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Advantages and Disadvantage of Profitability Index Advantages of profitability index a) Simple to understand and utilize. b) The part of NPV in the venture will show t
Political Factors and Technological Factors - Investment Decisions i) Political factors - Under conditions of political uncertainty, that decisions cannot be completed as it
Valuation of Securities The previous methods were perfect for valuing the entire business however it is also essential to ascertain the value of part of a business namely shar
What are the characteristics of an efficient market? The word market efficiency refers to the speed, ease, and cost of trading securities. In a well-organized market, securitie
Describe the structure of financial systems with financial markets, securities and financial intermediaries. By a structural point of view a financial system can be considered
For each of the financial statement ratios listed below calculate the ratio for the current year and for the prior year. (Note that in most textbooks, some of the ratios call for a
Revenue Reserves - Retained Earnings These are undistributed earnings. Those reserves are retained for the given reasons like: A. To create up for the fall in profits so a
A+/A1 It is one of the top ratings that a ratings agency allots to an issuer or insurer. This rating indicates that the security or carrier has steady financial backing and ple
MM Dividend Irrelevance Theory Such was advanced via Modigliani and Miller in 1961. The theory asserts to a firm's dividend policy has no effect on cost of capital and on its
Joint Stock Companies - Types of Business Organisations Initiators contribute to the capital support of those companies via the purchase of shares of those companies. These co
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