Return on Equity or ROE is a profitability ratio specially meant for the equity shareholders. It is expressed in percentage (net profit/shareholder’s fund *… Read Article
Functions of financial management are guided by the ultimate aim of any business, i.e., profit and wealth maximization. If we broadly classify the functions… Read Article
The Modigliani and Miller approach to capital theory, devised in the 1950s, advocates the capital structure irrelevancy theory. This suggests that the valuation of… Read Article
The traditional approach to capital structure suggests an optimal debt to equity ratio where the overall cost of capital is the minimum and the… Read Article
DuPont Analysis: MeaningIt is an approach for computing return on equity (ROE) encompassing a broad level of indicators leading to this return. DuPont analysis… Read Article
You would agree that when a manufacturing unit increases the level of production, the total cost of production will also increase. This increment in… Read Article
Cost, costing, cost accounting, and cost accountancy are normally used interchangeably but are not synonyms. The meaning of these terms is related and similar,… Read Article