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University Degree: Finance
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Blaine_Kitchenware_Case. Do you believe Blaines current capital structure and layout policies are appropriate?
Approximately 85% of Blaine's revenue and 80% of its operating income came from the sale of mid-tier products. Blaine's 2006 EBITDA margin of nearly 22% was among the strongest within the peer group. Blaine's operating margins had decreased slightly over the last three years. Margins declined due to integration costs and inventory write-downs associated with recent acquisitions. Now that the integration activities were completed, BKI executives the firm to achieve operating margins as high as it historical margins. Most of the Blaine's rivals were cutting prices to maintain growth but Blaine did not follow suit and as a result its core products lost its market share.
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Real time gross settlement (RTGS) was introduced in Australia in 1998. Wire a report that analyses the impact of RTGS on the efficiency of Australias payment system and compares RTGS with the settlement process used for non-cash retail size transa
Prior to June 22nd 1998, in Australia almost all non-cashed transactions were settled. Under this settlement process, despite the size of the transactions, non-cashed transactions were all batched together and the net positions would be settled at 9AM the next business day through the ES accounts of involved banks or other institutes accordingly (Reserve Bank of Australia 2004). With huge number of participants and enormous total value of transactions each day, the settlement risk would be very likely to occur.
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EADS is a company in aerospace industry that earns in euro but spends in dollar. This assignment is aimed to analyze its hedge situation and financial results thus make a decision for investment.
This led to nearly �1 billion (18.5/1.35-18.5/1.26=-1) decrease in EBIT from 2009 to 2010. An appreciation in euro against US dollar will make the financial result worse since after translation euro revenue will be less with the same amount of US revenue. On the other hand, the credit risk of its hedging counterparties is a problem deserves concerning. The company has witnessed a hedge rate deterioration as the unfavorable appreciation trend in euro against US dollar (registration document 2010:8). The non-performance of these counterparties will pressurize EADS to significant exchange rate risk again.
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Report on acquisition. This report is prepared to examine different offers proposed by the Alpha Plc to Delta Plc in acquisition of the target company. It is to analyze that which offer is most beneficial for acquiring company and vice versa and to recom
It is to analyze that which offer is most beneficial for acquiring company and vice versa and to recommend offers to be negotiated by each company. The report draws attention to the fact that each offer consist of different combination of offers including cash and stock. Each offer is valued to �360,000,000 but with different cost of acquisition of Delta Plc which is calculated later in this report. Calculations in this report to analyze offers includes Target shareholders' gain - (the premium), Acquirer's gain and The post-merger values of the combined companies.
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Report on acquisition case study. Methods of evaluation and analysis in this report include focusing benefits of different alternative offers proposed by Acquirer Company to Target Company to acquire in cheapest way.
Acquirer should issue Delta Plc shareholders 0.80 shares of Alpha Plc per share of Delta Plc stock. (b) Target company should negotiate to receive �12.00 per share for the shares of Delta Plc from Alpha Plc. The evaluation and analysis conducted in this report has limitations. Some of the limitations include: it is not mentioned that how many shares Alpha Plc is going to acquire from Delta Plc, in this report it is assumed that Alpha Plc se acquiring 100% shares. Financial performance figures in terms of Revenue, Gross Profit, Net Profit are not provided not the nature of company is known whether each company relates to same industry or not, it is assumed that both companies are in the same industry.
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The country that had the highest chance of default is Greece which was more than 50% of the probability. The likeliness of default was so high that S&P downgraded Greece debt to junk level. Therefore, Greece was seen as a very risky country to invest in. From these reasons above, Greece had to ask for the bailout in 2010 for the first time. Euro zone members and the IMF have agreed three year bailout package of 110bn-euro to rescue Greece's embattled economy2.
