Internal Causes of Organization Decline
External causes are considered to be the number one reason behind the organizational decline. However, they do not work in isolation. In reality, there are many causes that exist within the organization as well. In this article, we will have a closer look at the top two internal causes which are known for causing a […]
Limitations of Ratio Analysis
Ratio analysis, without a doubt, is amongst the most powerful tools of financial analysis. Any investor, who wants to be more efficient at their job, must devote more time towards understanding ratios and ratio analysis. However, this does not mean that it is free of limitations. Like all techniques, financial ratios have their limitations too. […]
Merger Arbitrage in Investment Banking
In the past few years, the number of mergers and acquisitions has increased drastically. This can partially be attributed to advances in the investment banking industry. Investment bankers typically earn large amounts of money as fee and interest in mergers and acquisitions transactions. Hence, they use a lot of strategies to ensure that the merger […]
Equity to Fixed Assets Ratio – Meaning, Assumptions and Interpretation
Formula Equity to Fixed Assets Ratio = Equity / Total Fixed Assets Equity includes the retained earnings Total Fixed assets excludes intangible assets of the firm Meaning The “equity to fixed assets” ratio shows analysts the relative exposure of shareholders and debt holders to the fixed assets of the firm. Thus, if the “equity to […]
Single Stage FCFF Model to Equity Valuation
Just like we have the single stage Free Cash Flow to the Firm (FCFF) model, we also have the Free Cash Flow to Equity model. This model also is not used by analysts in advanced calculations. Rather it is used for the most rudimentary back of the envelope calculations for deriving the equity valuation of […]
Financial Planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.
Financial Planning has got many objectives to look forward to:
Financial Planning is process of framing objectives, policies, procedures, programmes and budgets regarding the financial activities of a concern. This ensures effective and adequate financial and investment policies. The importance can be outlined as-
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