The Theories And Implications On Corporate Financial Decisions Finance Essay

23 Mar 2015

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This paper concerns mainly on exploring the area of corporate valuation models and their implications in assessing the value of corporate firms. The models to be reviewed and analyzed are Economic Value Added (EVA), Capital Asset Pricing Model (CAPM) and Free Cash Flow (FCF). The selected models would be used on 5 publicly listed firms in the Bursa Malaysia. The aim of this study is to analyze ...

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Financial Management Midland Energy Resources Finance Essay

23 Mar 2015

3 (1,028 )

In the Midland Energy Resources case study we see that it has its operations divided amongst three separate divisions. All these three divisions have different functions and need a separate discount rate to evaluate its projects. Midland uses its cost of capital for many different ways. In order to discount Midland's cash flows we use the weighted average cost of capital. Here the cost of debt is ...

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Financial regulatory framework

23 Mar 2015

4 (1,540 )

Regulatory framework for financial reporting The financial regulatory framework in the UK went through significant reforms in 1990-91 and has remained stable for ten years thereafter. Changes are being proposed to the regulatory framework arising out of three major reasons (a) the move by the European Commission towards developing a single capital market (b) the Enron scandal which has stimulated political interest in the regulation of ...

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Identifying The Sources Of Finance Available To Business Finance Essay

23 Mar 2015

4 (1,445 )

In this given case study, a prospective businessman is highlighted. Through the document suggestion in different sides are presented. Finding sources of finance, effects and choosing a right form have discussed here. This document will be helpful for those who are looking for opening a new business, but don't know about the financing of the business. Hope you guys will be helpful reading this document. 1.1 Sources ...

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The Introduction and History of Dabur Nepal Pvt Ltd:

23 Mar 2015

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Dr. S.K. Burman set up Dabur in 1884 to produce and dispense Ayurvedic medicines reaching out to a wide mass of people who had no access to proper treatment. Dr. S.K. Burman's commitment and ceaseless efforts resulted in the company growing from a fledgling medicine manufacturing in a small Calcutta house, to household name that at once evokes trust and reliability. There are many stores in different ...

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Importance Of Capital Structure And Cost Of Capital Finance Essay

23 Mar 2015

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INTRODUCTION Finance is commonly referred to as the life wire of any organization and usually in limited supply. In the parlance of financial management, cash is the most valuable resource and needs to be efficiently managed. The importance of sourcing for finance cannot be over emphasized as lack of it may well result to slow down of operational activities and possible bankruptcy. There are various sources of ...

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Characteristics And Features Of Capital Markets Finance Essay

23 Mar 2015

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Capital market in any country consists of equity and the debt markets. Within the debt market there are govt securities and the corporate bond market. For developing countries, a liquid corporate bond market can play a critical role in supporting economic development as It supplements the banking system to meet corporate sector' requirements for long-term capital investment and asset creation. It provides a stable source of finance ...

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The Theory And Arguments Of Dividend Policy Finance Essay

23 Mar 2015

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Dividend is a cash payment made by a company to its shareholders. A company's dividend decision has important implications for both its investment and financing decisions which would what money should be give to the shareholder and how much money should be kept in the firm which may be used in the later years. The dividend decision, which consider the amount of funds retained by the company ...

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Financial Analysis Report Hyatt Finance Essay

23 Mar 2015

7 (2,726 )

This report is prepared to analyse the financial statements for Hyatt Hotel Corp. I have analysed three years Balance Sheet and Income Statement for the year 2009 to 2011. An introduction has been provided with the key data of Hyatt, its geographic spread, market, brands, strategy and a brief history is covered. Income Statement Analysis is performed followed by various financial ratios, profitability ratio, solvency ratio, liquidity ...

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Finance Essays - Financial Management

23 Mar 2015

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Role of financial management in Wolfson Microelectronics plc. TASK 1: Financial management is related to the acquisition, financing and management of assets with a future goal and planning. Efficient financial management requires the laying down an objective or goal, because judgement whether a financial decision has been rightly taken or not must be in light of some standard. The most important goal of a firm in financial ...

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The Basic Theory Of The Arbitrage Pricing Theory Finance Essay

23 Mar 2015

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The Arbitrage Pricing Theory is an asset pricing theory that is derived from a factor model, using diversification and arbitrage arguments. The theory describes the relationship between expected returns on securities, given that there are no opportunities to create wealth through risk-free arbitrage investments. APT is one of the most influential theories in the stock pricing which is initiated by the economist Stephen Ross in 1976. It ...

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Globalization And Impact On Indian Banking Sector Finance Essay

23 Mar 2015

5 (1,653 )

INTRODUCTION PREVIEW This is an introduction chapter which describes the structure of the dissertation. It begins with a brief introduction to the area of research, purpose and aims and objectives set for this research. This section also includes justification for selecting banking sector to study the impact of globalization for this study. 1.2 INTRODUCTION A bank is a licensed body by the government which is primarily engaged ...

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Tesco Credit Risk And Analysis Report

23 Mar 2015

14 (5,392 )

As members of Credit Analysis division, our line manager has asked us to prepare a comprehensive credit analysis report for Tesco Plc, as it comes out with a new long-term bond issue, to fund its acquisition of Hilton Foods. This credit risk report focuses among other things, on the business background and strategy of Tesco and Hilton Food, analysis of its annual reports, company websites and other ...

