applied Corporate Finance Unit 5 Dividend Policy Measures Yield, Payout and Dividend Rate Determinants of Dividend Policy Various schools of though on Dividend Policy Managing Changes in Dividend Policy
More informationINTRODUCTION TO FINANCIAL MANAGEMENT
INTRODUCTION TO FINANCIAL MANAGEMENT Meaning of Financial Management As we know finance is the lifeblood of every business, its management requires special attention. Financial management is that activity
More informationQuiz Bomb. Page 1 of 12
Page 1 of 12 Quiz Bomb Indicate whether the following statements are True or False. Support your answer with reason: 1. Public finance is the study of money management of individual. False. Public finance
More informationACC501 First Quiz of spring 2012 before midterm solved by Masood khan
ACC501 First Quiz of spring 2012 before midterm solved by Masood khan In 3 years you are to receive Rs. 5,000. If the interest rate were to suddenly decrease, the present value of that future amount to
More informationIndex. Cambridge University Press Short Introduction to Accounting Richard Barker Index More information
accountants, roles, 4 5 accounting applications, 11 12 approaches, 8 9 building blocks, 64 coverage, 9 divisiveness of, 3 foundations of, 11, 65 83 importance of, 1 3 incompleteness, 7 knowledge of, 1
More informationDividend Decisions. LOS 1 : Introduction 1.1
1.1 Dividend Decisions LOS 1 : Introduction Note: Total Earnings mean Earnings available to equity share holders Income Statement Sales Less: Variable cost Contribution Less: Fixed cost excluding Dep.
More informationSYLLABUS Class: - B.Com Hons II Year. Subject: - Financial Management
SYLLABUS Class: - B.Com Hons II Year Subject: - Financial Management UNIT I UNIT II UNIT II UNIT IV Introduction: Concepts, Nature, Scope, Function and Objectives of Financial Management. Basic Financial
More informationB Com 3 rd YEAR FINANCIAL MANAGEMENT
B Com 3 rd YEAR FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT UNIT I Financial management is concerned with management of fund. It may be defined as acquisition of fundat optimum cost and its utilization with
More informationFREDERICK OWUSU PREMPEH
EXCEL PROFESSIONAL INSTITUTE 3.3 ADVANCED FINANCIAL MANAGEMENT LECTURES SLIDES FREDERICK OWUSU PREMPEH EXCEL PROFESSIONAL INSTITUTE Role & Responsibility towards stakeholders LECTURE 1 Senior financial
More informationCA - FINAL SECURITY VALUATION. FCA, CFA L3 Candidate
CA - FINAL SECURITY VALUATION FCA, CFA L3 Candidate 2.1 Security Valuation Study Session 2 LOS 1 : Introduction Note: Total Earnings mean Earnings available to equity share holders Income Statement
More informationTypes of Business Organizations Sole Proprietorships Partnerships Corporations
Type of Business and The Role of Financial Management Organizing a Business Types of Business Organizations Sole Proprietorships Partnerships Corporations Organizing a Business Who owns the business? Are
More informationChapter 1. The Role of Financial Management
Chapter 1 The Role of Financial Management What is Financial Management? Concerns the acquisition, financing, and management of assets with some overall goal in mind. Investment Decisions Most important
More informationFin 622 Quiz #4. MC : Imtiaz Sarwar
Fin 622 Quiz #4 MC080200629 : Imtiaz Sarwar Question # 1 of 15 ( Start time: 11:13:02 AM ) Which of the following investment criteria does not take the time value of money into consideration? Simple payback
More informationSIMBA CHAI SACCO SOCIETY LIMITED DIVIDEND POLICY
SIMBA CHAI SACCO SOCIETY LIMITED DIVIDEND POLICY FINAL JULY 2017 PREPARED BY: SIMBA CHAI SACCO SOCIETY Contents 1 Preliminary... 3 1.1 Application... 3 1.2 Dividend... 3 2 Statement of Policy... 3 2.1
More informationScope and Objectives of Financial Management
Star Rating On the basis of Maximum marks from a chapter On the basis of Questions included every year from a chapter On the of Compulsory questions from a chapter CHAPTER 1 Nil Scope and Objectives of
More informationWho of the following make a broader use of accounting information?
