Tag Archives | Financial Planning

Risk and Return in Financial Planning | Company

In this article we will discuss about the risk and return faced while financial planning of a company. Costing and Risk: The word 'costing' relates to the ascertainment of cost of capital from different sources like equity capital, preference capital, debentures, long-term loans etc. The most crucial decision of any company is involved in the formulation of its appropriate capital [...]

By |2016-12-12T08:06:15+00:00December 12, 2016|Financial Management|Comments Off on Risk and Return in Financial Planning | Company

Finance and It’s Classification

This article throws light upon the top two categories for the classification of finance required for a business. The categories are: 1. Fixed Capital 2. Working Capital. Classification of Finance: Category # 1. Fixed Capital: Meaning and Definition of Fixed Capital: The term 'fixed capital' stands for that amount of capital which is required for long-term to create production facilities [...]

By |2016-06-28T09:28:16+00:00June 28, 2016|Financial Planning|Comments Off on Finance and It’s Classification

Over-Capitalisation: Meaning, Effects and Remedies

After reading this article you will learn about Over-Capitalisation:- 1. Meaning of Over-Capitalisation 2. Causes of Over-Capitalisation 3. Effects 4. Remedies. Meaning of Over-Capitalisation: Over-capitalisation refers to that state of affairs where earnings of a company do not justify the amount of capital invested in its business. According to Gerstenberg, "A company is over-capitalised when its earnings are not large [...]

By |2016-06-28T09:28:16+00:00June 28, 2016|Capitalisation|Comments Off on Over-Capitalisation: Meaning, Effects and Remedies
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