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Advantage And Disadvantages Of Dividend Payout Policy Finance Essay

23 Mar 2015

3 (1,103 )

When a company has a surplus of profit, it can be used either pay back the shareholders or reinvest into the business. The way that company pay back to shareholders is call dividend payout. In the recent years, the number of companies paying dividends has declined. For example, the PSEG Company in the United State, the payout ratio was about 67% in 2004 and fallen to 45% ...

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The Significance of Working Capital Management

23 Mar 2015

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Working capital management is significant in financial management due to the fact that it plays a vital role in keeping the wheel of the business running. Every business requires capital, without which it cannot be promoted. Investment decision is concerned with investment in current asset and fixed asset. There are two assets required to be financed by fixed capital and working capital. In other words, the required ...

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Report on the Strategic Approaches of BNP Paribas

23 Mar 2015

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The objective of this report is to critically evaluate and analyze the strategic approaches in the operation of a financial institution of our choice. The chosen institution of study is BNP Paribas. This report will include a PESTEL analysis, an evaluation of the Singapore environment examining the political, economical, social-cultural, technological, environmental and legislative aspects of the environment and an application of the theory to BNP Paribas. ...

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Research On The Importance Of Financial Planning Finance Essay

23 Mar 2015

3 (1,036 )

The financial plan is an important part of both the business plan and of the entrepreneur's day-to-day management of operations. The financial planning puts the entrepreneur in touch with the realities of a financing request. This understanding will help clearly identify the amount of financing needed, the purpose for the funds, the length of time the funds are needed, and how the financing will be repaid. These ...

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Understanding Inventory Management And Its Theories

23 Mar 2015

9 (3,409 )

Inventory management or inventory control is an attempt to balance inventory needs and requirements with the need to minimize costs resulting from obtaining and holding inventory. There are several schools of thought that view inventory and its function differently. These will be addressed later but first we present a foundation to facilitate the readers understanding of inventory and its function. Inventory Definition Inventory is a quantity or ...

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Microeconomic and Macroeconomic Factors Influencing Toyota

23 Mar 2015

5 (1,685 )

The company that has been chosen for the purpose of this assignment is the Toyota Corporation and the product that would be highlighted during this paper is going to be the Toyota Camry 2007 model. It is necessary to differentiate the difference between what are microeconomic factors and what are macroeconomic factors, the micro level economic factors are something that the company can exercise some level of ...

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The History of Nigerian Banking System

23 Mar 2015

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The existence of banks in Nigeria dates back as far as 1862 when the first Nigerian bank came into being. There was no banking legislation until 1952; at that time, Nigeria had three foreign banks and two indigenous banks with a collective total of forty branches. Despite the set standards by the 1952 ordinance, the growth of demand deposits was slowed down by the Nigerian propensity to ...

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Ratio Analysis Sainsburys Vs Morrisons Finance Essay

23 Mar 2015

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When considered as a whole, the grocery market in the UK has steadily growing in size, being about 4 bigger today than it has been a year ago;  August 2012 update: 12 weeks ending July 8, 2012 growth rate slows from 4.2% to 2.1% due mostly to a drop in price inflation: 6.2% to 3.8%. Morrison's is growing more slowly then Sainsbury's; the company is on track to add approx. 20 new stores in ...

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The Role of Financial Intermediation in Banking

23 Mar 2015

8 (2,847 )

Financial intermediaries exist to solve or reduce market imperfections such as differences in preferences of lenders and borrowers, transaction cost, shocks in consumers' consumption and asymmetric information. Theories developed to explain how financial intermediaries reduce market imperfection: Asset transformation Transaction cost reduction Liquidity insurance Informational economies of scale and delegated monitoring Asset Transformation Asset transformation is a process performed by financial intermediaries to transform particular types of ...

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The Theoretical Limitations Of Using Capm Finance Essay

23 Mar 2015

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There are some limitations make the CAPM cannot predict he returns of assets accurately. The assumptions of CAPM do not match with the reality In practice¼š 1.There are transaction costs¼Œinformation costs and taxes. There is asymmetric information in the reality and the market is inefficient and imperfect. 2. All the investor's expectations are not the same, and they cannot be well diversified. If different investors (perhaps including foreign ...

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Mergers and Acquisitions in Pharmaceutical Industry

23 Mar 2015

11 (4,193 )

Businesses grow externally by acquiring, or combining with, other ongoing businesses. When two companies combine, the acquiring company generally pays for the acquired business either with cash or with its own securities, and the acquired company's liabilities and assets are transferred to the acquiring company. A merger is technically a combination of two or more companies in which all but one of the combining companies legally cease ...

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The Importance Of Studying Money Finance Essay

23 Mar 2015

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Money helps us in avoiding the "double coincidence" of needs as required by a barter economy and by enabling specialization. However, the money supply has a lot of effects on the well being of its users. Some of these effects can be summarized as inflation, wealth creation/destruction etc. Thus it is very important to study money. Banking and financial markets are intermediaries that help provide a common ...

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Is there any relationship between Corporate Social Responsibilty and financial performance

23 Mar 2015

6 (2,285 )

The concept of companies about corporate social responsibility (CSR) has changed over the years. Previously it was viewed only as a phrase that meant administrative conformity and observance of rules and regulations. In recent years however that view has changed and companies are increasingly beginning to realize the important role of corporate social responsibility in winning over the trust and confidence of their customers. Today the business ...

