The following points highlight the top three alternatives to dividend of a company. The alternatives are: 1. Buyback of Shares 2. Stock Split 3. Bonus Issue. Alternative # 1. Buyback of Shares: Buyback is reverse of issue of shares by a company where it offers to take back its shares owned by the investors at a specified price; this offer [...]
In this article we will discuss about:- 1. Introduction to Black-Scholes Model 2. Assumptions of Black-Scholes Model 3. Advantages 4. Limitations. Introduction to Black-Scholes Model: It is a tool for pricing equity options. Fischer Black, Myron Scholes and Robert Merton were awarded the Nobel Prize in Economics for developing this model in 1973. Prior to its development there was no [...]
In this article we will discuss about:- 1. Introduction to Project Finance 2. Techniques Used in Credit Appraisal 3. Key Elements for Appraisal of a Project 4. DIC Schemes. Introduction to Project Finance: Project finance is a type of loan arrangement in which the repayment is derived primarily from the project's cash flow on completion, and where the project's assets, [...]