Financing Decision: Operational and Financial Leverage
by Leverage refers to the employment of assets or sources of fund bearing fixed payment to magnify EBIT or EPS respectively. So it may be associated …
Category: Management Notes
Management Notes of Various Universities across india
Capital Structure Theories- NI, NOI and Traditional Approach
Net income approach and net operating income approach were proposed by David Durand. According to NI approach, there exists positive relationship between capital structure and …
EPS-EBIT Analysis
EBIT-EPS analysis gives a scientific basis for comparison among various financial plans and shows ways to maximize EPS. Hence EBIT-EPS analysis may be defined as …
Investment decisions, Characteristics, Importance, Types, Factors affecting
Investment decisions, Characteristics, Importance, Types, Factors affecting
Brief introduction of Cost of Capital
Investment decision is major decision for an organization. Under investment decision process, the cost and benefit of prospective projects is analyzed and the best alternative …
Methods of Capital Budgeting
The resources of a business firm is invested in current and fixed assets. Current assets are acquired for the smooth running of business whereas fixed …
Account Rate of Return (ARR), Formula, Advantages, Disadvantages, Implications
Account Rate of Return (ARR), Formula, Advantages, Disadvantages, Implications
Pay Back Period (PBP)
The pay back period is the traditional method of evaluating investment proposals under capital budgeting. It is the simplest and perhaps the most widely employed …
Net Present Value (NPV)
Net present value (NPV) is a discounted technique, which considers the time value of money. NPV consider different period cash flow value differ in their values. …
Internal Rate of Return (IRR)
IRR is essentially the rate at which the present value of a project’s future cash inflows equals the present value of its outflows, or initial …
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