Financial Management

Cash management means optimal cash maintain in a business. If an excess is taken in a business, it is harmful because it does not grow…

A merger is when two or more companies come jointly as one new company. It is a trendy way to develop the market position of…

Consolidation, by contrast, involves the combination of two or more firms to form a completely new corporation. The new corporation normally absorbs the assets and…

In a merger, the boards of directors for two companies approve the combination and seek shareholders’ approval. It refers to an agreement in which two…

Dividend policy means how much dividend would as a retained in a company and how much distribute to stockholders. All these related activities of the…

Three Alternative Current Asset Financing Policies Most businesses experience seasonal and/or cyclical fluctuations. For example, construction firms have peaked in the spring and summer, retailer’s…

Merger Fundamental: Firms sometimes use mergers to expand externally by acquiring control of another firm. Whereas the overriding objectives for a merger should be to…

Stock splits occur when a company perceives that its stock price may be too high. It happens when a company issues two or more new…

Stock dividends are similar to cash dividends; however, instead of cash, a company pays out stock. As a result, a company’s shares outstanding will increase,…

Stock repurchases: Stock repurchase is a transaction in which a firm buys back shares of its own stock. Repurchase of stock occurs when a firm…