Who of the following make a broader use of accounting information? Accountants Financial Analysts Auditors Marketers Which of the following is NOT an internal use of financial statements information? Planning
More informationfinancial Analysis Annual Report
financial Analysis Annual Report 217 87 DuPont Analysis Increase in sales volume by 16% coupled with increasing price trend during the year resulted in higher sales and profits due to which EBIT margin
More informationFinancial Management Questions
Financial Management Questions Question 1. What Is The Financial Management Reform? The Financial Management Reform is the new policy framework that had been adopted by the Fiji Government to improve performance
More informationCAL BANK LIMITED CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER m m. Notes. Interest income Interest expense
CONSOLIDATED PROFIT AND LOSS ACCOUNT Interest income Interest expense 4 5 162,671 (68,4) 132,658 (51,674) Net interest income 94,447 80,984 Commissions and fees Other operating income 6 7,510 50,129 29,480
More informationProfessional Designation Ratios: Formulas & Definitions Used in Credit Risk Assessment
Professional Designation Ratios: Formulas & Definitions Used in Credit Risk Assessment Profitability Ratios Measure management's ability to control expenses and to earn a return on the resources committed
More informationBusiness 2019 Finance I Lakehead University. Midterm Exam
Business 2019 Finance I Lakehead University Midterm Exam Philippe Grégoire Fall 2002 Time allowed: 2 hours. Instructions: Calculators are permitted. One 8.5 11 inches crib sheet is allowed. Verify that
More informationIII B.com(CS) [ ] Semester VI Core: Corporate Finance -605B Multiple Choice Questions.
Dr.G.R.Damodaran College of Science (Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Reaccredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified CRISL rated 'A'
More informationCentury Plyboards (India) Limited
Century Plyboards (India) Limited DIVIDEND DISTRIBUTION POLICY PREAMBLE The shares of Century Plyboards (India) Limited ( the Company ) are presently listed on The National Stock Exchange of India Ltd.
More informationMGT201 Financial Management All Subjective and Objective Solved Midterm Papers for preparation of Midterm Exam2012 Question No: 1 ( Marks: 1 ) - Please choose one companies invest in projects with negative
More informationUnit01. Introduction, Creation of Financial Assets, and Security Markets
FCS 5510 Concept Review Notes: Unit01. Introduction, Creation of Financial Assets, and Security Markets Chapter 01. Definition of investment Portfolio Primary and secondary markets Value and valuation
More informationConsolidated Cash Flow Statement for the year ended 30th June, 2002
Consolidated Cash Flow Statement for the year ended 30th June, 2002 Notes Net cash inflow from operating activities (a) 4,916,217 6,797,641 Returns on investments and servicing of finance Interest received
More informationAFP Financial Planning & Analysis Learning System Session 1, Monday, April 3 rd (9:45-10:45) Time Value of Money and Capital Budgeting
AFP Financial Planning & Analysis Learning System Session 1, Monday, April 3 rd (9:45-10:45) Time Value of Money and Capital Budgeting Chapters Covered Time Value of Money: Part I, Domain B Chapter 6 Net
More informationFinancial Statement Balance Sheet
Financial Statement Balance Sheet Provided by: GREATEK ELECTRONTCS INC. Accounting Title 2016/6/30 2015/12/31 2015/6/30 Balance Sheet Assets Current assets Cash and cash equivalents Total cash and cash
More informationAll In One MGT201 Mid Term Papers More Than (10) BY
