define finance
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Answer / sheetal kumar garg
finance means facility of money which provided by any
finacial institute and finance is a pool of money.
Is This Answer Correct ? | 2 Yes | 3 No |
Answer / deepti
finance is the science of fund mgt,it involves- 3 areas business finance,public finance,personal finance.sometime it is making pool of funds by saving and often lending of money.it deals with the concept of time,money and risk and how are they interrelated.
Is This Answer Correct ? | 1 Yes | 2 No |
Answer / i.srinivasreddy
Finance is the life blood of the business as necessary as
the blood circulation is required for a human life.
Without finance, a business or a business organisation
can't run even stand for any purpose in no profit-no loss
situation.
Is This Answer Correct ? | 0 Yes | 1 No |
Answer / md.abid
a brance of economics conconed with resource allocationas
well as resource management,acquisition and investment.
Is This Answer Correct ? | 4 Yes | 7 No |
What are the latest gold schemes launched by government and their various benefits?
What do you understand by excise duty?
0 Answers State Bank Of India SBI,
What is EMI? Have you ever purchased any product on EMI? How convenient is it?
0 Answers State Bank Of India SBI,
What is Shares Split?
PLS GIVE ME ANSWER OF MY QUESTION...IS BELOW..THANKS..DIVYA JAIN..MY ID divyansh22@yahoo.co.in
why mutual funds are always subject to market risk please read the offer document before investing.
any political view
How does the default risk premium being calculated?
What is non-performing assets (npa)?
what is the diff among repo rate,reverse repo rate and bank rate?
sensex is depended on top 30 companies and Nifty is depended on 50 companies ... does NSE and BSE have the same companies or different ...? If they are same then why does share value is same ?
1 Answers College School Exams Tests, Hindustan Unilever Limited,
Read the case given below and answer the questions given at the end. Krutika Designers Ltd is an Indian company engaged in designing shirts for an international shirt manufacturer. Its operations are currently restricted to designing shirts for the Indian market. The firm is interested in extending its operations to the European markets, but is restricted by its lack of knowledge about the latest fashions and trends prevailing there. Hence, the firm has decided to open an office in Finland for establishing a network in Europe that will give the firm access to the needed information. The firm feels that its does not have the capability of sustaining itself in the foreign markets in the long-term, and will be able to generate additional revenue from these activities only for the next 5 years. After that, the Finnish office will have to be closed down. The firm anticipates an initial investment of Rs.14 million. The project is expected to generate the following cash flows over the 5 years period. Year Cash flow (Finnish Marks) 1 2 3 4 5 10,00,000 20,00,000 50,00,000 50,00,000 30,00,000 These cash flows are expressed in terms of today’s money. The firm can claim depreciation in India according to the Straight Line Method. The salvage value from the project is expected to be nil. The Finnish Government does not provide any incentives for foreign investments. However, currently it is making an attempt to have better economic ties with India. Hence, it has decided to extend a loan of 50,000 marks to Krutika Designers. The loan will be at a concessional interest rate of 7%. The loan is to be repaid in 5 equal annual installments which will include the interest payments. The project will generate additional borrowing capacity of Rs.5 million for the firm. However, as the firm does not have any firm contract with the international shirt manufacturer, its domestic revenues are expected to be very volatile. Therefore, there is no surely that the firm will be able to absorb the tax benefits arising out of depreciation and additional borrowing capacity. The firm does not intend to indulge in any illegal money transfers. The current spot rate for the Finnish Mark is Rs.7.25/FM. The inflation rates in India and Finland for the next 5 years are expected to be 8% and 3% respectively. The exchange rate is expected to move in tandem with the inflation rates. Indian tax rate is 35% while Finnish tax rate is 40%. India and Finland have entered into a tax treaty whereby the earnings of the residents of one country are taxable in that country only. In India, the nominal risk-free interest rate is 11%. The same is 6% in Finland. The Indian nominal interest rate (including risk-premium) is 15%, while that in Finland is 9%. The nominal all-equity rate in India is 18%. 1. Comment on the financial viability of the project. 2. What are the different circumstances in which nominal all-equity discount rate and real all equity discount rate should be used for discounting the cash flows? Explain the rationale behind it. 3. Comment on the financial viability of the project if the firm is sure about being able to absorb the tax benefits arising out of depreciation and increased borrowing capacity. 4. Explain the concept of exchange risk and how it affects an international project. 5. How can the financial structure of a project be used to overcome repatriation restrictions? What are the additional benefits of such maneuvers?