Role of Economic Value Addition (EVA) in Financing Pattern of Tata Consultancy Services Limited

Author:Mukesh Kumar Jain*

Abstract:
The present study surveys TCS Ltd. to find out about its corporate finance practices vis-a-vis capital budgeting decisions, cost of capital, capital structure, and dividend policy decisions. It analyses the responses by the firm characteristics like profitability, leverage, and P/E ratio. The analysis reveals that practitioners do use the basic corporate finance tools that the professional institutes and business schools have taught for years to a great extent. The present study reveals that various financial tools used for Management Decision Making are playing important role and are very much upto mark. The results seem to suggest that if the firm does not have specific capital structure in mind when deciding as to how best to finance its projects where in case of the company it has always been kept in mind.

Keywords:Key Words: EVA, Financing Pattern and TCS.

DOI:

International Journal of Trade & Commerce (Vol: 8 Issue:1)