"Describe and compare the alternative methods that companies can use to raise capital in the various capital markets. Include in your discussion the advantages and disadvantages for the companies and investors and the role of intermediaries".
University of Essex Department of Accounting, Finance and Management AC302 Corporate Finance "Describe and compare the alternative methods that companies can use to raise capital in the various capital markets. Include in your discussion the advantages and disadvantages for the companies and investors and the role of intermediaries". ) Describe and compare methods of capital raising in various capital markets 2) For each of the methods evaluate the advantages and the disadvantages to: - Companies - Investors - The role played by intermediaries in raising capital Word count: BA Accounting and Management . Introduction Bodies, Kane and Marcus (2002) suggest that "Financial markets are traditionally segmented into money markets and capital markets" Sources of finance from money markets are described as short-term, cash equivalents usually marketable, liquid meaning easily transferable to cash, low risk debt securities. These include treasury bills, commercial papers, bankers acceptance and alike. In our discussion however we will be focusing on capital markets which are in contrast to the former in that they are longer-term more risky securities. Capital market instruments can be further divided into four categories, debt markets, equity markets and derivative markets which constitute options and futures contracts the latter we will only be discussing
"Does the 21st century transformational form of superleader simply represent the re-emergence of trait-based theories of leadership? Critically assess this question with reference to at least two different approaches to leadership."
M.Sc. In International Marketing Management in the Business Organisation Module Coordinator: Andrew Burnett Essay: "Does the 21st century transformational form of superleader simply represent the re-emergence of trait-based theories of leadership? Critically assess this question with reference to at least two different approaches to leadership." Date: 25th November 2006 Name: Sophia Telanidou M.N.: b00123065 Table of Contents ) Introduction................................................................p.3 2) Theories of leadership..................................................p.4 * Trait-spotting Theory (The Great-Man Approach), 1900-1940...................................................................p.5 * Behavioral Theory (Style Counseling Approach),1940-1960...................................................................p.7 * Situational Theory (Contingency/ Path Goal/ Transactional Approach), 1960-1980...................................................p.9 * New Leadership (Transformational Approach), 1980-2000.............................................................................p.11 * The Superleader, 2000's........................................p.12 3) Conclusion.................................................................p.14 4) References................................................................p.16 ) Introduction The
"East Asia has both greatly benefited and greatly suffered from the effect of globalisation". Discuss.
"East Asia has both greatly benefited and greatly suffered from the effect of globalisation". Discuss. To many people globalisation is a very recent phenomena, no one had really spoken about it in terms of it being a global issue, or problem. However, the term and definition of it have only come to light recently, as the spread of western ideas have transfixed much of the globe. Globalisation is more of a process than an occurrence, it is not so much that it is the cause of the issues in this essay, but a term used to describe the spreading of a trend, that of capitalism. Fundamentally, the term is about increasing levels of connectivity, integration and interdependence between different parts of the world economy, politics, society, and culture. As I have said views on the benefits or drawbacks of this effect vary greatly, as is shown by Singapore's Deputy Prime Minister Lee Hsien Loong, "Globalisation, fostered by free flow of information and rapid progress in technology, is a driving force that no country can turn back. It does impose market discipline on the participants, which can be harsh, but is the mechanism that drives progress and prosperity".1 However, other opinions are held, mainly from groups who believe that it is destroying culture, and widening the poverty gap, as well as de-stabilising world economies. "If globalisation has not succeeded in reducing
"Equal Opportunities legislation is an unnecessary interference for business - Discuss".
Motorsport Management BSc 3rd Yr Human Resource Management Simon Noblett 27/10/03 "Equal Opportunities legislation is an unnecessary interference for business. Discuss" Equal opportunities legislation is in place to prevent employees and in some cases customers from being discriminated against because of their race, colour, nationality, ethnic origin, gender, sexual orientation, marital status, age or disability. According to the TUC, there are two forms of discrimination: "Direct discrimination occurs when people are treated less favourably than others simply because of sex, colour, race, nationality or ethnic origin. An example would be a company refusing to employ a woman because she has children, but employing a man with children. Indirect discrimination is when a rule which is supposed to be applied equally, is in reality unfairly disadvantageous to one group of people. An example would be a company advertising a job saying that only people with English as their first language should apply. This indirectly discriminates against people who have enough English to do the job, but for whom English is their second language." (www.tuc.org.uk) There are 4 key laws that govern equal opportunities, the 1975 Sex Discrimination Act, the 1976 Race Relations Act which outlaws discrimination based on someone's colour, race, nationality or ethnic origin. The 1970 Equal Pay Act
"Equality and Diversity is paramount to an organisation's success in the 21st Century" - Choose an organisation and discuss the above statement from an HRM perspective.
"Equality and Diversity is paramount to an organisation's success in the 21st Century." Choose and organisation and discuss the above statement from an HRM perspective. The aim of this essay is to address the importance of Equality and Diversity in the workplace and how it contributes to an organisation's success. The author of this essay will use the prison service as an example of an organisation that has and continues to have problems in addressing equality and diversity within its organisation and how it is addressing these issues in relation to improving recruiting and thus the service it provides the community. The function of the prison service is fundamental in helping to maintain order and safety to the community, whether this be in the form of housing individuals who represent a threat to others or rehabilitating prisoners to be able to make a more worthwhile contribution to the community upon release. Its effectiveness in delivering this service therefore is paramount to the future of the nation. The prison service employs around twentyfive thousand operational staff and around nineteen thousand non-operational employees to carry out its functions and of these 2.6% of operational and 5.1% of non-operational staff are from ethnic minority backgrounds.1 Ethnic minorities accounted for 7.2% of the working population in 2000. Ethnic minority and mixed origin groups
"Evaluate the various methods that a firm can use to estimate its cost of equity, discussing advantages and disadvantages of each. Why is it important to estimate the cost of equity as accurately as possible?"
