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Q. Explain the Average Rate of return Method?
Average Rate of return Method (ARR): This method is as well known as Accounting Rate of Return Method. It is on the basis of accounting information rather than cash flows. It is computed as follows:
Issuer's Considerations Cash Flows: Issuers may consider the period for which the funds are required and try to spread the borrowings in a way to minimize the costs. Generally,
Q. Importance of the Cost of Capital? Importance of the Cost of Capital:- (1) Useful in Designing the Capital Structure: - The perception of cost of capital plays a very imp
Question: (a) Give the four main types of financial investments and state the risks and benets associated to each type. (b) (i) Let k(t; T; s) denotes the return at time t
paid-up equty 100000 earning of the company 10000 praice - earning ratio(PIE) 20 no.of equty share
Functions of Financial Manager: - The financial manager is a associate of top management. He is intimately associated with the formulation of financial policies as well as financia
Q. What is usual Approach of capital Structure? Ans. Traditional Approach: - The traditional approach establishes middle among the Net Income approach and the Net Operating Inc
Medium-term notes are debt instruments that can be offered continuously to an investor. An agency of the issuer offers these; and these are avai
strengths and weakness
Monitoring and Controlling Budgets: The preparation of budgets is only part of the budget cycle. Once set, an organisation should actively monitor actual revenue and expenditu
What is Financing Decision Provision of funds required at proper time is one of theprimary tasks of finance manager. Identification of the sources, deciding whichtypes of fu
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