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Financial Management, Objectives, Investment Decision, Factors, Meaning -…

- - - - Factors
        
        Risk
        
        Floatation Costs
        
        Cost
        
        Cash flow position
        
        Fixed operating costs
        
        Control Considerations
        
        State of Capital Market
    - - Amount of earnings
      - Stability of earnings
      - Stability of dividends
      - Growth opportunities
      - Cash flow positions
      - Shareholders preference
      - Taxation policy
      - Stock market reaction
      - Access to capital market
      - Legal constraints
      - Contractual constraints
    - - Decision about the firms funds invested in assets.
        
        Working Capital Decision (short term)
        
        Capital Budgeting Decisions(Long term)
        
        Factors
        
        Rate of Return
        
        1 more item...
        
        Investment criteria
        
        Calculations regarding the overall investment
        
        Cash Flows
        
        Series of Cash flows to be considered
- - - - Capital structure =Debt/Equity or Debt/Debt+Equity
      - Debt to Equity ratio=2:1
      - ROI= EBIT/Total investment x100
      - Total Capital = Debt + Equity
      - EBT= EBIT- Interest
      - EAT=EBT- Tax
      - EPS=EAT/No. of shares
      - ICR= EBIT/Interest
      - DCSR= Profit after tax+Depreciation +Interest+ Non cash
        expenses / Preference dividend + Repayment obligation
- - - - Business Cycle
        
        Seasonal Factor
        
        Scale of Operations
        
        Production Cycle
        
        Nature of Business
        
        Credit allowed
        
        Credit availed
        
        Operating Efficiency
        
        Availability of raw material
        
        Growth Prospects
        
        Level of Competition
        
        Inflation
  - - - Choice of technique
      - Frequency of technology upgradation
      - Scale of Operations
      - Diversification of plan(New product)
      - Availability of alternatives(E.g. Leasing)
      - Growth Prospects
      - Nature of Business
      - Level of collaboration