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Stretegic FIn Assigmment # 1
Stretegic FIn Assigmment # 1
Stretegic FIn Assigmment # 1
Assignment # 1
Name:
Bilal Karim
CMS:
17884
and
analyzing
Capital Structure
This is how company manages the finances regarding the operations of the company. The
sources can be equity and debt.
Risk & Return
High risk is associated with higher returns. This is tradeoff between minimum possible risk
and highest possible return.
Capital Budgeting
This is the decision that the firms long term investment in shape of new plant and machinery
and R&D are worth funding through the firms capital structure.
Securities & portfolio Management
This is the art and science of making decisions about investment mix and policy, matching
investments to objectives, asset allocation for individuals and institutions, and balancing risk against
performance.
Dividends
Part of profit given to shareholders of the company.
Financial Evaluation
This is the evaluation of different options of available with the company for finances.
Time value of Money
This is the concept that the value of money today is more and will decrease with time.
Asset Management
This is the proves of developing, maintaining, operating and disposing off assets cost effectively.
Working Capital
The capital of business used in day to day operations.
Cost of capital
This is the opportunity cost of capital. i.e. the rate of return that could have been earned by putting
the same money in a different investment.