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value of common stock? Financial Discovery (2000), report that the following are the five primary methods of estimating the desirability of common stocks. DIVIDEND DISCOUNT METHOD-Users of this method look at the value of a stock as a stream of dividends discounted by a required rate of return. For example, assume a stock pays a constant dividend of $2 per year ($.50 per quarter). If an investor wants to get a 12% per year return from the investment, he or she would pay $2 per .12 or $16.67 for the stock. This example is simplified. Most companies increase their dividends over time. Analysis using this method usually factors in a growth rate for the dividend. In order to evaluate stocks of small, high growth companies, the analyst would have to factor in a higher rate of dividend increases in the early years when the company's earnings are exploding. After this…
ATM (2000, September 15). Capital Structure Theory. ATM,, . Retrieved 09/15/05, from http://wehner.tamu.edu/FINC.www/FINC630-Lee/glossery09.htm
Financial Discovery (2000). Common Stock Selection. Retrieved 09/15/05, from http://www.financialdiscovery.net/Article/common_stock_selection.htm
Motley Fool Staff (2004, May 27). Why Companies Split Stock. The Motley Fool.com,, . Retrieved 09/15/04, from http://www.fool.com/News/mft/2004/mft04052701.htm
Such events are usually difficult, slow, and distasteful processes. Figuring out whether bond obligations are likely to be fulfilled by issuers is best left to bond investment specialists.
Securities pricing is the bond market is complex and different from the stock market. hile a firm usually has only one kind of common stock, it could have dozens or even hundreds of different outstanding bond obligations. Setting current bond prices is complex. Few individual investors have the required skill, knowledge, information, and experience to make such assessments.
For individual investors it is much more straightforward simply to hold bonds through a bond fund. Once a bond fund establishes its "style" for the type, maturity, and quality of bonds it will hold, it selects and purchases bonds with an eye toward maintaining that style. Maintaining targeted maturity is relatively straightforward. Determining investment quality is less straightforward, but bond mutual funds have analysts…
Vanguard. (2011). Bond Yields. Retrieved December 2, 2012 from https://personal.vanguard.com/us/FundsBondsMarketSummaryTable nvestopedia. (2011). Fixed Income Portfolio. Retrieved December 2, 2012 from
Common vs. Preferred Stock
Preferred and common stocks are different in two key aspects.
Firstly, stockholders who are preferred have a bigger claim to organizational earnings and assets. This holds true in good times, i.e., when the firm possesses excess money and decides upon distributing it as dividends to company financiers. In such cases, during distributions, preferred stockholders are to be paid prior to common stockholders. But the claim of preferred stockholders is most crucial, if the organization goes insolvent, when it's common stockholders that come last in claiming company assets. That is, if it comes down to liquidation and paying of all bondholders and creditors, common stockholders receive nothing, unless all preferred shareholders receive their due (Bratton & Wachter, 2013).
Secondly, preferred stock dividends differ from, and are generally higher than common stock dividends. When purchasing preferred stocks, the investor will know when a dividend is to be…
Bratton, W.W. & Wachter, M.L. (2013). A Theory of Preferred Stock. Faculty Scholarship. Paper 1391.
Casson, P. and McKenzie, G. (2007). A comparison of measures of earnings per share. The European Journal of Finance 13(3): 283-298.
Schowitz, P. & Albrecht, M. (2014). How dilution and share buybacks impact equity returns. J.P. Morgan Asset Management. Retrieved from https://am.jpmorgan.com/gi/getdoc/1418384270195 on 30 January 2016
It is expected that the bond will mirror the performance of the S & P. 500. ("Transaction History," 2010)
November 24, 2010
On November 24th several more new purchases would take place to include: General Motors, erkshire Hathaway, the Fidelity Immediate Government Fund and the Strategic Advisors Income Fund.
General Motors was selected, because it could help to provide the portfolio with above average growth. The results were that that stock would see an increase of 1.4%. ("Transaction History," 2010)
erkshire Hathaway was purchased to provide the portfolio with stability and diversification. This investment is expected to outperform the major market averages. The results were up .96%.( "Transaction History," 2010)
The Fidelity Intermediate Government Fund was selected because of their focus on medium term Treasury investments. This is expected to underperform the market averages. The results were that the position declined by 2.55%. ("Transaction History," 2010)
Account Details. (2010). Stock Trak. Retrieved from: http://www.stocktrak.com/private/account/summary.aspx
Ford Posts 68% Rise in Third Quarter Income. (2010). MSNBC. Retrieved from: http://www.msnbc.msn.com/id/39845528/ns/business-autos/
Transaction History. (2010). Stock Trak. Retrieved from: http://www.stocktrak.com/private/account/transactionhistory.aspx
Kavilanliz, P. (2010). Black Friday. CNN Money. Retrieved from: http://money.cnn.com/2010/11/27/news/economy/Black_friday_2010_sales/
("Gates, Bill," 2007) the company is in fact considered a regional financial backbone, in the Seattle-edmond area where its world headquarters are. The whole region and to some extent the whole world takes notice when Microsoft announces financial strategies and changes or when stocks rise or fall.
The software maker said it would buy back $20 billion through a tender offer set to be completed on Aug. 17. The company said that its board of directors has also authorized the company to buy back up to $20 billion worth of stock through June 2011. The company said it has completed the $30 billion stock buyback announced two years ago. "With our share repurchase programs announcement today, we reaffirm our confidence and optimism in the long-term future of the company and continue to execute on our strategy of returning capital to shareholders," Microsoft Chief Financial Officer Chris Liddell said in a…
Bolten, S.E. (2000). Stock Market Cycles: A Practical Explanation. Westport, CT: Quorum Books. Retrieved August 29, 2009, from Questia database: http://www.questia.com/PM.qst?a=o&d=29180460
Fried, I. (July 20, 2006) Microsoft plans massive stock buyback, CNET News
Gates, Bill. (2007). In the Columbia Encyclopedia (6th ed.). New York: Columbia University Press. Retrieved August 29, 2009, from Questia database: http://www.questia.com/PM.qst?a=o&d=112860479
Regardless of one's appetite for risk, it is essential that some diversification of assets is used to prevent 'losing' money by saving money in a bank account alone, although noninsured investments should not be concentrated on one area of the economy, to protect against potential losses.
Even in today's economic climate, investors should allocate some of their funds in safe, but higher-interest bearing sources. These might include certificates of deposits or CDs, which can be allocated into different accounts so the CDs mature at different times, to free up more of the saver's money. These safer investments may also include government bonds of stable governments and corporations, as well as preferred stock for companies that offer this option. Unlike CDs less than $250,000 in value, however, bonds and preferred stocks are not insured by the government.
The concept of the future value of money underlines the importance of saving in…
PACTICES ELATING TO STOCKHOLDES' EQUITY
Hello. I write a project paper Accounting-302 (intermediate accounting 2). The topic Stockholder's Equity corporation. The emphasis practices,, corporations operate. For, I identify company ( - company) conduct a mini case study topic Stockholder's Equity company.
Common practices relating to stockholders' equity
Stockholders' equity is an item of the balance sheet that represents the capital that has been raised by the investors in the business in exchange for stock, referred to as paid-in capital, retained earnings, and donated capital. It represents the stake of the investors in the company and is calculated by deducting the company's total liabilities from their total assets. Accounting experts commonly refer to stockholders' equity as the book value of the company since it captures the funds that were originally invested by the investors and the additional investments that they made thereafter Lowe, 1961.
It also captures earnings that the company…
Google Inc. (2013). Consolidated balance sheets. Mountain View, CA: Google Inc.
