Accounting rate of return (ARR)
by Accounting rate of return (ARR) is also known as average rate of return. ARR is …
Tag: Management Principles and Applications Notes
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 …
Net Present Value
Net present value (NPV) is a discounted technique, which considers the time value of money. …
Over Capitalisation Causes and Remedies
Overcapitalization occurs when a company has issued more in debt and equity than its assets …
Payback Method
Payback method helps in revealing the payback period of an investment. Payback period (PBP) is …
Profitability Index
The profitability index is known as benefit cost ratio. PI is similar to the NPV …