Financial Management

The capital asset pricing model (CAPM) provides a formula that calculates the expected return on a security based on its level of risk. The formula…

Market efficiency concerns the extent to which market prices incorporate available information. Investors and academics have a wide range of viewpoints on how efficient the…

Capital markets typically involve issuing instruments such as stocks and bonds for the medium-term and long-term. A perfect market is a market in which there…

Perfect Capital Market Capital markets typically involve issuing instruments such as stocks and bonds for the medium-term and long-term. In this respect, capital markets are…

Economic Value Added (EVA) Properties Economic value added can be calculated as the difference between the company’s net operating profit after tax and a portion…

Market Value Added (MVA) Method Market value added can be calculated as the difference between the company’s market value and the amount of capital invested…

Market efficiency concerns the extent to which market prices incorporate available information. Investors and academics have a wide range of viewpoints on how efficient the…

Routine functions of financial managers Financial management refers to the efficient and effective management of money in such a manner to accomplish the objectives of…

Managerial functions of financial managers Financial management refers to the efficient and effective management of money in such a manner to accomplish the objectives of…

Opportunity cost is the potential benefit that is given up when one alternative is selected over another opportunity cost are not recorded in the organization…