The Industry of Financial Services The industry of financial services in the UK has long been one of the leading industries in the world. Namely, the City of London is considered can be considered the world’s leading financial centre. The role of the financial sector in the UK economy cannot...
Currency just like any other product has a price which is commonly referred to as currency. As with the other commodities, demand, and supply play a major role in determining its price by determining what amounts are needed hence facilitating their sale. Exchange rates are the values of which a...
Many people are interested in question when might be the best time to start saving for retirement, and the answer is as soon as possible. It is best to start putting aside from the first salary, since this move will increase the amount of money at the expense of bank...
Summary “Valaskova, K., Kliestik, T., Svabova, L., & Adamko, P. (2018). Financial risk measurement and prediction modeling for sustainable development of business entities using regression analysis.” Web. Problem Summary The company sees the problem of organizational health and sustainability as one worth discussing. In particular, the longevity and risks of bankruptcy...
People’s income dictates their spending habits. An example is people from the middle class. They always use busses to go to their places of work. If their class is elevated by an increase in income, they will opt to buy their own vehicles. This is a good example of income...
There are several methods that can be used to assist with the bank and corporate restructuring, the use of which depends on the interaction between the insolvency law and the regulated industry, the regulatory framework for the regulated industry, and the history of the regulation and administration of such regulated...
It seems reasonable to claim that taking a niche in such a beneficial location – near freshly opened ski fields – is quite a profitable option for a hotel. Keeping in mind that no rivals have occurred yet, there are a plethora of opportunities to develop a significant profit maximization...
Many of the factors manipulate how the interest rate is obtained to put in the market. And also it is extremely tough to find out these factors. The majority of cash is formed by way of personal loans. The main task of the Federal Reserve is to make induce to...
Yes, the prospects for changes in Federal Reserve policy will affect the decisions related to financing a purchase. The Federal Reserve (Fed) provides stability in the financial system of the country. It is the supervisory body of controlling the money supply in the country. It is the controller of all...
According to Noori and Aslani, free cash flow (FCF) is a concept of measuring the cash flow of a business aimed to define the fraction which is available for distribution among the groups of stakeholders of the company such as its stockholders. Essentially, FCF means the fraction of cash flow...
To assist the governments to deal with budgetary shortfalls some decisions have to be made. I would increase the rate of cooperating income tax and even tax organizations’ shareholders on their dividend earnings. This is because their tax rates to the state are marginally quite low when the truth is...
The management report included in the company’s annual report for the year ended December 31, 2019, provides its assessment of various risks that affect ExxonMobil’s operations and profitability. The report indicates that the company’s business results could be negatively affected by adverse changes in interest rates that could increase its...
According to David, resources can turn into liabilities when an organization mismanages the funds allocated to transform the resources into revenues. However, other scholars have opined that even in the event of embezzlement, the value of resources like the land is unlikely to change, thus negating the argument that funds...
The answer to this question seems obvious: yes. Indeed, when a manager developed a unique investment strategy, she could follow her path, which could well lead to success, even contrary to the general trends. Nevertheless, the manager decided to discuss her ideas with colleagues, which will undoubtedly affect market dynamics....
There are several key differences between the foreign exchange market and domestic market; first of all, in the domestic market, there is only one entity that has the right to issue one accepted currency – the government of a given sovereign nation. In the foreign exchange market, however, currencies are...
Asset financing is a critical business operation requiring effective planning. While managers make several other considerations, they are drawn into using the Weighted Average Cost of Capital (WACC), which refers to the average rate at which a business is anticipated to repay all its security holders in the process of...
South Korea had a negative environment for business, especially for foreign companies. The crisis of 2008 and the further economic decline of the country only increased concern among global investors; hence, many left the country to avoid financial losses. Furthermore, it is important to remember that South Korea has a...
Ten stocks that have been chosen for the analysis are AAPL, SBUX, MSFT, FB, AMZN, TSLA, SHSAX, GGHCX, FHEAX, and ABT. The correlation matrix for all the stocks over the past five years can be seen in Table 1. It shows how closely returns on stocks correlate with each other....
