The investor who invests in mutual fund units can receive returns in the following two ways: 1. Capital Appreciation: Profit earned on sale of units at a higher NAV than the original cost. 2. Income Distribution (Dividend ): When a fund makes a profit on its investment, this profit will be given to investor as a dividend which can be [...]
The following main points highlight the thirteen main techniques used for restructuring the business. The techniques are: 1. Management Buy-Out (MBO) 2. Management Buy-In (MBI) 3. Strategic Alliances 4. Reverse Merger 5. Sell-Off 6. Divestitures 7. Slump Sale 8. Equity Carveout 9. Franchising 10. Intellectual Property Rights 11. Holding Companies 12. Going Private 13. Liquidation. Technique # 1. Management Buy-Out [...]
The following valuation methods are generally used basing on the industry averages or averages of a similar company in the same industry: 1. Dividend Yield Method 2. Earnings Yield Method 3. Return on Capital Employed Method 4. Price/Earning Method. 1. Dividend Yield Method: Ownership of shares in a company entails the holders of shares to receive dividends as and when [...]