Hunton, J.E., Libby, R., & Mazza, C.L. (2006). Financial Reporting Transparency and Earnings Management. The Accounting Review, 81(1), 135-157. doi: 10.2307/4093131
Lowe, H.D. (1961). The Classification of Corporate Stock Equities. The Accounting Review, 36(3), 425-433. doi: 10.2307/242875
Maines, L.A., & McDaniel, L.S. (2000). Effects of Comprehensive-Income Characteristics on Nonprofessional Investors' Judgments: The Role of Financial-Statement Presentation Format. The Accounting Review, 75(2), 179-207. doi: 10.2307/248644
Raising Corporate Capital Issues
It appears fairly clear that the most advantageous means of raising capital for a corporation is to sell common stock. However, it is critical to realize that there are other things that a corporation must do in addition to selling common stock to make this method provide the degree of efficacy that the corporation desires. The reason that selling common stock can help to raise capital for the corporation is that it is possible to get many different people to invest in the company through this means. However, these individuals will tend to do so in greater numbers and in ways that continue to benefit the corporation if the company itself excels. Specifically, the company must simultaneously focus on its core business and keep abreast of its competition so that it can continue to generate revenue and, hopefully, provide the sort of profit margins that are…
Statistics in the World of Stocks
Many students at various levels in mathematics at times find themselves asking the question, why do I need to learn this? It is admittedly true that many people will never really use algebra in their daily lives, and the complex world of statistics and probability also goes unutilized by many. Algebra, probability, and statistics can all be useful to everyone, in actuality, and more importantly there are specific instances where these areas of mathematics prove absolutely invaluable. When it comes to the stock market, many people try to use statistical models to predict when certain stocks are good values, or when they are poised to skyrocket investors to new fortunes, but there are also more sensible applications of certain probability and statistics concepts that are reasonable means of influencing stock-buying decisions. Applying a few basic methods of analysis to some elements of…
The Golden Cross is when a security's short-term moving average breaks through its long-term moving average. This would indicate a bull market on the horizon. ight now the 15-day moving average is 16491 and the 50-day moving average is 16370. The 100-day moving average is 16250, so unlike many of the other indicators, the Golden Cross indicates a bull market.
The graph tells me little, actually. It's better to regress these numbers to understand the nature of the correlation than to play the guessing game with a graph that covers the last forty years. The graph does tell me, however, that the growth rate of M1 does not correlate much with recessions. There are two major growths in M1 (in 2011 and in the mid-80s) that had no link to recession. There are also three that were linked, and in each there was a runup in M1 prior to…
IndexIndicators. (2014). NYSE Composite vs. Average 14-day RSI for NYSE stocks. IndexIndicators.com. Retrieved May 8, 2014 from http://www.indexindicators.com/charts/nyse-vs.-nyse-stocks-avg-14d-rsi-params-3y-x-x-x/
McClellan, T. (2014). Coppock Curve turns down. McClellan Financial Publications. Retrieved May 8, 2014 from http://www.mcoscillator.com/learning_center/weekly_chart/coppock_curve_turns_down/
Stock exchange: An exchange where shares of stock and common stock are sold and purchased. Common exchanges are the New York Stock Exchange and American Stock Exchange.
Secured bonds: A secured bond is a bond issued with the backing of collateral. A common example of a secured bond would be a mortgage bond. If the bond is defaulted on, the title of the collateral is transferred to the bondholder.
Factoring: Factoring occurs when a company sells their accounts receivable, or customer's debt, to another entity at a discount. The entity then assumes all credit risk of the account debtors, and receives the cash as these debts are settled. This process is also known as accounts receivable financing.
Trade credit: Trade credit refers to a company's open account arrangement with vendors. As the company makes purchases, the vendor debits the company's account, and bills them for this credit transaction.
Investorwords.com. Retrieved Dec 7, 2006 from Investor Words. Website: http://www.investorwords.com .
(Dow Jones and Company, 2009). The DJIA can be used in three principal ways: as a yardstick, as a barometer, or as an investment.
When the DJIA is used as a yardstick, the goal is to measure performance from one period of time to another:
The most common use of an index by investors is to evaluate the performance of their own portfolios on a monthly or quarterly basis. This is the "benchmark" function of an index, and it constitutes the bogey that many investors try to beat with individual stock picks or with mutual funds. There is no official benchmark for the stock market. Each investor chooses his or her own. The only logical requirement is that the benchmark chosen should represent the part of the stock market that is targeted by the investor's portfolio. For example, if the investor dabbles in large stocks from a variety of industries,…
H.J. Heinz Co. 2009. Shareholder Information. H.J. Heinz Company. Available from:
http://heinz.com/our-company/investor-relations/shareholder-information.aspx [August 28, 2009].
Dow Jones and Company. 2009. About the Averages: Overview. New York: Dow Jones and Company. Available from: http://www.djaverages.com/?view=about&page=overview [August 28, 2009].
E*Trade Financial Corp. 2009. Pricing. E*Trade Financial Corp. Available from:
Billy Bob bought 100 shares of Stock in Ben's Barbeque, Inc. For $37.50 per share. He sold them in January, 2004 for a total of $9,715.02. What is Billy Bob's annual rate of return?
Since Billy Bob held the investment for 54 years, the annual rate of return is best calculated using the compound rate of return formula:
(Future Value / Present Value) ^ (1 / n) -- 1, where n = number of years.
Filling the data into the above formula:
Billy Bob's return on his investment in Ben's Barbeque is 1.78% per year.
Yellow Fruit Company's bonds are currently selling for $1,157.75 per $1,000 par-value bond. The bonds have a 10% coupon rate and will mature in 10 years. What is the approximate yield to maturity of the bonds?
Using the following formula:
c (1 + r)-1 + c (1 + r)-2 + . . . +…
Block, S. And Hirt, G. (2005). Foundations of Financial Management, Eleventh Edition. New York, NY: McGraw-Hill Irwin.
Mayo, H. (1982). Finance. New York, NY: CBS College Publishing.
Employee Stock Ownership on Employees in the Airlines Industry since September 11th.
Review current materials on the issue.
Airline industry ESOPs tend to be very volatile.
This paper will examine the effects of the September 11th tragedy on employees' employee stock ownership plans in the airlines industry. The following generic information is provided for background before examining the main issue for this paper.
In the United States, the main vehicle for employee ownership in a company is the Employee Stock Ownership Plan (ESOP) which first became a recognized plan in 1974. There are between 17 and 20 million U.S. employees participating in large ESOPs or other contribution plans holding stock. Employees may own stock directly in their companies through stock purchase programs or be members of work cooperatives.
Studies find the employee ownership has a positive impact on performance even in adverse times. September 11th adversely affected the majority of…
Douglas Kruse, Ph.D. "Research Evidence on Prevalence and Effects of Employee Ownership. http://wwww.chrs.rutgers.edu.February 2002.
United Airlines. Form 10K. Securities and Exchange Commission.
Southwest Airlines. Form 10K. Securities and Exchange Commission.
Continental Airlines. Form 10K. Securities and Exchange Commission.
Telephone, wireless, and internet communications is becoming increasingly critical to simply live and function in modern society and commerce. However, the volatility of the industry might make certain aspects of investing in any telecommunications company dicey -- competition is likely to be fierce in upcoming years, and also a new form of technology developed by a rival company might weaken at&T's competitive edge. Not even the most perfect formula can predict changes in technology or a new regulatory environment that may affect the price of a stock.