Ten stocks that have been chosen for the analysis are AAPL, SBUX, MSFT, FB, AMZN, TSLA, SHSAX, GGHCX, FHEAX, and ABT. a. The optimal portfolio was calculated using the “Solver” function in Excel. Only one constraint was added, which is that the sum of the weights should be equal to...
Investors differ with regard to the degree of risk involved in a particular investment. According to Madura, it is the investor’s objective to balance their returns with the degree of risk involved in a particular investment. In most cases, investors have a preference for high returns and low risk. An...
Corporate insolvency refers to the inability of a company to repay its debts leading to cash flow insolvency of balance sheet insolvency where the creditor has given the company a specified period of time to pay its debts, but it has not been able to. In the United Kingdom, insolvency...
The projects that an organization initiates should result in some benefit for it, which in most cases is a profit from the investment. Internal rate of return (IRR) is an approach often applied by project managers to evaluate the outcome and income expected from investing in a new project. IRR...
Numerous verses of the Qur’an contain statements about economic values and ways to manage, for instance, a household. The Qur’an is filled with such expressions as ownership, choice, duty, discipline, limit, measure, weight, law, deed, et cetera. The evolution of Islamic economic principles (freedom, justice, equality, fraternity) is revealed in...
Revenue The institution experienced a growth in revenue between March 2012 and 2013 by 13.22%. The table presented below shows the proportion of the revenue generated from the various sources and change in revenue. March, 31 2013 March, 31 2013 Percentage change Revenue Grants 45.39% 47.92% 7.25% Donations 0.57% 1.55%...
Transaction risk is the threat of loss because of insufficient personnel in the business or deficient systems while financial risk, is a nutshell of abundant variety of hazard linked to financing. Some of the financial risks affecting Gumpbell manufacturers are: The Price Selling price is the determinant factor for business...
Different budgetary decisions associated with the aspects of the health care policymaking can influence the industry and the community significantly, with references to the positive and negative consequences. From this point, the task of the government and state authorities to find the balance while making difficult budgetary decisions. Referring to...
Finding time to plan for your financial future is a sure way to protect the assets you have today. Additionally, having a sound financial plan in place can significantly increase your wealth in the future. Thus, with the passage of the Patient Protection and Affordable Care Act (PPACA), it makes...
Executive Summary The report explains the performance of two products that is to be decided on as an investment appraisal. Some of the key decision tools are: the net present value of the cash flow and use of risk adjusted discounting rate of return (Brigham and Houston 2011). The relevance...
Subject Haig Simmons v. Baltimore and Arundel Tax Collection Offices U.S. xxx (2014) Facts about the taxpayer Haig Simmons owns and manages an anthracite coal home and delivery service in Baltimore and Anne Arundel counties. She has realized that the demand for coal is lower during summer and higher and...
The issues concerning the determination of fair prices of commodities and services have attracted economists’ and philosophers’ interest for a long time. In this regard, there are two major theoretical views that seek to explain what factors should be considered for the product’s value to be just. They include cost...
Project cost and funding mix According to Asif (2020), the project is estimated to cost US$603 million, including contingencies of 30 million. The proposed project’s financing is based on an 80:20 debt: equity ratio amounting to total equity of US$123 million and total debt of US$480 million. The debt is...
Project cost and funding mix According to CEE Bankwatch Network (2021), the Oyu Tolgoi has been estimated to be the largest investment project in Mongolia, at about USD 12 billion. Oyu Tolgoi LLC was created in 2009 to operate the project and is jointly owned by the Mongolian state-owned Erdenes...
Introduction Since the end of 2019, an unexpected illness referred to as coronavirus disease, or simply COVID-19, has spread across the globe. The first case was registered in December 2019 in Wuhan, which is China’s central city. The Wuhan Health Committee confirmed more than 40 cases of viral pneumonia at...
In order to determine whether the company has a good record of servicing sales and paying the suppliers, it is necessary to assess its income statement and balance sheet. The former report shows the amount of the sold goods and the revenues – if any – received. The latter document...
