Finance assignment help


Published on has a specific unit dedicated to serving the finance projects needs of the students. These finance projects are finance solutions required by students as part of their final finance dissertation or finance thesis submission or may be required as part of course ware

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Finance assignment help

  1. 1. he l p ssign mentFina nce a
  2. 2. FinanceMoney required for carrying out business activities iscalled finance.Finance is needed to:  Establish a business  To run a business  To modernize , expand and diversify the activities of business.  For buying the assets; they may be tangible like machinery, factories, building etc. or intangible such as trademark, patent etc.  For running day- to day operations such as buying raw materials, paying wages, salaries etc.
  4. 4. Types of business finance onthe basis of period: Long term finance Medium term finance Short term finance
  5. 5. Long term financeFunds which are required to be invested in a businessfor a long period of time, that is more than five yearsare known as long term finance.FEATURES OF LONG TERM FINANCE  Used for acquiring fixed assets like machinery, land, building.  It is required for expansion projects and adoption of innovative techniquesMETHOD OF RAISING LONG TERM FUNDSIssue of shares, debentures and long term loans.REQUIRED BYLarge scale enterprises
  6. 6. Medium term financeIt is the finance required by business enterprises formore than one year but less than five years isknown as medium term finance.FEATURES OF MEDIUM TERM FINANCE  Used for introduction of new products, modernization of plant and machinery.METHOD OF RAISING MEDIUM TERM FINANCEAccepting public deposits, medium term loans etc.REQUIRED BYManufacturing industries
  7. 7. Short term financeIt is the finance required for a short period upto oneyear is known as short term finance.FEATURES OF SHORT TERM FINANCE  Used to meet day- to – day requirements such as holding stock of raw materials, spare parts.METHOD OF RAISING SHORT TERM FINANCECredit granted in trade, short term loans fromcommercial banks, commercial paper, factoringREQUIRED BYTrading companies
  9. 9. Owner’s fundIt refers to the funds contributed by theowners as well as the accumulated profit ofthe company. For e.g.: equity shares, retainedearningFEATURES: 1. Source of permanent capital 2. Provision of risk capital 3. No security required
  10. 10. Borrowed fundsIt refers to the borrowing of the firm. Itincludes all funds available by way of loans orcredit.FEATURES 1. Need to give security 2. Regular payment of interest has to be made. 3. Holders do not get the right to control and manage the activities of the firm.
  11. 11. METHODS OF RAISING FINANCE Retained earning Trade credit Public deposits Commercial paper Shares Debentures Commercial bank Financial institution International financing
  12. 12. Retained earningIt refers to undistributed profits after paymentof dividend and taxes.FEATURES:  Cushion of security  Funds for new and innovative projects  Medium and long term finance provider  Conversion into ownership funds  No cost  No fixed liability  No security required
  13. 13. Trade creditIt refers to an arrangement where by amanufacturer is granted credit from thesupplier of raw material, input, spare part etc.generally the duration is of 3- 6 months. It isshort term financing facility.FEATURES  Readily available  Flexible  No floatation cost
  14. 14. Public depositsIt refers to unsecured deposits invited fromthe public.FEATURES  Need no security as raised from public  Simple procedure to raise fund for the duration of six months to 3 years.  Reduction in tax liability  No dilution of control
  15. 15. Commercial paperIt is an unsecured promissory note issued byprivate and public sector companies with a fixedmaturity period of 3 to 12 moths. These aregenerally issued by companies having a goodreputation.FEATURES  These are freely negotiable instruments  Cost of issuing is very low  Continuous source of fund  Companies can also invest their money in discounting the commercial paper.
  16. 16. shareShare is the smallest unit in which owner’scapital of the company is divided. According to companies act, apublic company can issue two types of shares:Equity sharesPreference shares
  17. 17. Equity sharesIt is a common security issued under permanentor owner’s fund capital. Equity shareholders arecalled the real owners of the company.FEATURES  Primary risk bearers of the company  Claim over the left over income only  Equity shareholders have the control over the activities of the company  At the time of high profit, shareholders enjoy higher profit
  18. 18. Preference sharesThese are those share which get preferenceover equity shares in respect to:The payment of dividendRepayment during winding upFEATURES  Fixed rate of dividend  No security  Voting power  Help to collect large amount of funds
  19. 19. debenturesThey are common securities of borrowed fundcapital. It can be defined as ‘ a document or acertificate’ issued by a company under its sealas an acknowledgement of its debtFEATURES  Fixed rate of interest  No voting rights  Security required  Redeemable i.e. can be redeemed or pay back on expiry of fixed period
  20. 20. Commercial banksThey provide funds for different purposes anddifferent period. Generally commercial banksprovide short and medium term loans.MERITS  Bank keep the information of borrower confidential  No formalities of issue of prospectus  Very flexible source of loan
  21. 21. Financial institutionsThey are leading institution or development banksthat provide financial assistance and guidance toindustries and business enterprises.FEATURES  Provide medium and long term loan  Provide financial as well as managerial advice  Underwrite the public issue of shares and debentures  Provide loan guarantee
  22. 22. International source of financeThe main securities used by Indian companiesto tap international source of finance aregiven below:  Loans from commercial bank  International agencies and development banks  International capital market 1. GDR 2. ADR 3. FCB
  23. 23. Financial management It refers to efficient acquisition of finance,efficient utilization of finance and efficientdistribution and disposal of surplus for smoothworking of company. ORIt is mainly concerned with efficient acquisionand allocation of funds.
  24. 24. Objectives of financial management PROFIT MAINTENANCE OF MAXIMISATION LIQUIDITY Maximization of wealth of equity shareholder PROPER MEETINGS OF UTILISATION OF FINANCIAL FUNDS COMMITMENTS
  25. 25. FINANCIAL DECISIONS: INVESTMENT DECISIONa) Capital budgetingb) Working Capital) FINANCING DECISIONa) Debtb) Equity) DIVIDEND DECISIONa) Profitb) Retained earning
  26. 26. Capital structureIt means the proportion of debt and equityused for financing the operations of businessCAPITAL STRUCTURE= DEBT/ EQUITYCapital structure should be such that itincreases the value of equity share asmaximizes the wealth of equity shareholders
  27. 27. Working capital It refers to excess of current assets overcurrent liabilities  GROSS WORKING CAPITAL:This refers to investment in all the currentassets such as cash, prepaid expenses.  NET WORKING CAPITALThis refers to excess of current assets overcurrent liabilities. It indicates the liquidityposition of the company,
  28. 28. For further Info : (USA)+44-117-230-1145 (UK)+61-7-5641-0117 (AUS)support@myassignmenthelp.net