Some of the commonly used methods for calculating the valuation of a firm are as follows: 1. Capitalised Earnings 2. Assets Approach 3. Market Value Approach 4. Earnings per Share. Valuation of Firms: Method # 1. Capitalised Earnings: The capitalised earnings method is based on the philosophy that the price which a buyer would like to pay for the property [...]
This article throws light upon the top two ways for financial evaluation of leasing. The ways are: 1. Lessee's Point of View 2. Lessor's Point of View. Financial Evaluation of Leasing: Way # 1. Lessee's Point of View: (Lease or Buy/Lease or Borrow Decisions): Once a firm has evaluated the economic viability of an asset as an investment and accepted/selected [...]
This article throws light upon the financial needs of public sector enterprise. The financial needs are: 1. Equity Capital 2. Loans 3. Internal Resources 4. Capital Market 5. Arranging Working Capital. Public Sector Enterprise: Financial Need # 1. Equity Capital: Public enterprises have large equity base. Since they are owned by the government, the initial capital is also provided by [...]