Long term financing strategy is used by a firm to meet :
Fixed assets requirements , Permanent working capital requirements , Portion of fluctuating working capital requirement
Every business requires funds on a continual basis for expenses incurred on for :
Purchase of raw material , Manufacturing costs , Administration
Where the management's estimate of the useful life of an asset of the enterprise is shorter than that envisaged under the provisions of the relevant statute, the depreciation provision is approximately computed By applying a higher rate
A company is prohibited to buy back its own shares in the following circumstances
Through any subsidiary company , Through any investment company , If a company defaults in repayment of deposits or interest due thereon
The main characteristics of CAPM are :
It is an equilibrium Model , It describes the pricing of assets as well as derivatives , Expected security return = Riskless return + beta x (expected market risk premium)
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