Secured Loans
What is Secured Loan? Secured loans are defined as loans where the lender extends loans only against deposition of some asset as security. Assets could be any asset ranging …
Value of a Firm
Value of a Firm – Definition A firm’s value, also known as Firm Value (FV), Enterprise Value (EV) is an economic concept that reflects the value of a business. …
Advantages and Disadvantages of Working Capital Management
What is Working Capital Management? Working Capital Management is a strategy framed and adopted by business managers to monitor working capital (working capital means current assets and current liabilities) …
Agency Theory in Corporate Governance
Meaning of Agency Theory Agency theory examines the relationship between the agents and principals in the business. In an agency relationship, two parties exist – the agent and principal, …
Debt Financing
What is Debt Financing? Debt financing is a means of borrowing money from retail or institutional investors. Such funds are raised through the issue of bonds, bills or securities …
Types of Business Loans
Why are Loans Important? Any business will require a reliable stream of funds to operate profitably. More often than not, relying only on retained earnings and profits for furthering …
Long Term Finance
What is Long Term Finance? The funds which are not paid back within a period of less than a year are referred to as long term finance. Certain long …
Equity Financing
Equity financing refers to raising capital by giving away some “ownership” of the company. The firms generally raise equity finance by selling the common stock of the company to …
Advantages and Disadvantages of Equity Valuation
Equity Valuation – Meaning Equity valuation is a process of determining the fair market value of an equity security. There are many methods of equity valuation mainly categorized in …
How do Companies Calculate Dividends?
Significance of Dividend Calculation One of the most critical decisions taken by the board is determining the accurate amount of dividend payable. Dividends are a very important link between …