Following is the video tutorial which will tell you about capital structure, capital structure planning and importance of capital structure.
Capital structure planning is very important to survive the business in long run. After simple watching the balance sheet of company, you see two sides of balance sheet. One side is liability side and other side is asset side. Liability side is the mixture of finance of company which company…
In the introduction part of capital budgeting, we can explain it as that decisions which are taken for buying long term and fixed assets. Working capital decisions and current assets investment decision do not come under capital budgeting. When we take the decision whether particular fixed asset should…
Inventory’s other names are goods, stock or products of company. 80% of business transactions are relating to purchasing and selling of inventories. Inventory can divide in raw material, work in progress and finished goods. For continuing production, it is very necessary to manage inventory management because without…
Marketable securities are that securities which can be easily liquidated without any delay. It is the part of company’s short term investment. Company should manage it proper way. In the management of marketable securities, we can include to make planning, organize and control over securities.
Cost of equity share capital is that part of cost of capital which is payable to equityshareholder. Every shareholder gets shares for getting return on it. So, for companypoint of view, it will be cost and company must earn more than cost of equity capital…
Cash is needed not only for paying everyday expenditure but lacking cash, we can not purchase any fixed assets also. Excellent planning of cash will make us easy to hold our expenditures and proper spending. The plan which helps us to use cash systematic way is called cash budget.
Financial analysis converts raw information of financial statements in useful financial information. Only after financial analysis, we can use financial statements for decision making. These financial information are useful for planning. For example, we can estimate our future ability of earning on advertising if we did financial analysis of…