Scope of Business Research

Business Research is described as the systematic and objective procedure for producing information for help in making business decisions. Business research should be objective, which …

Inventory and Payable Management

A business should keep a close watch on both accounts payable and inventory. Inventory can tie up money. If a business is investing too much …

Working Capital Estimation

In estimating working capital needs, different people adopt different approaches. Some experts suggest that the working capital should be greater than the minimum requirements of the firm. The …

Working Capital Management (WCM) and Nature of Working Capital

Working capital management refers to a company’s managerial accounting strategy designed to monitor and utilize the two components of working capital, current assets and current …

Determinants of Dividend

Some of the most important determinants of dividend policy are: (i) Type of Industry (ii) Age of Corporation (iii) Extent of share distribution (iv) Need …

Modigliani and Miller Approach

Modigliani and Miller approach to capital theory, devised in the 1950s advocates capital structure irrelevancy theory. This suggests that the valuation of a firm is irrelevant to …

Walter Model

Professor James E. Walter argues that the choice of dividend policies almost always affects the value of the enterprise. His model shows clearly the importance …

Gordon Model

The Gordon’s Model, given by Myron Gordon, also supports the doctrine that dividends are relevant to the share prices of a firm. Here the Dividend …

Leverage Types: Operating, Financial, Capital and Working Capital Leverage

Operating Leverage Operating leverage is concerned with the investment activities of the firm. It relates to the incurrence of fixed operating costs in the firm’s …

Traditional Approach

It is accepted by all that the judicious use of debt will increase the value of the firm and reduce the cost of capital. So, …

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