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Plugging back of the future of profit means the reinvestment by the concerns of its surplus in the business. it is an internal financial of the business and it is more suitable for the establishment firm for its expansion, modernization and replacement etc. this method of the finance has a number of the advantage as it sis cheapest rather cost free source of finance there is no needs to keeps security there is no dilution of the control, it ensure of stable dividend policy and gains confidence of the public. But excessive report to the plugging back of the profit may lead to the monopolies, misuse of funds over the capitalization and speculative
Suppose the supply curve for a good is totally inelastic. If the government imposed a price ceiling below the market-clearing level, would a deadweight loss result? Explain.
What are the characteristics of an efficient market? The term market efficiency denotes to the ease, speed, and cost of trading securities. In an efficient market the securitie
Rating denote an issuer's ability to respond to adverse changes in circumstances and economic conditions. The rating scale is generally differentiated into variou
State the term - Redemption Redemption is repayment of debt security at or before maturity. Redemption could at par or at a premium to face value. A debt security will be rede
what are the basic assumptions of financial management?
The ledger of AISExperts Inc. showed the following balances after adjustment , but before closing, on December 31, 2012, the end of the current year: Accounts payab
For a given IOS and MCC, how do financial managers decide which proposed capital budgeting projects to accept, and which to reject? For a given MCC and IOS, all independent pro
Engagement Completion Document - A document whereby AUDITOR identifies all significant findings or issues. Document must be as specific as essential in the circumstances for a revi
Other than zero coupon bonds, all fixed income securities make periodic payments in the form of coupon interest. This coupon interest can be rei
State about the equity owners Flip side of the coin is that the equity owners are also owners of all the profits which remain after all the debt holders are paid their interes
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