All In One MGT201 Mid Term Papers More Than (10) BY http://www.vustudents.net MIDTERM EXAMINATION MGT201- Financial Management (Session - 2) Question No: 1 ( Marks: 1 ) - Please choose one Why companies
More informationPresented by SCOTT TRANSUE
Presented by SCOTT TRANSUE Cash vs. accrual Key definitions Balance sheets Income statements Cash flow statements Break-even analysis Today s Agenda Ratios Recognizes transactions when they occur Recognizes
More informationReturn on Invested Capital CHAPTER
Return on Invested Capital 8 CHAPTER Return on Invested Capital Importance of Joint Analysis Joint analysis is where one measure is assessed relative to another Return on invested capital (ROI) is an important
More information1. Determinants of Capital Structure of a Firm
1. Determinants of Capital Structure of a Firm There are numerous factors, both qualitative and quantitative, including the subjective judgment, of financial managers which conjointly determine a firm
More informationAGENDA: STATEMENT OF CASH FLOWS
TM 14-1 AGENDA: STATEMENT OF CASH FLOWS A. Foundational knowledge. B. Four key concepts for preparing the statement of cash flows. 1. Organizing the statement of cash flows. 2. Distinguishing between the
More informationWEEK 10 Analysis of Financial Statements
WEEK 10 Analysis of Financial Statements Learning Objectives 1. Organize a systematic financial statements analysis using common-size financial statements and ratio analysis. 2. Recognize the potential
More informationChapter 2. Data for Financial Decision Making
Chapter 2 Data for Financial Decision Making Data for Financial Decision Making Introductory concepts the need for good data Financial accounting data Financial ratios Managerial accounting data Other
More informationPapared by Cyberian Contribution by Sweet honey and Vempire Eyes
Who of the following make a broader use of accounting information? Accountants Financial Analysts Auditors Marketers Which of the following is NOT an internal use of financial statements information? Planning
More informationINSTITUTE OF ADMINISTRATION & COMMERCE (ZIMBABWE) FINANCIAL MANAGEMENT SYLLABUS (w.e.f. May 2009 Examinations)
INSTITUTE OF ADMINISTRATION & COMMERCE (ZIMBABWE) FINANCIAL MANAGEMENT SYLLABUS (w.e.f. May 2009 Examinations) INTRODUCTION Financial Management is a subject, which investigates in detail the core areas
More informationScope and Objectives of Financial Management
Star Rating On the basis of Maximum marks from a chapter On the basis of Questions included every year from a chapter On the of Compulsory questions from a chapter CHAPTER 1 Scope and Objectives of Financial
More informationScope and Objectives of Financial Management
Star Rating On the basis of Maximum marks from a chapter On the basis of Questions included every year from a chapter On the of Compulsory questions from a chapter CHAPTER 1 Scope and Objectives of Financial
More information600 Solved MCQs of MGT201 BY
600 Solved MCQs of MGT201 BY http://vustudents.ning.com Why companies invest in projects with negative NPV? Because there is hidden value in each project Because there may be chance of rapid growth Because
More informationAccrued investment income
Accrued investment income Functions addressed in this document: In NaviPlan, what is "previously incurred investment activity"? How does NaviPlan calculate accrued investment income? How does the clients
More informationOverview of Managerial Finance
Overview of Managerial Finance Lakehead University September 2003 Overview of Managerial Finance Outline of the Lecture 1.1 Finance as an Area of Study 1.2 Basic Forms of Business Organization 1.4 Goal
More informationD.K.M COLLEGE FOR WOMEN, (AUTONOMOUS),VELLORE-1. DEPARTMENT OF COMMERCE I M.COM ADVANCED FINANCIAL MANAGEMENT.
