Working Capital Calculation

May 19th, 2015
Studypool Tutor
Aberystwyth University
Price: $20 USD

Tutor description

Financing of permanent / fixed or long-term working capital

Word Count: 1247
Showing Page: 1/20
Financing ofWorking CapitalSUBMITTED TO:EFFORTS BY:Mr.Vikas Naib &ClassmatesPIYUSH2110077MBA SEM-II BSources of Working CapitalPermanent or Fixed1.SharesTemporary or Variable1.Commercial Bank2.Debentures2.IndigenousBankers3.Public Deposits3.Trade Credit4.Ploughing back of Profits4.Instalment Credit5.Loans from FinancialInstitutions5.Advances6.Accrued Expenses7.Deferred Incomes8.Commercial PaperFinancing of permanent / fixed or long-term working capital1.Shares-Issue of shares is the most importantsource for raising the permanent or long termcapital.A company can issue various types ofshares as equity shares,preference shares,deferredshares.Thesearetheownersofthecompany.Shareholders are paid dividend upon theprofits of the company.As far as possible,acompany should raise the maximum amount ofpermanent capital by the issue of shares.2.Debentures-It is an instrument issued by thecompany acknowledging its debt to its holder.It isalso an important method of raising long termcapital.The debenture-holders are the creditors ofthe company.A fixed rate of interest is paid ondebentures.The interest on debentures is a chargeagainst P&L a/c.The debentures are generallygiven floating charge on the assets of thecompany.3.Public Deposits-Public Deposits are the fixeddeposits accepted by a business enterprise directlyfrom the public.This source of raising short-term andmedium-term finance was very popular in th

Review from student

Studypool Student
" Awesome! Exactly what I wanted. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1825 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors