Financial managment

It aims at choosing the best investment and financing alternatives by focusing on their costs and benefits.

• Financial Planning

• Working capital

• Financial management

• Fixed capital

_________ is concerned with optimal procurement as well as usage of finance.

It refers to the increase in profit earned by the equity shareholders due to the presence of fixed financial charges like interest.

• Trading on equity

• Financial leverage

• Earnings per share

• Capital structure

. This decision is about the quantum of finance to be raised from various long-term sources

• Financial decision

• Capital budgeting decision

• Dividend decision

• Financing Decision

A public issue of equity may reduce the managements holding in the company and make it vulnerable to takeover. Identify the factors that affecting choice of capital structure

• Flexibility

• Control

• Tax rate

• Cost of equity