Financial Mgt

Dividend Policy ( Summary With Examples )

Dividend policy refers to how a company decides whether to pay dividends, how much to pay, and when to pay

Determine cost of equity using CAPM (capital asset pricing model) Cost of Equity = Risk-Free Rate + Beta * (Market

Financial Market and The Corporation Financial markets: Markets in which financial assets are traded. Financial markets function as both primary

Goals of Financial Management To maximize the current value per share of the existing stock. Survive Avoid financial distress and

Financial Management Decision The financial manager must be concerned with three basic types of questions. Capital Budgeting decision: process of

Break Event Point for Service Company Break Even Point (BEP) is point that make company get zero profit. Zero profit

Break-even point (BEP) for very similar selling price and variable cost products Break-even point (BEP) is point (unit or dollar)

Hedging Interest Rate Risk Using Interest Rate Swap Interest rate swaps allow companies to exchange interest payments on an agreed

Hedging Interest Rate Risk Using Caps, Floors and Collars Interest rate cap: A cap involves using interest rate options to set

Hedging Interest Rate Risk Using Interest rate option Interest rate options allow businesses to protect themselves against adverse interest rate

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