Monthly Archives: August 2013

Rupee’s steep fall

Rupee’s steep fall Source: By Ashwani Mahajan: Deccan Herald Rupee has continued to decline against the US dollar, getting devalued by over five per cent in less than a month and half. Fast rising Current Account Deficit (CAD) in Balance … Continue reading

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RIP “India story”

RIP “India story” Source: by Jayshree Sengupta: The Pioneer Twenty-two years since launching liberalisation and opening up the economy to global winds the vast majority of Indians still live without basic human needs. Did the fault lie in the neo-liberal … Continue reading

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Growth projections for 2013

Growth projections for 2013 Source: By S. Sethuraman: The Echo of India Global economy’s “growing pains” in 2013 has forced IMF to slash its earlier projections for all economies – advanced, emerging and other developing – so that global growth … Continue reading

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Want more FDI? Relax those caps

Want more FDI? Relax those caps Source: By Sobhomoy Bhattacharjee: The Financial Express Around the excitement created by the easing of FDI rules by the Cabinet, it is a good test check to measure those against the actual inflows. It … Continue reading

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Economic outlook cloudy

Economic outlook cloudy Source: By Jayshree Sengupta: The Tribune THE outlook for the world economy is not too bright, according to the IMFs latest World Economic Outlook. According to the IMF, the US is not going to grow above 2 … Continue reading

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BROAD MECHANISM OF INCOME TAX IN INDIA

BROAD MECHANISM OF INCOME TAX IN INDIA The First War of Independence in 1857 “as a major financial burden to the EnglishGovernment which brought it into great financial difficulties. Thus compelled by financial necessities the British Government enacted the Income Tax Act,1886. … Continue reading

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THE BASICS OF CAPITAL BUDGETING

define capital budgeting. It is the process of planning expenditures on assets (fixed assets) whose cash flows are expected to extend beyond one year. It is the whole process of analyzing projects and deciding which ones to include in the … Continue reading

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capital structure

define the target (optimal) capital structure. It is the percentage of debt, preferred stock, and common equity that will maximize the firm’s stock price. Each firm has an optimal capital structure, and it should raise new capital in a manner … Continue reading

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THE COST OF CAPITAL

explain why the cost of capital used in capital budgeting should be a weighted average of the costs of various types of capital the company uses. A firm’s primary financial objective is to maximize shareholders’ value. Regardless of the specific … Continue reading

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motivate managers to act in stockholders’ best interests

describe four mechanisms used to motivate managers to act in stockholders’ best interests. Managers can be encouraged to act in stockholder’s best interests through rewards which reward them for good performance but punish them for poor performance. Managerial compensation: the … Continue reading

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