Archive | Financial Management

Sources of Finance: Internal and External | Industries

In this article we will discuss about the internal and external source of finance for Industries. Internal Source of Finance: 1. Retained Equity Earnings: This implies retaining the earnings of the shareholders for internal reinvestment. Every rupee retained is a rupee with-held from distribution to existing shareholders. While doing so, management must do something to maintain the interest of shareholders. [...]

By |2017-02-06T21:13:23+05:30February 6, 2017|Financial Management|Comments Off on Sources of Finance: Internal and External | Industries

Sources of Finance for a Company | Financial Management

This article throws light upon the top twenty sources of finance for a company. The sources are: 1. Preference Shares 2. Debentures 3. Ordinary Shares 4. Non-Voting Ordinary Shares 5. Redeemable Equity Shares 6. Stock 7. Retained Profits 8. Loan Capital 9. Sale and Lease Back 10. Equipment Leasing 11. Hire Purchase 12. Term Loans (Straight) 13. Term Loans 14. [...]

By |2017-02-06T21:13:23+05:30February 6, 2017|Finance Sources|Comments Off on Sources of Finance for a Company | Financial Management

How to Calculate Return on Investment ?

This article will guide you about how to calculate return on investment with the help of an example. Investment may refer to capital employed, total assets or owner’s equity or net worth. Again capital employed may be gross capital employed or net capital employed. Also, return may be pre-tax return or after-tax return. Return may be expressed in terms of [...]

By |2017-02-06T21:13:23+05:30February 6, 2017|ROI|Comments Off on How to Calculate Return on Investment ?
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