Mame-Se ddn kisola
RoNo- 202064, 62031
a MB A-2sem-C
CFTFS- MST-4 Page- o
1 ( t Maimizaton
ootmaximization the objective o any economic
s
[Link] Pesormance anol eltueney o fim
aoe evalateel in texms oPottalH Ever
buseress has to eas'rot 5 oves l tosts ano
Prouicle funds ov udure qouth. wihoPot
no business Can uaiive. Prot leuides Q Cushion hor
n ndom k sing at any Tme
maämizzton
*hints in Fayour ot
isa baromater o the Pesprmance omel eciene
busenes.
Covexs he Cost gonning a
Prou~lie a kenel lor fukre qou
a busuness Conrat Susuive.
wthout Vsot,
in emeyfeneies.
I Proui des Supbort
maximizatton.
Coticism on Proit
t h e tbadetonal and
naseou
maimizafon
vot
Pvo maximizing öe Proh
which aims a
abbxoach,
he esm.
OCO
BHOT N UV
Name- hin kegola
Ro no 2020644, 62o3
el BA-2sem-C
Pbge- 02
Due td the sole goal Pt mainizaton , there m
be he explaitaton abouss and Consumess. C
may Jead to mmsal markekg anol kngthe
CombetHon
maxi mizatton obiective ignoves he time vale
amel
money md cloes not Cosioley the magni tudle
all eaninas aal
as ewal
ttming%
fmng earing&. Tt trea
when theu oCtus in event fertodk
the ellect diuidend poita on the mantat hie o
the
Shases s also nat Coniolere an the obfectve o
Psolat maximizatton
Wealh manimizatton
a is universa
wealh mainmi totfon
The obecte
The
ybustness. The tem
aCceplecd
the
contet n feld
shrehololer's wealh. A shasehlles
wealth neans
he
CUTBen uwealh in
the tim s the raduat a
w the
multplte
numbes Shaes ownel,
Cwveni stock htee hes shase
POCO
Gme-Sacn ktroa
Ro O 2010644, 62031
cas& M2A-sem-C
Page o3
aints En Fauous wealh maximiaton
I t oestomes the Jmttaons of he poliy
ProEt mqximizato.
TSeies te intexests Sophlers n Gnees
emleyees man@gemert, Consumes emd Socia
wealk mamiztion s basel on
The Concet c
Cash {lous acse taliy
the Concost oash fous.
a
iniesptaton
Omd not based
on any sobfectve
the tme valve
wealth maxêmizflon Consil ers
Tme valwe o monetranslata Cas
moneYmone
Flow ocuming at dalesent pertoodls,
Coticismon walth Maximizatfon
objeetve snst
pres CTptive [Link]
Et a
has to adabt to
descaptve the Poleies tiefm
maximizot@n The blties dtlerert
Qchieve wealh
may
be diferet
erms
Nme- SaJ& kirola
RoRNO- 2020 644,62z0st
elag MA-2em-C
The obietve halh maxê mizution may also
ace liues when 6twnersl?p and maragement
Kace
axe sepaztel as 2 he case n mastThe
Jasge [Link] pm oh osgpmizctios.
weal
wealmaximizotion Concebt s usehal O
enuit shaseladders anc not to debertre haldes
and Sot
ntesrelatton bekveen olzt madmtsaton ml
weaDt marim+soton
vave / wealK marimaaton
Maximi gngem
Maximizaton rolstahtlity
POCO
HOTON2¢O FV
Mme- gocin Kêala
Rol mo- 20 20644, G2a3
elags - MRA-2sem-C
Page os
015Capttal Stachuve
the amount e debt
Capftal Sthsvtuxe e s ts
Gnd lor eguity embloyecl by a m t fond
Operatons Qnd lenance aset. Atm Cappral
Stouctuve tyhfcallky expree as a dekt- to- euihy
d
Cr dlebt-ts- Caprtal Tockio
CPHmal Caltal stsuhse
stsukre a am is ohjen
The CptEmal Caztal
dest anal eguit
delened as he psopestHon
st
that resul in the lowest wefahtedd avesage
(wAn«) for the lam.
o Capstal
ta maintain the pefeat balare
T A designel
uealt% anol worth o
beween maximising the
he Comany and minimsing st Cast
Coptal
One -San roa
Rs9R no- 2020 644, 6-o31
C 0as MgA-2sem-c
Page- o6
Releaee mam Copehal Stoctre.
