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 [...]
This article will help you to learn about how to calculate shares repurchase price. In times of surplus cash available with the firm and no investment opportunities are available to profitably deploy the surplus funds, a company may use those funds to repurchase shares from the shareholders. With repurchase of shares, few shares remaining outstanding which will result in increased [...]
The planning and control of working capital in sick industries need special attention. A thorough analysis of causes for sickness is required for working capital management in sick industry. The Finance manager require to take steps to restructure the working capital requirements and the banks may be approached for need based finance instead of operating on the basis of predetermined [...]