D.K.M COLLEGE FOR WOMEN, (AUTONOMOUS),VELLORE-1. DEPARTMENT OF COMMERCE I M.COM ADVANCED FINANCIAL MANAGEMENT. SECTION-A 6 Marks 1. State the objectives of Financial Management? 2. Explain the functions
More informationAccounting Title 2017/03/ /12/ /03/31 Balance Sheet
1 / 2 Accounting Title 2017/03/31 2016/12/31 2016/03/31 Balance Sheet Assets Current assets Cash and cash equivalents Total cash and cash equivalents 1,248,992 946,626 1,294,532 Current financial assets
More informationMGT201 Financial Management Solved MCQs A Lot of Solved MCQS in on file
MGT201 Financial Management Solved MCQs A Lot of Solved MCQS in on file Which group of ratios measures a firm's ability to meet short-term obligations? Liquidity ratios Debt ratios Coverage ratios Profitability
More informationIMPORTANCE OF GOVERNMENTAL FINANCIAL STATEMENTS AND WHY THEY ARE DIFFERENT
IMPORTANCE OF GOVERNMENTAL FINANCIAL STATEMENTS AND WHY THEY ARE DIFFERENT Presented by: Beila Sherman, CPA, and Moises D. Ariza, CPA, CGMA June 26, 2017 marcumllp.com OVERVIEW Objective of This Session
More informationPerformance Indicators for 6 years
Performance Indicators for 6 years FINANCIAL POSITION Balance sheet (Rupees in Thousand) Other noncurrent assets Total assets 2,084,856 6,544 2,436,65 2,040,33 11,386 2,257,568 4,417,23 1,803,2 101,268
More informationMGT201 Financial Management Solved MCQs
MGT201 Financial Management Solved MCQs Why companies invest in projects with negative NPV? Because there is hidden value in each project Because there may be chance of rapid growth Because they have invested
More information9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle
9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9.1 Current Assets and 9.1.1 Cash A firm should maintain as little cash as possible, because cash is a nonproductive asset. It earns no
More informationSolved MCQs MGT201. (Group is not responsible for any solved content)
Solved MCQs 2010 MGT201 (Group is not responsible for any solved content) Subscribe to VU SMS Alert Service To Join Simply send following detail to bilal.zaheem@gmail.com Full Name Master Program (MBA,
More informationR13 SET - 1 PART B. 5. a) Evaluate Sole trader form of organisation. b) Explain the Innovations theory of business cycles. (7M+9M)
R13 SET - 1 1. a) Write a brief note about Macro Economics b) What is Isoquants c) What is an Optimum costs d) Explain the Margin of safety e) Distinguish between Public Company Vs Private Company f) Explain
More informationFinance 303 Financial Management Review Notes for Final. Chapters 11&12
Finance 303 Financial Management Review Notes for Final Chapters 11&12 Capital budgeting Project classifications Capital budgeting techniques (5 approaches, concepts and calculations) Cash flow estimation
More informationNAVIPLAN PREMIUM LEARNING GUIDE. Business entities
NAVIPLAN PREMIUM LEARNING GUIDE Business entities Contents Business entities 1 Learning objectives 1 NaviPlan planning stages 1 Client case 2 Enter different business entity types 3 Business Entity Details
More informationChapter 4. Funds-Flow Analysis and Forecasting. Overview of the Lecture. September The Statement of Cash Flows. Pro Forma Financial Statements
Chapter 4 Funds-Flow Analysis and Forecasting September 2004 Overview of the Lecture The Statement of Cash Flows Pro Forma Financial Statements 2 The Statement of Cash Flows The statement of cash flows
More informationAccounting Title 2014/3/ /12/ /3/31 Balance Sheet
Financial Statement Balance Sheet Accounting Title 2014/3/31 2013/12/31 2013/3/31 Balance Sheet Assets Current assets Cash and cash equivalents Total cash and cash equivalents 7,974,989 6,997,862 6,433,466
More informationCA IPCC - FM. May 2017 Exam List of Important Questions. Answers Slides. Click Here I N D E X O F I M P O R T A N T Q U E S T I O N S
CA IPCC - FM CA Mayank Kothari May 2017 Exam List of Important Questions Covered in this file Answers Slides Click Here Click here Imp. Questions FM Charts I N D E X O F I M P O R T A N T Q U E S T I O
More informationFinancial Statement Balance Sheet
Financial Statement Balance Sheet Accounting Title 2014/3/31 2013/12/31 2013/3/31 Balance Sheet Assets Current assets Cash and cash equivalents Total cash and cash equivalents 4,556,450 4,372,738 3,960,180