In the short-term, at&T looks strong, making it a good bankable retirement stock, although its price is quite high. A wealthy investor like Beebee with money to burn might want to select a slightly more risky company, meaning that it might not be the best choice for him. Also, Beebee seems to have a guaranteed income not based in investments at all, but…
Derivatives Explained." Financial Pipeline. Retrieved 18 Nov 2007 at http://www.finpipe.com/derivatives2.htm
Preferred vs. Common Stock." Created by Ameritrade in 1999. Updated in 2003. Retrieved 18 Nov 2007 at http://www.ameritradefinancial.com/educationv2/fhtml/stocksfunds/prevscom.fhtml#overview_preferred
UnitedHealth Group Stock
This report will provide insight into the UnitedHealth Group Stock from an investor's perspective. The report will show a financial analysis included with an overview of the company's current health standing. The paper will also provide a summary of the company and their products and services. The key to any intelligent investing strategy lies in the investor knowing what a stock is really worth and also if it is safe to buy, sell or hold. Therefore, since this report is from an investor's perspective, the company's stock and industry will be reviewed so as to present a big picture of where United Health is today and where they want to go in the future.
Over the five past years the UnitedHealth Group stock has been making great progress as analysts consistently consider the group a strong buy option. As can be seen from the two…
UHC Home Page. Ed. UnitedHealthcare. UNH. http://www.uhc.com/ .
United Health Group Home Page. Ed. United Health Group. UnitedHealth Group. http://www.unitedhealthgroup.com/ .
UnitedHealth Group. Ed. Yahoo Finance. Yahoo Finance. http://finance.yahoo.com/q?s=UNH&d=t .
If you need to type anything after the Reference List then start it on this page
50) to 2097 -- the price of this bond is of $58 (Yahoo Finance, 2009).
Despite their past low popularity, the investors are now beginning to seek more vividly the Ford preferred stock (F-PF) and this is generally explained by the fact that the popularity of the common stock has suffered demises. The company officials have decided to allow owners of common stocks to exchange them with preferred stocks and vice versa, in order to increase investor satisfaction. The preferred stock is being traded at a value of $38.86. Preferred stocks are among the riskiest investments and the specialized advice is that they be kept for long periods of time, but in small amounts. Additionally, it is necessary to diversify the portfolio and the preferred stock should not make up more than one percent (Neubert, 2007).
Neubert, D., 2007, Ford Preferred (F-PS): Used Only with Diversification, The Panelist, http://thepanelist.com/Neubert%27s_Trades/Neuberts_Trades/_20070805502/last…
Neubert, D., 2007, Ford Preferred (F-PS): Used Only with Diversification, The Panelist, http://thepanelist.com/Neubert%27s_Trades/Neuberts_Trades/_20070805502/last accessed on July 8, 2009
2009, Bond Screener at Yahoo Finance, http://reports.finance.yahoo.com/z1?is=ford last accessed on July 8, 2009
2009, Investopedia, http://www.investopedia.com last accessed on July 8, 2009
employee stock option pricing is effected by the bonus plan hypotheses as discussed in the Watts and Zimmerman article.
Employee stock option pricing is an option on the common stock of a company that is issued as a form of non-cash compensation. estrictions on the option (as for instance vesting and limited transferability) are ways in which the business attempts to align its own interests with those of the holder's interests. In the event of the company's stock rising, holders of options generally experience a direct financial benefit, which gives employees the incentive to behave in ways that will boost the company's stock price (Summa; web).
The management compensation hypothesis, otherwise known as the Bonus plan hypothesis accordingly states that managers whose incentives are tied up with the firm's accounting performance are more likely to use accounting choices that reduce reported profits and manipulate their accounting methods and records in…
Summa, J. employee stock options. Investopedia.
Watts, R. L & Zimmerman, J.L,"Towards a positive theory of the determination of accounting standards" The Accounting Review, January 1978, pp 112-34.
Components of a stock's realized return are distributions, dividends, bonds, and share price appreciation. Some kinds of stocks also offer income tax write-offs.
The characteristics of a realized return, in short, are the quantity of actual gains that is made on the value of a portfolio over a specific period of time. In other words, how much value one has received in terms of returns / gains as demonstrated in one's portfolio as a whole.
The realized return considers the profitable returns of the each of the assets contained in one's portfolios as well as each of the losses of particular assets incurred during that specific period, as a result of flucturtaitons that occurred to the market of particular assets. These are the components of each of the realized returns associated with each individual asset that is held in the portfolio.
Calculating the rate of return would enable the investor…
The first component is as follows: Net Margin = Net Income/Sales. How much profit Abbott laboratories makes for very $1.00 it generates in revenue, and the higher a company's profit margin the better. The second component is as follows: Asset Turnover = Sales/Total Assets. The amount of sales generated for every dollar's worth of assets. This measures Abbott's efficiency at using assets, and again, the higher the number the better. The final factor of the Du Pont analysis is as follows: Leverage Factor = Total Assets/Shareholder's Equity. The higher the number, the more debt the company has. Abbott's Du Pont analysis is computed using the following equation:
In this case, for the end of 2006, Abbott Laboratories reported a net income of $717 million dollars, sales of $22,476 million, total assets for 2006 of $36, 178 million, and equity of $14,054 for 2006. Placing these figures into the equation above…
Abbott. (2007). About the Company. Retrieved November 9, 2007 at http://www.abbott.com .
Epsicom. (2007). Abbott Medical Device Company Intelligence Report. Retrieved November 9, 2007 at http://www.piribo.com/publications/medical_devices/companies/abbott_medical_device_company_intelligence_report.html .
McKinnell, H. (2003). Performance Report. Bayer AG 2003 Annual Review: 1-30.
Rogers, M. (2003). Risk Management in Real Options-Based Pharmaceutical
The Toronto Stock Exchange has long attracted issuers in the mining industry because the level of investor knowledge of this sector has traditionally been higher in Canada. Thus, the TSX has a competitive advantage in attracting new mining issues since those types of companies find it easier to raise capital there than on most other exchanges.
Another major point of competition is the investment banking sector. Firms often choose their exchange based on their ability to raise capital. This requires a strong investment banking sector, and a market in which a broad range of institutional investors participates. This increases the pool of available capital as well as overall market liquidity. For example, London Stock Exchange Chairman Chris Gibson-Smith outlined the need for European capital markets to integrate in order that their liquidity and capital-raising ability match that of the U.S.
Each of the world's major capital markets has recognized the…
Bloomberg, Michael and Schumer, Charles. (2007) Sustaining New York's and the U.S.' Global Financial Leadership. Retrieved June 23, 2008 at http://schumer.senate.gov/SchumerWebsite/pressroom/special_reports/2007/NY_REPORT%20_FINAL.pdf
Gibson-Smith, Chris. (2005). Why Europe's Equity Markets Matter. Speech from FESE Convention, retrieved June 23, 2008 at http://www.londonstockexchange.com/en-gb/about/Newsroom/Media+Resources/Speeches/euroequity.htm
No author. (2008). Leadership in International Mining. TSX Group. Retrieved June 23, 2008 at http://www.tsx.com/en/pdf/Mining_Sector_Sheet.pdf
Bloomberg, Michael and Schumer, Charles. (2007) Sustaining New York's and the U.S.' Global Financial Leadership.
One of the most significant factors in the decision to invest in ICICI Bank is to determine the affects of recent capital expenditure and the anticipated return for these investments. Entry into microfinancing represents a considerable amount to risk, due to the financial instability of the target market. The following chart highlights the most significant changes affecting the financial health of ICICI bank that result from expenditures associated with entry into the rural finance venture. It compares key indicators and explains the effects of ICICI's most recent changes to their banking strategy.
Income Statement for years 2003-2006 (in millions USD)
Cost of evenue
Balance Sheet for years 2003-2006 (in millions USD)
Cash Flow for years 2003-2006 (in millions USD)
Net Cash Flows Investing
Net Cash Flows Financing
Net Cash Flow
Data Source: Nasdaq.com (2007).
