The most comprehensive educational resources for finance

Sources of Short-term Financing

There are two kinds of financing which the firms often resort to for generating fresh financing for short term. For one, they could choose between several methods of getting the short term finances through banks. Such methods are usually resorted to by listed companies and other companies which have reasonable credit worthiness with their bankers.

Basic Principles of Capital Budgeting

Capital budgeting is the process of evaluating and implementing a firm’s investment opportunities, by virtue of properly identifying such investments that are likely to enhance a firm’s competitive advantage and increase shareholder wealth. A typical capital budgeting decision involves a large up-front investment followed by a series of smaller cash inflows. A typical capital budgeting

What are the motives for Corporate Holding Cash?

The three key motives for holding cash are: 1. The transaction motive – Cash is required to conduct ordinary business activities 2. The precautionary motive: Cash is required meet any contingencies in future. It is like a cushion or buffer to support unexpected emergency. 3. The speculative motive: Cash may be required to take advantage

Importance of Cash Flow by Tom Byers – Stanford University

In this video, Tom Byers explains that smaller companies need to pay extra attention on how they spend their cash because if they run out of cash, it is game over for them. Byers uses the example of Palm Inc. to show how well the company managed their cash flow.

Equity Vs. Debt Financing

Choosing between equity and debt is one of the most common decision made by business managers while raising capital.  These are the two main sources of capital for any business. Equity is the form of capital raised from investors in change for a share in ownership of the business. Equity refers to a stock or

Top 10 Books on Project Finance

Folowing is the list of 10 most popular and comprehensive books on Project finance. Modern Project Finance: A Casebook by Benjamin C. Esty Benjamin Esty is one of the pioneers of project finance in the 21st century. This book is an excellent introduction to project finance, being a series of case studies used at Harvard