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Financial Decision Making. Financial statements have been taken from the website from Next Plc and, using the Consolidated Statement of Comprehensive Income (App.3) and Consolidated Balance Sheet (App.1) for the year ended 29 January 2011 the following f
It is the total amount of issued capital for which the shareholders are required to pay. This may be less than the subscribed capital as the company may ask shareholders to pay by installments (Companies House, 2011). Referring to the Consolidated Balance Sheet (app.1), Next Plc does not have any called up share capital. ii) Share Premium Account The share premium account balances the difference between the par value of a company's shares and the amount that the company actually received for newly issued shares.
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ECONOMIC ANALYSIS ON FINANCIAL CRISIS. In September 2007, the global economic crisis started to show its effects. Around the world stock markets have collapsed, and the real estate crashed. In the meantime, governments had to rescue their financial system
Keynes felt that the Classical economists did not conform to the reality and needed to be "corrected". (Patil, N.D)Therefore, The General Theory of Employment, Interest and Money was published and it supported the theory of Keynes that unemployment could be set at rest by government. He also contended governments can stimulate economic activity by rising public spending and lower taxation. In this paper, Classical and Keynesian theory will be contrast and analyze first and the Keynesian 45�line model diagrams will be explained combining with recently economic crisis in detail. In the end, a large number of researches of fiscal policies by British government will be analyzed combining with the economic situation in UK.
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The American Dollar Crisis. An article, Forty Years of Hurt posted in the online version of The Economist on May 4th, 2011 states that the dollar has never experienced so low values.
Although a weak currency means that American goods will be generally cheaper abroad, thus exports will increase, America has a serious problem with the trade deficit it's running. Moreover, creditors are getting nervous with their holding of low-yielding Tresury bonds in a depreciating currency. Looking at this graph it is really normal to start thinking about the issues that economists are discussing nowadays and about the possible signs that a dollar might collapse. Generally speaking, a dollar collapse means that that the value of the dollar falls so rapidly, that everybody who owns such a currency starts to sell it out, no matter of the cost.
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-----by running an enterprise in a foreign country. Furthermore, according to Neuhaus (2006), FDI particularly involves setting up some physical entities such as a factory or an enterprise in a foreign country. In contrast, what I state about FPI is that it is usually calculated to achieve short-term realization of goals, and rendering the investor benefits from foreign countries through two indirect ways - investing in financial markets (e.g. stocks, bonds, or other financial assets) and corporate participation but without the power to make decisions.
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In the first part, I discuss the implication of domestic and foreign funds and why they have different stock preferences. In second part, the preference of both domestic and foreign investors from same market will be discussed and compared. Afterwards, the conclusion and any further applications will be presented in the last section. Mata, Portugal (2002) Classify funds into domestic and foreign funds. How to distinguish the domestic funds and foreign funds is to look at the located country of these funds.
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Currency exchange is a common phenomenon in the business world and many big corporations and banks do it in large volume and frequently. This analysis has taken into consideration the historical data on interest rates, inflation rates, and exchange rates
In case of Japanese Yen, Feb 2000 witnessed the highest inflation rate of 3.352% with the interest rate of 3.6025% in March 2000. In case of USA dollar, Dec 99 witnessed the highest inflation rate of 4.2023% with the interest rate of 4.4934% in March 2000. However there were few exceptions which could be due to some other external factors. The underlying condition is of no government interference so there might be some disruptions of fluctuations on the part of the government which led to these exceptions. 3. How should BID analyze its effective borrowing costs over the period 1996-2005?
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The old technology loses its value and has to be sold cheaper to customers. On the other hand Dell can faster bring new technologies to the market than its competitors. We can take the fast development by Intel CPUs to Pentium in 1994-95. Dell was able in the shortest time deliver the new chips to its customers. Such technology change is for Compaq clearly more expensive and it means a potential margin advantage for Dell. 3. From Tab #3, you can estimate the "Net Financing Requirement" for Dell in FY1996. Why do companies, even profitable ones, need financing as they grow?