Das, K. (2006). India's ICICI Bank Targets 25 Million New Rural Customers. Innovations in Emerging Markets. Retrieved May 3, 2007 at http://ifcblog.ifc.org/emergingmarketsifc/2006/11/indias_icici_ba.html .
Domash, H. (2007). The Basics: 10 growth stocks that can't be stopped. Moneycentral. Retrieved May 3, 2007 at http://moneycentral.msn.com/content/Investing/Simplestrategies/P109819.asp
Jubak, J. (2006). 10 top stock picks for 2007. Jubak's Journal. Retrieved May 3, 2007 from: http://articles.moneycentral.msn.com/Investing/JubaksJournal/10TopStockPicksFor2007.aspx .
Nasdaq.com (2007). ICIC Bank. Infoquotes. Retrieved May 3, 2007 at http://www.nasdaq.com/reference/glossary.stm#EPS
Coach, Inc. Stock Analysis
Coach, Inc. -- Stock Pick
Coach, Inc. (NYSE:COH) is a solid, long-term investment. The company produces high-end, luxury fashion and lifestyle accessories such as handbags, sunglasses, scarves, jewelry, shoes and other items. The brand is especially popular in the United States and Japan. Coach has a unique competitive advantage due to its 70-year legacy, name recognition, loyal customer base, and international appeal. The product line always emphasizes high end leathers, product detailing and finishes at affordable price points. Handbags are the company's flagship offering. Competitors include Kenneth Cole, Louis Vuitton, Dooney and Burke, Gucci, Fendi, and Prada. Each company carries handbags that offer comparable quality, but at prices well over $1,000. Coach targets an equally affluent and brand conscious demographic; however, the company is best known for "affordable luxury" with price points beginning at $300. This pricing strategy has proven to be a competitive advantage, particularly…
(2012, October 24). Stocks in the News. Wall Street Journal - Eastern Edition. p. C4.
Species of California (Common Teasel)
The Common Teasel (Dipsacus fullonum) is a plant species identified by several alternate names, including wild teasel, Indian teasel, card teasel, card thistle, gypsy-comb, Venus-cup, and finally Fuller's teasel. With the exception of the great plains region in the north, it can be found growing wild throughout the continental United Staes and parts of Canada. Fuller's teasel is actually a cultivated variety (Dipsacus sativus), which is often confused with its wild form, the common teasel. The teasel is not native to California, having originated in Eurasia and Northern Africa and proliferated accidentally during the eighteenth century as a contaminant in imported seed stocks and in flower arrangements. The cultivated teasel variety was used as an ornamental item in dried flower displays, as well as a hairbrush, and for creating wool. Common teasel is classified in the United States as a noxious invasive species that is…
"Calflora: Dipsacus fullonum." 2011. Web. 14 Nov. 2011.
DiTomaso, Joseph M., and Healy, Evelyn A. "Dicots: Dipsacacae (Teasel Family)." Weeds of California and Other Western States. Vol. 1. University of California, Agriculture and Natural Resouces, 2007. 685-688. Web. 14 Nov. 2011.
Gucker, Corey L. "Dipsacus fullonum, D. laciniatus." U.S. Department of Agriculture, Forest Service, Rocky Mountain Research Station, Fire Sciences Laboratory (Producer). 2009. Web. 14 Nov. 2011.
"Invasive Species - Common Teasel (Dipsacus fullonum subsp. sylvestris) - WDNR." 3 Sept. 2004. Web. 14 Nov. 2011.
Executive Stock Option Plans
"If the company does not do better than its competitors, but the stock market goes up, executives do very well from their stock options. This makes no sense." Discuss viewpoint. Can you think of alternatives to the usual executive option plan that take the viewpoint into account?
Executive stock options are performance-based incentive plans that became popular in the 1950s and 1960s. They declined due to the stock market crash of the 1970s, but returned aggressively returned in the 1990s (Kole, 1997). Today, most companies grant stock options to their top officers as part of executive compensation, along with salary and bonuses. Options that are awarded as part of a compensation package can be very valuable to executives when stocks are performing well. The challenge comes in when stock value is realized for executives even when a company is not faring well at all. This is…
Cicero, D.C. (2009). The manipulation of executive stock option exercise strategies: Information timing and backdating. Journal of Finance, 64(6), 2627 -- 2663.
Collins, D.W., Gong, G., & Li, H. (2009). Corporate Governance and Backdating of Executive Stock Options. Contemporary Accounting Research, 26(2), 403-445.
Hamilton, S. And Wise, D. (2008). Adding performance criteria to your stock options. Hay Group. Retrieved from http://220.127.116.11/haygroupusmkting/e_article001162460.cfm.
Hess, D. (2012). More Stock Rewards Tied To Performance. Crain's New York Business, 28(31), 0015.
Agreeing upon audit expectations goes a long ways in solidifying the workers' perspective of their own role in helping to keep track of warehouse stock and how they can benefit the company. When set up properly and carried out thoroughly and regularly, an audit is one of the best tools a business has in helping to keep warehouse stock inventories well managed and in keeping records accurate and reliable.
There are many contributing factors to warehouse stock record inaccuracies and in keeping the warehouse employees as productive and efficient as possible. Many of the causes of warehouse stock record inaccuracies are very basic in nature, and stem from an improper balance between prudent, logical actions and a businesses inability to keep track of their products, stock, and employees. When businesses understand the factors in keeping stock accurately accounted for and safe, they can build and grow through time and money…
DeHoratius, Nicole and Raman, Ananth. (2008). "Inventory Record Inaccuracy: An
Empirical Analysis." Management Science, August 2008.
Ernst, R., Guerrero, J. And Roshwalb, A. (1993). "A Quality Control Approach for Monitoring Inventory Stock Levels." Journal of the Operational Research Society, 44, 1115-1127.
Johnson, J, R., Leitch, R.A., and Neter, J. (1981). "Characteristics of Errors in Accounts
Such an arrangement may work reasonably satisfactorily for centuries because tribal wars, poaching, and disease keep the numbers of both man and beast well below the carrying capacity of the land. Finally, however, comes the day of reckoning, that is, the day when the long-desired goal of social stability becomes a reality. At this point, the inherent logic of the commons remorselessly generates tragedy."
Hardin wants us to remember that under the capitalist system, it is each man for himself and each organization for itself. So if a company is doing well, the benefits are his to keep but of course the economy will also benefit. This is what Smith had said but what if the benefits of the company are eroding the natural resources alongside all the profits that it is making? Who would then be responsible? Obviously every man will feel the loss of natural resources and everyone…
Interestingly, this situation can be applied to the recent crisis in financial markets in the U.S. We all know that in the last few weeks, many big companies have either gone bankrupt or sought some governmental bailout. Now if we notice the problems it caused the common man, we can side with Hardin and understand his argument quite well. In their pursuit to make more profits, the companies attracted investors from all over the country. People bought their stocks priced at say $30 apiece. Then the company realizes it has not been making money and suddenly goes bankrupt. What happens to the shares? The prices go crashing down to $2 apiece. Imagine the loss to investors. Imagine what they must have gone through- witnessing such a major tragedy. So even though it was the company that had been doing the damage, every single person paid the price. So when capitalist system is allowed to function unchecked, usually such tragedies result.
We may not be in favor of other system but we can all vouch for greater governmental regulation because recent crisis prove that had there been governmental oversight from the beginning, things wouldn't have gone this far. Each company allowed to expand unchecked only ended up costing the government more than 80 billion dollars in bailout. And what about the losses that each man suffered at the stock market? Unfortunately there is no bailout for that. They have lost their life savings but there is no help for them. This is the fault of the capitalist system. It may try to maximize the good but then it goes out of control and destroys the very things it should have protected.
