Financial Management: Long Term Finance and Investment Appraisal Techniques

Financial Management

Contents
INTRODUCTION.......................................................................................................................................3
QUESTION 2..............................................................................................................................................3
(a) Long term finance: Equity finance.....................................................................................................3
(c) Evaluate the benefits of scrip divided in context of shareholders or companies.................................8
QUESTION 3..............................................................................................................................................9
(a) Investment Appraisal techniques........................................................................................................9
b. Limitations and benefits of different investment appraisal techniques..............................................15
CONCLUSION.........................................................................................................................................16
REFERENCES..........................................................................................................................................18

INTRODUCTION
Financial control is described as having dealt with others and assessing funds and
financial assets to support improve business processes for an individual or an industry. Such as
financial management is the work performed for a firm by a financing division. Financial
management is an important part of management at large. It concerns the roles of the economic
people in the organization. Solomon has described the word cash activities, "It concerns the
productive use of such a big financial asset, including investment resources." It is that
subdivision of business management that has matured to provide enough industry with the whole
of specialized and reliable investment banking; encompassing, in specific, the introductory and
advanced of the required financial affairs and making sure their greatest proper implementation-
contributing to some of the most efficient and appropriate achievement of the common corporate
strategic goals. This report based on the various questions that base on the long term finance as
well as on investment appraisal techniques. With the use of these techniques select right project
to enhance the business growth and development.
QUESTION 2
(a) Long term finance: Equity finance.
(A) Issue of Right share: The issue of rights creates value privileges to the existing
corporation's investors, enabling them to acquire additional financial instruments contact the
company at a reduced price rather than buying crucial market dominance. The total amount of
additional financial products to be acquired is based on proven investments of the bondholders.
Rights issue provides sensitive materials to modern investors and they have the lawful authority
as the correct (not really the deemed sufficient) to invest directly at a lower cost prior to actually
or on a particular date. In this Lexbel plc intends to issue right shares and that of other current
shareholders with both the purpose of ensuring their financial obligations. Companies most
frequently concern a proposal of rights to start raising extra capital. For an organizations to
decide its existing debt responsibilities, that may need additional cash. Disturbed companies
generally use rights issues to pay off loans, particularly when they can't collect more funds. Not
all firms pursuing rights products and services are in financial difficulty, though. Even firms with