The following article will guide you to learn about how to prepare a pessimistic and optimistic budget of a firm. In decision-making the first step is usually to make a single 'best estimate' for each item. The worst possible/best possible outcomes can be evaluated from the pessimistic and optimistic attitudes of the decisions made. An optimistic decision maker consider the [...]
A stock split is the division of a share into two or more parts. Stock split adds no value but increases the number of shares in the ratio of the split. By splitting of shares the capital of the company does not increase, but the capital is only redistributed by increased number of shares. A stock split is a decision [...]
The below mentioned article provides a formula to calculate the Sustainable Growth Rate (SGR) of a firm. SGR is the maximum growth rate which can be achieved by using both internal accruals, as well as, external debt without increasing the financial leverage. SGR is the maximum sales that can be achieved in a year based on target operating debt and [...]