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Why do we need to learn finance
The questions that you may thinking about right now are "Why do we need to learnfinance? Shall we not leave it to people who are going to specialise in finance?Finance will not help me in the area that I am going to work in, so why learn?" It is to say that knowledge of finance doesn't add any value to you. Is it so? Think about it.
When you get your pocket money from your parents, you don't go out and blow theentire money in one day because if you do, your parents aren't going to give you more money to last through that month. You quickly determine that you need to plan your expenditure so that money lasts throughout the month and you may in fact plan to save someof it. Those who don't get enough to meet their requirements, think about some clever means to raise more money (such as falling sick!). On the other hand if they need more money for the month due to certain special events (such as Valentine's Day) they can plan to borrow money for a month and repay in next month.
Discuss the three main trends which have prevailed in international business throughout the last two decades. The 1980s brought a fast integration of financial markets and inter
Floaters that can be classified under this head are: 1. Stepped Spread Floaters 2. Extendible Reset Bonds
Explain the purchasing power parity, both of the absolute and relative versions. What causes the deviations from the purchasing power parity? Answer: The absolute version of p
As liberalization is gathering momentum, corporate treasures and merchant bankers are in the process of devising new products to suit the needs of investors and c
How do financial managers calculate the average tax rate? Average tax rates are computed by dividing tax dollars paid by earnings before taxes (EBT).
How do we calculate the payback period for a proposed capital budgeting project? What are the major criticisms of the payback method? We compute the payback period for a proposed
1. CompuSystems was supposed to pay a manufacturer $19,000 four month ago and another $14,000 two months from now. CompuSystems is proposing to pay $10,000 today and the balance i
Stock A has settled into a constant dividend growth pattern of 6 percent per year. The current dividend is $1.50, its current price is $15.90. You are an analyst and believe that
Illustration Consider a Rs.1,000 par value bond whose current market price is Rs.850. The bond carries a coupon rate of 8% and has a maturity period of 9 years. Wha
evaluate the importance of leverage in financial management of a small scale company
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