Introduction A financial institution is seen as any institution that provides financial services to its members by acting as an intermediary in most cases. There are a variety of financial institutions depending on the type of services each offers to its customers. Some offer general services while others specialize in...
Outcomes & Budget The Ankara farming project will focus primarily on the production of fresh vegetables and fruits. The production follows an increasing demand for fresh farm produces in the metropolitan in the recent past. The Ankara population is expected to grow at a rate of 1.4%, and by 2030,...
The automated or robo-advisor investment services became increasingly more popular with the rise of the mobile devices market. Acorns is an application that gives its users an opportunity to begin trading stocks without any knowledge. The app was created by two amateur investors who recognized the opportunity to tap into...
When the rate of money demand becomes inelastic, it signifies that a buyer’s demand for a product does not change in proportion to the change of the product’s price. For instance, in a situation in which the price increases by a rate of 20% while demand decreases by the rate...
Introduction Return on investment is closely connected with the notions of equilibrium and uncertainty. The investment rate should be analyzed both in the short-term and in the long-term run since the dynamics in different time periods are different. Thus, this paper aims to explain why in the long run, the...
The topic of money is always relevant in all branches of the modern economy since we all face money every day. Money for many people is the primary value measure and is the universal equivalent. The time value of money has a strong influence on the methods of evaluating the...
Introduction Solvay is a Belgian chemical manufacturing company operating worldwide. The company serves the health, agricultural, aviation, automobile, and energy sectors. Ilham Kadri heads the company as the CEO since 2019. Solvay is headed by a board of directors who appoint the executive committee which oversees the company’s business operations....
Introduction The principal goal of a commercial company is to realize a profit. Nevertheless, this intention can be achieved illegally, particularly by creating Ponzi schemes. At present, a financial pyramid is a standard model of fraud in the business investment environment. It is essential to explain its origins and features...
Historical Summary of Events The term “Too big to fail” is an underlying concession and a popular metaphor used in reference to almost all private company bailouts by the government. The label became famous in the 1980s following the financial crisis that involved the Continental Illinois National Bank. The idea...
Starbucks Corporation is an American company of coffeehouses and roastery reserves all over the world. Child et al. (2019) note, it is “the largest coffee chain in the world” (p. 172). As it is a public facility, it is logical that Starbucks has many difficulties because of COVID-19. Quarantines, pandemics,...
The idea of compensating differential relates to giving a worker an additional amount of income to motivate him or her to accept a given challenging job compared to other jobs available. Wage premium, a form of compensating differential, refers to an average wage that particular workers earn that is greater...
The current COVID-19 epidemic has hit many businesses, especially those providing face-to-face services. That is why many restaurant chains and shops are now in dire straits. Starbucks, being a relatively large chain, does not have the same problems as many small businesses. However, this network has also suffered a severe...
Value stocks are securities of companies that are usually significantly underestimated by the market. An essential component of such stocks is the ability to generate cash flow in the long term. This cash flow leaves them with the potential for capitalization growth. Often such securities are undervalued due to external...
The Cost-Volume-Profit analysis is mainly focused on calculating the variables by assessing changes in different aspects of business operation. However, this method can also be called What-If in a way that the presenter mentions: we research what changes if a specific variable increases, decreases, or remains unaltered. For instance, the...
The company makes payments to its employees twice a month in the periods from 1 to 16, and from 26 to 30. However, individual payment dates may be considered when filling out the form provided for in the company’s charter. For example, an employee may receive payments once a month...
Executive Summary Brambles Limited is a leading logistics company whose headquarters is in Sydney, Australia. Brambles grew from a small company established by Walter Bramble around 1890 to a multinational operating in six different continents. This report assesses Brambles as a potential company for investment. The major tool for analysis...
History of Bonds and When They Came Into Play Generally speaking, bonds are loans given to the same entity (mostly the central government) where each of the people’s lendings holds a share that attracts interest at specified intervals until the principal amount is repaid at maturity, which is usually after...
Capital Budgeting Practice Problems The projects Net present value with various discount rates will be as follows: Rate NPV 0% $ 670,000 2% $ 614,353 6% $ 514,816 11% $ 408,997 The internal rate of return is the rate which leads to break even. It leads to a net present...
