BusinessAssumptions of Walter’s theory of Dividend Policy Assumptions of Walter’s theory of Dividend Policy Dividend policy means how much dividend would as a retained in a company and how much distribute to…
BusinessWhat implications do Trade-off models have regarding capital structure? When the MM and Miller models are modified to reflect financial distress and agency costs, the modified models are called trade-off models. It is the…
BusinessTrade-off Model of Capital Structure The capital structure shows the composition of a group’s liabilities as it shows who has a claim on the group’s assets and whether it is…
BusinessAppropriate Capital Structure Appropriate Capital Structure Capital structure is the proportion of different sources of long term fund like common stock, preferred stock, and debt capital. Appropriate Capital…
BusinessAssumptions of Modigliani-Miller models (M-M models) This approach was devised by Modigliani and Miller during 1950s. The fundamentals of Modigliani and Miller Approach resemble that of Net Operating Income Approach. Assumptions…
BusinessModigliani-Miller models (MM models) of capital structure theory The capital structure shows the composition of a group’s liabilities as it shows who has a claim on the group’s assets and whether it is…
BusinessDividend Policy A dividend means the portion of earnings that is provided to stockholders. Dividend policy: It means how much dividend would as a retained in a…
BusinessCash Conversion Cycle The cash conversion cycle is one of several measures of management effectiveness. It measures how fast a company can convert cash on hand into even…
BusinessHow zero working capital concepts explained in terms of cash conversion cycle? The cash conversion cycle (CCC) is one of several measures of management effectiveness. It measures how fast a company can convert cash on hand into…
BusinessZero Working Capital Zero Working Capital Working capital is the comparison of current assets to current liabilities. For most organizations, current assets exceed current liabilities and working capital,…