Garrett Hardin. The Tragedy of the Commons, Science, 1968
Stocks and Bonds Basics
There are a number of different types of bonds that are existent. These bonds are typically redeemable in different ways and for different types of value. For instance, a convertible bond is the type that one can redeem for stock options at various prices (Yamam, 2014, p. 63). The number of stock options for which it can be redeemed varies, which affects the valuation of the bond. Another type of bond is a pure discount bond, which must mature before it can be redeemed for cash. Once such a bond does mature, however, it is always redeemable for its face value -- which certainly contributes to the factors for the valuation of this variety of bond. Other types of bonds include a callable bond. This bond enables the entity that has disseminated the bond to buy it back. However, the bond issuer can only repurchase this…
Newton, H. (2015). Common stock. Research Starters. Retrieved from http://eds.a.ebscohost.com.library.gcu.edu:2048/eds/detail/detail?sid=4e161b6e-158e-49b5-ab52-f46b3758794f%40sessionmgr4001&vid=4&hid=4108&bdata=JnNpdGU9ZWRzLWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#AN=89163588&db=ers
Yamam, D. (2014). Does the sequence of convertible bonds matter? Journal of Finance, Accounting & Management. 5(1), 63-87.
One of the most common challenges that firms will face is taking a company public. This is because the timing must be right and there needs to be clear objectives as to where new investment capital will be utilized. Those firms that are taking these factors into account will have a more successful initial public offering (IPO). In the case of Avaya, the company is considering an IPO in the near future. However, there are challenges in determining what tactics should be utilized to attract the most interest. To decide this requires examining: the type of investors that Avaya is trying to draw, the lesson learned from the Google / Morningstar IPOs, the advantages of each type and the costs / risks. Together, these different elements will provide the greatest insights as to how Avaya should go public.
The type of investors Avaya is likely to attract
Neo-Liberalistic Legal Concepts on Nations ith Distinct Legal Tradition (Common, Civil, Socialist)
This review of the related literature focuses on broad definitions of the law as historically legislated and then as practiced in three countries: Malaysia, Indonesia and China. Common law, civil law and socialist law will be defined separately and then as they each apply to the country which has used that system as its focus for legal practice. The effect that neo-liberalism had after the Asian financial crisis on these three nations will be then be examined. Finally, this review will determine if there has been a change post-crisis in merger and acquisition or public finance law.
It is necessary to begin by defining terms that will occur throughout this review. The three systems of law to be initially discussed in the review are common law, civil law and socialist law. Of course, many dispute the fact…
Agami, Abdel M. "The Role that Foreign Acquisitions of Foreign Companies Played in the Recovery of the Asian Financial Crisis." Multinational Business Review 10, no. 1 (2002): 11-17.
Batra, Madan M. "The Dark Side of International Business." Competition Forum 5, no. 1 (2007): 306-313.
Berman, Alan. "The Anwar Saga: Sexuality and Politics in Contemporary Malaysia." Gay & Lesbian Issues and Psychology Review 4, no. 3 (2008): 188-193.
Chan, Anita, and Jonathan Unger. "A Chinese State Enterprise Under the Reforms: What Model of Capitalism?" The China Journal 62 (2009): 1-15.
According to the Miller-Modigliani Hypothesis, dividends do not affect value. This theory reasons that if a firm's investment policy doesn't change, the value of the firm cannot change with dividend policy. Therefore, investors should be indifferent to receiving either dividends or capital gains. but, the Miller-Modigliani Hypothesis has underlying assumptions that don't hold in the real work. It assumes there are no tax differences between dividends and capital gains and that companies do not use the excess cash they have as result of not paying the dividends for bad projects or acquisitions (Dividend policy). As these situations occur, there are distinct advantages and disadvantages of dividends
3.1 Advantages of Dividends
Stockholders may value regular cash payments that dividends offer and many may not face the tax disadvantages of dividends (discussed in the next session of this paper). and, unlike volatile stock prices firms generally do not change their…
Buybacks vs. dividends (2006, February 2). Nightly Business Report. http://www.pbs.org/nbr/site/onair/transcripts/060202c/
Dividend policy. http://pages.stern.nyu.edu/~adamodar/New_Home_Page/lectures/dividend.html
Hughes, C. And O'Doherty, J. (2007, February 22). Companies put faith in buy-backs and special dividends. Financial Times, p. 22.
One of the most common ways that thousands of corporations will raise additional capital to fund continued expansion is: through the public markets. This is because the various bonds, stocks and private securities offerings (private placements / limited partnerships) are helping to provide them with the added liquidity to achieve these objectives. As an increasing number of companies are turning to this option through what is known as an initial public offering (IPO). This is when a company will issue stocks, bonds or other type of securities when they are first going public. In most cases, these are new businesses that are seeing significant amounts of growth and are turning to the public markets to increase their working capital. ("Initial Public Offering," 2010) This is an important step for the organization that is being examined, as the IPO will help to increase its liquidity and provide the necessary…
Initial Public Offering. (2010). Investwords. Retrieved from: http://www.investorwords.com /2475/Initial_Public_Offering.html
IPO Timeline. (n.d.). E Investment Bank. Retrieved from: http://www.einvestmentbank.com/invest_banking/doc/ipo_timeline.html
Steps for Taking a Company Public. (2010). E How. Retrieved from: http://www.ehow.com/way_5814166_steps-taking-company-public.html
Ghosh, A. (2008). The IPO Process. Pricing and Performance. (pp. 23 -- 30). New Brunswick, NJ: Transaction Publishers.
An Assessment on Some Common Business Practices
The case provided in the article regarding United Airlines is just one of many examples of how firms react when they decide to either gain more profits or to avoid a loss. There are many points which can be raised in this scenario, the competition on who will host the industrial base shows what the different locations has to offer, the firm can choose the best place possible through this process while assessing all the offers, the best bidder may offer best location, price or quality of labor all of which are examined by the firm. Economically it can be beneficial for the firm and the winning bid while keeping all legalities under consideration, however ethically it may not be the best decision.
Let's say a city which can not give out a huge price on bidding has great amount of…
Hops (Humulus Lupulus) are well recognized and extensively grown for their use in preparing beer and lager. Whilst hops have been utilized in beer preparing in Europe from the oman times, they started their widespread utilization in Flanders in the 14th century. Hops got admired recognition in Britain in the 16th century for medical and drinking reasons. The pure characteristics given by the hops, developed beer as an everyday drink instead of water, in a lot of areas water was usually unhealthy for human utilization
The Hop plant is a perpetual climbing plant that in character strings itself around trees. It is an associate of the Cannabidaceae species. Hops and cannabis are the only two types in the family and there are a lot of resemblances amid hemp (Cannabis sativa) and the cultivated hop. However, there are no "chemical" connections amid them. The nettle family is in the…
Murakami, A. (2000). Hop variety classification using the genetic distance based on RAPD. Journal of the Institute of Brewing. May June 106(3): 157-161.
Yamazaki, T. (2000). Humulus lupulus L. var. cordifolius (Miq.) maxim. found in Chugoku District. Journal of Japanese Botany. April 75(2): 125.
Beatson, R.A. And T.E. Inglis (1999). Development of aroma hop cultivars in New Zealand. Journal of the Institute of Brewing. Nov. Dec. 105(6): 382-385.
De, K.D., F. David, et al. (1998). Automated reporting on the quality of hops and hop products. Journal of the Institute of Brewing 104(2): 75-82.
