Time value of money:

Compiled by Shweta Kadtan  A Dollar is more valuable today than tomorrow The time value of money (TVM) is the concept that a sum of money is worth more now than the same sum will be at a future date due to its earning potential in the interim. This is a core principle of finance. The time…

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WHY IS SPINOFF NEEDED

Compiled by Harsh Gada What Is a Spinoff? When a company creates a new independent company by selling or distributing new shares of its existing business, this is called a spinoff. A spinoff is a type of divestiture. A company creates a spinoff expecting that it will be worth more as an independent entity.  Source: wallstreetmojo…

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INVESTMENT MANAGEMENT

Compiled by Arnav Shah The phrase ‘Investment Management’ usually embarks thoughts of large funds, complications and serious strategies. It is basically managing money in a way that it grows.  What is Investment Management? Investment management is the process of handling financial assets and investments. It includes buying, selling and managing different types of investments using…

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Capital Structure & Risk-Return Tradeoff

Compiled by Jeemit Shah Capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth. Equity capital arises from ownership shares in a company and claims to its future cash flows and profits. Debt comes in the form of bond issues or loans, while equity…

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Optimal Capital Structure

Compiled by Jeemit Shah The optimal capital structure of a firm is the best mix of debt and equity financing that maximizes a company’s market value while minimizing its cost of capital. In theory, debt financing offers the lowest cost of capital due to its tax deductibility. However, too much debt increases the financial risk…

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BoAt IPO

Compiled by Harsh Gada BoAt (“Imagine marketing services ltd.”) is an India-based company which was incorporated on 1st November 2013. The brand established itself in 2015 that markets earphones, headphones stereos, travel chargers, premium rugged cables and speakers. Launched in 2016 by Aman Gupta and Sameer Mehta as an audio-tech startup. The company, which was…

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SOURCES OF CAPITAL FOR A BUSINESS

WHY IS CAPITAL NEEDED FOR A BUSINESS? Capital/Fundings helps business initiate their journey by hiring a team, buying equipment, marketing and also promoting their brand. Companies always seek sources of funding to grow their business. Funding, also called financing, represents an act of contributing resources to finance a program, project, or need. Funding can be…

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$30 Trillion economy by 2052?

Compiled by Khushi Tekwani India is considered to be the fastest growing economy in the world. It is the world’s fifth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). India’s economy has seen  some major fluctuations in the last 5 years.  While the Covid crisis had impacted the economy in the…

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Future of AI in Finance.

Compiled by Khushi Tekwani AI has become the new norm and a vital component of an increasing number of sectors. Several business owners and executives have begun to consider the future and are actively exploring the use of AI in finance and other fields to gain a competitive edge in the marketplace. The financial department…

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Relationship Between Financial Leverage & Risk

Compiled by Aishwarya Ade │What is financial leverage? Financial leverage can be described as the extent to which a business or an investor is utilising the borrowed money. It is a measure of how much a firm uses equity & debt capital to finance its assets. As debt intake increases, so does a company’s financial…

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