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The impact a dividend policy has on a firm

23 Mar 2015

11 (4,193 )

Dividend payout decision is a critical decision area and its one of the most important financial policies decision, not only from the viewpoint of the company, but also from that of the shareholders and others such as the employees and regulatory bodies. As the dividend literature suggests, if these decisions are handled efficiently, this is expected to be reflected in value of firms. More importantly, analysis of dividend ...

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Growing demand for corporate governance reform

23 Mar 2015

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1. Introduction: In recent years, various researchers and scholars have argued that 'globalisation' is leading to escalating convergence in the nature of corporate governance systems, across the corporate world. Hansmann and Kraakman (2000) states; a global compromise has now emerged 'that corporate managers and authorities must operate exclusively in the economic interests of shareholders', and as a result, all jurisdictions will inevitably move towards a newer model ...

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The Strengths And Weaknesses Of Basel Ii Finance Essay

23 Mar 2015

9 (3,586 )

The problems which are to be studied in this research are that despite the development of regulatory and supervisory standards from Basel I to Basel II, a financial crisis severely hit the global economy in 2007-2009. The research will include assessment of the successes and failures of regional and international financial regulation and the difficulties in achieving collective action across countries, and also try to explain how ...

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The difference between Project Finance and Corporate Finance

23 Mar 2015

6 (2,052 )

Companies across the world frequently employ Project Finance for their large investments. Their importance is underscored by the following fact: Though US corporations used Project Finance less often than their overseas counterpart, 1 their savings of $34 billion in Project Finance in 2004 exceed the $25 billion that business enterprise capital funds invested in startups in that year, and was concerning half the $73 billion raise by ...

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Performance Measurement In The Public Sector Finance Essay

23 Mar 2015

13 (4,838 )

In recent years governments within Canada have been facing increased pressure from the public to be more financially accountable, transparent and responsible when it comes to managing tax dollars. In large part, this is due to several economic and social pressures, such as an aging population, budgetary deficits and various financial scandals, which make the need for effective and efficient financial management a pressing matter. Governments have ...

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The Factors affecting dividend payout policy

23 Mar 2015

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INTRODUCTION Dividend policy in the firm has been the major matter for recognizing how managers set dividend ratio and change dividend given to stockholders. The existing literature on dividend payout ratios provides firms with no generally accepted prescription for the level of dividend payment that will maximize share value. Black (1976) in his study concluded with this question is that what the corporation should do about dividend ...

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The Development Mechanism And Trading Of Sukuk Bonds Finance Essay

23 Mar 2015

19 (7,392 )

A Sukuk bond is an Arabic word for financial investment certificates, or sometimes can be refer as Islamic bonds. It is the famous element in the Islamic Finance among the Muslim and non-Muslim. Other than that, sukuk also refer to trust certificates and participation securities. Moreover, it is one of the fastest growing tools in the Islamic capital market that triggered the desire of research and writings ...

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Factors Affecting Multinational Corporations Cost Of Capital Finance Essay

23 Mar 2015

6 (2,354 )

This essay will consider the key factors which affect a company's cost of capital. The essay will analyse firstly the key components which contribute towards a company's cost of capital before going to consider how these factors differ for a multinational company as opposed to those operating within a single national market. In the first instance, the essay will consider the issue of the cost of capital ...

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Differences Between Public And Private Sector Finance Essay

23 Mar 2015

3 (1,120 )

The stakeholders in Libyan public sector are limited compared to private firms. In recent years the Libyan government allowed to the private companies to participate with public firms. Some of public firms are not listed in the Libyan stock market. Government-owned companies are a particular feature of Libyan companies. Therefore, ownership in this research classified into several categories, namely government ownership, foreign, family and management ownership (Nurul ...

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Financial Analysis Of Krispy Kreme Doughnuts Inc Finance Essay

23 Mar 2015

5 (1,612 )

Krispy Kreme Financial Analysis Krispy Kreme Doughnuts Inc is business that is involved in retail and wholesale of packaged sweets and doughnuts. Its initial business is franchising and also owning Krispy Kreme stores. At the beginning of 2010, they had 224 outlets in America and 358 shops all over the world. The company has four segments of operation; company stores, KK supply chain, international franchise stores and ...

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Research On Initial Public Offering And Underpricing Finance Essay

23 Mar 2015

12 (4,724 )

Initial Public Offering (IPO) of firm is widely underpriced. IPO underpricing is presented as the percentage difference between the offer price and the closing price of the first-trading-day, usually in appearance of initial positive return when shares are newly issued. IPO underpricing is seen as selling shares at discount in the initial offering. The discount requires issuer to leave money on the table to compensate investors, which ...

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Tesco Versus Sainsbury Financial Performance Analysis Finance Essay

23 Mar 2015

7 (2,463 )

Food retailing has traditionally been highly competitive with significant pressure on margins and cost control. The UK retailers like Tesco, M&S, Sainsbury's, Asda faced further challenges when the consumer confidence index surged due to the financial crisis and job losses. Still, food retailers seemed to have found successful anti-crisis policies when compared to the performance of their high-street competitors (Brand Republic, February 2009). The report hereto would ...