Business Financing and the Capital Structure
Generally, businesses need to make several financial decisions that have significant direct effects on their operations and success in the increasingly competitive marketplace. However, there are numerous varying options that are available to businesses regardless of the types and sizes. The concept of business financing has emerged as an important aspect in the modern business environment because of the various financial decisions to be made by different firms. The main aim of this concept is to generate enough capital for the business to meet its existing needs in order to promote the growth of the business. In addition to generating capital for the growth of the business, business financing helps firms to meet the recurring financial obligations.
Use of Financial Planning in Estimating a Corporation's Asset Investment equirements:
Financial planning can be considered as a process that is used to approximate the financial requirements…
Coplan, J.H. (2009, December 4). Raising Capital: Equity vs. Debt. Bloomberg Businessweek
Magazine. Retrieved June 2, 2013, from http://www.businessweek.com/magazine/content/09_72/s0912030511552.htm
Melicher, R.W. & Norton, E.A. (2011). Introduction to finance: markets, investments, and financial management (14th ed.). Hoboken, NJ: John Wiley & Sons, Inc.
Sharp, R. & Hua, W. (2004, January 4). International Investing: The Risks and Rewards.
The liabilities are subject to reserve requirements, however. This means that the bank cannot have more financial assets than it has liabilities. So debt utilization is an entirely different animal in the banking industry than it is in conventional industries.
Therefore, typical debt utilization ratios are of little relevance. Interest coverage is tied to liquidity, and is therefore not measured for banks. The debt-to-equity ratio is measured, however. For ells Fargo, this is 3.01. For Bank of America it is 3.97. The industry average is 3.28. The significance of this metric in the banking business is that the higher the ratio, the riskier the business. Another measure is the leverage ratio. This is at ells Fargo 12.0, versus 9.7 at Bank of America and 14.7 overall. Thus, both of these companies are less highly leveraged than the industry as a whole. ells Fargo has a lower debt-to-equity ratio indicating lower…
Company overview and some financials from MSN Moneycentral. Retrieved May 15, 2009 from http://moneycentral.msn.com/companyreport?Symbol=WFC
2008 Wells Fargo Annual Report. Retrieved May 15, 2009 from
Price of bond= 0.385543*1000 +6.144567*100= $385.54.64+$614.45
Price of bond= $1,000
So, price of bond B. is $1,000 b. For market interest rate equal to 12%:
Price for bond a:
Market interest rate is equal Coupon rate is equal Face value Frequency Number of years to maturity Number of Periods Discount rate annually Discount rate per period n, periods r, per period 12%
10% $1,000 Annual 20-20-12.00% annual 12.00% 20-12.00%
Now we need to calculate PVIF and PVIFA.
For calculation of PVIFA (i, n) and PVIF I is equal to 20 periods and n=12%
PVIFA= (1- 1/(1+.12)^20)/.12
Price of bond= 0.103667*1000+7.469444*100=$851
Price of bond a = $851
Price of bond B:
Market interest rate is equal Coupon rate is equal Face value Frequency Number of years to maturity Number of Periods Discount rate annually Discount rate per period n, periods r, per period 12%…
76), ROE has ranged from 21.6% to 28.3% in recent years, with the 2007 figure being 25.6%. This reflects outperformance of both the industry and the market. The ROA has exhibited similar outperformance of both industry and market. The return on assets for JNJ over the past several years has ranged from 13.1% in 2007 to 17.l% in 2005. The industry five-year average is 8.85% and the market five-year average is 7.50%.
Net Income increased despite decline in revenues
Growth in each business segment
R&D expense growing slower than revenues
2-year upward trend in net income
Upward trend in cash levels
Upward trend in cash flow from operations
Current ratio 46.36% higher than industry
Interest coverage 80.09% higher than industry
Net margin 14.04% higher than industry
Return on Equity 1414.79% higher than industry
Return on Assets 48.02% higher than industry
Decline in revenue this year (1st…
b. An issue of bonds that is sold simultaneously in several countries is traditionally called a (n) eurobond.
c. If a lender ranks behind the firm's general creditors in the event of default, the loan is said to be subordinated.
d. In many cases a firm is obliged to make regular contributions to a (n) sinking fund, which is then used to repurchase bonds.
e. Most bonds give the firm the right to repurchase or call the bonds at specified prices.
f. The benchmark interest rate that banks charge to their customers with good to excellent credit is generally termed the prime rate.
g. The interest rate on bank loans is often tied to short-term interest rates. These loans are usually called floating-rate loans.
h. Where there is a (n) private placement, securities are sold directly to a small group of institutional investors. These securities cannot be resold to individual…
Cost of Capital
The capital which is used by a firm, and shown n the balance can be divided into two main classifications; debt and equity. When a firm assesses its total cost of capital, this will usually be calculated on a weighted basis, using the costs of the different types of capital (Elliott and Elliott, 2011). An understanding of this can be appreciated by looking at some of the main sources of capital and the costs associated with each type of capital.
One of the most common forms of capital is debt. Debt is capital that is obtained through borrowing. There are many kinds of debt, which may include long-term debt such as structured loans from banks or other financial institutions, and short-term debt, such as overdraft facilities and credit agreements with suppliers. The cost of debt is relativity simply to calculate, with most debts having an…
Collins, Bill; Mckeith, John (2009), Financial Accounting and Reporting, McGraw-Hill Higher Education
Elliott B, Elliott J, (2011), Financial Accounting and Reporting, London, Prentice Hall
Hillier, David; Ross, Stephen A.; Westerfield, Randolph W; Jaffe, Jeffrey, (2010), Corporate Finance, McGraw-Hill Higher Education
United Technology Corporations in regard to its strategies, financial performance and general stock performance. The conglomerate's strategy and positioning is presented in regard to its various constituent firms. A conclusion is provided on the basis of the obtained financial outlook.
Financial performance and strategy
Capital markets considerations
UTC's financial and investor ratios
Price to Operating Profit (P/OP)
Price to Book Value (P/BV)
UTC's corporate strategy and positioning
United Technologies Corporation (UTC) is an American multinational conglomerate that has its headquarter in the United Technologies Building which is located in Hartford, Connecticut (UTC,2011).The company deals in research, development as well as manufacture of cutting-edge technology products in various areas such as aircraft engines, HVAC, fuel cells, helicopters, escalators and elevators, fire equipment, security, industrial products, and building materials among other products. The company is a major U.S. military contractor (Stewart, 2005, p.2) for which it produces missile systems as well as…
Bern, MD (2011).Enhanced Income strategies for United Technologies
Cota, E (2011). United Technologies Corp: cash flow valuation http://seekingalpha.com/instablog/817168-eric-cota/191938-united-technologies-corp-cash-flow-valuation
Dividendvalue (2008). Stock Analysis: United Technologies Corp (UTX) A Buy At This Pricehttp://dividendsvalue.com/1433/stock-analysis-united-technologies-corp-utx-a-buy-at-this-price/
("On the Ground Floor of Global Growth," 2010)
The average rate growth in net income is 6.5%. The below table is illustrating the different projections over the next three years.
Net Income Estimates
("On the Ground Floor of Global Growth," 2010)
These figures are highlighting how the net income will be consistently increasing between 2011 and 2013.
Earnings Per Share
("Yum rands," 2010) ("On the Ground Floor of Global Growth," 2010)
The average rate of growth for the EPS is 15.05%. The below table is: showing how these numbers are expected to increase in the future.
