Understanding The Concept Of Capital Budgeting And Dividend Policy

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Understanding the Concept of Capital Budgeting and Dividend policy

Understanding the Concept of Capital Budgeting and Dividend policy

Introduction

Capital budgeting is an investment appraisal technique that is used in the planning process of a company. It helps management in forecasting and evaluating the future performance of a project. Generally, financial managers utilize capital budgeting techniques to make an investment decision regarding a project. The main purpose of capital budgeting investments is to increase the profits of the company and to maximize the shareholders value. There are several capital budgeting techniques that are used to evaluate the performance of a project; these techniques include ...
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