More informationYour Financial Plan. John Smith PREPARED BY: PREPARED FOR: Mark and Lynda Rogers May 05, 2017
Your Financial Plan PREPARED FOR: Mark and Lynda Rogers May 05, 2017 PREPARED BY: John Smith Financial Planner Pruco Securities, LLC, doing business as Prudential Financial Planning Services Prudential,
More informationTRANSITION TO FULL ACCRUAL ACCOUNTING PRESENTED BY: TAMMY WOLTERS, TREASURER NOVEMBER 2006
TRANSITION TO FULL ACCRUAL ACCOUNTING PRESENTED BY: TAMMY WOLTERS, TREASURER NOVEMBER 2006 PSAB CHANGES NEW PSAB SECTION DESCRIPTION 1000 FINANCIAL STATEMENT CONCEPTS 1100 FINANCIAL STATEMENT OBJECTIVES
More informationSITRONIX TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2017 AND DECEMBER 31, 2016
English Translation of Financial Statements Originally Issued in Chinese SITRONIX TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2017 AND DECEMBER 31, 2016 The financial
More informationOrient Cement Limited. Dividend Distribution Policy
Orient Cement Limited Dividend Distribution Policy Dividend Distribution Policy 1. BACKGROUND, PURPOSE, OBJECTIVES AND SCOPE The equity shares of the Company are listed on National Stock Exchange of India
More informationSYBBI (SEM. 3) F.C. ROLL NO. 219
SYBBI (SEM. 3) F.C. ROLL NO. 219 1) Types of bank. 2) Functions of commercial banks 3) Wealth management is not necessary? 4) Role of NABARD in microfinance ROLL NO.242 1) Emerging trends in banking 2)
More informationChapter 12. Evaluating Project Economics and Capital Rationing. 1. Explain and be able to demonstrate how variable costs and fixed costs affect the
Chapter 12 Evaluating Project Economics and Capital Rationing Learning Objectives 1. Explain and be able to demonstrate how variable costs and fixed costs affect the volatility of pretax operating cash
More informationLESSON 7-1. How and why do you prepare an income statement? CENTURY 21 ACCOUNTING 2009 South-Western, Cengage Learning
LESSON 7-1 How and why do you prepare an income statement? 2 Reporting Financial Information General ledger information must be summarized, organized, and reported to the owners and managers General ledger
More informationRETAIL PROFITS AND VOLUME COMMISSIONS
WEALTH MAXIMIZER PLAN EFFECTIVE 1 January 2017 Getting Started RETAIL PROFITS AND VOLUME COMMISSIONS 1. Register as a new Distributor to start earning part-time income. All product purchases are optional.
More informationSession 1, Monday, April 8 th (9:45-10:45)
Session 1, Monday, April 8 th (9:45-10:45) Time Value of Money and Capital Budgeting v2.0 2014 Association for Financial Professionals. All rights reserved. Session 3-1 Chapters Covered Time Value of Money:
More informationPAR AND NON-PAR PRODUCTS - WHICH WOULD BE THE PREFERRED WAY FORWARD
PAR AND NON-PAR PRODUCTS - WHICH WOULD BE THE PREFERRED WAY FORWARD IMPACT OF GUARANTEED SURRENDER VALUES Guided by Bharat Venkataramani Presented by Pradeep Kumar Anand Ramakant Malpani Saddam Hossain
More informationFinancial Statement Balance Sheet
Financial Statement Balance Sheet Page 1 of 1 Financial Statement Balance Sheet Accounting Title 2014/09/30 2013/12/31 2013/09/30 Balance Sheet Assets Current assets Cash and cash equivalents Total cash
More informationFI3300 Corporation Finance
Consider the Income Statement FI3300 Corporation Finance Spring Semester 2010 Dr. Isabel Tkatch Assistant Professor of Finance Illustration Company, Income Statement For the Year ending December 31, 2006
More informationSYLLABUS Class: - B.B.A. II Semester. Subject: - Financial Management
SYLLABUS Class: - B.B.A. II Semester Subject: - Financial Management UNIT I UNIT II UNIT III UNIT IV Introduction: Concepts, Nature, Scope, Function and Objectives of Financial Management. Basic Financial
More informationDIVIDEND DISTRIBUTION POLICY
T.V. TODAY NETWORK LIMITED Regd Office:-F-26, First Floor, Connaught Circus, New Delhi- 110001, CIN: L92200DL1999PLC103001, Website: www.aajtak.intoday.in, Email: puneet.jain@aajtak.com, Telephone No.:
More informationACCOUNTING REPORTS AND ANALYSIS REVIEW:
ACCOUNTING REPORTS AND ANALYSIS REVIEW: Week 1: The Nature of Business: - Before considering the role of accounting it is important to have an understanding of what businesses do - Businesses: A collection
More informationCompleting the Accounting Cycle
