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The term Financial method or Financial tool refers to any logical method technique to be employed for accomplishing the following goals: 1.Measuring of effectiveness of firms actions and decisions. 2.Measuring … Read More
They can be classified into two heads: 1. Basic Objectives 2. Other Objectives Basic Objectives: Traditionally they are Maintenance of liquid assets … Read More
Meaning of Financial Management Financial management is broadly concerned with the acquisition of and use of funds by the business firm. Its scope may be defined in terms of the … Read More
1) Trade creditors This the basic source of finance and many entrepreneurs do not realise that by acquiring items on credit they are obtaining short term finance. Credit just like … Read More
Long term sources of finance are those that are needed over a longer period of time – generally over a year. The reasons for needing long term finance are generally … Read More
According to M-M, under a perfect market situation, the dividend policy of a firm is irrelevant, as it does not affect the value of the firm. They argue that the … Read More
Gordon proposed a model of stock valuation using the dividend capitalization approach. His model is based on the following assumptions: 1. All-equity firm: The firm is an all-equity firm, and it … Read More
Prof. James E. Walter argues that the choice of dividend policies almost always affect the value of the firm. His model is based on the following assumptions: 1. Internal financing: The … Read More
The profits of a company when made available for the distribution among its shareholders are called dividend. The dividend may be as a fixed annual percentage of paid up capital … Read More
A number of considerations affect the dividend policy of company. The major factors are 1. Stability of Earnings. The nature of business has an important bearing on the dividend policy. Industrial units … Read More