Financial Management

In financial management, we study topics such as investment management, financial strategy, financial statement analysis and learn how to review the global

  • Treasury Bills

    Introduction to Treasury Bills

    Treasury bills are instruments issued by the government to finance its expenditures. In the Treasury bill contract, the government promises to pay the holder a fixed amount called the face value at the maturity date of the Treasury bill. Treasury bills are issued for maturities of 91- and 182 days. T-bills are an extremely liquid investment of the highest quality. It bears no interest rate and the holder of these bills do not get any interest check. These are sold at a discounted rate. T-Bills are highly marketability securities but do not redeemable until the maturity date. The interest income received from the treasury bills is the difference between the discount rate at which securities issued and par value of the securities and is taxed as ordinary income. The lower the price of the bills are higher the yield of maturity.…

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  • Markowitz model of risk and return

    Markowitz Model of Risk-Return Optimization

    Harry M. Markowitz introduced a new concept of risk measurement and their application to the selection of portfolios. Dr. Harry M. Markowitz was the first person who developed the first modern portfolio analysis model. Markowitz started with the new idea of risk aversion of the average investor and their desire to maximize the expected return with the least risk. He provided a theoretical framework to analyse the risk and returns and their inter-relationship. His framework helps to the choice efficient portfolio and an efficient portfolio is that combination of securities which provide the highest return for a given level of risk and lowest risk for a given level of return. Markowitz model is called the “Full covariance model” because with the help of this model the investor can find out the efficient set of the portfolio by finding out the…

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  • spa equipment leasing equipment

    How Spa Equipment Leasing is a Great Financial Business Solution Program?

    The beauty salon industry is at rise as many individuals prefer to visit these places regularly for maintaining their hairstyles, hair coloring, nails, and facial appearance. The modern beauty spas are laced with advanced technology such as machines to use for manicure and pedicure, shampooing and hair massaging, shaving, and much more. Due to the emerging needs and preferences of the customers, the beauty salon owners also have to upgrade their facilities time to time that requires them for making huge investments in replacing the old equipment with the new one. These businesses usually opt for spa equipment leasing which is an ideal way out to upgrade the salons with the latest material and is also an easy way of arranging the required investment. An easy way to upgrade the salon business: If you are running a salon and are…

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  • npv calculation steps and method

    Net Present Value (NPV) Calculation Example

    Net Present Value Method the net present value method of investment appraisal can be helpful to assess the value of investment projects and to compare the value of different projects. How to Calculate Net Present Value of an Investment? The NPV calculation is one method of comparing the expected return on a project with the expected cost. It is generally used to decide whether to invest in a project, but it is also used for investment appraisal. NPV calculation also can be used to compare the expected return on a project with the expected cost when there is no option to invest, and that is where the name comes from. That’s because the NPV is the same as the NPV of the only investment. Example of NPV Calculation Watson manufacturing has an opportunity to invest $96,000 in a new machine.…

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  • IGNOU Assignment

    IGNOU ECO-14 Assignment 2019-20 [Unsolved]

    ECO – 14: Accountancy – II, For July 2019 and January 2020 admission cycle Attempt all the questions.1. What are the three systems of maintaining the accounts of a dependent branch and describe how is profit ascertained under each system? Explain how a branch stock account helps in keeping effective control over the branch stock? (20) 2. Jalani Distributors sold three light commercial vans to Jain Enterprises on January 1, 2017, on hire purchase system. The price of each van was Rs. 90, 000 payment of which was to be made as follows: (i) Rs. 30, 000 as a down payment for each van(ii) Remaining amount in 3 equal instalments along with interest @15% Jain Enterprises were charging depreciation @ 20% each year on the written down value method. After payment of the first instalment as on December 31, 2017,…

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  • money measurement concept

    What is Money Measurement Concept in Accounting?

    Introduction The money measurement concept states that a corporation should only report those accounting transactions that can be represented in terms of money. It means that the centre of accounting transactions is on quantitative data, preferably than on qualitative information. A high number of items are never more reflected in a corporation’s accounting records, which suggests that they never appear in its financial statements. Money measurement is the measurement of assets, liabilities, equity and the other financial resources of a business, including assets, liabilities, equity and the other financial resources (including cash and cash equivalents). The objective of money measurement is to estimate the value of these resources and to evaluate the changes over time. Measurements of the financial resources and the performance of an organization are necessary to determine a firm’s viability, profitability, and other financial information. It is…

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