4 Completing the Accounting Cycle 4-1 Closing the Books At the end of the accounting period, the company gets the accounts ready for the next period. Very similar to what happens at AHS at the end of a
More informationStatement of cash flows PURPOSE & SCOPE
IAS 7 Statement of cash flows PURPOSE & SCOPE Purpose Users needs Scope The fundamental purpose of being in business is to generate profit, as this will increase the owners' wealth. Profitability relates
More informationSITRONIX TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 AND DECEMBER 31, 2015
English Translation of Financial Statements Originally Issued in Chinese SITRONIX TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 AND DECEMBER 31, 2015 The financial
More informationQuestion # 4 of 15 ( Start time: 07:07:31 PM )
MGT 201 - Financial Management (Quiz # 5) 400+ Quizzes solved by Muhammad Afaaq Afaaq_tariq@yahoo.com Date Monday 31st January and Tuesday 1st February 2011 Question # 1 of 15 ( Start time: 07:04:34 PM
More informationAMERICAN INTERNATIONAL GROUP, INC. ECONOMIC CAPITAL MODELING INITIATIVE & APPLICATIONS
AMERICAN INTERNATIONAL GROUP, INC. ECONOMIC CAPITAL MODELING INITIATIVE & APPLICATIONS November 2007 Update INTRODUCTION AIG has made significant progress to date on its economic capital modeling initiative
More informationCHAPTER 9 CONCEPT REVIEW QUESTIONS
CHAPTER 9 CONCEPT REVIEW QUESTIONS 1. Why is it important for the financial analyst to (a) focus on incremental cash flows, (b) ignore financing costs, (c) consider taxes, and (d) adjust for noncash expenses
More informationUNIT 5 COST OF CAPITAL
UNIT 5 COST OF CAPITAL UNIT 5 COST OF CAPITAL Cost of Capital Structure 5.0 Introduction 5.1 Unit Objectives 5.2 Concept of Cost of Capital 5.3 Importance of Cost of Capital 5.4 Classification of Cost
More informationSHORT QUESTIONS ANSWERS FINANCIAL MANAGEMENT MGT201 By
SHORT QUESTIONS ANSWERS FINANCIAL MANAGEMENT MGT201 By http://vustudents.ning.com 1- What is Financial Management? The procedure of managing the financial resources, as well as accounting and financial
More informationAnswer to MTP_Intermediate_Syl2016_June2017_Set 1 Paper 10- Cost & Management Accounting and Financial Management
Paper 10- Cost & Management Accounting and Financial Management Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper-10: Cost & Management
More informationAppendix. IPCC Gr. I (Solution of May ) Paper - 3A : Cost Accounting
Solved Scanner Appendix IPCC Gr. I (Solution of May - 2015 ) Paper - 3A : Cost Accounting Chapter - 1: Basic Concepts 2015 - May [5] (a) Sunk Cost: Sunk costs are historical costs incurred in the past
More informationFinance Science, Financial Innovation and Long-Term Asset Management
Finance Science, Financial Innovation and Long-Term Asset Management Robert C. Merton Massachusetts Institute of Technology New Developments in Long-Term Asset Management London, UK May 19, 2017. Domain
More informationDIVIDEND DISTRIBUTION POLICY OF AVANTI FEEDS LIMITED
AVANTI FEEDS LIMITED: DIVIDEND DISTRIBUTION POLICY OF AVANTI FEEDS LIMITED The Board of Directors (the Board ) of Avanti Feeds Limited (the Company ) has adopted the Dividend Distribution Policy (the Policy
More informationQuestion # 1 of 15 ( Start time: 01:53:35 PM ) Total Marks: 1
MGT 201 - Financial Management (Quiz # 5) 380+ Quizzes solved by Muhammad Afaaq Afaaq_tariq@yahoo.com Date Monday 31st January and Tuesday 1st February 2011 Question # 1 of 15 ( Start time: 01:53:35 PM
More informationIMPORTANT THEORY QUESTIONS OF FINANCIAL MANAGEMENT
IMPORTANT THEORY QUESTIONS OF FINANCIAL MANAGEMENT By : CA Vikram Dheerwas Mobile No. Email : cavikramdheerwas@yahoo.com Chapter 1 Scope and Objectives of Financial Management 1. Functions of a Chief Financial
More informationMGT201 Current Online Solved 100 Quizzes By
MGT201 Current Online Solved 100 Quizzes By http://vustudents.ning.com Question # 1 Which if the following refers to capital budgeting? Investment in long-term liabilities Investment in fixed assets Investment
More informationMNB102-E. Tel: (012)
MNB102-E LECTURER : Mr ABRAM PHENYA Email: Phenyam@unisa.ac.za Tel: (012) 429-4493 Financial management function (Page 408) Cash inflow Inflow of funds BUSINESS Cash outflow Outflow of funds Financial
More informationDownloaded From visit: for more updates & files...