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Business Statistics Project. We took Belvin Electronics Manufacturing Company and we specifically select four different variables on their single product model our variables containing Sales, Production Cost, Advertising Expenses, & Profit.
interval about Mean: 29 Interpretation: 29 Confidence interval about Variance: 29 Interpretation: 30 Confidence interval about Standard Deviation: 30 Interpretation: 30 ANALYSIS OF VARIANCE 31 Critical Region: 31 Test Statistic: 31 ANOVA TABLE: 32 Decision: 32 Interpretation: 32 DETERMINATION OF DEPENDENT & INDEPENDENT VARIABLES: 35 Raw picture of the Data showing Dependent & Independent Variables 36 Predicted Values, Square sum of Errors, Square sum of total errors 37 Calculations for Multiple Regression Equation 38 MULTIPLE REGRESSION ANALYSIS 39 Required Regression Equation: 39 CO-EFFICIENT OF DETERMINATION: 40 Interpretation: 40 ADJUSTED R SQUARE: 40 Interpretation: 41 CORRELATION: 41 Interpretation: 41 HYPOTHESIS OF
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Airplane industry analysis. This report will consider the companies which have been chosen for the aviation sector, including a PEST (Political, Economic, Social and Technological) analysis of the industry. An analysis of ratios will also be used to help
Ratio analysis to determine the financial strength of the company in areas such as profitability, liquidity, investor ratios and share price performance 10 Summary findings in form of SWOT interrelationship of PEST and strength/weakness of Companies (Template format) 10 Overall Grade for Literature review 30 Discussion to include: Results on the research. Analysis of results with reference to existing published works where appropriate 20 A discussion of the relative performance of each of the chosen companies in relation to the template above and information from group report and accounts.
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Business Crime. Earnings Management or sometimes referred as creative accounting is most of the times ambiguous and many people tend to confuse it as misusing and manipulating the financial data so that managers can show better figures in the income shee
According to Ronen and Yaari(2008 p.25) "the different definitions of earnings management, classifying them as white, gray, or black. Beneficial (white) earnings management enhances the transparency of the reports; the pernicious (black) involves outright misrepresentation and fraud; the gray is manipulation of reports within the boundaries of compliance with bright-line standards, which could be either opportunistic or efficiency enhancing." Earnings Management or sometimes referred as creative accounting is most of the times ambiguous and many people tend to confuse it as misusing and manipulating the financial data so that managers can show better figures in the income sheet.
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Banking and Financial Structure Case study of UK banks. Looking at the three banks HSBC, RSB and Lloyds TSB and their performance we can conclude that HSBC did a little bit better than its competitors especially in the profitability measures because HSBC
This is because of the huge losses that the bank had for the last 3 years unable to generate enough profit of the shareholders investments. The next ratios is Return on Assets (ROA) which gives an idea of how much profits are generated using the assets of a company. For RBS the ROA for the four years are: 2010 is -0.1%, 2009 is again -0.1%, 2008 is again negative with -1% and for the last year 2007 ROA is 0.4 which is again the best compared to the last 3 years.
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Exchange rates. When international trade makes up a significant proportion of a countrys economic activity, the exchange rate is one of the most important determinants of both inflation and output
Therefore, the exchange rate is a conversion factor, a multiplier or a ratio, depending on the direction of conversion. Thus, the exchange rate can also be considered a price of one currency in terms of the other. Exchange rate regimes (fixed or floating) are chosen by central banks (or governments). It is important to distinguish nominal exchange rates from real exchange rates. Nominal exchange rates are established on currency financial markets. Rates are usually established in continuous quotation (they maybe fixed). Real exchange rates are nominal rates corrected by inflation measures. I.1 Bilateral exchange rate A bilateral exchange rate is simply the exchange rate between the currencies of two countries, such as the US dollar/sterling or the French franc/Deutschmark exchange rate.
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Diversification of Assets. Explain how diversification of assets eliminates specific risk. Use a numeric example to illustrate your reasoning.