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Explaining The Purpose Of The Main Financial Statements Finance Essay

23 Mar 2015

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A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity. In British English-including United Kingdom company law-a financial statement is often referred to as an account, although the term financial statement is also used, particularly by accountants. For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy ...

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Why Do Financial Markets And Financial Intermediaries Exist Finance Essay

23 Mar 2015

6 (2,213 )

As a branch of economics, finance has its own research method, and mainly studies financial sector in a national economy. Content of finance can be summarised as currency issue and return; deposit absorb and withdraw; loan disburse and collection; gold, silver and foreign exchange trading; securities issue and transfer; insurance; trusts; domestic and international monetary settlement and other economic activities. (John, G. & Edward, S. 1960) In ...

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The Impact of Credit Risk Management on Profitability in Private Commercial banks

23 Mar 2015

11 (4,099 )

Credit risk is most simply defined as the potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms. The goal of credit risk management is to maximize a bank's risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters. Banks need to manage the credit risk inherent in the entire portfolio as well as the risk in ...

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Corporate governance and firm performance

23 Mar 2015

7 (2,438 )

Introduction Corporate governance is concerned with the process and structures through which members interested in the overall well being of the firm take measures to protect the interests of the stakeholders. (Ehikioya, 2009). Corporate governance generally refers to the external rules and regulations and internal system that are designed to minimize agency problem and is "the system by which companies are directed and controlled" (Cadbury 1992, Cited ...

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Business Report: Royal Dutch Shell Vs ExxonMobil

23 Mar 2015

9 (3,298 )

There is a growing tendency for world's demands for reliable, affordable energy supplies in the next following decades (see chart 1.1), oil and natural gas will remain the world's essential energy sources, meeting nearly 60% of world's needs(ExxonMobil, 2008). Therefore, it is worth focusing on the investment in petroleum industries which are expected to have potential profitability in the long run. Chart 1.1 - Source: ExxonMobil Annual ...

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The efficient market hypothesis and behavioral finance

23 Mar 2015

11 (4,107 )

The efficient market hypothesis is directly related to the behaviour of prices in asset markets. Initially the term 'efficient market' applied only to the stock market, but later it was generalised to other asset markets. The efficient market hypothesis is seen as the turning point of the modern finance (Fama, 1965) and in his classic paper, Fama (1970) defined efficient market as one in which "security always ...

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The importance of the Stock Market to the Economy

23 Mar 2015

19 (7,525 )

The stock market is an important part of the economy because it organizes the resources and channels them to useful investments, in order to perform this role it must have proper association with the economy. Capital markets are important elements of a modern market based economic system as they give out the channel for flow of long term financial resources from the savers to the borrowers of ...

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Ocbc Bank Is The Longest Established Finance Essay

23 Mar 2015

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OCBC Bank is the longest established and the third largest bank in Singapore which controlled by LEE family. OCBC was established in 1932 through the amalgamation of the three former banks serving the Fujian community in Singapore which are Chinese Commercial Bank LTD (1912), Ho Hong Bank (1917) and Oversea-Chinese Bank (1919). In early 1970s, it was a new era in the banking history in Singapore as ...

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Overview Of The Nigerian Financial Sector And Economy Finance Essay

23 Mar 2015

11 (4,308 )

CHAPTER 2 Nigeria is one of the largest countries in Africa. It was a colony of the British Empire. In 1960, after the abolishment of the colonization, Nigeria became independent and a new country was established and ruled by Nigerians. This was viewed as an outstanding milestone in that Nigeria at that time was viewed as one of the African countries with apparent growth potentials and it ...

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Critique of how to fix financial reporting

23 Mar 2015

8 (2,816 )

This report has been taken from businessweek and is written by David Bogoslaw. He is a graduate form the University of Columbia. His main field of research and reporting includes energy, chemical industry, science and culture. The basic aim of this report is to identify the loopholes in financial reporting and find solutions to improve the transparency in it. In the wake of current crisis the report ...

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How portfolio diversification can minimize or eleiminate exposure risks to portfolios

23 Mar 2015

6 (2,264 )

Portfolio diversification is the means by which investors minimize or eliminate their exposure to company-specific risk, minimize or reduce systematic risk and moderate the short-term effects of individual asset class performance on portfolio value. In a well-conceived portfolio, this can be accomplished at a minimal cost in terms of expected return. Such a portfolio would be considered to be a well-diversified. Although the concepts relevant to portfolio diversification ...

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USSC Audit Income

23 Mar 2015

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Case 1.11 United States Surgical Corporation Q3. Prepare common-sized financial statements for USSC for the period 1979-1981. Also compute key liquidity, solvency, activity, and profitability ratios for 1980 and 1981. Given these data, identify what you believe were the high-risk financial statement items for the 1981 USSC audit. U.S. Surgical Corporation Common Size Income Statement 1979-1981 (000s omitted) 1981 % Sales 1980 %Sales 1979 %Sales Net Sales 111,800 100 86,214 100 60,876 100 Costs and Expenses COGS 47,983 43 32,300 37.5 25,659 42.1 ...

