Fundamentals of Financial Management

What do you mean by wealth maximization goal of the firm?

How does perpetuity differ from annuity?

What is beta coefficient and what objective does it serve?

What do you mean by financial risk?

Write the meaning and reasons of stock repurchase.

How does the operating BEP differ from cash BEP?

Mega Company expects next year's net income to be Rs 8 million. The firm's current debt ratio is 60 percent. The company has Rs 10 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual dividend model, how large should company's dividend payout ratio be next year?

A firm has DOL of 2 times and DFL of 3 times. Its net income is Rs 200,000. What is its degree of total leverage? If sales increases by 10 percent, what will be its new net income?

Sagarmatha Company uses 500,000 units of a product per year on a continuous basis. The product has carrying costs of Rs 10 per unit per year and fixed costs of Rs 1000 per order. What is its EOQ?

Delta Company's inventory conversion period is 40 days, and an average collection period is 50 days. Account payable is paid approximately 30 days after they arise. Calculate the firm's cash conversion cycle.