Introduction Share buyback is the process by which the company reacquires part of the shares it had previously issued. The process basically entails exchanging money for a part of the company’s equity held by the existing shareholders. During the process, the number of stock held by the public is reduced...
In order to appreciate the transportation cost of capital, it is important to understand what the cost of capital is and the elements that constitute the cost of capital. Cost of capital is the share’s rate of return and promissory commitments to business on the stock market. It is a...
CAMP It is important to note the fact that each theory has its advantages and disadvantages. The main strength of the capital asset pricing model (CAPM) is the mathematical apparatus formulated by the given theoretical framework, which makes it possible to automate and simplify the process of forming an investment...
Introduction Business investments usually undergo many fluctuations caused by changes in financial prices and market demands. Common examples of financial prices include interest and exchange rates, goods, services, and equity costs. Due to the unpredictability nature of prices and rates, it is necessary for organizations and business units to take...
Introduction Bonds are fixed-income securities having long-term yields. Bonds are of two types: government bonds and corporate bonds. Bond valuation is easier than stock valuation because the probable cash flow streams and the time horizon are well specified and fixed for bonds. Zero coupon bonds It is a special type...
Introduction Grafton High School is a part of the York Country School Division. This establishment requires sufficient material support to achieve educational goals. When it comes to low-value routine purchases, Grafton High School offers special procurement procedures that should be performed. The related procedures are Requisition Form, Approval, Purchasing, Receiving,...
Introduction Reviewing the Statement of Cashflows for Hydrogenics Corp, each section of the cash flow statement can be discussed. It can be stated that Hydrogenics Corp’s net loss for the year has reduced from 2012 to 2013, generating loss from -$12,797 to -$8,908, which is a good sign. It is...
Introduction The paper attempts to explain the meaning of the monetary policy and its objectives. The way Reserve Bank of Australia uses monetary policy to achieve various objectives has been outlined in the paper. Monetary Policy Monetary policy is a decision set out by the Reserve Bank of Australia concerning...
Introduction The Kuali Financial System (KFS) was developed by a number of academic institutions for use by colleges and universities. This system has several features such as: manages impediments, endowments and cost sharing; permits institutions to establish various business rules and workflows for diverse fund groups; and utilizes features that...
Executive summary The purpose of this report is to investigate the position of Nordic American Tankers to suggest the bank about the application of loan. However, the recommendation of this report is based on few issues such as external business environment, adverse impact of global financial crisis on the company,...
Introduction A banking system can be defined as an institutional network or group that is focused on providing financial services to people. Such an institution or group is responsible for providing individuals with investment assistance, as well as taking deposits and offering loans (Soskic 2015). Basically, a banking system controls...
Outline This is a research paper offering an investment proposal that also explains and describes the various opportunities available to a person namely Beatrix. Beatrix is one of the three children of Mr. Jones who died. Like the other two children of Mr. Jones, Beatrix also received inheritance money of...
Summary This essay considers various aspects of individual long-term investments and provides comparative food for thought on issues surrounding the soundness of investments in different options – bonds, funds parking in banks, property guides and commodities like gold, etc. From the data gathered through field studies, it is evidenced that...
It is impossible to imagine a modern economy without investments. They constitute the essence of any development in the business, governmental, or financial sphere. However, there is a debate on what an investment entails. American economist Thorstein Veblen believes that the point of any financial transaction is profit in the...
The largest investment and financial scandals The Madoff Ponzi Scheme was one of the largest investment and financial scandals of U.S. history which came to an end in 2008 when Bernie Madoff was charged on 11 counts of fraud, money laundering, theft, and perjury. Over the years, Madoff who was...
Introduction Derivative is a security whose value depends on the value of one or more underlying assets. As the name suggests, a derivative is depended on another product traded in the market. Besides, the value of the derivative is directly proportional to the market value of the asset or product...
Introduction The international market of bonds is a market for investments similar to the stock market. In this market, bonds are traded over the counter unlike in the stock market, which deals with exchanges. However, there are special types of bonds in the international market that are traded on exchanges....
