tag:blogger.com,1999:blog-6612128516717784614Wed, 22 Jun 2016 22:07:19 +0000Articles on all money related matters like bonds, Capital budgeting, debentures, Investment, management, marketing, planning etc.http://forex-management-online.blogspot.com/noreply@blogger.com (CRUZ MARTIN)Blogger24125tag:blogger.com,1999:blog-6612128516717784614.post-5964979870205088543Mon, 26 Oct 2015 03:35:00 +00002015-10-25T20:40:13.081-07:00 In the new issue market, an investor's decision is influenced by the following three factors Company's ability for a good performance The underwriter behind the issue The method of distribution of shares Company's ability for a good performance The investor will analyze the ability of the company from the point of view of financial capacity, economic independence, technical competence, http://forex-management-online.blogspot.com/2015/10/factors-influencing-investment-decision.htmlnoreply@blogger.com (CRUZ MARTIN)0tag:blogger.com,1999:blog-6612128516717784614.post-6692893256995902700Sun, 25 Oct 2015 17:31:00 +00002015-10-25T10:49:00.159-07:00 What is a non-probability sampling? Non-probability sampling derives its control from the judgement of the investigator. In non-probability sampling, the cases are selected on bases of availability and interviewer judgement. Non-probability sampling has its strength in the area of convenience. Methods of non-probability sampling The important non-probability sampling methods include http://forex-management-online.blogspot.com/2015/10/non-probability-sampling-convenience.htmlnoreply@blogger.com (CRUZ MARTIN)0tag:blogger.com,1999:blog-6612128516717784614.post-8605578053518766136Sun, 25 Oct 2015 17:00:00 +00002015-10-25T10:00:57.861-07:00 What is a credit rating? Meaning: Credit rating is a mechanism by which the reliability and viability of a credit instrument is brought out. Credit rating reveals the soundness of any credit instruments issued by various business concerns for the purpose of financing their business. When a company borrows or when a businessman raises loan, the lenders are interested in knowing the http://forex-management-online.blogspot.com/2015/10/credit-rating-meaning-various-benefits.htmlnoreply@blogger.com (CRUZ MARTIN)0tag:blogger.com,1999:blog-6612128516717784614.post-8420127250445555356Sun, 25 Oct 2015 16:35:00 +00002015-10-25T09:35:41.407-07:00 There are a number of differences between hire purchase and leasing. They are given below Hire Purchase vs Leasing 1. Transfer of ownership: In Hire purchase, the agreement is entered for the transfer of ownership after a fixed period. But in Leasing it is only in financial lease, the ownership will get transferred. While in operating lease, the ownership is not transferred. 2. http://forex-management-online.blogspot.com/2015/10/top-10-differences-between-hire.htmlnoreply@blogger.com (CRUZ MARTIN)0tag:blogger.com,1999:blog-6612128516717784614.post-5199807684715871257Tue, 28 Jul 2009 12:24:00 +00002014-11-19T00:00:20.732-08:00 Akin to promissory notes, debentures are instruments for raising long term debt capital. Debentures holders are the creditors of the company. The obligation of the company towards its debenture holders is similar to that of a borrower who promises to pay interest and capital at specified times. Features Trustee When a debenture issue is sold to the investing public, a trustee is appointed http://forex-management-online.blogspot.com/2009/07/debenture-capital.htmlnoreply@blogger.com (FERRY)0tag:blogger.com,1999:blog-6612128516717784614.post-6054340735330459844Sun, 31 May 2009 16:24:00 +00002009-05-31T09:45:17.107-07:00The cost of debt capital (as well as preference capital) can be calculated fairly easily. This is because it entails a well-defined burden in terms of interest payment and principal payment. Estimating the cost of equity capital, however, is difficult as there is no fixed dividend or principal payment burden associated with it. Equity dividend is payable out of the earnings of the firm at the http://forex-management-online.blogspot.com/2009/05/calculating-cost-of-equity-capital.htmlnoreply@blogger.com (FERRY)0tag:blogger.com,1999:blog-6612128516717784614.post-1521071111969463341Mon, 11 May 2009 03:54:00 +00002009-05-10T20:56:23.627-07:00Planning and control are inter-linked and consecutive steps for the successful implementation of any programme. Planning done for incurring capital expenditure is followed by control devices to assess the divergences between the expected and achieved results. Control for capital expenditure is expressed keeping in view the above objective.It may be recalled that capital expenditure is classified http://forex-management-online.blogspot.com/2009/05/capital-expenditure-control.htmlnoreply@blogger.com (FERRY)0tag:blogger.com,1999:blog-6612128516717784614.post-6688920582414549220Mon, 04 May 2009 17:25:00 +00002009-05-04T10:31:42.533-07:00The rationale behind the capital budgeting decisions is efficiency. A firm has to continuously invest in new plant or machinery for expansion of its operations or replace worn out machinery for maintaining and improving efficiency. The main objective of the firm is to maximize profit either by way of increased revenue