L u o : An objeet a balaneel cohetal stwdre
to mat tain Prober Jrguidetwhh is
necesa for he slweney f he Comban ASound
Capital stwctuve enables a Com pang tmaintaina
poper balance bekueen Exedl emd lnuid asek
ame aunsol the s s Enencfal and aag estal
elhta es.
ipOptêmumUtilizeztfon- OPtmom Utlizateon Me
auniloble Linarcal seUces an npastat obftkve
balencel struchre. An deal
a lironcal
nanceal Stsuctuse enables the Ccman fo make
ull uizaton auoilable cafztol ba esablekinq
a bhoper oveli naton bekueen the quamtum
Cabftal Gmd the fenaneial requiremerts h e
hustness. A bolocedl Ceptal Stsuckuse helhs 4 Cipan
e s t t n a e botk he stales oves-eaprtaltzaton
onder Cepétalizctëon uwhel ave hasmf! ts
amd
6rancl Prterests the Compang
one-Spclsn cokk
Aoo 202064, 6203
e s M&A-Sem-c
Page-07
1SEnple A balance Coketal Shure s aned
mtang the nombey o isves ancd tukes
Secuxehes, thus, making the CapPtal stuctuve as
SEmple as oseble
Cabetal Stovckre enables
GFlertble: Flexib:lity or
at e
the Companyt tise addstto nal Cabital
+fme o needl, or Tedeem the sorplus Capetal.
irat only heps s kuller tslizasfion the
avilable Cahetal bt also eliminates he two
and
undesisables statos Over
Capi tolizetbn
Unde-Coubëtalizaton.
Facors unuentg optimum Capltal
stsuchure.
1- Busness R
the natre ks?ness mosessky ,then e im
mose on equihy Calttal. Th he rlome
has to lepeno
nst slable +hen t 2s Aelfett rm or the 6y
2&
Interest On the bovsaweel captal ombtly.
CsCumstomce eguiks Capital must be Prelexre
Such
han debt Cal?tal.
Norme- Sacln kirola
Ro No 220 644, 6>o3
c a -MBA -"%em-C
Page
2- [Link]
Companies whteh preler 15 extonel bstnes ton
delperd-on bosoued coptal As he adsttanal hond
ve utlizeal business wouldeteh good tetuas in
ukove e
Kukore adlrHonal rolle ecneel b the Conlany
shkaeholdes
Con be eneyedl by the exis-tng
Toxalon ospose
Iterest ayolble e n olebt s deltiile gr tar
delt Cahtal Constdeseel cler
puposes. Hence,
tmeuty Capetal
hovesnment ltieg
hovenmet tolrkes have a qreatt inlwence on
stwckre a Company. here 8 a
the Cobetel
chonge Bn the lendbrg olia of the yovesnment
S t c t r e is alo
olectdecl
then the Coberal
pemmet
accrding to the folzies he
ame-Saclin kvela
RalnD 202o 644, 6ro3
Clas M@A-2sem-c
Poges
e o n -c
3FVz 9o0
CF- 68 /2 = 315
N 12X 2 = 24
8 % f2 = 4%
CF e x =6
e
Pv Fosmula -
oo4r.)
(1o4
00
2:563
Preset volue= 35115
FV qoo
CE 63/231.S
N l2x1 = 2
Mame- Soclin rirola
Rev2020 644, 6203
eas-MR-2 sem-
Page-10
PV Fv
C1+t)
qoo 1
C+2s7)
qoo
CI+ 25
00
ooot2
l ooo
10
= 44.+8
Fv 900
CF 63/2 = 31s
N = |2xL=
i 72/2 - 3s).
Pv FVCIti)"
q00 ( Y
Name-So din t8la
Rodo-202 644, 6103 1
c a s M@A - gem-e
age-n
=900-
( lo3S
2-203
= 394:21
C These velaton shi betwedn Tale
nvese
ekoon md Calpon intexest at, when
pte Tekum 6 *2 en he sesent valwe
494.F%, anol when te ate of betora
B Hen tke Oreset valwe 2s 3511S
Gnd when tKe Res Rate osefusn i 7
ten 394.21 .
c I wbu the bono o6 Rs 49778 wha
te