Capital investment decisions are a constant challenge to all levels of financial managers. Capital Budgeting: Theory and Practice shows you how to confront them using state-of-the-art techniques. Broken down into four comprehensive sections, Capital Budgeting: Theory and Practice explores and illustrates all aspects of the capital budgeting decision process. Pamela Peterson and Frank Fabozzi examine the critical issues and limitations of capital budgeting techniques with an in-depth analysis of: Classifying capital budgeting proposals Determining the relevant cash flows for capital budgeting proposals Assessing the economic value of a capital budgeting proposal using different techniques Incorporating risk into the capital budgeting decision Evaluating whether to lease or borrow-to-buy Capital Budgeting: Theory and Practice provides the knowledge, insight, and advice that will allow you to handle one of the most important aspects of your firm's financial management. Advanced enough for practitioners yet accessible enough for the novice, Capital Budgeting: Theory and Practice is your complete guide to understanding and benefiting from the essential techniques of capital budgeting.
A convenient and up-to-date reference tool for today's financial and nonfinancial managers in public practice and private industry If the very thought of budgets pushes your sanity over the limit, then this practical, easy-to-use guide is just what you need. Budgeting Basics and Beyond, Fourth Edition equips you with an all-in-one resource guaranteed to make the budgeting process easier, less stressful, and more effective. The new edition covers rolling budgets (forecasts), activity-based budgeting, life-cycle budgeting. Cloud computing, Balanced Scorecard, budgeting for nonprofit organizations, business simulations for executive and management training, and much more! Includes several new software packages, computer-based models and spreadsheet applications, including Value Chain Management software, Financial Planning and Performance software, Web 2.0, Cloud computing, and capital budgeting software Features case studies, illustrations, exhibits, forms, checklists, graphs, samples, and worked-out solutions to a wide variety of budgeting, planning, and control problems Offers financial planning and new types of financial modeling, variance analysis, Web-based budgeting, active budgeting illuminating «what-if» analyses throughout, spreadsheet applications, break-even analysis, project analysis, and capital budgeting Budgeting Basics and Beyond, Fourth Edition is a practical, easy-to-use problem-solver and up-to-date reference tool for today's financial and nonfinancial managers in public practice and private industry.
In the past decades, the theme of capital budgeting has been the subject of much interest and there has been a proliferation of research on the subject. Many of the studies on capital budgeting have, however, been done on the private sector businesses.The South African economy has seen substantial growth in the last decade which has necessitated the expansion of infrastructure to support the growing economy. A significant responsibility for the expansion in the infrastructure rests with state-owned companies (SOCs). The study seeks to determine the capital budgeting techniques employed by selected SOCs in South Africa and to explore the methods used by these entities to determine the weighted average cost of capital (WACC), with special focus on the cost of equity or its proxy. The results provide a useful insight into the techniques used by these companies and the gaps that may exist between what is taught academically and what is actually used in practice.
An essential guide to valuation techniques and financial analysis With the collapse of the economy and financial systems, many institutions are reevaluating what they are willing to spend money on. Project valuation is key to both cost effectiveness measures and shareholder value. The purpose of this book is to provide a comprehensive examination of critical capital budgeting topics. Coverage extends from discussing basic concepts, principles, and techniques to their application to increasingly complex, real-world situations. Throughout, the book emphasizes how financially sound capital budgeting facilitates the process of value creation and discusses why various theories make sense and how firms can use them to solve problems and create wealth. Offers a strategic focus on the application of various techniques and approaches related to a firm's overall strategy Provides coverage of international topics based on the premise that managers should view business from a global perspective Emphasizes the importance of using real options Comprised of contributed chapters from both experienced professionals and academics, Capital Budgeting Valuation offers a variety of perspectives and a rich interplay of ideas related to this important financial discipline.
Over the years, efforts have been made to increase the developmental strides of African countries. Many projects move from donor countries in the western world into Africa to help improve the lives of the people. However, these efforts have not been able to redeem Africa from abject poverty and indebtedness to the West. Various projects that are targeted towards the reduction of poverty are normally completed with no changes in the lives of the people. These projects, in my opinion, have not been scrutinised to assess their capabilities of meeting some stated target. This book compares the use of capital budgeting techniques by companies in three Western European countries and three West African countries, using data from firms in Western Europe and West Africa. The main aim is to analyse the use of capital budgeting techniques by companies in both economic blocs from a comparative perspective to see whether economic development matters in the choice of which technique to use. The empirical evidence show that Western European CFOs on average use more sophisticated capital budgeting techniques than their counterparts in West African.