or by cost reduction. Broadly, there are two types of capital budgeting http://forex-management-online.blogspot.com/2009/05/rationale-of-capital-budgeting.htmlnoreply@blogger.com (FERRY)0tag:blogger.com,1999:blog-6612128516717784614.post-5868327686211411392Mon, 04 May 2009 17:15:00 +00002009-05-04T10:24:07.090-07:00Capital investment decisions are not governed by one or two factors, because the investment problem is not simply one of replacing old equipment by a new one, but is concerned with replacing an existing process in a system with another process which makes the entire system more effective. We discuss below some of the relevant factors that affects investment decisions: (i) Management Outlook: lf http://forex-management-online.blogspot.com/2009/05/factors-influencing-investment-decision.htmlnoreply@blogger.com (FERRY)0tag:blogger.com,1999:blog-6612128516717784614.post-6575105303705139834Thu, 30 Apr 2009 09:21:00 +00002009-04-30T02:25:05.554-07:00There are two different approaches, as discussed below, for determining the cost of goods sold in a manufacturing concern.Absorption costing:Under the traditional method of accounting all the costs incurred in manufacturing, irrespective of their behavior with respect to volume, are regarded as product costs and included in the cost of the manufactured product. This method is referred to as http://forex-management-online.blogspot.com/2009/04/flow-of-costs.htmlnoreply@blogger.com (FERRY)0tag:blogger.com,1999:blog-6612128516717784614.post-5265534036071015969Thu, 30 Apr 2009 09:19:00 +00002009-04-30T02:21:33.814-07:00One of the basic purposes of a system of cost accounting is to determine the cost of products (or services). This information is required, inter alia, for estimating the cost of goods sold and valuing inventories. This chapter discusses the framework for cost determination. It is organized into five sections as follows: * Elements of cost * Flow of costs * Product costing * Problems in http://forex-management-online.blogspot.com/2009/04/cost-and-management-accounting-elements.htmlnoreply@blogger.com (FERRY)0tag:blogger.com,1999:blog-6612128516717784614.post-3931867998539199739Tue, 28 Apr 2009 17:32:00 +00002009-04-28T10:33:35.490-07:00Capital budgeting decisions are of paramount importance in financial decision. So it needs special care on account of the following reasons:1. Long-term Implications: A capital budgeting decision has its effect over a long time span and inevitably affects the company’s future cost structure and growth. A wrong decision can prove disastrous for the long-term survival of firm. On the other hand, http://forex-management-online.blogspot.com/2009/04/importance-of-capital-budgeting.htmlnoreply@blogger.com (FERRY)0tag:blogger.com,1999:blog-6612128516717784614.post-5005394887414942406Tue, 28 Apr 2009 05:33:00 +00002015-12-01T23:51:39.046-08:00 It is the design analysis process and decision-making in its various phases, the capital budgeting reflects the overview of a company and its steps to achieve the goals. Thus, the capital budgeting is the process of evaluating and selecting long-term investments consistent with the company's objective to maximize the wealth of the owners. Reasons to prepare a Capital Budget 1. Expansion - http://forex-management-online.blogspot.com/2009/04/what-is-capital-budgeting.htmlnoreply@blogger.com (FERRY)0tag:blogger.com,1999:blog-6612128516717784614.post-9082259774602020927Mon, 27 Apr 2009 03:29:00 +00002009-04-26T20:48:19.985-07:00The Industrial Development bank of India (IDBI) was established on July 1, 1964 under an Act of Parliament as the principal financial institution for industrial development in the country. IDBI caters to the growing and diverse needs of medium and large scale industries with the main objective of providing financial assistance and coordinating the working of institutions engaged in financing, http://forex-management-online.blogspot.com/2009/04/industrial-developmental-bank-of-india.htmlnoreply@blogger.com (FERRY)0tag:blogger.com,1999:blog-6612128516717784614.post-5712160994950074942Sat, 25 Apr 2009 03:52:00 +00002009-04-24T20:59:47.527-07:00The bulk of term finance required by large and medium industry is provided by term lending institutions which include all India Institutions viz. Industrial Development Bank of India (IDBI), Industrial Finance Corporation of India (IFCI), Industrial Reconstruction Bank of India (IRBI), Small Industries Development Bank of India (SIDBI), etc.Financial Institutions channel the funds mobilized by http://forex-management-online.blogspot.com/2009/04/term-loans-from-financial-institutions.htmlnoreply@blogger.com (FERRY)0tag:blogger.com,1999:blog-6612128516717784614.post-5650461893606185801Wed, 01 Apr 2009 17:22:00 +00002009-04-01T11:01:35.332-07:00Internal finance is also known as self financing by a company. Internal finance includes the funds generated within the corporate unit irrespective of the nature of source. In other words the extent of profitability after tax, the size of dividend payments and the amount of depreciation provided for along with the reserves and surplus all contribute to the sources of internal funds and these