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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.
What are the main flaws of the profit maximisation criterion The main technical flaws of this criterion are i) ambiguity, ii) quality of benefits and iii) timing of be
The director of capital budgeting for a firm has recognized two mutually exclusive projects, A and B, with the following expected net cash flows:
You know that Treasury bills have a beta of 0 because they are risk-free. A portfolio of technology stocks has a beta of 3. You plan to invest 40% of your investment capital in T
Explain about the Financial management Financial management is concerned with efficient use of a significant economic resource (input), namely, capital. It's, so, argued that p
How does a preemptive right protect the interests of existing stockholders? A preemptive right defends the interests of existing stockholders by providing them the opportunity to
Size of the business / scale of the operation : the working capital requirement of the concern are directly influence the by the size of the business which may be measured in the
how to calculate trend analysis?
What is meant by the terms that an option is in-, at-, or out-of-the-money? Answer: A call or put option with S t > E (E > S t ) is considered to as trading in-the-money. If
explain participating budgeting and slow budgeting.
What are some of the factors that common stockholders consider when deciding how much, if any, cash dividends they desire from the corporation in which they have invested? Gene
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