What is the capital structure? Capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth. Equity comes from ownership shares in a business and rights to its future cash flows and earnings. Debt comes in the form of bondRead More →

What is a dividend policy? A dividend policy is the policy a company uses to structure the payment of its dividends to shareholders. Some researchers suggest that the dividend policy is irrelevant, in theory, because investors can sell part of their stocks or their portfolio if they need funds. ThisRead More →

What is Strategic Financial Management? Strategic financial management means not only managing a company’s finances, but managing them with the intention of achieving success, i.e. achieving the long-term goals and objectives of the company and maximizing the shareholder value over time. Key points to remember Strategic financial management is aboutRead More →

What is a complex capital structure? The use of different forms of securities, rather than relying solely on one class of common stock. A company with a complex capital structure may have a combination of several different varieties of common stock classes, each offering different voting privileges and dividend rates.Read More →

If you’re an equity investor who likes companies with good fundamentals, a strong balance sheet is important to consider when looking for investment opportunities. Using three main types of metrics – working capital, asset performance and capital structure – you can assess the strength of a company’s balance sheet andRead More →