Investment decision and financing decision, Financial Management

Assignment Help:

The Investment Decision: - Investment decision as well known as 'Capital Budgeting' is related to the selection of long-term assets or else projects in which investments will be made by the business. The Long term assets are the assets which would yield reimbursement over a period of time in future.

The Financing Decision: - This function is related to increasing of finance from different sources. For this reason the financial manager is to determine the proportion of debt as well as equity. In other sense there are two sources of finance

(i) Debt:- Debt signifies long term loans and includes:

  • Debentures
  • Loan from Bank
  • Loan from Financial Institutions
  • Mortgage Loans

(ii) Equity: Equity demotes to shareholder's funds and includes:

  • Equity Share Capital
  • Preference Share Capital
  • Reserve
  • Accumulated Profits

Related Discussions:- Investment decision and financing decision

Deficiency in design, Deficiency in Design - This exists when a control ess...

Deficiency in Design - This exists when a control essential to meet the control objective is missing or an existing control isn't properly designed so that even if control operates

Advantages and disadvantages of closed end country funds, Discuss the advan...

Discuss the advantages and disadvantages of closed-end country funds or CECFs relative to the American Depository Receipts or ADRs as a means of international diversification. An

Explain the terminologies of finance, Explain the terminologies of finance ...

Explain the terminologies of finance Raise and efficiently utilise funds which are your disposal (or at least try to).That a business organisation also needs to do the same can

Capital Structure and firm finanacial performance, How do I do an introduct...

How do I do an introductory writing on this topic tto help. Include all salient issues?

Estimation of current assets, What is Estimation of Current Assets? Please ...

What is Estimation of Current Assets? Please provide me report on Estimation of Current Assets. It is about 2000 words count report on topic Estimation of Current Assets.

Opportunity worth today, Assume that you can receive $25,000 per year forev...

Assume that you can receive $25,000 per year forever and that your cost of money is 7%.  What is this opportunity worth today?

Time value of money, Can you help me out on the Time value of money????? ...

Can you help me out on the Time value of money????? I need urgent help on this topic...

Impact of the yield level in bonds, Different bonds trade at differen...

Different bonds trade at different yields though the coupon rate, maturity, and embedded options are same for them. Assuming that all the other bond characteristi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd