Preference Shares and its Features
Preference shares are one of the special types of share capital having a fixed dividend rate. They carry preferential rights over ordinary equity shares… Read Article
Credit Appraisal of Term Loans by Financial Institutions like Banks
Credit appraisal of a term loan denotes evaluating the loan proposal to find out the borrower’s repayment capacity. The primary objective is to ensure… Read Article
Restrictive Debt Covenants on Term Loan Agreement
Debt covenants are certain statements in the loan agreement (or bond indenture) that restrict the borrower from doing certain things. The purpose of such… Read Article
Hybrid Financing and Various Such Instruments
Hybrid financing instruments are those sources of finance that possess characteristics of both equity and debt. Some well-known hybrid financing instruments are preference shares,… Read Article
Advantages and Disadvantages of Equity Finance – from Company’s Angle
Different stakeholders look at equity shares from different perspectives. There are two major angles of looking at it – the company angle (equity financing)… Read Article
Advantages and Disadvantages of Investing in Equity Shares
Different stakeholders look at equity shares from different perspectives. There are two major angles of looking at it – the company angle and the… Read Article
Term Loan or Project Finance – A Long Term Source of Finance
The term loan is a long-term secured debt extended by banks or financial institutions to the corporate sector for carrying out their long-term projects… Read Article
Inventory / Stock Turnover Ratio
The inventory/stock turnover ratio is an important financial ratio to evaluate the efficiency and effectiveness of the firm’s inventory management. This ratio indicates how… Read Article
Capital Budgeting
What is Capital Budgeting?The term Capital Budgeting is a combination of two words ‘capital’ and ‘budgeting.’ The capital here refers to big expenditures that… Read Article
Equity Share and its Types
Equity share is a primary source of finance for any company giving investors rights to vote, share profits, and claim assets. In the world… Read Article
Debtors / Receivable Turnover Ratio and Collection Period
What is Receivable Turnover?A receivable turnover ratio is one of the key turnover ratios or efficiency ratios used to analyze the performance of a… Read Article