Month December 2023

Monopolistic Competition

Monopolistic competition

Monopolistic Competition is one in which there are large number of firms producing similar but not identical products. What is Monopoly? Monopoly is a market condition where there is only one supplier or producer of a homogenous product for which…

Perfect Competition

Perfect Competition

Under perfect competition market, there are large numbers of sellers selling a homogeneous product using identical production process. And all of them have perfect information about the market and price. What is prefect competition? Under perfect competition market, there are…

Cost of retained earnings

Cost of retained earnings

Like other source of fund, retained earning also involves cost. Cost of retained earnings is the opportunity cost of dividends foregone by shareholders. The amount of undistributed profit which is available for investment is called retained earnings. Further, If the…

Surat diamond bourse

Surat diamond bourse

The Prime Minister , Shri Narendra Modi inaugurated the Surat diamond bourse in Surat Gujrat. The new diamond has been added to the glory of Surat. Further, This will be the world’s biggest and latest center for international diamond and…

What is Risk?

What is risk?

Risk arises where there is a probability of variation between expectations and realizations with regard to an investment. Hence, it is arises from the variability in returns. An investment whose returns are fairly stable is considered to be low-risk investment.…

Net Asset Value Method

Net asset value method

Net asset value method represents the value of company’s assets minus liabilities. It measures the worth of the company. Being a straight forward method, the value of shares of target company is computed in terms of net assets acquired. This…

Gordons Model

Gordons Model

Gordons model assumes a perpetual growth in dividend. As per this approach , the rate of dividend growth remains constant. Gordons model is used to calculate the intrinsic value of shares based on the future series of dividends that grow…