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It is the most useful method of promoting economic development. It may be used for the development of economic and social overheads such as construction of roads, railways, power projects, schools, hospitals, etc.
Meaning: "The term deficit financing is used to denote the direct addition to gross national expenditure through budget deficits whether the deficits are on the revenue or capital accounts".
Determine about the synergistic effect When two or more companies join together there must be a synergistic effect. Synergy is when 2 + 2 = 5. Net present value of the two comp
The issuer of the bond has to repay the bondholders the principal by the stated maturity date. This can be repaid by the issuer in one lumpsum payment at the matu
Definition of cost of capital In analyzing the cost of capital it is presumed that business risk of the firm remains unchanged (i.e., that projects accepted don't affect the va
Compare diversifiable and nondiversifiable risk. Which do you think is more important to financial managers in business firms? Diversifiable risk is able to be dealt with by of
A bond is said to be currently callable if the issue is not protected against early call provision. But most new bond issues, even if currently callable, us
1. Suppose Bank one offers a risk free interest rate of 5.5% on both savings and loans, and Bank Enn offers a risk free interest rate of 6% on both savings and loans. What arbitra
Determine about the Shareholders Shareholders, being the owners of the company, elect board of directors and vote on major issues that affect functioning and long term plans of
364-Day T-Bills The Government considered that it is important to develop government securities market for monetary control. It also had an intention to ensure that government'
Discuss the relationship between financial decision making and risk and return. Would all financial managers view risk-return tradeoffs similarly
You are presented with the budgeted data shown below for the period November 20X1 to June 20X2 by your firm. It has been extracted from the other functional budgets that have been
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