Earnings Per Share Estimates
("On the Ground Floor of Global Growth," 2010)…
2010 Annual Report. (2010). Yum Brands. Retrieved from: http://www.yum.com/annualreport/
Fundamental Analysis. (2011). Investopedia. Retrieved from:
Financial analysts play a number of roles within an organization. They made assessments of the value of investments the firm has or may have in the future. They can specialize in determining the value of projects. In addition, financial analysts are engaged in risk assessment, and take steps to determining the best ways for the firm to mitigate the risks that have been identified. Overall, financial analysts use a multitude of different knowledge sets including taxes, finance, economics and risk management to assist the company in making the best financial decisions for the firm (BLS, 2010).
a )The net profit would be the gross profit less operating expenses, interest expenses and tax expenses. Thus, the net profit is: $1,000,000 - $345,000 - $125,000 = $530,000. From this the taxes are removed: $530,000 * (1-.3) = $371,000. The preferred stock dividends of $57,000 must then be removed in order to determine…
BLS. (2010). Occupational Outlook Handbook 2010-11 Edition. Bureau of Labor Statistics. Retrieved May 21, 2011 from http://www.bls.gov/oco/ocos301.htm
Loth, R. (2011). Financial ratios tutorial. Investopedia. Retrieved May 21, 2011 from
American Civil ight Movement
Compare and contrast the Southern Christian Leadership Conference (SCLC) and the Student Non-Violent Coordinating Committee (SNCC) on the basis of their leadership, philosophy, and tactics.
Southern Christian Leadership Conference (SCLC) was a civil rights organization that was initiated by African-Americans in 1957 (Fairclough, 2001). The movement was primarily aimed at ending the segregation and discrimination against the black African population in the U.S. The core philosophy of SCLC revolved around to seek civil rights and economic justice for the people of Southern States having majority of African-Americans.
Student Non-violent Coordinating Committee (SNCC) actually aimed achieving same objectives as those of SCLC but through non-violent sit-in and defiance of segregated dining and lunch services. The core philosophy of SNCC was also eliminating segregation but the mission statement was narrower compared to SCLC.
The most prominent leader of SCLC was Martin Luther King, Jr. Other prominent…
Dyson, M.E. (2009). April 4, 1968: Martin Luther King, Jr.'s Death and how it Changed America. Basic Books.
Fairclough, A. (2001). To Redeem the Soul of America: The Southern Christian Leadership Conference and Martin Luther King, Jr. University of Georgia Press.
Johnson & Johnson (2013). Annual Report & Proxy Statements: J&J. Retrieved from: [http://files.shareholder.com/downloads/JNJ/2770950354x0x644760/85FD0CFF-2305-4A02-8294-2E47D0F31850/JNJ2012annualreport.pdf]
Sundquist, J.L. (1968). Politics and Policy: The Eisenhower, Kennedy and Johnson Years. Brookings Institution Press.
As such, their may be little money to invest in expansion, organic growth, acquisitions, and so forth. This can potentially be a detriment to the company as they may be unable to pursue business initiatives that may otherwise increase earnings and profitability of the firm. By not pursuing these initiatives, the company is actually limited its overall amount of growth as the company can not fully invest in strategic initiatives.
3) Yes, the company can issue common stock to the lawyer. To determine the price of the common stock, the owners should use a discounted cash flow analysis. Both Curtis and Natalie must estimate how much the future cash flows of the business are worth, today (uback, 1995). In this instance, both Curtis and Natalie can project out the earnings of the company over the coming years (5-10 years). As they project the possible earnings of the business, they can…
1) Pablo Fernandez. 2004. Equivalence of ten different discounted cash flow valuation methods. IESE Research Papers. D549
2) Ruback, R.S., 1995, an Introduction to Cash Flow Valuation Methods, Harvard Business School Case # 295-155.
In general, Product Development at Ford involves three major stages, all leading up to the manufacture of the vehicle: Plan, Design, and Verify -- then manufacture. To do this, though, functional areas need to manage costs, plan marketing programs, ensure that needed parts are available, plan manufacturing schedules, hiring (if needed), shift changes, and numerous other data (a/p, a/r, payroll, etc.). The model for Ford is:
(ource: Murthy and Desai)
Thus, on a daily, or ongoing basis, employees in numerous functional areas are able to pull up historical data on models, features, issues; find out stages of development for new models or new programs; chart advertising effectiveness using detailed database parameters, preplan tooling, resource, and supplier needs; access accounting and invoice functions, and, system wide, use the available information for appropriate levels of knowledge management (Maynard 2004).
By department, a needs analysis shows that each individual department has both similar…
Sources: Ford Motor Annual Reports: www.ford.com; http://online.wsj.com/mdc/public/page/2_3022-autosales.html ).
Whatever time duration is arrived at, the researcher should at least determine (preferably from the respondent) the time duration that the respondent will use as a reference, so it is clearer whether the proportion or percentage given is more or less than the eight-hour period provided as an example earlier.
When did you first start chewing gum?
While this is a simple and good enough question to ask about the respondent's first usage and consumption of a chewing gum, there is a possibility that s/he might not recall the first time s/he chewed a gum. This would leave the respondent unsure that it would take time for him/her to answer the question, and could even lead to an unanswered question in the survey. To account for this uncertainty, the question could be phrased, "Based on what you can recall (or based on your recollection), when did you first start chewing…
alternative investment vehicles have been using by the investors to reduce the risk and maximize the profit. In this paper, we will discuss alternative investments opportunities and reducing the risk of portfolio by using the stock index future. Buying or selling the stocks is highly risky because of weak economic conditions. Investors should include various types of assets in the portfolio so that portfolio will not suffer the impact of a decline of any one security. For example; if an investor uses stocks and bonds in his/her portfolio, if stock price decline due to market fall then, the bonds would get higher return and it will eliminate the risk of decline. In the portfolio management it says that "not putting all eggs in one basket," it means investor should not invest in only one asset; they should construct the portfolio containing various types of assets. Thus, the portfolio must be…
Sushant, Portfolio management, "Tips for diversifying your portfolio," retrieved through; http://www.portfoliomanagement.in/tips-for-diversifying-your-portfolio.html
Hedged your portfolio using stock index future (2002), published by Chicago Mercantile Exchange (pp-1, pp23).
"The Case for Hedge funds," Tremont Advisors Inc. & Tass Research, 3rd edition, Feb 2003 (pp 9)
Absolute Returns: The Risks and Opportunities of Hedge Fund Investing," byAlexander M. Ineichen, published by John Wiley & Sons, 2002,-Page 36.
Lowe's Companies, Inc.
Lowe's Companies Inc.
Lowe's Companies, Inc.
Lowe's Companies, Inc.
This report discusses the home improvement retailer, Lowe's Companies, Inc. The report profiles Lowe's, providing information about its background, operations, size, and relative industry position, as well as lists key competitors. The report also includes a profile of the home improvement retail industry and discusses the current economic outlook and sales forecasts through 2015.
The report also analyzes Lowe's consolidated cash flow statements and discusses the company's sources and uses of cash. Lowe's cash inflows and outflows include the issuance of common stock, repurchase of common stock, repayment and issuance of long-term debt, and investments in property and store information technology.
In addition to reviewing Lowe's cash flow, financial analysis reviews Lowe's performance by comparing Lowe's key ratios to industry ratios. In general, ratio analysis shows Lowe's needs to improve its efficiency and generate more sales. Even though…
Home Improvement Research Institute (HIRI). "The March 2012 home improvement products market sales forecast grew 3.8% in 2011 with an increase in 2012 to 5.0%." Accessed April 27, 2012. http://www.hiri.org/?page=Media .