This book deals with the foreign capital budgeting and foreign direct investment (FDI) in Bangladesh. Capital budgeting is a budget for major capital, investment or expenditures. FDI inflows have increased rapidly in the last two decades in the world. Many countries are developing their economies by considering FDI as an important catalyst for economic development. United Nations Industrial Development Organization’s (UNIDO) own analyses of industrial organization, and the determinants of competitive industrial performance, identifies FDI as a key driver of a country’s capacity to trade. Bangladesh as a developing country must need FDI to enhance the economic progress. The book shows the advantages to the foreign investors to invest for long-term and safely in Bangladesh. Most of the foreign investors do not know about the business environment of Bangladesh and this book tries to give a clear idea to them about the benefits of investment in Bangladesh.
As we all know that corporate finance involves Financial Markets, Financial Institutions, Time Value of Money, Valuing Financial Assets, Bonds and its Valuation, Stock and its Valuations, Cost of Capital, Corporate Valuation, Capital Budgeting, Capital Structure, Dividend Policy, Initial Public Offerings, Investment Banking, and Financial Restructuring, Leasing Financing, Hybrid Financing and Derivatives and Risk Management. Based on this author has framed some question bank which will help the corporate finance teachers and students.
Estimation of expected returns or cost of equity for individual stocks is a central issue to many financial and investment decisions such as capital budgeting, performance evaluation, merger and acquisitions, portfolio management, and security valuation. So, the question is how to predict or estimate rates of return for securities (stocks and bonds)? This book, therefore, provides a unique methods of success supplemental to the more traditional valuating and pricing cost of equities which is essential for capital budgeting and that most marketing developers currently use. The analysis useful to professionals in business, risk managements,Portfolio managers academics as will researchers and Marketing fields.
School district budgeting decisions take on added significance due to high-stakes public accountability and reduced funding levels. In this period, it is necessary for school districts to be strategic in making allocation decisions. Budgeting merges resources and results. This study examines current school district budgeting processes. Overall, it appears that, in the school districts represented, budgeting practices have evolved in order to meet increased performance requirements. More specifically, there has been a significant change in what school business officials consider to be the most relevant criteria in making budget decisions. In this mixed methods study, the data also suggest that budgeting methods/practices have changed by becoming more performance-based. Finally, there appears to be a relationship between performance-based budgeting and student achievement.
Books in Barron's Business Library Series speak to men and women who are starting a company or managing a small-to-medium-size business. Advice and instruction is geared to daily operations and finding practical solutions for typical problems. Topics discussed in this book include understanding cost concepts, job-order costing, process costing, activity-based costing (ABC), activity-based management (ABM), cost-volume and break-even analysis, budgeting, cost analysis for non-routine decisions, how to make capital budgeting decisions, performance metrics such as the balanced score card, and a variety of cost management tools, including target costing and life-cycle costing. The authors cover all important issues that relate to budgeting and affect company profitability. A helpful appendix presents tables that account for the time value of money, and a glossary gives definitions of specialized cost management terms.
Dr Ibrahim has reviewed several articles related to the important budget theory in the public sector. His focuses are on incremental budgeting theory. He gives an insight evaluation on the differences between this theory and the applications of rational theory of budgeting such as planning programing budgeting system and zero based budgeting. Dr Ibrahim gave an appropriate description for each article he reviewed.In my opinion, this is quite useful for the researchers and practitioners in governmental organizations. prof. Dr. Hikmat Ahmad AL Rawi University of Modern Science
Heres a practical handbook for owners and managers of small-to-medium size businesses with advice on controlling the companys financial resources, purchasing and amortizing capital equipment, projecting operating costs, and meeting ongoing expenses. The authors offer guidance in understanding and analyzing financial statements, the time-value of money, making capital budgeting decisions, and much more. Appendices include a list of online Internet resources and short descriptions of Excel financial and investment functions. The third edition has been updated with new information on SEC reporting requirements, managing dependent-demand inventories, the Sarbanes-Oxley Act, and more.
Investors typically face problems when they are in position of deciding on capital investments to be undertaken. Problems they face are related primarily with evaluation of the project, and secondarily with risk related to the project that is supposed to be undertaken. This book introduces methods of capital budgeting investment criteria, in order to choose the best project, by applying some of the risk management methods that are offered. At the very end of the book, practical examples of capital investment and risk management are presented, on a case done on legislative regulations on minimum standards of risk management in commercial banks.
