Thursday, April 24, 2014
Wednesday, April 23, 2014
How to Evaluate Corporate Finance Project
Before Investing in the Company or before evaluating a Financial Project one must do his home Work
Here are the certain questions for which answer must be sought before putting your valuable asset i.e money into any New/ existing brown field project.
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Techniques of Financial Statement Analysis
Business
It is an interrelated system of financial resources
movement that is activated by the management decisions.
Management
It is the art of asking significance questions. The
process management is a series of economic choices that activates movement of
financial resources connected with business.
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Franchising
Franchising
A marketing system revolving around a two-party
agreement, whereby the franchisee conducts business according to the terms
specified by the franchisor
Franchisee
An
entrepreneur whose power is limited by a contractual agreement with a franchisor
Franchisor
The party in
the franchise contract that specifies the methods to be followed and the terms
to be met by the other party
The 20 Fastest-Growing Franchises in 2003
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Measuring Investments (Part-2)
The Working Capital Effect
Ø
Intuitively, money invested
in inventory or in accounts receivable cannot be used elsewhere. It, thus,
represents a drain on cash flows.
To the degree that some of these investments can be financed using
suppliers credit (accounts payable) the cash flow drain is reduced. . Investments in working
capital are thus cash outflows
1.
Any increase in working capital
reduces cash flows in that year
2.
Any decrease in working capital
increases cash flows in that year
3.
To provide closure, working
capital investments need to be salvaged at the end of the project life
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Tuesday, April 22, 2014
How can I do business on the web?
How can I do business on the web?
Essentially, doing business on the
Web can be broken down into five main requirements.
- On-Line Store
The obvious
requirement is an on-line store, or commerce-enabled Web site where goods or
services can be described and selected.
- Payment Processing
While it is
possible to run an on-line store without accepting on-line payments, this is
cumbersome and rarely successful. Accepting on-line payments is therefore
essential - and at the moment this means credit cards.
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E-Commerce
What do you mean by E-commerce?
E-commerce simply means buying and selling of goods
and services across the Internet
|
Advantages
and Disadvantages of E-Commerce
The major advantage to
a customer using this mode of shopping
are:
1. One can buy/sell items from anywhere using
one’s computer provided an internet connection is available.
2. The
shopping can be done 24 hours a day, 365 days in a year
- an internet based
shop never closes!
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Measuring Investments
Measuring Investment – (Returns
Measurement)
First Principles
Ø
Invest in projects that
yield a return greater than the minimum acceptable hurdle rate.
Ø
The hurdle rate should be
higher for riskier projects and reflect the financing mix used - owners’ funds (equity)
or borrowed money (debt)
Ø Returns on projects
should be measured based on cash flows generated and the timing of these cash
flows; they should also consider both positive and negative side effects of
these projects.
Ø
Choose a financing mix that
minimizes the hurdle rate and matches the assets being financed.
Ø
If there are not enough
investments that earn the hurdle rate, return the cash to stockholders.
Ø
The form of returns -
dividends and stock buybacks - will depend upon the stockholders’ characteristics.
Success Quotes
What counts is not the
number of hours you put in, but how much you put in the hours.
— Unknown wise person
After my spectacular failures, I could not be satisfied with an ordinary success.
— Mason Cooley
To Read more Click the Heading " Success Quotes"
— Unknown wise person
After my spectacular failures, I could not be satisfied with an ordinary success.
— Mason Cooley
To Read more Click the Heading " Success Quotes"
Monday, April 21, 2014
Personal Finance Tips
Savings
There are different reasons to save, and different approaches depending on what you are trying to achieve. One overall savings goal is to put money away for a rainy day; anything from health related problems, for repairs to a house or car, or an interruption to employment. Most experts say to put three months salary away to cushion life's little emergencies.
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There are different reasons to save, and different approaches depending on what you are trying to achieve. One overall savings goal is to put money away for a rainy day; anything from health related problems, for repairs to a house or car, or an interruption to employment. Most experts say to put three months salary away to cushion life's little emergencies.
To Read more Click heading :
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