Short-term Funding Choices
Regular assessment of short-term funding aims to ensure that a company has the ability to handle peak cash needs and maintain sufficient sources of credit to fund ongoing cash needs. Short-term Funding The short-term funding alternatives that are available to…
Describe Corporate Governance
[vsw id=”KxjLLIVuAg0″ source=”youtube” width=”611″ height=”344″ autoplay=”no”] Corporate governance may be defined as the system of internal controls, processes, and procedures by which a company is managed, directed, or controlled. Weak corporate governance practices have resulted in the failures of many…
A Company’s Stakeholder Groups
[vsw id=”KxjLLIVuAg0″ source=”youtube” width=”611″ height=”344″ autoplay=”no”] Corporate governance systems can be influenced by several stakeholder groups which may or may not have conflicting interests. A company’s primary stakeholder groups include its shareholders, creditors, managers, other employees, customers, suppliers, governments or…
Relationships in Corporate Governance
[vsw id=”KxjLLIVuAg0″ source=”youtube” width=”611″ height=”344″ autoplay=”no”] The term ‘Principal-agent relationship’ or just simply, ‘Agency relationship’ is used to describe an arrangement where one entity, the principal, legally appoints another entity, the agent, to act on its behalf by providing a…
Factors in Investment Analysis
[vsw id=”KxjLLIVuAg0″ source=”youtube” width=”611″ height=”344″ autoplay=”no”] Environmental, social and governance factors are collectively referred to by the acronym “ESG.” ESG integration is the practice of considering environmental, social, and governance factors in the investment process. Ideally, ESG integration should be…
Beta and Cost of Capital of a Project
[vsw id=”I_SgGrDv1YM” source=”youtube” width=”611″ height=”344″ autoplay=”no”] When estimating the cost of equity using the Capital Asset Pricing Model (CAPM), a reliable estimate of beta must be used. The beta for a company that is not publicly traded may be estimated…
Marginal Cost of Capital Schedule
[vsw id=”I_SgGrDv1YM” source=”youtube” width=”611″ height=”344″ autoplay=”no”] The cost of the different sources of capital tends to change as a company raises additional capital, thereby resulting in a change in its weighted average cost of capital (WACC). The marginal cost of…
Flotation Costs
[vsw id=”I_SgGrDv1YM” source=”youtube” width=”611″ height=”344″ autoplay=”no”] Flotation costs are expenses that are incurred by a company during the process of raising additional capital. The value of these flotation costs is related to the amount and type of capital being raised….
Tools of Fiscal Policy
[vsw id=”KKHi1HKTpD4″ source=”youtube” width=”611″ height=”344″ autoplay=”no”] The government possesses two major fiscal tools for influencing the economy. These tools can be divided into spending tools and revenue tools. Spending tools refer to the overall government spending. On the other hand,…
