Stability of Dividends

Table of Contents1 What is Stability of Dividends?2 Forms of Stability of Dividends2.1 Constant Dividend Per Share or Dividend Rate2.2 Constant Payout2.3 Constant Dividend Per

Redemption of Debentures: Methods, DRR, Journal Entries

The money raised through the issue of debentures is a loan to the company and must be repaid on the specified date and in a specified manner. Normally the time and mode of repayment are indicated in the prospectus at the time of issue of debentures by the company. The repayment of the number of debentures is called the redemption of debentures.

Hedging Strategies

Hedging refers to a technique to transfer the risk. It is used to avoid any worsening of an exchange position; an importer can hedge an

Foreign Exchange Exposure

Table of Contents1 What is Foreign Exchange Exposure?2 Foreign Exchange Risk3 Types of Foreign Exchange Exposure3.1 Transactions Exposure3.1.1 Techniques of Managing Transaction Exposure3.1.1.1 Forward contract3.1.1.2

Purchasing Power Parity Theory

Table of Contents1 What is Purchasing Power Parity?2 What is Purchasing Power Parity Theory?3 Absolute Purchasing Power Parity Theory3.1 Absolute PPP Theory Formula3.2 Assumption of

Exchange Rate Determinants

Table of Contents1 What is an Exchange Rate?2 Exchange Rate Determinants2.1 Demand and supply2.2 Domestic Economic Policies2.3 Interest rate differentials2.4 Expectations and other psychological factors2.5