Solved Numerical Problems of Capital Structure Approaches

Capital structure solutions

Introduction Capital Structure is the combination of all the long-term sources of finances. Capital structure theories relate the capital structure of firm, capital mix and value of the firm; basically capital structure theories relate financial leverage with value of the firm. There are four widely accepted theories on capital structure: Some of the solved numerical … Read more

Affiliate Marketing: Meaning and Concept

Introduction Market is dynamic in nature which suggests that it is changing every day. The concepts related to the market are also evolving with the changes seen in the market. Affiliate marketing is one of the contemporary ways of promoting products and services and an effective advertising model. Affiliate marketing is also regarded as a … Read more

What is a Debt? Features and Debt Instruments

Features of debts

What is Debt ? Debt is the act of borrowing money for the business or personal use. Debt securities represents the liability for the individual or a company i.e. company has the priority obligation to payback the debt amount with interest, which is the return of Investment for the lenders. It has a maturity period … Read more

Difference Between Merger, Acquisition, and Amalgamation

mergers, acquisition and amalgamation

Introduction Merger, Acquisition, and Amalgamation are common terms in corporate world. All these terms are similar but they do have some differences. Merger is simply the fusion of at least two equal companies voluntarily where only one company loses its existence. Acquisition is an act where one entity purchases the business of another entity. Here, … Read more

Motives Behind Mergers

Mergers and Acquisition

Introduction Merger involves fusion of two or more firms into one entity. This is one of the important concepts in corporate valuation and one of the most accepted strategies for company expansion. The first thing that we consider when we hear word ‘merger’ is synergy i.e. relatively greater competitiveness of combined entity when compared with … Read more

Merits and Demerits : Inductive Methods of Economic Analysis

merits and demerits of inductive method of economic analysis

Introduction Inductive methods which is also called empirical method was adopted by the “Historical School of Economists”. It involves the process of reasoning from particular facts to general principle. This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates … Read more

Merits and Demerits : Deductive Methods of Economic Analysis

Merits and Demerits of deductive method of economic analysis

Introduction The deductive method is also named as an analytical, abstract or prior method. The deductive method consists in deriving conclusions from general truths, takes a few general principles and applies them to draw conclusions. Deductive methods of economic analysis follows a top-down approach where theories and principles guide the analysis and assist in making … Read more