Rights Debenture for Working Capital
Akin to promissory notes, debentures are instruments for raising long term debt capital. Debentures holders are the creditors of the company. The obligation of the company towards its debenture …
How to calculate Cost of Equity? | Formula
The cost of debt capital (as well as preference capital) can be calculated fairly easily. This is because it entails a well-defined burden in terms of interest payment and …
Capital expenditure | Meaning | Types | Classification
Introduction A management has taken number of decisions with regard to short term investment and long term investment. Whatever be and form of investment, the profitability of the company …
Capital Budgeting | Planning of Capital Expenditure
Capital budgeting is concerned with activities ranging from planning the availability, allocation and control of capital expenditure or long-term as well as short-term investment funds. (Image: Capital Expenditure) What …
Factors influencing investment decision
Factors influencing investment decision Capital investment decisions are not governed by one or two factors, because the investment problem is not simply one of replacing old equipment by a …
Elements of costs | Manufacturing and Non-Manufacturing Costs
One of the basic purposes of a system of cost accounting is to determine the cost of products (or services). This information is required, inter alia, for estimating the …
Security Analysis | Fundamental approach | Technical approach
Security analysis is closely linked with portfolio management. The main objective of Security analysis is to appraise the intrinsic value of security. There are two basic approaches to security …
Need and Importance of Capital budgeting decisions
Capital budgeting decisions are of paramount importance in financial decision. The profitability of a business concern depends upon the level of investment made for long period. Moreover, the investments …
Debentures | Importance & Role in Company capital structure
Importance of debentures and bonds in the capital structure of a company is very significant particularly due to the following reasons: Importance of Debentures: 1. Debentures holders or suppliers …
Classification of Debentures | Differences
The terms debentures and bonds are interchangeable, and represent loan component in the capital structure of the company. Providers of debenture capital are known as debenture holder. They are …