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The Different Sources Of Finance And There Implications Finance Essay

23 Mar 2015

6 (2,389 )

The assignment attempts to explore the different sources of finance and its implicationIt describes how different structures and cultures affect the business performance of the organization. It identifies the cost of finance as a resource, budgeting and financing adequately. The application of investment appraisal technique and long term decisions. Shows the understanding of basis business and accounting terminology. Research Methods. Theoretical studies from different books and Handouts ...

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Financial Ratio Analysis And Industry Averages Finance Essay

23 Mar 2015

5 (1,774 )

The price earning P/E ratio shows how attractive a firms stock is for investment. The P/E of Etisalat has increased from previous year 2009 which shows that in 2010 Etisalat has become more attractive for investments. Profitability Ratios Return on Common Equity (ROCE or ROE) ROE = Earnings after Tax ÷ Equity Shareholder's fund x 100 This ratio shows the rate of return of the risk takers ...

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Causes and effects of the Credit Crunch

23 Mar 2015

4 (1,489 )

The words credit crunch have been all over the financial headlines in the UK, including the effects that has hit the financial markets both in the UK and in other parts of the world have been reflected in a number of ways, affecting both financial institutions(banks) and consumers. Several authors and regulators have showed their different views about the causes and effect of credit crunch. Many economists ...

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Most Important Function Of The International Monetary Fund Finance Essay

23 Mar 2015

4 (1,497 )

As Mussa says "In official discussions of the role of the International Monetary Fund (IMF), especially at meetings of the IMF Executive Board and of the ministerial-level International Monetary and finance Committee, it is often observed that "surveillance" is the IMF's most important function". [1]  Evidence on the importance of this function is what I quote from the literature of Murilo Portugal who points out that: "One of ...

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Implications Of Different Sources Of Finance Finance Essay

23 Mar 2015

9 (3,384 )

This assignment will look at the different sources of finance that are available to a small business or a big company. With each source of finance listed the report will assess the implications that can arise and along with this the report will look at the cost to the business to taking a curtain source of finance. All businesses need short-term finance from the very beginning to ...

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Why is investment appraisal process so important

23 Mar 2015

6 (2,012 )

Investment decisions are of critical importance to all companies, since they determine both their potential to succeed and their ultimate cost structure. Investments usually implicate high initial cash outflows and thus tie up substantial funds. Sound investment decisions are crucial, therefore. Yet, according to a highly complex and fastly changing business environment they remain a challenging management task. A capital investment appraisal is used to make sure ...

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A critical analysis of Liquidity, Profitability and Efficiency

23 Mar 2015

3 (1,028 )

the industry average of current ratio is 2.2:1.company A is showing better current ratio of 2.63 as compared to industry average of 2.2 which mean that the company A bears a greater ability to paid its bills . Company B and C have less current ratio as compared to the industry average which means that the performance of these companies are not up to standard however company ...

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Sources Of Finance For Kfc Finance Essay

23 Mar 2015

9 (3,352 )

KFC began with Colonel Harland Sanders. He discovered his penchant for cooking when he was only 9 years old. Through the years he grew up to become a personage the world knows as Colonel Sanders, founder of KFC. He reached celebrity status in 1952, when he decided to franchise his famous Kentucky Fried Chicken recipe blends of 11 herbs and spices to the rest of America. By ...

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The various types of Dividend policies used by companies

23 Mar 2015

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Dividend policy has drawn due attention from various researchers. One of the most famous studies in this respect is Miller and Modigliani hypothesis (1961), which asserted that the cash dividend policy is not important because it has no effect on the company's value, and as such it does not affect the company owners' wealth. This is due to the fact that companies follow a Residual Dividend Policy ...

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Performance of Goldman Sachs and Financial Ratio Analysis

23 Mar 2015

6 (2,099 )

Conventionally the Bank performance is evaluated by analysis of the financial ratios. However, despite of quite a few number of ratios being calculated, a sculpt that completely convinces the analysis of requirements and bank operations' efficiency evaluation is yet to be developed. Hence for these reason, the financial ratio analysis is balance with unlike eminence evaluations, with characteristics such as organization quality, equity structure, spirited position and ...

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The many failures that lead to the disaster at the Royal Bank of Scotland finance

23 Mar 2015

5 (1,617 )

Among the many failures that led to the disaster at the Royal Bank of Scotland, there was obviously a failure of corporate governance. So it is only right that, along with all the other regulatory reviews, there should be a review of the governance of corporate governance. In Britain, this is partly a matter of self-regulation, with companies expected to follow the best practice corporate governance standards ...

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The Impact Of Asymmetric Information And Adverse Selection Finance Essay

23 Mar 2015

5 (1,631 )

Nowadays financial intermediations play the important role in the economy. Firms and individuals can find sources to finance its new project. Also lender can invest their money in secure positions. Financial intermediations raise funds from the depositors for short term and lend them to the borrower for long term. The main job of those institutions is to provide finance through taking extra risk. So there are three ...

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Assignment On Managing Financial Resources And Decision Finance Essay

23 Mar 2015

7 (2,746 )

Executive summary: In this assignment different types business forms like sole trader, partnership, and limited companies are briefly discussed. Also discussed how they perform and what are the requirements to start a business? How we finance business. The needs of financing like short, mid and long term resources include briefly in this assignment. There are share capitals, bond debenture, called up share capital, share premium, EPS dilution ...

