Category: Industrial

Methods Of Financial Management

Methods Of Financial Management

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 the validity of the...

Objectives of Financial Management

Objectives of Financial Management

They can be classified into two heads: 1. Basic Objectives  2. Other Objectives      Basic Objectives:         Traditionally they are Maintenance of liquid assets        Maximization of profitability...

Financial Management

Financial Management

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 following questions.    ...

Sources of Short Term Finance

Sources of Short Term Finance

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 any other source of...

Long Term Sources of Finance

Long Term Sources of Finance

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 different to those relating...

Gordon’s Model

Gordon’s Model

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 has no debt 2. No...

Dividend Relevance: Walter’s Model

Dividend Relevance: Walter’s Model

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 firm finances all investment...

Different types of Dividend

Different types of Dividend

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 as in the case...

Factors Affecting Dividend Policy

Factors Affecting Dividend Policy

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 having stability of earnings...