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-- ABOUT OUR COMPANY --
The short term decisions can be grouped
under the heading Working capital management. This subject
deals with the short-term balance of current assets and
current liabilities; the focus here is on managing cash,
inventories, and short-term borrowing and lending such as
the terms on credit extended to customers.
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Corp orate finance the discipline can be divided into long-term and short-term
decisions and techniques. Capital investment decisions are
long-term choices about which projects receive investment,
whether to finance that investment with equity or debt, and when
or whether to pay dividends to shareholders.
is an area of finance dealing with the
financial decisions corporations make and the tools and analysis
used to make these decisions. The primary goal of corporate finance
is to maximize corporate value while reducing the firm's financial
risks.
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In general, management must decide whether to invest in additional
projects, reinvest in existing operations, or return free cash as dividends
to shareholders. The dividend is calculated mainly on the basis of the
company's unappropriated profit. |
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Business prospects for the coming year. If
there are no positive opportunities, i.e. where returns exceed
the hurdle rate, then management must return excess cash to investors. These
free cash flows comprise cash remaining after all business expenses have
been met. |
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financing debt or equity and
expenditure framework within a given economy and under given
market conditions. One last theory about this decision is the
Market timing hypothesis which states that firms look for the
cheaper type of financing regardless of their current levels of
internal resources, debt and equity. |
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An emerging area in finance theory is
Right-financing whereby investment banks and corporations can
enhance investment return and company value over time by
determining the right investment objectives, policy framework,
institutional structure. |
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