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Financial Statements Analysis In Making Investment Decisions Finance Essay

23 Mar 2015

6 (2,197 )

During the financial crisis in 2008, the world witnessed the bankruptcies of leading firms such as Lehman Brothers or Washington Mutual. These collapses caused the losses of many shareholders and stock investors and raised the importance of financial analysis in investment. This project looks at the necessity of financial statement analysis in investment decision making with an emphasis on how to use it to reveal potential risks. ...

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Evaluating Agency Theorys Strengths and Weaknesses

23 Mar 2015

8 (3,037 )

Agency theory refers to contract whereby principal engage with agent to perform some act on their behalf. The act involved giving power to agent for some decision making. Everyone work on the feet of benefit that can be gained for oneself. That's why it is strongly agreeable that agent, as a utility maximizer will not act at the best interest of principal. Therefore, agents may cheat if ...

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The Importance of Shareholder Wealth Maximization in Business

23 Mar 2015

5 (1,830 )

In modern finance, it is proven that shareholder wealth maximization is the superior goal of a firm and shareholders are the residual claimants; therefore maximizing shareholder returns usually implies that firms must also satisfy stakeholders such as customers, employees, suppliers, local communities and the environment first (Courses Work, Corporate Finance Module, Leeds Metropolitan University). Also, Michael C.Jensen argued that "a firm's value can not be maximized if ...

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Corporate financial statement analysis of Volkswagen

23 Mar 2015

4 (1,423 )

Abstract The main aim from this project is to analyze manufacturing company in term of ratios analysis and common size analysis. We took Volkswagen Group as a manufacturing company and we try to know what are the line business, major competitors, and the goals of Volkswagen Group. Then we start to make common size analysis (vertical and horizontal analysis) for both income statement and balance sheet ...

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Types And Causes Of Liquidity Risk Finance Essay

23 Mar 2015

9 (3,274 )

"In finance, liquidity risk is the risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit)." OR Liquidity risk is the current and prospective risk to earnings or capital arising from a bank's inability to meet its obligations when they come due without incurring unacceptable losses. Liquidity risk includes the inability to manage unplanned decreases or ...

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Nick Leeson’s strategy to earn trading profits on derivatives?

23 Mar 2015

8 (3,112 )

Originally, trader Nick Leeson was supposed to be exploiting low-risk arbitrage opportunities that would leverage price differences in similar equity derivatives on the Singapore Money Exchange (SIMEX) and the Osaka Exchange. In fact, he made up a strategy to earn trading profits on derivatives where he would have to take much riskier positions by buying and selling different amounts of the contracts on the two exchanges or ...

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The investment assignment

23 Mar 2015

7 (2,447 )

Question 1: Latifa opens a brokerage account and purchases 500 shares of Dubai stock at 60 AED. She borrows 15,000 AED from her broker to help pay for the purchase. The interest rate on the loan is 6%. What is the Margin in Latifa's account when she first purchases the stock? If the shares fall to 40 AED by the end of the year what is ...

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A Research Proposal On Money Laundering Finance Essay

23 Mar 2015

5 (1,989 )

The purpose of the study concerned the impact of money laundering and its effects on the local economic and method of laundering technique in Mauritius. Money Laundering is very vast in nature; it consists of various steps, technique and approach of undertaking such unlawful activity. The research analyzes the economic effects of Money laundering in the Mauritian Economic. The research work will attempt to examine the money ...

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Financial statement analysis of british airways and emirates

23 Mar 2015

7 (2,781 )

British Airways plc (BA) is the flag carrier airline of the United Kingdom. BA has its headquarters in Waterside near its main hub at London Heathrow Airport and based on fleet size, international flights and international destinations is the largest airline in the UK. Its second hub is London Gatwick Airport. British Airways has discontinued all direct overseas flights from UK airports other than Heathrow, Gatwick and ...

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The Miller And Modigliani Capital Structure Irrelevance Theorem Finance Essay

23 Mar 2015

18 (7,178 )

Contrary to Modigliani and Miller (1958, MM hereafter), Capital Structure is not irrelevant when we consider a firm with a dividend payout policy. This article extends the MM capital structure theorem by relaxing the full payout assumption and introducing retention policy. The theoretical contribution shows that it is possible to verify the theorem when we suppose an investor who exchanges his initial holding for another portfolio composed ...

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External And Internal Determinants Of Capital Structure Finance Essay

23 Mar 2015

17 (6,673 )

1: Introduction 1.0 Introduction The literature on capital structure theory has made significant progress after the trend setting publications of Modigliani and Miller in1958. After the publication of Modigliani and Miller research work, various researchers have developed theoretical models based on the balancing of tax effect and inefficient distribution of information. Recently, there are many models that focus on the relationship between product and market or the ...

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Financial Performance Of Selected Commercial Banks In Uganda Finance Essay

23 Mar 2015

12 (4,796 )

Persistent poor financial performance in commercial banks in Uganda yet stakeholders continuously alleged that corporate governance of these banks was doubtful, provoked the writing of this paper. Disclosure and trust, which constitute the integral parts of corporate governance, provide pressure for improved financial performance (Mark2000). This paper aims at establishing the relationship between the core principles of corporate governance and financial performance in commercial banks of Uganda. ...

