Analysis of 10 companies of aerocpace and defance sector for investment
FINMO014 - ASSIGNMENT A ANALYSIS REPORT OF AEROSPACE AND DEFENCE SECTOR (TEN DIFFERENT COMPANIES INVOLVE) COURSE TUTOR Michael Eade (Total words 2,920) Northampton Business School Submitted by Syed Zaidi Student ID 08236990 TABLE OF CONTENTS INTRODUCTION 3 SECTION A (i): CAPITAL GROWTH AND DIVIDENDS 3-10 . BAE SYSTEMS 3 2. CHEMRING GROUP PLC 4 3. COBHAM PLC 4 4. MEGGITT PLC 5 5. QINETIQ GROUP PLC 6 6. ROLLS-ROYCE GROUP PLC 6 7. SMITHS GROUP PLC 7 8. VT GROUPS PLC 8 9. UMECO PLC 8 0. ULTRA ELECTRONICS PLC 9 SECTION A (ii): RISK ANALYSIS 10-11 * EXTERNAL
This is an investment simulation, where we have invested TK. 1, 000,000 in the DSE by valuing different stocks and then we measured the portfolio performance
EXECUTIVE SUMMARY This is an investment simulation, where we have invested TK. 1, 000,000 in the DSE by valuing different stocks and then we measured the portfolio performance using our theoretical knowledge of investment. We managed our portfolio by dividing the time horizon into 3 phases. At first we have analyzed the market situation and allocated our investment assets using the analysis. Next 2 phases were prepared using investment knowledge and theories. We have a loss of TK. 145,375 by investing in the DSE from February 05, 2011 to March 24, 2011. Then we have measured our portfolio performance and discussed about it. We also have observed the market factors and tried to figure out how our portfolio has been affected by those factors. INTRODUCTION Being relevant in today’s business world it is impossible without knowledge. As part of our course FIN435- “Investment Analysis And Portfolio Management” requirement, we got a fictitious portfolio of TK. 1,000,000 in our disposal to invest in the stocks of DSE (Dhaka Stock Exchange) for our investment simulation project on February 05, 2011 to enrich our practical knowledge. Our investment time horizon started at February, 2011 and ended at April, 2011. During this time horizon we got the three phases to change our investment. In first phase with the amount of TK. 1,000, 000 we invest in 11 different companies’
Corporate Finance. Among the four common capital budgeting methods used in investment for decision making process, NPV and IRR are the preferred approaches since they incorporate the time value of money.
Content page . Introduction page – Page 1 2. Question 1 – Page 2 3. Question 2 – Page 3 4. Question 3 – Page 4 5. Question 4 – Page 5 & 6 6. Question 5 – Page 7 & 8 7. Conclusion – Page 9 & 10 8. References – Page 11 Introduction Capital budgeting is a required managerial tool. One of the duties of a financial manager is to choose investments with good cash flows and rates of return. Therefore, a financial manager must be able to decide if an investment is worth undertaking and be able to choose intelligently between two or more alternatives. In this article, we will see the different methods are being evaluated and discussed in it. Among the four common capital budgeting methods used in investment for decision making process, NPV and IRR are the preferred approaches since they incorporate the time value of money. We then will go in-depth on the two approaches why most financial managers are using them as a preferred method for investments and how they benefits the financial managers as well. Question 1 List the methods that a firm can use to evaluate a potential investment. The methods used to evaluate a potential investment of the firm are as follows . Net present value(NPV) 2. Internal rate of return(IRR) 3. Discounted payback period 4. Payback period 5. Accounting rate of return(ARR) 6. Profitability index(PI) Question 2 Why is the
Catastrophe bonds as a reinsurance mechanism
Catastrophe Bonds as a reinsurance mechanism A great natural catastrophe is defined as one where the affected region is “distinctly overtaxed, making interregional or international assistance necessary. This is usually the case when thousands of people are killed, hundreds of thousands are made homeless, or when a country suffers substantial economic losses, depending on the economic circumstances generally prevailing in that country” (Munich Re, 2002). Natural catastrophes occur relatively rarely, but can be devastatingly destructive when they do. The societal and environmental consequences of such events are often tragic, and from a financial viewpoint all it takes is for one disaster to hit a highly populated area, and an insurance company’s capital base can be completely wiped out. Catastrophic events, such as hurricanes and earthquakes are one of the main risks that insurers and reinsurers face. When hurricane Andrew hit the coast of Florida in 1992, it destroyed $15.5 Billion dollars worth of insured property (total losses close to $30 billion) and caused 11 insurance companies to go bust as they were unable to pay the claims. Also in the 1990’s a Japanese earthquake cause damages between $110 and $200 billion, $35 billion which was insured (Carr & May 2011). Catastrophe events differ to most insured events as most insured events tend to take place
Investing in sponsor-backed IPOs: The case of Hertz
Khassenova Sabira ID: 20092695 Investing in sponsor-backed IPOs: The case of Hertz 2005 2006 Total RAC segment value (mln) 578.7x((8.09+13.55)/2)+7600= 570.3x((6.89+10)/2)+7600= 13,861.534 12,416.1835 + + HERC segment value (mln) 587.9x5.06=2,974.774 750x4.31=3,232.5 = = Total Enterprise Value (mln) 16,836.308 15,648.6835 . - Debt (mln) 12,515 13,955.5 = = Equity Value (mln) 4,321.308 1,693.1835 Price per share (mln) 4,321.308/320.618692=$13.48 1,693.1835/320.618692=$5.28 The current price $13.48 is less than $15 offer price so the shares are overvalued. However, buying the stock at additional $1.52 premium can be justified by strong brand name of the company and sustainable growth in revenues. The forward price based on the multiple analysis is much less than
Analysis of the need for, and type of, foreign investment in Russia.
FOREIGN INVESTMENT IN RUSSIA ________________ Contents Introduction . Essence and Classification of Foreign Investment .1. Essence of foreign investments .2. Classification of foreign investments .3 Role of foreign investments in economy. 2. Situation with foreign Investment in Russia today 2.1. Conception of an investment climate. 2.2 Investment climate in the main regions of Russia. 3. Structure of foreign investment in 2000-2012 3.1 Structure of foreign investment by its kinds in 2000-2012 3.2 Structure of foreign investment by industry in 2005-2012 16 4. Risks in the sphere of international entrepreneurship 4.1. Main methods of risk assessment and management. 4.2. Main types of risk 4.3 Peculiarities of business risks in Russia Conclusion 22 Endnotes 24 Bibliography 25 Appendices 26 ________________ Introduction One of the most important factors of the development of economy is investments, i.e. long-term investments of capital with the aim of creating a new manufacturing machine or perfecting and updating it for the purpose of gaining profits. Today Russian economy does need foreign capital inflow. This is caused by virtually full discontinuance of financing from the state budget, lack of funds in
Analysis of the article Determinants of Capital Structure: A Case Study of Listed Companies of Nepal written by Keshar J. Baral, PhD
An Article Review on “Determinants of Capital Structure: A Case Study of Listed Companies of Nepal” Introduction The article “Determinants of Capital Structure: A Case Study of Listed Companies of Nepal” was written by “Keshar J. Baral, PhD” and was published in the “The Journal of Nepalese Business Studies on December 2004”. This article discusses about the determinants of capital structure - size, business risk, growth rate, earning rate, dividend payout, debt service capacity, and degree of operating leverage - of the companies listed to Nepal Stock Exchange Ltd and their impact on the capital structure of the company. Summary Optimal capital structure is the major issue of debate. There are two views about the optimal capital structure among the debaters. One who supports optimal capital structure and the other one opposes on it. Supporters believe that appropriate mixture of debt and equity capital can minimize the overall cost of capital and maximize the value of the firm. Whereas the opponents “Modigliani and Miller” believe that the financing decision does not affect the value of the firm because value of the firm depends on the underlying profitability and risk of Investment. There are different theories of capital structure, net income approach states that firm can increase its value or lower the cost of capital by using the debt capital.