The General objective is to study the past performance of the staff co-operative society by considering the past financial Statements and suggest measures to improve the financial performance. To study the liquidity, profitability and etc the tools of ratio analysis like current ration, super quick ration, debt –equity ratio are used, to study the performance over a period of time Comparative and common size statements are used the tools are used to analyze and interpret the performance over the study period. The study would enable the management to take decision on cost cutting measures, cost of capital, and capital budgeting decision of the society. This would become a guiding research for the future as this is the first kind of report submitted in the history of the co-operative society beginning from 1965 onwards. The study would enable the management to take decision on cost cutting measures, cost of capital, and capital budgeting decision of the society. This would become a guiding research for the future as this is the first kind of report submitted in the history of the co-operative society beginning from 1965 onwards.
[Capital Management: A Story of Success and Failure]Capital is the cornerstone of the study of Finance. However, management of capital smartly paves the foundation of success. And obviously, wrong management guarantees failure. This book covers topics like capital structure, dividend policy, capital budgeting, strategic alliance, benchmarking, corporate sickness, restructuring as a guide to professionals, practitioners, educators and young learners who like to study finance. As the theory of finance originates from the understanding of 'how to raise funds for business' - the author tried to concentrate the discussion surrounding this core area. The discussions are kept very simple and easy through examples, case studies, figures, modules, logical reasonings etc. The book will also be helpful for researchers as it includes lots of references to different research works. The book will also be helpful to find out new research areas within the core area of finance. Research on capital management is never-ending, as every day we are finding new areas to finance our business and projects as well.
Assignment Problem is one of the first fundamental problems in the area of combinatorial optimization. Despite its historical roots, the problem has tremendous importance to date, due to its numerous real life applications in like facility location, personnel scheduling, job scheduling, production planning, project assignment, task assignment, time-tabling, vehicle routing, storage space allocation, etc. This book comprises some real life assignment and related problems involving imprecise cost/time parameters. In order to represent those imprecise parameters, interval numbers have been used here as this representation is the best among others. The associated problems have been solved using Genetic Algorithm efficiently. A salient feature of this book is that most of the algorithms have been written in a lucid manner with suitable examples using figures. This book should interest academicians, OR/GA practitioners and executives of different industries and business organizations.
Public budgeting structure, process, legal framework and policy with examples from industrialized and developing countries Public Budgeting in Context examines budgeting at all levels of U.S. government—federal, state, and local—and in a sample of governments around the world. The book assesses the context of public budgeting in these governments, especially the legal foundations for its practice and how the process and final budgets are impacted by governance structures, laws, various budget actors and different branches of government. The author presents focused attention on the influences on government budgets of the executive, legislative and judicial branches of government, the bureaucracy, the public and the media. In light of worldwide fiscal malaise, especially during and since the Great Recession, this book illustrates the heightened complexity of the budgeting environment that pervades all governments today—industrialized or developing, large or small. For those who like to dive into the details, the book presents numerous examples of public budgeting as practiced and points to the wealth of data available for analyses of the budgetary context and process, budget shares and results regarding virtually any government of interest. Chapters cover the constitutional and statutory provisions for budgeting in selected governments. Budget and policy agenda setting and executive leadership, legislative budget powers and the influence of the judiciary on modern government budgets are exposed. Budget execution requirements of the bureaucracy, the input of customers, clients and citizens to government budgets, and media influences on public budgets and agencies are highlighted. Budget mechanics—budget types, formats, timelines and reforms—are introduced and compared. Taxes and intergovernmental revenues are considered, with predominant tax choices at every level of government in the United States and those in a select, developing country represented. The book introduces an emerging method for investigating the outcomes of government spending—human rights budget analysis—and includes as an example the assessment of budget reform and results of public health spending in one selected government. Highlights of Public Budgeting in Context Offers a comprehensive text for understanding public budgeting in governments of a variety of contexts and capacities and across different levels Written by a noted expert in the field of public budgeting and financial management Contains illustrative examples from industrialized and developing countries Guides to innumerable datasets with information about governments and their budgets Includes a companion website filled with templates for budget and fiscal analysis Unravel the complex issues of modern public budgeting using this unique presentation of its practice in a variety of governments in the U.S. and a select sample from around the world.