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Why Smes Sometimes Face Difficulties In Raising Finance Finance Essay

23 Mar 2015

6 (2,274 )

Due to the establish of modern enterprise system and thoroughly in structural reforms of market economy, there are lot of opportunities contained in the market, but it is also existing many unexpected risks, particularly for the small to medium-sized enterprise (SMEs) which has limited resources to resist in this treacherous environment. To survive and adapts to the environment for a SME is to maintain its advantage in ...

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Differentiate Between Investment Speculation And Gambling Finance Essay

23 Mar 2015

12 (4,506 )

Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time.[1] In contrast putting money into something with an expectation of gain without thorough analysis, without security of principal, and without security ...

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The definition of financial terminology within the market

23 Mar 2015

4 (1,247 )

Did you know what the financial institution is? The definition of financial institution is an organization that invests the chiefly in financial assets such as securities and loans rather than in tangible property. In the financial institutions, there have include many parts, such as banks, consumer finance companies, trust companies, savings and loans, insurance companies, credit unions, pension funds, and the mutual funds. What is the financial ...

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Fluctuating Present Value Of A Cash Flow Finance Essay

23 Mar 2015

9 (3,322 )

Answer: - A cash flow stream is a series of cash receipt and payments over the life of an investment. It is the inflow and outflow of cash, which matters in practice. It is the cash, which a firm can invest, or pay to creditors to discharge its obligations, or distribute to shareholders as dividends. The assets are the items which are owned by the business. The ...

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How Firms Decide Between Risk Retention And Transfer Finance Essay

23 Mar 2015

4 (1,502 )

Generally, the purpose of risk management is value maximization for a for-profit organization. In other words, risk management aims to maximize value by minimizing the cost of risk. Total costs of pure risk include costs of control and costs of financing. This essay focuses on risk financing. There are two broad methods of risk financing: risk retention and risk transfer. Risk transfer contains insurance and other contractual ...

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Advantages And Limitations Of Each Source Of Finance Finance Essay

23 Mar 2015

14 (5,514 )

This assignment covers all detail about sources of finance. The aim of the research is to identify different sources of finance like short-term finance, medium-term finance and long-term finance. The first part of the assignment gives you an introduction about sources of finance. The second part covers short-term sources of finance and their advantages and limitations. The third part covers medium-term sources of finance and their advantages ...

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Using Profitability Ratios To Evaluate A Businesses Overall Financial Performance

23 Mar 2015

9 (3,262 )

While profitability ratios "evaluate a business' overall financial performance through appraising its capability to produce revenues in surplus of service costs as well as other expenses. There are at least four profitability ratios, which they are gross profit margin, as well net profit margin, besides return on assets, in addition to return on equity. These ratios are used to assess performance and, with other data, forecast prospect ...

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Financial Ratio Trend Analysis Of Jp Morgan Chase Finance Essay

23 Mar 2015

5 (1,760 )

Through the calculation of liquidity ratios of JP Morgan Chase for the last four quarters, it can be seen that the company is in a good position to meet its current liabilities. The current, quick, cash and net working capital ratios over the four quarters show a positive trend and more or less are in healthy positions. Only the operating expense ratio of the company shows an ...

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The Relationship Between Customer Satisfaction And Organisational Profitability Finance Essay

23 Mar 2015

7 (2,597 )

It is well known fact that the goal of any organisation is to meet the needs and the requirements of its stakeholders. Satisfying this need will not only ensure the survival of the organisation but also allow it to flourish. Among the several stakeholders, customers are presumed to be one of the most important stakeholders as no organisation can survive and succeed without them. Accordingly, marketers emphasize ...

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Mergers And Acquisitions Case Study JP Morgan Chase

23 Mar 2015

5 (1,965 )

Mergers and acquisitions have become the most frequently used methods of growth for companies in the 21st century. With them a company can have a potentially larger market share and open itself up to a more diversified market. If the acquiring firm's value is increased then only a merger is considered to be successful. M&As have raised important issues both for business decisions and for public policy ...

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Taylor's Scientific management Theory

23 Mar 2015

5 (1,797 )

CRITICALLY ASSESS THE WAYS IN WHICH F.W.TAYLOR�S SCIENTIFIC MANAGEMENT THEORY HAS INFLUENCED HOW CONTEMPORARY ORGANISAYIONS ARE MANAGED. Introduction (250 words) (Write after written the main body) - Brief explanation of scientific management - Briefly say how this links to contemporary management * �Father of scientific management� (Pollard, 1982, page 3) * Scientific management was developed as Taylor realised workers never worked anywhere near the speed possible due ...

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Assumptions And Forms Of Emh Finance Essay

23 Mar 2015

23 (8,931 )

The subject of efficient market hypothesis is more deliberated and discussed in available studies, but there is no special focus on the EMH form existing in Gulf area, by these means, this study analyses and evaluates the applicability of this model in some selected countries in Gulf area and how it would affect the decisions regarding the financial issues. This chapter proposes the outlines of how the ...

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Financial Statement Analysis Of Marks And Spencers

23 Mar 2015

12 (4,620 )

This report will analyze Marks and Spencer's financial statements for 2008 and 2009 using ratio analysis. Findings show that Marks and Spencer have not had a very good profitable year in comparison with 2008. The purpose of this report is to analyze the figures and to point out some of the reasons for the deprived performance. Table of Contents Aim of report 1 Ratio Analysis 1 Profitability ratios 1 Liquidity ...

