Introduction: Option is a contract between the buyer and the seller that gives the right, not an obligation, to buy or sell a particular asset at a later date on a fixed price. For buying a call option is used and to sell a Put option is used. Though this practice exists for centuries but was properly introduced in exchange in 1973. The first stable equilibrium model was presented by Fischer Black and Myron Scholes. In 1979 John Cox, Stephen Ross and Mark Rubinstein published their most famou...
RATIO ANALYSIS Ratio Analysis is a technique used for financial analysis in which the figures are converted according to the ratios allotted for some useful assessment in comparison with the ratios of the past years and setting a bench-mark for the future years. This technique is very useful so as to establish the trends and bring in light, the strengths and weaknesses of the firm. The ratio analysis includes ratios that which are made up from the financial statements of the firm and includes...
Merger and Acquisition Mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity. M&A Activities in India: In 2007, there were a total of 676 M&A deals and 405 private equity deals, in 2007, the total value of M&A and PE deals was USD...
Fifty golds in Olympics : Can this be a reality for INDIA? Olympics is one of the oldest known sporting competitions which dates back to 8th century B.C.And now the new edition is being held since 1894 and India is participating in it from 1900.Since then it is struggling to improve its medal profile but continues to lag behind in the list with a total of mere 9 gold medals.Out of 9,eight medals were won by the Indian Hockey Team and one by Abhinav Bhindra in the shooting event.Given this det...
Capital Budgeting is the process by which the firm decides which long-term investments to make. Capital Budgeting projects, i.e., potential long-term investments, are expected to generate cash flows over several years. The decision to accept or reject a Capital Budgeting project depends on an analysis of the cash flows generated by the project and its cost. To find the attractiveness of any investment proposal, the financial manager should keep in mind following things;- The amount expended T...
Introduction: The corporate cost of capital often referred to the WACC is the rate of return that is required by the firm's investors. It is the weighted average of the firms cost of equity and debt. When a firm is making capital budgeting decisions, the firms WACC is the benchmark rate used to determine the feasibility of a project. Projects which present with an amount higher than the firms WACC are accepted. The recent financial crisis relating to the US subprime mortgage crisis had an unf...
None of the method is superior that the other and both methods would yield vital data. However it all depends upon what the emphasis of the researcher is. The deductive approach is more suitable when there is already abundant literature present and hence the theoretical framework and hypotheses can be developed easily. Else it would have been appropriate to use inductive approach if the area of study is relatively new and sufficient literature does not exist, where the data is analyzed and st...
Table of Contents 1.1 Explain the importance of the essential elements required for the formation of a valid contract Agreement Consideration Intention to create legal relations 1.2 Discuss the impact of different types of contract Unilateral contract Bilateral contract Written contract Oral or verbal agreement 1.3 Analyse terms in contracts with reference to their meaning and effect Conditions Warranties Innominate Exclusion clause Implied term 2.1 Apply the elements of contract in given bus...
Graded Assignment Planning a Narrative Essay The questions below will help you plan your narrative. You may have already answered some of them in your Student Guide, so refer to your Student Guide, if you wish. Total score: ____ of 50 points (Score for Question 1: ___ of 10 points) Write the belief statement you have chosen for your narrative essay. Be sure to write it in a complete sentence. Answer: I believe that everyone should have respect for their parents. (Score for Question 2: ___ of ...
Corporate finance Corporate value maximization coupled with proper management of financial risks brings up a need for strong financial decisions through efficient corporate finance management. Decisions on major corporate activities such as capital investment, working capital management and financial risk management require vast knowledge and skills on corporate finance. Finance managers ere faced with difficulties in making decision especially where various alternative course of actions are ...
