Long term and Short term Capital
by Long term Capital “Long term” refers to the extended period of time that an asset …
Tag: Costing Methods & Techniques
Profitability Ratio
The management of a company cannot wait for the year to end to analyze their …
Solvency Ratios
Solvency Ratios also known as leverage ratios determine an entity’s ability to service its debt. So, …
Accounting rate of return (ARR)
Accounting rate of return (ARR) is also known as average rate of return. ARR is …
Capitalisation Concept
Capitalization is an accounting method in which a cost is included in the value of …
EBIT-EPS analysis for Capital Structure decision
EBIT-EPS analysis gives a scientific basis for comparison among various financial plans and shows ways …
Factors influencing Capital Structure
Size of Company: Small companies may have to rely on the founder’s money but as …
Internal Rate of Return
The IRR is used when the cost of the investment and the annual cash flows …
Introduction to Capital Structure Theories
Capital Structure means a combination of all long-term sources of finance. It includes Equity Share …
Over Capitalisation Causes and Remedies
Overcapitalization occurs when a company has issued more in debt and equity than its assets …