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The MCI Project What Message Is Mci Finance Essay

23 Mar 2015

3 (1,200 )

MCI would like to enhance Shareholder value by repurchasing outstanding stock, and send a bold signal to market and manager to stimulate the market price per stock to increase. A share buyback (by investing in themselves) instead of paying a cash dividend or, in other words, increasing a regular dividend, could represent an increase in the value of shares still available, this happens in the case that ...

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Role of agriculture cooperative societies

23 Mar 2015

20 (7,998 )

PRIMARY AGRICULTURE COOPERATIVE SOCIETIES An agricultural cooperative society, also known as a farmers' co-op, is a cooperative where farmers pool their resources in certain areas of activity. A broad typology of agricultural cooperatives distinguishes between agricultural service cooperatives, which provide various services to their individually farming members, and agricultural production cooperatives, where production resources (land, machinery) are pooled and members farm jointly. Agricultural production cooperatives are relatively ...

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The importance of the Capital Market

23 Mar 2015

8 (2,942 )

Capital market is like an investment funds such as bonds, equities and mortgages are traded in the market. Then, capital market can be defined as a market of securities or equities or debt, where a company as well as government can raise a long-term fund. The market of money is provided longer than a year. If it is the raising of short term funds, then it will ...

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Questions On Case Study Of Hillside Bancorp A Finance Essay

23 Mar 2015

14 (5,318 )

1. Determine the implicit amount actually charged off by Marcy State Bank during 1996 (this simply entails the change in allowance for loan losses during the year and the provision for loan losses for the year). Implicit amount actually charged off during 1996 Opening Balance 1st January 1996 = $350,000 Provision for Loan Losses (PLL) for 1996 = $840,000 $1190,000 Closing balance 31st December 1996 = $960,000 Therefore implicit amount ...

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Objective And Functions Of Asset Liability Management Committee Finance Essay

23 Mar 2015

5 (1,818 )

Introduction ALM means asset liability management. ALM is defined as, "the process of decision - making to control risks of existence, stability and growth of a system through the dynamic balances of its assets and liabilities." ALM is the process involving decision making about the composition of assets and liabilities including off balance sheet items of the bank / FI and conducting the risk assessment. ALM is ...

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Types Of Banking Risks

23 Mar 2015

3 (946 )

The Federal Reserve System has established a banking risk framework that consists of six risk factors: credit, market, operational, liquidity, legal, and reputational risks. During examinations, institutions' risk management structures are reviewed using these risk categories. Financial Institution Risk Management Programs The Fed has also identified four key infrastructure components of effective risk management programs: active board and senior management oversight adequate policies, procedures, and limits adequate ...

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Importance Of Mobile Banking System In The Maldives Finance Essay

23 Mar 2015

6 (2,232 )

INTRODUCTION Banks play a vital role in the economic life of a nation. The wellbeing of an economy is intimately correlated to a healthy banking system. Bankers borrowing; lending and related activities make possible the process of production, distribution, exchange and consumption of wealth. Therefore banks are very valuable associates of economic growth. Banks play an imperative role in utilization of the resources of the country. Banks ...

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Most Important Financial Statements Balance Sheet Income Statement Finance Essay

23 Mar 2015

5 (1,990 )

Accounting is an important aspect in the field of business and commerce. It is defined as "the systematic recording, reporting, and analysis of financial transactions of a business" (Investorwords). The most important financial statements formulated in the accounting process include the balance sheet, the income statement, the statements of retained earnings and the statement of cash flows. These statements contain information regarding various financial transactions and the ...

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Case Study On Euro Land Foods Finance Essay

23 Mar 2015

8 (2,841 )

The company was founded in 1924 by Theo verdin a previous as a subsidiary of his dairy business. His keen attention to product Development and grew business steadily over the year .the company went public in year 1979 and by 1993, was listed on trading in the London and Germany exchanges. In January 2001, the senior management of Euro land foods was to draw the firm's one ...

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Advantages and disadvantage of four alternative dividends polices

23 Mar 2015

7 (2,755 )

The firm's dividend policy must be produced with two basic objectives in mind, which are maximizing the wealth of the firm's owners and providing for sufficient financing for future projects. According to Gitman, Juchau & Flanagan (2008) dividend payout ratio indicates the percentage of each dollar earned which is distributed to the owners in the form of cash. Constant-payout-ratio dividend policy is when a firm establishes a ...

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The trading objectives of hedgers, speculators and arbitrageurs.

23 Mar 2015

3 (1,056 )

Hedgers, Speculators and Arbitrageurs are the three major traders in the markets of futures, forward and options. All three of these investors have a great deal of liquidity in the market. Trading objective of Hedgers Hedgers are investors, their objective is to use different markets to minimize or eliminate a particular risk that they face from the potential future movements in the market variables (Hull 2010:47). For ...

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A study on the britvic group

23 Mar 2015

8 (2,807 )

The Britvic Group was established in 1986 by Bass, Whitebread and Allied Breweries. The three merged their respective soft drinks businesses to form Britannia Soft Drinks Limited. And now Britvic is the parent company of Britannia Soft Drinks Limited. Britivic was originally established to act as the soft drinks supplier to the pub estates of these three shareholders. Britvic finished the acquisition of the brand like Tango, ...

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