Project appraisal is the process by which a financial institution makes an independent and objective assessment of the various aspects of the investment proposition for arriving at a financing decision. There are four broad aspects of appraisal: 1. Financial Feasibility 2. Technical Feasibility 3. Economic Feasibility 4. Management Competence. Aspect # 1. Financial Feasibility: The basic data required for a [...]
In this article we will discuss about:- 1. Introduction to Portfolio Management 2. Strategies of Portfolio Management 3. Return of Single Asset 4. Risk of Single Asset 5. Portfolio Diversification and Minimization of Risk 6. Risk and Required Return. Introduction to Portfolio Management: Portfolio management is concerned with efficient management of investment in the securities. An investment is defined as [...]
Consequent to buyback of shares, there will be change in the shareholding pattern. This could alter the controlling interest in the company without ensuring compliance with prevalent government regulations for increase in shareholding. Consider the following illustration: Illustration 1: Company A is a publicly listed company and Company B is a Joint venture which is closely held. If there is [...]