BCOE – 143 FUNDAMENTALS OF FINANCIAL MANAGEMENT

Explain different stages involved in operating cycle. Distinguish between gross operating capital and net working capital.

Introduction The operating cycle, also known as the cash conversion cycle, is a key concept in financial management. It refers to the time taken by a business to convert its investments in inventory and other inputs into cash flows from sales. Understanding its stages and the associated concepts of gross operating capital and net working […]

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Discuss NPV method for making capital budgeting decisions with suitable examples.

Introduction The Net Present Value (NPV) method is one of the most widely used techniques for evaluating investment and capital budgeting decisions. It considers the time value of money and provides a clear indication of whether a project will generate value for the firm. This article explains the NPV method, its process, benefits, and includes

Discuss NPV method for making capital budgeting decisions with suitable examples. Read More »

What is capital asset pricing model and arbitrage pricing theory? Differentiate between them.

Introduction The Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT) are two widely used models in financial management for determining the expected return on investments and assessing risks. While both models aim to price assets considering their risk, they are based on different assumptions and methodologies. This article explores the concepts of CAPM

What is capital asset pricing model and arbitrage pricing theory? Differentiate between them. Read More »

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