CONTENTS
1. Capital Structuring 1
1.1 Introduction
1.2 Meaning of Capital Structure
1.3 Capitol Structure Theories
1.4 Net Income Approach (NT)
1.5 Net Operating Income Approach (NOI)
1.6 Optimum Capital Structure
1.7 Modigliani - Miller theorem
1.8 Shortcomings of Modigliani - Miller Theorem
1.9 Traditional Approach
1.10 Other Approaches
1.11 Summary
1.12 Keywords
1.13 Self-Assessment Question s
2. Dividend Theories 26
2.1 Introduction
2.2 Issues in Dividend Policy
2.3 Dividend Relevance: Walter's Model
2.4 Criticism of Walter's Model
2.5 Dividend Relevance: Gordon's Model
2.6 Dividend Irrelevance: MM Hypothesis
2.7 Bird in Hand Theory
2.8 Smoothing Theory
2.9 Tax Differential Theory
2.10 Residual Theory
2.11 Span of Control Theory
2.12 Investor Rationality Theory
2.13 Types of Dividend Policy
2.14 Dividend Payment Procedures
2.15 Summary
2.16 Keywords
2.17 Self-Assessment Questions
3. Restructuring Through Share Repurchase 47
3.1 Introduction
3.2 Suitability and Rationale
3.3 Methods of Buyback
3.4 Open Market Versus Tender Offer Share Repurchases 3.5 Legal Provisions
3.6 Stock Repurchase Model
3.7 Theories Behind Share Repurchases
3.8 Live Example
3.9 Capital Asset Pricing Model (CAPM)
3.10 Summary
3.11 Keywords
3.12 Self-Assessment Questions
4. Mergers and Acquisition 75
4.1 Introduction
4.2 Mergers and Acquisitions
4.3 Theory of Mergers
4.4 Merger as a Capital Budgeting Decision
4.5 Regulations of Takeovers / Mergers / Acquisitions in India
4.6 Summary
4.7 Key Words
4.8 Self-Assess ment Questions
5. Activity Based Costing : I 117
5.1 Introduction to Activity-Based Costing
5.2 What is ABC?
5.3 What does ABC provide to the Decision-Maker?
5.4 Understanding the Value Chain
5.5 Summary
5.6 Key Words
5.7 Self-Assessment Questions
6. Activity Based Costing : II 137
6.1 How is ABC done?
6.2 Analyse Activities
6.3 Gather Costs - Cost objects and B ills of Activity
6.4 Tracing Costs to Activities
6.5 Establish Output Measures
6.6 Analyse Costs and Activity Classification
6.7 Determination of Wastage
6.8 Summary
6.9 Key Words
6.10 Self-Assessment Questions
7. Working Capital 167
7.1 Introduction
7.2 Need for Working Capital
7.3 Strategies Available to a Firm for Financing its Capital Requirements i i fli
7.4 Spontaneous Financing
7.5 Concept of Float
7.6 Negotiated Financing
7.7 Conclusion
7.8 Summary'
7.9 Key Words
7.10 Self-Assessment Questions
8. Accounting Standards: I 197
8.1 Introduction
8.2 Classification of Investments
8.3 Statements of Accounting Standards (AS 23)
8.4 Accounting for Investments - Equity Method
8.5 Leases in the Financial Statements of Lessors
8.6 Summary
8.7 Key Words
8.8 Self-Assessment Questions
9. Accounting Standards: II 227
9.1 Accounting Standards for Valuation of Inventories
9.2 Accounting Standards (AS 17) for Segment Reporting
9.3 Identifying Reportable Segments: Primary and Secondary Segment Reporting Formats
9.4 Business and Geographical Segments
9.5 Extraordinary Items (AS 5)
9.6 Accounting Standards for Depreciation Accounting
9.7 Summary
9.8 Key Words
9.9 Self-Assessment Questions
10. Human Resources Accounting 259
10.1 HRA scenario
10.2 On Balance Sheet
10.3 The deterrents
10.4 Defining Human Resource Accounting
10.5 The Policy Dimension
10.6 Training and Selection Cost Analysis
10.7 Exit Cost Analysis
10.8 Human Resource Accounting
10.9 Staffing Performance Indicators
10.10 Are we getting VfM from Personnel/HRM Services?
10.11 Summary
10.12 Keywords
10.13 Self-Assessment Questions
Appendix 283