In this article we will discuss about the estimation of working capital need of a company in special situations. Seasonal Industries: In the seasonal industries, the level of working capital requirement will not be similar all through the year. In times of off-season, the working capital requirement and the levels of investment in current assets and liabilities are very low. [...]
The following points highlight the seven main approaches to the capital structure of a firm. The approaches are: 1. Net Income Approach 2. Net Operating Income Approach 3. WACC Approach (Traditional View) 4. Modigliani and Miller Approach (Modern View) 5. Debt-Equity Ratio Approach 6. EBIT-EPS Approach 7. Financial and NEDC Risks Trade-Off Approach. 1. Net Income Approach: This approach is [...]
The following points highlight the top seven methods used for evaluating the investment proposals by a company. The methods are: 1. Payback Period Method 2. Accounting Rate of Return Method 3. Net Present Value Method 4. Internal Rate of Return Method 5. Profitability Index Method 6. Discounted Payback Period Method 7. Adjusted Present Value Method. 1. Payback Period Method: The [...]