Table of Contents
CASH FLOW VS FUND FLOW
Advantage and Disadvantage of Preference Capital
Merits of Trend Analysis:
Demerits of Trend Analysis:
Financial leverages: it relates to the financing activities of a firm. Financial leverage results from the presence of fixed financial charges in the firm’s income stream. Financial leverages concerned with the effects or changes in the EBIT in the earnings available to equity shareholders. It is defined as the ability of a firm to use fixed financial charges to magnify the effects or changes in EBIT on the earnings per share.
The short term or long term finance is a function of financial management. The good and efficient management is that which can raise the funds whenever required and at the most competitive terms and conditions. Raising of funds either internally or externally requires a professional approach and also complying with so many legal, technical and statutory requirements prescribed by the Companies Act, Securities Exchange Board Of India, Stock Exchanges Authorities and also allied laws like Income Tax, Foreign Exchange Management Act, Banking Regulations Act, etc.
Objectives of cash management
Q) Name any 5 sources of funds & classify them into short-term & long -term funds?
Issue of equity share & preference shares = Long- term funds.