MBA NOTES:MBA NOTES

Agency Problem When there is a conflict between the management and shareholder is called agency problem. This problem can be reduced not finished. How to reduced the Agency Problem Threat of Job loss Stock offering Monitoring Centralized Decision FINANCIAL MANAGEMENT DECISION AREA OF FINANCIAL MANAGEMENT AGENCY PROBLEM TYPES OF BUSINESS FINANCIAL SYSTEM FINANCIAL INTERMEDIARIES TYPES OF FINANCIAL MARKETS TIME VALUE OF MONEY EXAMPLES AND FORMULA TIME VALUE OF MONEY CASH FLOW,SUM,SERIES OF CASH, ANNUITY AND MIX STREAM ANNUITY TYPES AND FORMULA AMORTIZATION SCHEDULE OR TABLE WITH EXAMPLE EFFECTIVE INTEREST RATE WITH EXAMPLE VALUATION OF LONG TERM SECURITIES (BONDS) TYPES OF BONDS BONDS FORMULA,ZERO COUPON PERPETUAL VALUATION OF LONG TERM SECURITIES (SHARE) CASH AND MARKETABLE SECURITIES MANAGEMENT MANAGING CASH INFLOW AND OUTFLOW SECURITIES MANAGEMENT SHORT TERM FINANCING SPONTANEOUS LABILITIES NEGOTIATED FINANCE CAPITAL BUDGETING CAPITAL BUDGETING TEC...

Decision Area of Financial Management Investment Decision: In "investment decision" financial manager evaluate and select the best opportunity in available opportunities. Financial Decision: Which source of finance is most suitable resource either "debt finance" or "equity finance". Assets Management Decision: In this area the manager select which combination of assets are the most suitable combination for the company. keyword: investment, financial, assets management decision FINANCIAL MANAGEMENT DECISION AREA OF FINANCIAL MANAGEMENT AGENCY PROBLEM TYPES OF BUSINESS FINANCIAL SYSTEM FINANCIAL INTERMEDIARIES TYPES OF FINANCIAL MARKETS TIME VALUE OF MONEY EXAMPLES AND FORMULA TIME VALUE OF MONEY CASH FLOW,SUM,SERIES OF CASH, ANNUITY AND MIX STREAM ANNUITY TYPES AND FORMULA AMORTIZATION SCHEDULE OR TABLE WITH EXAMPLE EFFECTIVE INTEREST RATE WITH EXAMPLE VALUATION OF LONG TERM SECURITIES (BONDS) TYPES OF BONDS BONDS FO...

LIQUIDITY RATIOS WORKING CAPITAL: Working capital compares current assets to current liabilities and serves as the liquid reserve available to satisfy contingencies and uncertainties, A high working capital balance is mandated if the entity is unable to borrow on short notice. The ratio indicates the short-term solvency of a business and in determining if a firm can pay its current liabilities when due. Formula:     Current assets - Current liabilities ACID TEST OR QUICK RATIO: A measurement of the liquidity position of the business. The quick ratio compares the cash plus cash equivalents and accounts receivable to the current liabilities. the primary difference between the current ratio and the quick ratio is the quick ratio does not include inventory and prepaid expenses in the calculation. Consequently, a business's quick ratio will be lower than its current ratio. It is a stringent test of liquidity. Formula:   ...