This book covers many topics on financial management. It is a compilation of scholarly essays based on major financial topics such as market capitalization, book value of a company, cash realization cycle and ratios to analyze the financial performance of a company. The other topics that are covered include capital appraisal, stock market performance and other financial instruments. A number of financial management ratios have been discussed in detail. This booklet provides a lot of valuable information to students undertaking undergraduate studies in finance and accounting.
Inhaltsverzeichnis (Table of Contents)
- Market capitalization versus book value of a company
- Ratios used for analyzing performance of a company
- Inventory turnover
- Cash realization cycle
- Net present value of a project
- Capital budgeting
- Stock and bond yield
- Financial instruments
- Cash realization cycle 2
- Sources of funds
- Procedure for issuance of bonds
- Cost of capital versus capital budgeting decisions
- Earnings per share versus increase in stock
- Impact of issuance of additional stocks
- Swot analysis of Mutare Banana Company
- Business risks for Mutare Banana Company
- Financial ratios
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This text explores various financial principles and concepts, providing insights into how companies are valued, analyzed, and managed. The author delves into key financial metrics, techniques for project evaluation, and methods for capital budgeting.
- Company Valuation
- Financial Ratio Analysis
- Capital Budgeting and Investment Decisions
- Financial Instruments and Sources of Funding
- Business Risk and Strategic Analysis
Zusammenfassung der Kapitel (Chapter Summaries)
- Market capitalization versus book value of a company: This chapter examines two key methods for valuing a company: market capitalization, which reflects the market price of shares, and book value, which is determined by the company's net worth. The author discusses the factors influencing market capitalization and the significance of each valuation method for different stakeholders.[1,2,3,4,5]
- Ratios used for analyzing performance of a company: This section focuses on ratios used for analyzing a company's performance. It delves into specific ratios like inventory turnover and cash realization cycle, providing insights into the efficiency and liquidity of a business.[6]
- Net present value of a project: This chapter explores the concept of net present value (NPV), a fundamental technique for evaluating the profitability of investment projects. It discusses how to calculate NPV and its importance in capital budgeting decisions.
- Capital budgeting: This chapter provides a detailed analysis of capital budgeting, a process used by companies to make investment decisions. It examines various methods for evaluating investment proposals, such as NPV, internal rate of return (IRR), and payback period.
- Stock and bond yield: This chapter explores the concept of yield for stocks and bonds. It discusses the different types of yields, how they are calculated, and their implications for investors.
- Financial instruments: This chapter provides an overview of various financial instruments, including stocks, bonds, and derivatives. It discusses the characteristics, uses, and risks associated with each type of instrument.
- Cash realization cycle 2: This chapter delves deeper into the cash realization cycle, examining the factors that influence its duration and how it impacts a company's liquidity.[6]
- Sources of funds: This chapter explores different sources of funds for companies, including equity financing, debt financing, and hybrid financing. It discusses the advantages and disadvantages of each source and how companies choose the most appropriate financing method.[6]
- Procedure for issuance of bonds: This chapter explains the process involved in issuing bonds. It discusses the various stages, from determining the bond's terms and conditions to marketing and selling the bonds to investors.
- Cost of capital versus capital budgeting decisions: This chapter examines the relationship between the cost of capital and capital budgeting decisions. It discusses how the cost of capital influences investment choices and the importance of aligning investment projects with the company's overall cost of capital.[6]
- Earnings per share versus increase in stock: This chapter explores the relationship between earnings per share (EPS) and stock price. It discusses how earnings growth can affect stock valuation and the importance of understanding this relationship for investors.
- Impact of issuance of additional stocks: This chapter analyzes the impact of issuing additional shares on a company's financial performance. It discusses the dilution effect, the potential for increased liquidity, and the factors influencing the decision to issue new shares.
- Swot analysis of Mutare Banana Company: This chapter presents a SWOT analysis of a specific company, Mutare Banana Company. It identifies the company's strengths, weaknesses, opportunities, and threats, providing insights into its competitive position and potential for growth.
- Business risks for Mutare Banana Company: This chapter examines the business risks faced by Mutare Banana Company. It discusses various types of risks, including market risk, financial risk, and operational risk.[7]
- Financial ratios: This chapter provides an overview of various financial ratios used for evaluating the performance of Mutare Banana Company. It discusses how these ratios can provide insights into the company's profitability, liquidity, and efficiency.[7]
Schlüsselwörter (Keywords)
This text focuses on key financial principles and concepts such as company valuation, market capitalization, book value, financial ratios, inventory turnover, cash realization cycle, net present value, capital budgeting, stock and bond yield, financial instruments, cost of capital, earnings per share, SWOT analysis, and business risk. It utilizes these concepts to analyze the financial performance of companies and make sound investment decisions.
- Quote paper
- Mashell Chapeyama (Author), 2014, Principles of Finance, Munich, GRIN Verlag, https://www.grin.com/document/272813