Financial Management Essay. the importance of capital structure and the cost of capital in the efficient financial management of large companies. Evaluate the Efficient Market Hypothesis.
EXECUTIVE SUMMARY ________________ The purpose of this report was to discuss various aspects in the subject of financial management. The work included the analysis of different theories related to the topic which was supported by a wide range of application and real case examples. There were two parts in two different topics related to financial management. The first part was to discuss the importance of capital structure and the cost of capital in the efficient financial management of large companies. It is said that there are various sources of capital available to large companies each has both costs and benefits. Besides, two important issues that firms are concerned with including cost of capital and capital structure were brought into discussion. Various theories underpinning were reviewed to derive at the conclusion of whether an optimal capital structure exists. Meanwhile, the efficient market hypothesis was the topic of the second part. It states that in an efficient market, stock price fully reflects all information available. Based on the level of information, markets are divided into three forms that are weak, semi-strong and strong. Generally, it promotes the idea that no one can beat the market to earn abnormal returns though accuracy varies in different forms. In consequence, it is of great importance for both companies and investors to study the efficiency
Provident Fund Rules
HOLIDAY INN PERSONAL INVESTMENT FUND RULES These Rules are made: . Pursuant to the Trust Deed establishing the Holiday Inn Personal Investment Fund and shall be deemed to be in operation from 1st November 2012. . TERMS . “Accrued Benefits” in relation to member accounts shall mean the amount of each member’s beneficial interest in the Scheme at anytime, including sums derived from contributions made by or in respect of that member, together with the income or earnings arising from any investments thereof, but taking into account any losses in respect thereof. 2. “Beneficiaries” shall mean the dependant or next of kin of a Member. 3. “Company” shall mean Holiday Inn Accra Airport 4. “Fund Manager” shall mean an individual or body to which the investment of the whole or part of the assets is delegated by the Trustees in accordance with the provisions of the Scheme’s Rules and Regulations. 5. “Scheme” shall mean the Holiday Inn Personal Investment Fund. 6. “Member” shall mean one who voluntarily joins the scheme and abides by all the governing rules. 7. “Retirement” shall mean the attainment of the statutory retirement age or, on voluntary retirement. 8. “Regulations” or “Rules” shall mean the rules and regulations herein contained. 9. “Salary” shall mean the consolidated monthly salary. 0. “Trustees” or “Board of
An Internship report on Equity Research and Treasury Operations at Oriental Bank of Commerce
Page | ________________ An Internship report on “Equity Research and Treasury Operations” at “Oriental Bank of Commerce” by Dhruv Kaicker (PGPM 1109) under the supervision of Mr. Taufique Alam, Chief Manager-Treasury Department, Oriental Bank of Commerce In Partial Fulfillment of the Requirements for Post Graduate Programme in Management at Indian School of Business and Finance 5-A, Lajpat Nagar-IV, Ring Road, New Delhi-110024 Submitted on: 5th October 2012 ________________ ACKNOWLEDGEMENTS I would like to express my gratitude to Oriental Bank of Commerce for giving me the opportunity to work in their esteemed organization and help me learn about the treasury operations of the bank. I am greatly indebted to Mr. Taufique Alam, my mentor at Oriental Bank of Commerce for his guidance and supervision as well as providing me necessary information regarding the project. I would also like to thank Mr. Sanjay Pareek and Mrs. Sonal Sethi from the Treasury department for their cooperation and support in aiding me to complete my report. I am also grateful towards Prof. Rohit Malhotra, my guide at Indian School of Business and Finance, whose valuable inputs helped me in the completion of the project. ________________ EXECUTIVE SUMMARY The report gives an insight into how banks conduct their domestic and forex treasury operations in accordance