Finance

Public Financial Management Add Value

Public Financial Management Add Value Does public financial management add value to the actions of the corporate financial manager with respect to the public private partnership? To identify whether public financial management add value to the actions of the corporate financial manager with respect to the public private partnership (PPP) or not, we have to know about core functions of…
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Determining Financing Needs for Business

Determining Financing Needs for Business The success of a business is depends on the effective use of financial and non financial resources. It is financial manager’s responsibility to ensure right borrowing and financing decision. Holding an optimum level of funds is not an easy task. Every manager have to go through a systematic process to decide how much money should…
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Tasks of Corporate Finance

Corporate finance is a branch of finance where financing decision about choosing least cost source of fund and optimal capital structure. The main goal of corporate finance is to ensure the maximization of the value of the firm so that equity holders get the benefit. Remember one thing that corporate finance is not like public finance, both is different from…
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Debt is the Cheapest Source of Financing

Debt financing Debt financing is the act of raising operating capital or other capital by borrowing for a business. Most often, this refers to the issuance of a bond, debenture, or other debt security. When a company takes loan from third party then it is considered as debt financing. It is one of the most commonly used ways of financing….
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Determinants of Time Value of Money

What are the determinants of time value of money ? Time value of money is the most important concept of finance. The main thing of time value of money is that the value of dollar 100 now is more than the value of dollar 100 after some time. That is the value of money today is more than the value…
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Call Option

Call Option A call option is an option to buy financial instruments at a specific price after a certain period. A call option is an option for the buyer to exercise not an obligation to perform. There can be an agreement between the buyer and seller for the purpose of exchange of financial instrument; here buyer get the right to…
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How to Take Share Buy Decision

How to Take Share Buy Decision Share Share is the small proportion of capital of a company. Both private and public limited companies have share capital. But only public limited company can issue their share in public through IPO (Initial Public Offering) to raise their share capital. Basically the shares of public limited company are traded in stock market. Buyers…
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Job Description of Financial Manager

Simple Job Description of Financial Manager Financial manager are responsible for managing financial resources of an organization. Basically those who make financial plan for effective use of the fund to ensure organizational wealth maximization are known as financial manager. The success of an organization depends on the right use of the financial resource, although it is very tough job to…
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Functions of Financial Manager

Functions of financial Manager Finance works as a blood for an organization, without finance it is not possible to run any business. Every business organization requires managing and ensuring effective use of funds and financial resources. But question is who will manage these funds. It is financial manager’s responsibility to manage funds (collection and proper use of funds). Managing funds…
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Agency Cost

What is Agency Cost and who bears them? An agency cost is the cost of reducing agency conflict among the owner/ principal (stockholders) and managers (agent). We can also say the cost which is bears by the company to reduce the agency conflict is basically known as agency cost and this cost must be maintained by the respective parties or…
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