http://forex-management-online.blogspot.com/2009/04/internal-funds-as-source-of-finance.htmlnoreply@blogger.com (FERRY)0tag:blogger.com,1999:blog-6612128516717784614.post-3623263755466807361Mon, 12 Jan 2009 14:41:00 +00002009-01-12T07:00:49.529-08:00Importance of debentures and bonds in the capital structure of a company is very significant particularly due to the following reasons:1. Debentures holders or suppliers of loan capital have no controlling interest in the company.2. Finance is available for a fixed period with certainly and thus the company can adjust its investment plans suitably by taking into account the funds available.3. It http://forex-management-online.blogspot.com/2009/01/importance-of-debentures.htmlnoreply@blogger.com (Pelister)0tag:blogger.com,1999:blog-6612128516717784614.post-8779552863645717452Wed, 31 Dec 2008 17:25:00 +00002008-12-31T09:28:13.035-08:00Recent developments in forex management in India are undergoing rapid transformation. It is increasingly getting integrated within the broad ambit of financial markets. Over the last fifteen years, momentus changes have happened in the financial sector. The global foreign exchange markets have grown manifold in the recent years. The BIS Triennial Central Bank Survey on forex and derivatives http://forex-management-online.blogspot.com/2008/12/forex-management-recent-developments.htmlnoreply@blogger.com (Pelister)0tag:blogger.com,1999:blog-6612128516717784614.post-8588764616002448929Fri, 21 Nov 2008 11:08:00 +00002008-11-22T07:06:04.401-08:00Capital account and, by extension, full convertibility of the rupee has emerged as an often debated issue in the context of the liberalization process in India.It is worth nothing, at the outset, that India is not alone in its endeavor to make its currency convertibility, nor is it the only country which is facing the daunting task of overcoming several hurdles on its way to full currency http://forex-management-online.blogspot.com/2008/11/capital-account-convertibility.htmlnoreply@blogger.com (Pelister)0tag:blogger.com,1999:blog-6612128516717784614.post-4623306352884035182Sat, 25 Oct 2008 14:07:00 +00002008-10-25T07:39:53.126-07:00A study of the relationship between spot and future rates would help in determining the degree and the extent of predictability of the former on the basis of the later.The collective judgment of the participants in the exchange market influences the appreciation or depreciation in the future spot price of a currency against other currencies. The forward premium or discount is also affected by thehttp://forex-management-online.blogspot.com/2008/10/relationship-between-spot-and-forward.htmlnoreply@blogger.com (Pelister)0tag:blogger.com,1999:blog-6612128516717784614.post-7189229733146587433Wed, 06 Aug 2008 16:24:00 +00002008-08-06T11:15:37.558-07:00The foreign exchange market is a market in which currencies are bought and sold against each other. In other words, foreign exchange market is the market where the currency of one country is exchanged for the currency of another country. It is the largest market in the world having daily turnover of over US $3.2 trillion. The market is an over the counter market. There is no single market place http://forex-management-online.blogspot.com/2008/08/foreign-exchange-market.htmlnoreply@blogger.com (Pelister)1tag:blogger.com,1999:blog-6612128516717784614.post-4631394735413850166Wed, 06 Aug 2008 14:37:00 +00002008-08-06T08:21:24.688-07:00Business operations in countries across the globe have been in existence for centuries, but an unprecedented growth in world wide production and distribution of a large number of capital, intermediate and consumer goods has been witnessed in the past fifty years. At present most of the countries are economically related to each other through a complex network of trade, foreign investment and http://forex-management-online.blogspot.com/2008/08/significance-of-forex-management.htmlnoreply@blogger.com (Pelister)0tag:blogger.com,1999:blog-6612128516717784614.post-2861498685151196137Wed, 06 Aug 2008 13:23:00 +00002008-08-06T07:35:48.629-07:00Forex Management has quite a wide scope of operation. We can cover in its ambit all those transactions which involve use of forex. Let us consider the following illustrations:** A Citizen of India travels abroad on a business visit and purchased foreign currency from an authorized dealer.** An Indian citizen goes to USA for a period of three years under an employment contract. He periodically http://forex-management-online.blogspot.com/2008/08/scope-of-forex-management.htmlnoreply@blogger.com (Pelister)0tag:blogger.com,1999:blog-6612128516717784614.post-3020987894747482162Sat, 02 Aug 2008 16:30:00 +00002008-08-06T06:22:09.449-07:00Forex management may be defined as the science of management of generation, use and storage of foreign currencies in the process of exchange of one currency into other called exchange.The above definition of Forex Management has the following essential elements:A) It is part of management science: Forex management is part of the broader management science. It is a scientific discipline http://forex-management-online.blogspot.com/2008/08/forex-management.htmlnoreply@blogger.com (Pelister)0