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प्रश्न
Name the concept of financial management which increases the return to equity shareholders due to the presence of fixed financial charges.
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उत्तर
The concept of financial management which increases the return to equity shareholders due to the presence of fixed financial charges is called trading on equity. When the rate of earning of the return on investment of a company is higher than the rate of interest on the borrowed funds only then a company should adopt for trading on equity.
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संबंधित प्रश्न
What is meant by financial management?
Answer the following question.
State the objective of ' Financial Management '.
Define current assets? Give four examples of such assets.
‘S’ Limited is manufacturing steel at its plant in India. It is enjoying a buoyant demand for its products as economic growth is about 7 to 8 per cent and the demand for steel is growing. It is planning to set up a new steel plant to cash on the increased demand. It is estimated that it will require about `5000 crores to set up and about Rs. 500 crores of working capital to start the new plant.
a. Describe the role and objectives of financial management for this company.
b. Explain the importance of having a financial plan for this company. Give an imaginary plan to support your answer.
c. What are the factors which will affect the capital structure of this company?
d. Keeping in mind that it is a highly capital-intensive sector, what factors will affect the fixed and working capital. Give reasons in support of your answer.
Answer the following question.
Give the meaning of Financial Management.
The cheapest source of finance is
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Which of the following statement is false regarding financial management?
For optimal procurement of funds, a finance manager identifies different available sources and compares those items in terms of cost and associated risks. Identify concept highlighted in the above lines.
Which of the financial decisions is about the quantum of finance to be raised from various long-term sources?
