Tag Archives | Finance Functions

Essay on Capitalisation: Meaning, Theories and Types

After reading this essay you will learn about:- 1. Meaning of Capitalisation 2. Theories of Capitalisation 3. Types. Essay # Meaning of Capitalisation: A.S. Dewing says, "the term capitalisation or the valuation of capital includes the capital stock and debt." Attention is focused on the quantitative aspect only. In this sense, it includes ownership capital and the borrowed capital as [...]

By |2016-07-12T14:11:12+05:30July 12, 2016|Essays|Comments Off on Essay on Capitalisation: Meaning, Theories and Types

Requisites of a Sound Capital Plan

This article throws light upon the eight important requisites of a sound capital plan. The requisites are: 1. Estimates of Financial Needs 2. Flexibility 3. Optimum Use of Funds 4. Liquidity 5. Mode of Finance 6. Simplicity 7. Planning Foresight 8. External Influences. Sound Capital Plan: Requisite # 1. Estimates of Financial Needs: Promoters must have accurate estimates of financial [...]

By |2016-07-12T14:11:12+05:30July 12, 2016|Finance Functions|Comments Off on Requisites of a Sound Capital Plan

Capital Structure of a Company: Meaning and Determinants

After reading this article you will learn about Capital Structure of a Company:- 1. Meaning of Capital Structure 2. Determinants of Capital Structure.  Meaning of Capital Structure: According to Gerstenberg capital structure or financial structure of a company is the make-up or form or composition of capitalisation, i.e., the type of securities to be issued and the relative proportion of [...]

By |2016-07-12T14:11:12+05:30July 12, 2016|Finance Functions|Comments Off on Capital Structure of a Company: Meaning and Determinants
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