This attitude can be depicted on the diminishing marginal utility of wealth diagram, where the utility (u) from an added amount of wealth is far less than the decrease in utility from a reduction in wealth of the same amount. Source: Richard G Lipsey and K Alec Chrystal, 2007 This means investors look for the highest return possible for a given risk and look for the lowest risk for a given return. Also, they would not be interested in a risky investment offering the same rate of return as a higher investment; they'd want a higher return for a risky investment than that of a safe investment.
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Banking and the Economy- How do banks work and how do they make profit? What is a financial crisis and are they common?
3. What is a bank's liquidity ratio and why it is typically very low? Liquidity Ratio: Total Cash / Total Assets = �25 / �275 = 9.1% It is a percentage of assets kept as ready cash relative to total assets. There is no legal minimum for this ratio, but generally banks agree to keep about 2-3% of their assets in ready cash. The higher this ratio, the banks hold more cash and they do lesser spending. Thus, many banks have a profit incentive to see this ratio is kept as low as is possible.
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People who commit financial crimes are entirely motivated by greed. -discuss critically regarding the Dutch company Royal Ahold NV Aholds Case.
The fraud consisted of Ahold overstating pre-tax earnings by 966 million dollars and the USA subsidiary company which was called US Foodservice (USF) comprised 856 million dollars of the fraud total (SEC 2004). In February 2003, subsequent to the executives of Ahold stating that the reported earnings were not correct, the share price dropped by 65 percent and the market capitalisation dropped from 30 billion euros to 3.3 billion euros (SEC 2004).The auditor DELOITTE and TOUCHE found irregularities and issued a letter dated February 2003 stating that it could not stand by the correctness it had certified for the previous
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Credit Scores: Should Lenders Judge by the Number?The first reason why credit scores should be used as a fair measure to help lenders estimate potential risk is that credit scores are determined who is better qualified for a loan, and it also has a huge i
qualified for a loan, and it also has a huge impact on not only the lifestyles of individuals but the economy of the country as well. A young adult heard that a bad credit score could keep him from getting a job. He wanted to verify whether this is true and he wanted to know where he could find out about his credit rating. It is very true that having a negative credit score can affect a person's ability to get a job.
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Research project. The levels of risk tolerance to financial stability of Malaysian banks rely on a variety of environmental risk factors that impact investment risk. It is through investment that banks have business and finance to regulate and synthesize,
One's risk tolerance is subjective and may vary according to age, needs, goals, and even personal dispositions. Malaysia's economic inter-linkages with other economies and enhance the role of the financial sector as a key enabler and catalyst of economic growth. (www.mida.gov.my en2/index.php/page=banking-system) Background of the problem Banks are the main financial players in any economy and therefore their success usually comes with success in the economic jurisdiction(s) that they operate. Banking sector success is normally reflected by a country's financial stability. The banks however are the direct financial enablers allowing the proper financial systems regulations and standards to be followed.
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Many countries have loosened the link of their currency to the US dollar in the global financial crisis that started in July 2007, a fact that may be explained by relying on the literature of contagion across markets. It has been a continuous rumor, especially in the last five years, regarding whether the euro will challenge the supremacy of the dollar as the leading international currency. The literature covering the debate can be divided into euro-optimists, who argue in favour of this thesis, and the euro-sceptics, who point to the obstacles the European currency faces to dethrone the dollar.
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Valuation Report for SingTel. SingTel was incorporated in 1992 and it was listed in Singapore(through what still remains Singapores largest IPO) in 1993.
and Indonesian markets (2001) by taking stakes in Bharti and Telkomsel, respectively. In 2001, SingTel bought over Optus in Australia from Cable and Wireless (which had raised its stake from 24.5% in 1997 to 52.5% by buying out Bell South, listing Optus, and participating in the IPO). In 2003, SingTel divested a majority stake in Singapore Post and it also shed its stake in other non-core businesses, emerging as a core telecom company.In 2005, SingTel entered Bangladesh through PBTL, although it was a small investment by its standards. The company made a much bigger investment in 2007, with a US$758m purchase of a 30% stake in Warid Telecom, Pakistan, but later, it took a write-down on this.
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