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What are the Objectives of Financial Management
To make wise decisions a clear understanding of the objectives that are sought to be achieved in compulsory. Objectives provide a framework for optimum financial decision-making. Or we can say that they are concerned with designing a method of operating the internal investment and financing of a firm
An issue with a put provision included in the agreement grants the bondholder the right to sell bonds back to the issuer at a pre-specified rate
Relevance of Development of Money Market The development of the money market is important for the debt market especially through the process of liquidity. The money market prov
Performance evaluation One can determine this by comparing the cash flow from assets and cost of capital. 1. Cash flow from assets Cash flow from assets is calculated
This is again a distinction which becomes important in case of a default. The senior bondholders have to be paid before the subordinate bondholders. This means th
Explain the structure of financial systems In direct finance borrower-spenders borrow funds straight from lenders in the financial markets by selling them securities. In indire
What is the basic goal of a business? The primary financial goal of the business organizations is to maximize the wealth of the firm's owners. In turn Wealth refers to value.
How can a price ceiling make consumers better off? Under what conditions might it make them worse off? If the supply curve is completely inelastic a price ceiling will raise c
182-Day T-Bills Following the Sukhamoy Chakravarty Committee recommendations, in November, 1986, 182-day T-bills were introduced in order to develop the short-term money market
strengths and weakness
Explain the Difference between cash and profit Cash flow statement shows all the cash in and cash out for the organisation for that period. It demonstrates the cash generating
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