A Study on Financial Forecasting and Planing with Reference to TVS Moters.

The value of the firm depends upon its expected Financial Forecasting. The rate used to discount earnings stream it's the firm's required rate of return or the cost of capital. Thus, the capital structure and Financial Forecasting decision can affect the value of the firm either by changing the expected earnings of the firm, but it can affect the reside earnings of the shareholders. The effect of leverage on the cost of capital is not very clear. Conflicting opinions have been expressed on this issue. In fact, this issue is one of the most continuous areas in the theory of finance, and perhaps more theoretical and empirical work has been done on this subject than any other. [ABSTRACT FROM AUTHOR]