The over and under capitalisation situations of a company can also be ascertained by comparing the book value and real value of equity shares of the company. The book value of equity shares is calculated on the basis of net assets available for equity shareholders. It can be computed by dividing the net assets available for equity shareholders with the [...]
After reading this article you will learn about the Financial Plan:- 1. Meaning of Financial Plan 2. Objectives of Financial Plan 3. Characteristics 4. Considerations. Meaning of Financial Plan: A financial plan is a statement estimating the amount of capital and determining its composition. The quantum of funds needed will depend upon the assets requirements of the business. The time [...]
After reading this article you will learn about Financial Planning:- 1. Need of Financial Planning 2. Steps in Financial Planning 3. Limitations. Need of Financial Planning: According to Cohen and Robbins, financial planning should: 1. Determine the financial resources required to meet the company's operating programme; 2. Forecast the extent to which these requirements will be met by internal generation [...]