A foreign branch operates just like a local bank. It is legally owned by the parent bank. As such, the branch bank operates under the rules and regulations of the parent branch country and the host country. One of the reason why the parent bank finds it important to open...
Introduction Business financing is the technique employed to acquire money for commerce funding. On the other hand, a capital structure denotes how firms bankroll their assets using stocks, bonds, and securities (Liu, Cowling & Ledger, 2012). This paper discusses investment bankers, debt and equity options as grounds for business financing,...
Examples of Unethical Situations in Business Exxon When it comes to defining the instances of unethical decisions made by companies worldwide, the case of Enron is, perhaps, the most obvious one to bring up. By carrying out a series of financial fraudulences, the organization falsified the results of the audits....
Company background Dell Corporation established in 1984 by Michael Dell is the sixth largest producing factory in the world. The multinational corporation manufactures electronic device, multimedia tools, and computer peripherals. The list of products includes XPS, Dell Inspiron, servers, smart phones, gaming consoles, desktop computer, storage device, printers, and communication...
Introduction Best practices guidelines allow tax practitioners to do the right thing for the clients and themselves as a way to avoid the penalties and repercussions of being guilty of unethical practices. Circular 230, Section 6695 and Section 6694 together with the Statements on Standards of Tax Practice (SSTPs) provide...
Introduction In the recent past, the UK retail banks have come under intense pressure owing to increasing competition. Due to the increasing competition, banks began engaging in a number of activities in order to consolidate their market positions (Morris 2000). Various options such as merging and adopting new technologies were...
Introduction This paper focuses on tax effects on stock price behavior around dividend dates. It has been observed that a share price of a stock usually drops when the stock becomes an ex-dividend. This behavior inhibits stock market traders from gaining a quick profit realized from purchasing shares and holding...
The given family consists of two parents and three children each of which is underage and, consequently, should be considered as the dependant. Based on the information provided that includes personal information, salary, receipts, expenditures, charitable donation of stock as well as miscellaneous, the tax return would be computed. The...
The article by Beneish and Vargus examines the issue of insider trading and the possibility to use the information about it so as to assess the quality of earnings (i.e., to find out whether the chance of stable earnings in the future is high or low), as well the implications...
Overview Modern commercial banking, including conventional banking and Islamic banking, remains a major character in any economy. Financial services are vital for local, national, regional, and global commerce, and the banking industry is a key player in facilitating economic growth. Countries with robust banking systems are relatively developed. Banks offer...
‘Sarbanes-Oxley act’ (SOx) was endorsed in 2002 in the US, to address the limitations that came about with internal control rules (Moeller 57). It was sponsored by a personality, Sarbanes a senator and Oxley a representative. It initiates compliance to the existing accounting procedures and promotes transparency in fiscal reporting...
Goldman Sachs is an international company located in the New York City of the United States. This firm engages in offering securities services, venture banking, managing investments as well as offering other fiscal services principally among institutional customers. In the year 2007, the Securities and Exchange Commission sued Goldman Sachs...
Introduction Wal-Mart is the largest retail chain store in the USA. It consists of three segments – Wal-Mart US, International, and Sam’s Club. Wal-Mart has more than 4,100 stores and clubs in the U.S., and nearly 7,300 units worldwide. “Wal-Mart Stores, Inc. operates Wal-Mart discount stores, supercenters, Neighborhood Markets and...
Introduction In the recent past, the world has experienced a steady expansion of financial flows via the now porous national borders due to globalization. Financial institutions that incorporate investors and banks into their business have increased the geographical boundaries of their business activities. This way, they operate as mediators who...
Financial Institutions Case Discussion Assignment The failure of Superior Bank FSB can be attributed to irresponsible business practices of business owners, the directors of the company, and regulators. They failed to exercise their oversight authority when the firm started making a wrong turn. It is important to look at the...
Executive Summary Conducting market research constitutes an important aspect that existing and potential investors should undertake in determining the likelihood of generating the desired return from their current and potential investments in different stocks. The financial analysis report is one of the core sources that investors can obtain such information....