Downloaded From http://www.cacracker.com, visit: http://www.cacracker.com for more updates & files... 1 PP FTFM December 2011 PROFESSIONAL PROGRAMME EXAMINATION DECEMBER 2011 FINANCIAL, TREASURY AND FOREX
More information2017 Exit Academy. Evaluating Alternatives and Valuation
2017 Exit Academy Evaluating Alternatives and Valuation Sales Critical Issue Where is Company in Its Lifecycle? Introduction Growth & Adoption Penetration and Maturation Consolidation and Decline Debt
More informationAs Re-stated Note
Group Income Statement For the year ended 30 April 2014 Note Revenue - continuing 2 114,188 98,537 Cost of sales - operating (84,563) (77,904) - impairment charge on inventories 3 (162) (3,539) Gross profit
More informationCHAPTER 2 THE FRAMEWORK OF INTERNATIONAL ACCOUNTING STANDARD BOARD (IASB) INTRODUCTION
CHAPTER 2 THE FRAMEWORK OF INTERNATIONAL ACCOUNTING STANDARD BOARD (IASB) INTRODUCTION In order to narrowing the differences in recognition and measurement of elements of financial statements and harmonization
More informationMini MBA: Accounting & Finance
Introduction Mini MBA: Accounting & Finance This course is designed to cover and includes a comprehensive illustration of how accounting information is collected, recorded, analyzed and presented both
More informationOIL AND NATURAL GAS CORPORATION LTD. DIVIDEND DISTRIBUTION POLICY
OIL AND NATURAL GAS CORPORATION LTD. DIVIDEND DISTRIBUTION POLICY 1.0 Introduction: Pursuant to Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
More informationA Study on Factors Affecting Investment Decision Making in the Context of Portfolio Management
A Study on Factors Affecting Investment Decision Making in the Context of Portfolio Management Anoop Joseph 1 and Josmy Varghese 2 Assistant Professor of Commerce, Pavanatma College, Murickassery 1 Assistant
More informationDownloaded from
CHAPTER VIII FINANCIAL MANAGEMENT HIGH ORDER THINKING SKILLS QUESTIONS Q. 1 Write the full form of the terms :- a) EBIT b) ROI (1) Q.2 State which type of capital structure (more equity based or debt based)
More information1 NATURE, SIGNIFICANCE AND
1 NATURE, SIGNIFICANCE AND SCOPE OF FINANCIAL MANAGEMENT! Introduction! N a t u r e, S i g n i f i c a n c e, Objectives and Scope (Traditional, Modern and Transitional Approach)! Risk-Return and Value
More informationLEGACY BUILDER. Marketing Reference Guide. Insurance & Investments Simple. Fast. Easy. FOR ADVISOR USE ONLY
LEGACY BUILDER Marketing Reference Guide FOR ADVISOR USE ONLY Insurance & Investments Simple. Fast. Easy. Contents Introduction...4 Marketing Strategy and Implementation Tactics...5 Personal Legacy Builder...6
More information