"Evaluate the various methods that a firm can use to estimate its cost of equity, discussing advantages and disadvantages of each. Why is it important to estimate the cost of equity as accurately as possible?" Whenever a firm makes a profit, it can take two possible actions. On one hand it could pay out the cash as a dividend. On the other hand the firm can invest the extra cash in a project. The project could be building a new factory for example. The aim of this project would be to provide future cash flows that would increase shareholder wealth. The project should only be undertaken if its expected return is greater than that of a financial asset of comparable risk. In this study I will be looking at the different ways of measuring the cost of equity and why it is important to measure it accurately. From the firm's perspective, the expected return is the cost of equity capital. The capital asset pricing model (CAPM) is one method for calculating this. However, before we look at the model, we must understand how the concept was derived. Stanford professor William Sharpe and the late finance specialists John Lintner and Fischer Black focused on calculating what part of a security's risk can be eliminated by diversification and what part cannot. The result was the capital asset pricing model. The basic concept behind the model is that there is no premium for bearing risks
"Even without a formal agreement firms in oligopolistic markets may be able to sustain a joint monopoly equilibrium. Discuss."
Gemma Thomas Business Economics Essay Term 2 "Even without a formal agreement firms in oligopolistic markets may be able to sustain a joint monopoly equilibrium. Discuss." To understand what the question is asking, a definition of an oligopolistic market is required before I will attempt to answer. An oligopolistic market is characterized by few firms and many buyers, there are a sufficiently small number of firms for interdependence to exist, meaning that each firms prospects depend on rivals as well as their own policies. This interdependence can lead to attempts at communication, coordination and collusion. All decisions made are strategic and rivals responses will have been taken into account. Each time a firm in an oligopolistic market adjusts either price or quantity, any revenue gain is at the expense of its competitors. The competitors whose profit margins are affected are likely to respond by altering their own price or quantity. From this we can understand why there is an incentive for firms to collude. There are four important oligopoly models, the Cournot-Nash model, the Stackelberg model, the Bertrand model and the dominant firm price leadership model, each built upon different assumptions and result in different equilibrium outputs. I am going to examine each in turn, a discussion which mirrors that in Waldman and Jenson1. * Cournot-Nash Model - considers
"Every diversification decision is an entry decision" - Discuss this statement in terms of its implications for the success of new business diversification.
"Every diversification decision is an entry decision." Discuss this statement in terms of its implications for the success of new business diversification. Your answer should address issues of competitive advantage, industry analysis and industry evolution. What is the motivation for diversification? What is the process to set up the diversification venture? What are the determinant factors that make diversification successful? And what are the rules to manage diversification? Many firm in mature stage find themselves have little room to grow, difficult to capture more market share and to earn more profit. The future of the established firms could be threatened by industry disruption as innovative start-ups entering the market. Those more capable incumbents would constantly adapt to the new rules of competition through both innovation and imitation. There are several reasons that would motivate firms to consider diversification. First, the volatile business could cause firms' earnings uncertain, or the changing business climate could cause firms less profitable than before. EMI Ltd. is a good example, emerged as the Electric and Musical Industries, and then redirected itself towards the development of sophisticated electronic devices during the war. After the war was over, EMI was struggling to make profits because its business was largely aligned with the
Examine q-theory and other theories of investment. How well do they explain investment decisions?
"Two key aspects of the investment decisions of firms are that they are undertaken in a cloud of uncertainty, and that investment spending over the business cycle is highly volatile. Concentrating on the investment decision as the balance between the return and the cost of the investment does little towards a useful economic explanation". Examine q-theory and other theories of investment. How well do they explain investment decisions? Most of the literature that focuses on the behaviour of investment either tends to focus on the relationship between the return and cost of capital or the relationship between investment and output. With regard to the former, the most basic neoclassical theory looks at investment decisions under a situation of perfect competition. There is no uncertainty, a perfect elastic supply of capital goods and the firm can adjust their capital stocks costlessly. If these assumptions hold the firms profits can be written as follows: In the above equation, 'K' is the amount of capital a firm rents, the X variables are exogenously given so as to include the cost of other inputs and the price of the firms product, and 'rK' is the rental price of capital. By taking the first derivative of the above equation, the firm rents capital until its marginal revenue product equals its rental price - a balance between the return and cost of capital. However, one can
Human Resource Planning.
Introduction. Rothwell stated that "apart from isolated examples, there has been a little research evidence of the increased use of human resource planning or its success". (Armstrong.M p366). The statement suggests that human resource planning has not been broadly used and the companies are missing out by not adapting it into their structure. Firms that have already introduced human resource planning into their routine think that it helps to increases their company performance. In a Canadian Chamber of Commerce survey, 72% of firms that use human resource planning said that it helped them with their success in the projects and also unnecessary costs were cut down. The same survey said that too many employees can be very costly to the company: a 300-employee firm with six staff more than required will suffer an unnecessary cost close to 2%.For a smaller firm the disadvantage of having extra workers than required will be significantly more, as their finance more limited and in a matter to succeed they have to use their resources efficiently. ( http:// services. indiabizclub. com/ catalog/332596) Human Resource Planning helping companies to increase their profit by identifying gaps that have to be filled in or skills that are no longer bring benefits to the company. Also it helps firms to learn how to manage and motivate their staff better, to receive greater results. Human
