Sources of finance

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a blue and white poster with words describing different types of dividers in the text
Dividends - Forms, Advantages and Disadvantages
The dividend is one of the important ways in which the companies communicate their financial health and shareholders' value to the general public. Through the distribution of their earnings, companies indicate a positive future and a strong performance. The ability and the willingness of a company to pay stable dividends constantly over a good period of time and even at an increasing pace gives a good picture of the #TypesofDividend #WhatisDividend
a man in a business suit holding money and cell phone with the words how to give while living on a tight budget
Walter's Theory on Dividend Policy
Walter's model on dividend policy believes in the relevance concept of a dividend. According to this concept, a dividend decision of the company affects its valuation. Walter's theory further explains this concept in a mathematical model. Crux of Walter's Model Prof. James E Walter formed a model for share valuation that states that the dividend policy of a company affects its valuation.
an info sheet describing the benefits of time value and money for finance students to learn
Importance of Time Value of Money
Time value of money (TVM) is the most fundamental and important concept in finance. This concept basically means that the money you have at hand is worth more than the money that will be available in the future / after some time. In other words, a dollar is worth more today than if you were given it in the future. And, this is so because of the time gap, the uncertain future, the impact of inflation, and so many
the types of divided in an organization
Types of Dividend
Types of dividends!! Yes, there are different forms in which a company can give away dividends to its shareholders. Let's just understand a brief definition of dividend first and then we will take you through different dividend types. What is Dividend? A dividend is a return you earn on the investment on the equity or preference share of a company.
a flow diagram with words describing the financial process and how to use it in order to make
Wealth Maximization
Wealth maximization is a modern approach to financial management. Maximization of profit was once used to be the main aim of a business and financial management till the concept of wealth maximization came into being. It is a superior goal when compared to profit maximization as it considers a broader arena. The wealth or value of a business is defined as the market price of the capital invested by shareholders.
divide payout is the amount of divided that a company gives out to its shares
Dividend Payout Ratio
Dividend Payout Ratio Definition The dividend payout ratio is the amount of dividend that a company gives out to its shareholders out of its current earnings. The earnings that the company retains with it after paying off the dividends are "Retained Earnings”. And the company invests these for its growth and future. In other words, the total earnings of a company are a mix of two essential parts i.e. #DividendPayoutPolicies
an image of different types of divide policy
Dividend Policies
Dividend policies are one of the important decisions that a company takes. Several factors affect the company's payout policy, which includes various types of dividends models and repurchasing shares. Companies frame dividend policies as per their requirements. Shares repurchases are becoming more relevant and common in recent times. Definition ofDividend Policy The dividend policy of a company is the strategy #DividendPayoutPolicies
three stages of working capital finance
A Comparison between 3 Strategies of Working Capital Financing
There are three strategies or approaches or methods of working capital financing - Maturity Matching (Hedging), Conservative and Aggressive. The hedging approach is an ideal method of financing with moderate risk and profitability. The other two are extreme strategies. The Conservative approach is highly conservative with very low risk and, therefore, low profitability.
the financial management process for capital structure
Factors affecting Capital Structure Decisions
Capital Structure in General Every company needs capital to support its operations. Capital structure is a blend of various sources of finance. To be more specific, capital structure is a ratio of short-term and long-term liabilities with equity. Depending on the sources of financing, we can classify these as borrowed (or debt) capital and equity (owner’s) capital. Together, they form the company’s employed capital.
the functional currency scheme for finance management
Functional Currency – Meaning, Importance, How to Determine?
Functional Currency (FC), as the word suggests, is the currency of the location or the economic environment in which a firm works. Or, we can also say that it is the currency in which a firm mainly earns and spends cash. In simple words, we can say that it is the home currency of the country in which the company is headquartered. But that may not be the case always. The local currency and the FC can be different.
an info sheet describing the different types of financial statements and how they are written on it
Ratio Analysis
Ratio Analysis: Meaning Ratio analysis is a technique of evaluating financial statements to form an opinion about the various aspects of the organization like profitability, short and long-term liquidity, efficiency, etc. This is utilized by both internal and external stakeholders. Internal stakeholders primarily include managers. External stakeholders include creditors, investors, lenders, etc.
the product mix diagram is shown in blue and white, with words describing what products are made
Product Mix – Meaning, Dimensions, Importance and More
Product Mix, product assortment, or product portfolio is the categories of products that a firm offers. In other words, the product mix is the number of product lines a firm has under its umbrella. Moreover, this concept belongs to the Marketing stream. There could be one or more products under a product line. All the product lines together constitute a product mix.
an image of a business model for the company
Leveraged Buyout (LBO) Model
What is a Leveraged Buyout (LBO)? A leveraged buyout model, or an LBO, is a term used for the acquisition of a company. It is a type of acquisition where total acquisition proceeds are financed with a substantial portion of borrowed funds. There are two parties involved in a leveraged buyout – the buyer company & the target company. In LBO, the acquiring firm finance the acquisition with a mix of equity & debt.
the fixed asset turnover calculator
Fixed Asset Turnover -Definition, Formula, Interpretation And Analysis
How to Calculate Fixed Asset Turnover Ratio using a calculator? Our Fixed Asset Turnover Ratio Calculator is very easy to use. It will calculate the fixed asset turnover ratio accurately and also help interpret the results. We have two variations of the calculator: You can calculate it by putting a value of net revenue and net fixed assets in the following calculator.
an image of money and finance with the words fractioning, monetary and financial points
Fractional Banking – Meaning, Importance and Money Multiplier
What is Fractional Reserve Banking System? Fractional banking or Fractional Reserve Banking System is a type of system, that most countries currently practice. Under this system, banks keep some percentage of the deposit as reserves, and the rest is given out as a loan. Such a system allows banks to boost the money supply and play a role in the economic growth of the country.