Superior Bank was one of the promising businesses in the thrift industry. It had all the potential to become one of the best banks in the nation. The continuing scrutiny and investigation would unearth some of those pending issues. The Savings Association Insurance Fund was one of the regulators of...
A stock dividend denotes compensation made by an organization in terms of added shares, instead of cash payment. Organizations might choose to share out stock dividends to shareholders when the availability of liquid cash is in limited supply. The allocations are normally established with the aid of portions recompensed for...
A business plan and marketing plan are tools used for financing the company by clearly explaining the sources of funding. Both the business plan and commercialization plan give a sense of direction of the enterprise. A marketing plan is very particular as it concerns the general organization’s efforts about marketing...
Trial balance In the trial balance, all the ledger account balances at the end of the accounting period are listed. The key role of the trial balance is to ascertain if the transactions are properly posted in the various ledger accounts. If the debit and the credit balance of the...
Introduction As a result of global trade, taxes have turned out to be a key issue of concern. Founded upon the overwhelming latent for double taxation, being taxed two times on the same revenue from two distinct states without respite from either state and the ever-growing latent for tax evasion,...
Introduction Discounting rate is rate of the investors expected return for their finances. A company can get its finance from two sources; debt and equity. Debt financing is the finance that is borrowed from parties’ other than the owners of the business (Forrest A.G., 1990). Equity finance is the capital...
The Structure of the International Financial Reporting Standards Foundation The international financial reporting standards foundation is a big and independent organization, which is not profit-oriented and works in the interest of the public. The main objectives of the foundation are to develop comprehendible, enforceable, and worldwide standards in international reporting...
Riskiness of companies based on the nature of their industry BHP Billiton and Rio Tinto are players in the Materials industry- a cyclical natured industry, which gets variation in sales by fluctuations in economic cycle. Not only this, but the input prices are also subjected to variability which in turn...
Facts Peggy had been a chain smoker of tobacco. It is this issue and the death of her father from lung cancer that made her join the Norwood tobacco program to try and stop the habit. Peggy has spent a huge amount of money on nicotine patches and other non-prescription...
LRH Manufacturing has implemented Sarbanes-Oxley Act (SOX) under the new rules under Section 404 implemented by the U.S. Securities and Exchange Commission. According to section 404 of SOX, LRH is required to ensure that the company’s financials are reported accurately. SOX has created a new set of standards for companies...
The current coronavirus (COVID-19) pandemic has brought about a significant shift in the overall stock market, with some companies being affected adversely and some positively. Companies falling in the niche of pharmaceuticals (Morderna Inc -MRNA, Gilead Science – GILD, the CVS Health Corporation, and Novavax Inc.-NVAX) and entertainment (Netflix –...
Reasons for picking the monetary economic policy The monetary policy was chosen because it has multiple advantages. It is easy to explain and apply; the relevant information can be accessed easily. For example, it is possible to search the bank’s statistics (Bank of Japan, 2019). As seen from the picture,...
Taiwan Taiwan operates a flexible exchange rate for the reason that there is a great variability in the value of the official foreign exchange reserves. Exchange risk is defined as the variability in the reserves value that is caused by uncertainties in exchange rates. Generally, exchange risk is viewed as...
Literature Review Introduction When different kinds of receivables, such as leases, loans, debts, etc. are funded with the help of a specific method, it has been referred as Securitization. On a portfolio of receivables, free trading of the asset-back securities can be performed in such a method. However, rating agencies...
The Initial Literature Review The Asian nations are growing very fast in terms of economy and are posing great competition for the western nations. Many economic sectors are improving their performance and are giving better services than before. Hong Kong being one of the fast-developing nations in Asia has established...
Introduction Globalization has made the economies of the world conglomerate into one singular and large unit. Economies of the world can therefore not be studied in isolation because of the interrelationship brought about by the advent of globalization. It is this interconnectedness of the global economy that is however posing...
Abstract In the present-day corporate world, the significance of capital structure can not be undermined. The capital structure decisions as to a proper mix of debt and equity components are of paramount importance for the success of the firm. Such decisions are influenced by a host of factors. The essence...
