Financial Management: Investment Appraisal Techniques

FINANCIAL
MANAGEMENT

Contents
INTRODUCTION.......................................................................................................................................3
QUESTION 2..............................................................................................................................................3
Mergers and takeovers.............................................................................................................................3
QUESTION 3..............................................................................................................................................7
Investment appraisal techniques..............................................................................................................7
Critically analysis of investment appraisal techniques with their benefits and limitations.....................13
CONCLUSION.........................................................................................................................................15
REFERENCES..........................................................................................................................................16

INTRODUCTION
Financial management implies to orderly and efficient process pertains to plan
management, direction, regulate and manage financial functions like set, production and
utilization of various sources capital within enterprise (Argerich, Hormiga and Valls-Pasola,
2013). Essentially that really is organized use of principles and policies summoned by handling
officials to manage organization’s savings. This study-report is targeted on distinct faculties and
elements of fiscal regulation that empower to find-out most efficacious right-issue for equity and
organization option. Additionally, it discusses about the different techniques like price earning,
dividend yield to analysis the position of business. Along with, analysis different investment
appraisal techniques to calculate the different results. Additionally critically analysis of these
different techniques of investment with their benefits and limitations.
QUESTION 2
Mergers and takeovers
Merger & takeovers is a common strategy used to define the sale of businesses or
properties by different forms of money transactions, like mergers, takeovers, restructurings, and
tendering deals, mergers of properties and investments of administration. The term M&A also
relates to the departments which deal with this operation at investment banks. There is defined
different strategy for the valuation of other company such as:
Price earnings ratio: It provides a notion of the sector is eager to cover business
earnings. Additionally, it indicates the way a stock is appreciated on the marketplace. Businesses
using high price-earnings ratio in many cases are regarded as growth stocks. This usually means
that investors have high expectations for future earnings growth and would be happy to pay out
more to these since it signals that a confident future operation. Businesses having a low price-
earnings ratio in many cases are regarded to own stocks that were undervalued. This usually
means that the purchase price of the inventory is relatively tiny. An organization with a non P/E
ratio is normally a sign of a feeble current in addition to prospective operation.
Aztec P/E ratio 3.89 / 0.21 18.52