#accounting., Finance Basics

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Managing financial resources, Two friends, Alan & Tim just graduated from t...

Two friends, Alan & Tim just graduated from the college. They plan to start their own business, of selling health foods for office workers. They have identified a commercial comple

A+/a1, A+/A1 It is one of the top ratings that a ratings agency allots ...

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

Capital market - financial markets, Capital Market - Financial Markets ...

Capital Market - Financial Markets These are markets for long term funds along with maturity time of more than one year. As like of financial instruments required here are deb

Dividend policies and decisions, Dividend Policies and Decisions Divid...

Dividend Policies and Decisions Dividend policy determines the division of earnings among payments to stock holder's ad re-investment in the firm.  Hence now it looks at the f

Managerial finance functions, Managerial Finance Functions Require ski...

Managerial Finance Functions Require skilful execution, control and planning of financial activities.  Hence there are four significant managerial finance functions. Such are

Marginal Cost of Finance, Marginal cost of finance This is cost of new...

Marginal cost of finance This is cost of new finances or additional cost a company has to pay to raise and use additional finance is given by: (Total cost of marginal finan

Investment analysis, Investment Analysis Any type of company will inve...

Investment Analysis Any type of company will invest finance for the sake of deriving a return that is useful for four main purposes as: 1. To reward the owners or shareholder

Solution to the agency conflict, Solution to the Agency Conflict The g...

Solution to the Agency Conflict The government can acquire the following actions to protect itself and its interests. 1. Acquire monitoring costs E.g. the gover

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