Financial Management

Explain the considerations which are required to be kept in mind while choosing accounting software.

Leave a Comment / BCOC-131 /

Introduction With the advancement of technology, most businesses today rely on accounting software to maintain accurate and timely financial records. Selecting the right accounting software is a crucial decision for any organization, regardless of size. The choice of software affects not only the efficiency of financial operations but also compliance, reporting, and decision-making. Considerations While […]

Explain the considerations which are required to be kept in mind while choosing accounting software. Read More »

What is Audit? Why is it important?

Leave a Comment / BCOE-144 Office Management and Secretarial Practices /

Introduction Audit is a systematic examination of books, accounts, documents, and vouchers of an organization to verify the correctness and fairness of its financial statements. It ensures compliance with statutory regulations and internal policies, thereby providing credibility to the financial reporting process. Definition of Audit Audit refers to the independent review and examination of financial

What is Audit? Why is it important? Read More »

BCOE – 143 Fundamentals of Financial Management: Assignment Solutions Master Post

Leave a Comment / BCOE – 143 FUNDAMENTALS OF FINANCIAL MANAGEMENT /

Introduction This post includes direct links to the answers for all the questions from the BCOE – 143 Fundamentals of Financial Management assignment for IGNOU students. Each answer is designed to help you understand key concepts clearly and easily. Section A What is capital asset pricing model and arbitrage pricing theory? Differentiate between them. Discuss

BCOE – 143 Fundamentals of Financial Management: Assignment Solutions Master Post Read More »

Distinguish between: a) Equity shares and Preference share b) Net income approach and net operating income approach

Leave a Comment / BCOE – 143 FUNDAMENTALS OF FINANCIAL MANAGEMENT /

a) Equity Shares vs. Preference Shares Point of Difference Equity Shares Preference Shares Ownership Represents ownership in the company with voting rights No ownership rights; generally no voting rights Dividend Paid after preference shareholders; not fixed Fixed rate of dividend paid before equity holders Repayment Repaid after all liabilities in case of liquidation Priority in

Distinguish between: a) Equity shares and Preference share b) Net income approach and net operating income approach Read More »

Write short notes on: a) Financial leverage b) Gordon’s model of dividend

Leave a Comment / BCOE – 143 FUNDAMENTALS OF FINANCIAL MANAGEMENT /

a) Financial Leverage Definition:Financial leverage refers to the use of debt in the capital structure of a company to enhance the return on equity. It measures the sensitivity of earnings per share (EPS) to changes in operating income due to the presence of fixed financial charges like interest. Formula:Financial Leverage = EBIT / EBTWhere:EBIT =

Write short notes on: a) Financial leverage b) Gordon’s model of dividend Read More »

Explain the concepts of factoring and forfaiting.

Leave a Comment / BCOE – 143 FUNDAMENTALS OF FINANCIAL MANAGEMENT /

Introduction Factoring and forfaiting are two important financial tools used by businesses to manage their receivables and enhance cash flow. These mechanisms provide working capital by converting outstanding invoices or future receivables into immediate cash. Although both serve similar purposes, they differ significantly in structure, risk, and applicability. Factoring Definition:Factoring is a financial arrangement in

Explain the concepts of factoring and forfaiting. Read More »

Discuss the conditions under which dividends can’t be declared.

Leave a Comment / BCOE – 143 FUNDAMENTALS OF FINANCIAL MANAGEMENT /

Introduction Dividends are the portion of profits distributed to shareholders as a return on their investment. However, companies are not always in a position to declare dividends. Legal, financial, and operational constraints may restrict dividend declarations. This article discusses various conditions under which a company cannot declare dividends. 1. Inadequate Profits or Losses A company

Discuss the conditions under which dividends can’t be declared. Read More »

Explain the dual method for the valuation of shares.

Leave a Comment / BCOE – 143 FUNDAMENTALS OF FINANCIAL MANAGEMENT /

Introduction The valuation of shares is essential in investment decisions, mergers, acquisitions, and financial reporting. Among the different techniques, the dual method combines two approaches to derive a more balanced and accurate valuation. This method is particularly useful when market data is incomplete or when both dividend potential and asset backing are relevant. What is

Explain the dual method for the valuation of shares. Read More »

What is payback period? Explain the acceptance criteria using payback period method.

Leave a Comment / BCOE – 143 FUNDAMENTALS OF FINANCIAL MANAGEMENT /

Introduction The payback period is a capital budgeting technique used to evaluate the time it takes for an investment to recover its initial cost from its cash inflows. It is a simple and widely used method to assess the risk and liquidity of investment projects. This article defines the payback period, explains how it is

What is payback period? Explain the acceptance criteria using payback period method. Read More »

Explain future value and present value of money giving examples.

Leave a Comment / BCOE – 143 FUNDAMENTALS OF FINANCIAL MANAGEMENT /

Introduction The concepts of Future Value (FV) and Present Value (PV) are central to the understanding of the time value of money—a foundational principle in finance. They help in evaluating investments, loans, and financial planning decisions by accounting for the impact of time and interest on money. Future Value (FV) Definition:Future Value refers to the

Explain future value and present value of money giving examples. Read More »

Disabled !