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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.
annual uasage of stock 100,000units carrying cost per unit of stock RM2 order cost RM250 question there is a constraint arising from the floor space of the
Sinking fund provisions is a pool of funds set aside to repay the debt. Under this, certain amount of money is kept aside every year form profit. It is then used
Q. Evaluate optimum price of the new machine? The optimum price will be the one which optimises total contribution over the five-year life of the new machine. Sales price o
When the underlying stock becomes worthless, the percentage price declines the investors experience is given by, Percentage of Downside Risk=
Q. Describes Net Operating Income Approach to Capital Structure? NOI (Net Operating Income Approach):- This is another speculation of capital structure which is propounded by '
Q. Example on Bills of exchange? ARG Co will be apprehensive to protect the sterling value of its expected dollar receipt. The quoted forward rates demonstrate that the dollar
What is the primary advantage to a corporation of investing some of its funds in working capital? By investing in working capital a firm acquires the liquidity it needs helpin
Q Operating economics A number of operating economies will be available with the merger of two or more companies. Duplicating facilities in accounting purchasing marketing etc
What is the difference between business risk and financial risk? Business risk refers to the improbability a company has with regard to its operating income also known as earni
Q. Importance of the Cost of Capital? Importance of the Cost of Capital:- (1) Useful in Designing the Capital Structure: - The perception of cost of capital plays a very imp
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