Everything you need to know about the short-term sources of finance. Short-term financing is aimed to meet the demand of current assets and pay the current liabilities of the organization. In other words, it helps in minimizing the gap between current assets and current liabilities. There are different means to raise capital from the market for small duration. Various agencies, [...]
Everything you need to know about the theories of capital structure. Capital structure theories seek to explain the relationship between capital structure decision and the market value of the firm. There are conflicting opinions regarding whether or not capital structure decision (or leverage or proportion of debt and equity) affects the value of the firm (or shareholder's wealth). There is [...]
Everything you need to know about the Types of Leverages as studied in Financial Management! Leverage is of three types: 1. Operating Leverage, 2. Financial Leverage, and 3. Combined Leverage. Types of Leverages as Studied in Financial Management Types of Leverages - Financial, Operating and Combined Leverages (with Formula) Type # 1. Financial Leverage: Financial Leverage is a tool with [...]