Lowe's. 2012. "Corporate information." Accessed April 27, 2012. http://www.lowes.com/AboutLowes/AnnualReports/annual_report_11/includes/pdfs/Lowes_2011_Annual_Report.pdf
Lowe's. 2012. "2011 Form 10-K." Accessed April 27, 2012. http://www.lowes.com/AboutLowes/AnnualReports/annual_report_11/includes/pdfs/Lowes_Form10K.pdf
Yahoo! Finance. 2012. "Home improvement stores." Accessed April 27, 2012. http://biz.yahoo.com/ic/736.html
Accounting -- financing a start up company with either stocks or bonds?
hen seeking financing for a new company, two potential ways of financing the company are to issue stocks to shareholders that desire an interest in the fate of the company, or to sell bonds to individuals who wish to make money off of the interest of such bonds. Common stock options mean that the individuals who buy such stock become shareholders in the new company. Shareholders, as partial owners, have a right to vote for the company's board of directors. Such stockholders have an interest in the profits made by the company because they share in profits in proportion to the number of shares they own.
Of course, a new company could sell a large proportion of stock to finance its operations -- but individuals might not want to take such a risk, as if the company does…
"Bonds." (2005) Yahoo Financial Glossary. Retrieved 3 Jul 2005 at http://biz.yahoo.com/f/g/bb.html
6% and 5.76% accordingly. The calculation of the after tax yield is derived from the formula and is as follows: After Tax Yiled = Pre-Tax Yield * (1- Marginal Tax ate) and thus the after tax yield is different for people with different income rates and thus variable marginal tax rates.
The holder of the shares will not pay any taxes if he does not sell any shares and thus the growth of market value of shares by 10% will lead to yield to 10% pre-tax and if the profit is fixed, into after tax yield of 7.2% which is the highest return among the other investment. Otherwise, as it is not dividend yield but capital appreciation, the tax is not paid directly. But the risks associated with holding high growth common stock is also very big and the risks must be considered when making the investment also. The higher…
1) Brealey, Myers, Fundamental of Corporate Finance, 3rd Ed., McGraw & Hill, 2003.
Bernie and Pam Britten
This is significant because it shows how some critics of contrarian investing will often point to the various instances of speculation and assume that it is contrarian investing. In some cases the psychology of consumers can become so extreme, that the definition of what is speculative expands greatly. As a result, using contrarian investing in conjunction with other indicators / tools can help prudent investors and traders, be able to identify when the market condition are becoming more extreme.
Contrarian Indicators and Tools
When using the different contrarian indicators / tools in conjunction with one another, you can begin to see how this strategy can be used, to effectively determine if the market conditions are overbought or oversold. There are number of different tools that can be utilized to indentify major changes that are occurring in the trend of a stock or the market averages. These would include: headlines…
"3M Historical Prices," Yahoo Finance, http://finance.yahoo.com/q/hp?s=MMM&a=00&b=2&c=1970&d=04&e=25&f=2010&g=v&z=66&y=0
"3M Reports First Quarter Results," 3M, http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjA2NjEwOHxDaGlsZElEPTMzNDE0MXxUeXBlPTI=&t=1
"3M Reports Fourth Quarter and Full Year 2008 Results," 3M, http://library.corporate-ir.net/library/80/805/80574/items/322063/054431D4-6347-45F1-AF4D-85CCA5F89C52_mmmQ4release.pdf
"American Depository Receipt." Investopedia,
Common stockholders own a proportionate amount of ownership in the company, and receive dividends and votes for Board of Director members in proportion to their ownership of stock. Common stock yields higher returns, but owning common stock carries more risk, for the investor as "if a company goes bankrupt and liquidates, the common shareholders will not receive money until the creditors, bondholders and preferred shareholders" ("Stock Basics: Different Types of Stock," 2007, Investopedia).
Preferred stock comes without voting rights, depending on the company, and yields a fixed dividend in perpetuity. Preferred stock holders are paid before common shareholders. "Preferred stock may also be callable, meaning that the company has the option to purchase the shares from shareholders at anytime for any reason" ("Stock Basics: Different Types of Stock," 2007, Investopedia). It is also possible for companies to issue different classes of stock with different voting rights. "For example, one class…
Stock Basics: Different Types of Stock." (2007). Investopedia. Retrieved 2 Nov 2007 at http://www.cliffsnotes.com/WileyCDA/CliffsReviewTopic/Characteristics-of-a-Corporation.topicArticleId-21248,articleId-21191.html
Stock Basics: Different Types of Stock." (2007). Investopedia. Retrieved 2 Nov 2007 at
Procter vs. J&J
Procter & Gamble and Johnson & Johnson are very similar a lot of tangible ways. The major similarities include the fact that they are both sellers of common and widely used consumable products, they are both mainstays of the corporation scene in the United States and neither one of them has ever had any major systemic issues since their founding. Even so, there are some notable and real differences between the two firms relative to what they do, how they do it and how well they have done it over the years. This report will focus on all of that to at least some degree.
As for general profiles of the two major companies in question, here are the basics for each. Procter & Gamble has been around since 1837 and was founded in Ohio. They sell products or directly operated in 180 different countries around…
Yahoo. (2012, December 10). PG: Summary for Procter & Gamble Company (The) - Yahoo! Finance. Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Retrieved December 10, 2012, from http://finance.yahoo.com/q?s=PG
Yahoo. (2012, December 10). JNJ: Summary for Johnson & Johnson Common Stock- Yahoo! Finance. Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Retrieved December 10, 2012, from http://finance.yahoo.com/q?s=JNJ
Yahoo. (2012, December 10). PG Profile | Procter & Gamble Company (The) Stock - Yahoo! Finance. Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Retrieved December 10, 2012, from http://finance.yahoo.com/q/pr?s=PG+Profile
Yahoo. (2012, December 10). JNJ Profile | Johnson & Johnson Common Stock - Yahoo! Finance. Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Retrieved December 10, 2012, from http://finance.yahoo.com/q/pr?s=JNJ+Profile
In basic terms, hybrid securities have features that easily distinguish them from other kinds of securities. In their most basic form, they have characteristics of both equity and debt. For this reason, they cannot be classified as either debt or equity. The three hybrid securities I concern myself with below are convertibles, warrants, and preferred stock.
In the words of Carey and Essayyad (2001), "preferred stock is a security which pays fixed dividends" (p.89). When seeking to raise capital for growth or expansion, companies can issue two kinds of stock, i.e. common and preferred stock. As is the case with common stock, investors who buy preferred stock provide the company with money in exchange for the corporation's shares. For this reason, preferred stock can be likened to equity. It is however important to note that preferred stock could in some instances be likened to bonds. This…
Carey, O.L. & Essayyad, M. (2001). The Essentials of Financial Management. New Jersey: Research and Education Association, Inc.
Vernimmen, P., Quiry, P., Fur, Y.L., Salvi, A. & Dallochio, M. (2011). Corporate Finance: Theory and Practice (3rd ed.). Chichester, West Sussex: John Wiley & Sons.
(Jabal Omar Development Corporation 2010)
Since 2008, the real estate market in Kuwait has been continually declining. The reason why is because the economy was largely depending upon oil revenues. However, in 2010 the sector began witnessing an increase in prices. This is because of the Kuwaiti government was aggressively promoting the tourism industry. As developers are expecting a strong increase in foreign direct investment, due to the governments push to expand the sector. As a result, holiday and residential areas in Kuwait are continuing to boom. (Finkelstein)
In the housing industry, there are large numbers of shortages that are affecting prices. What has been happening is the residential sector has been facing restrictions over the last several years, surrounding building permits. As the government was slow to endorse them, which created a rush on new areas that were approved for development. At the same time, the government has…
Alexandria Real Estate, 2010.
Egypt Property, 2010, Select Property. Available from: [19 Mar. 2011].
Egypt Real Estate Attracts Interest From Foreign Investors, 2010, New Investors. Available from: [19 Mar. 2011]
Jabal Omar Development Corporation, 2010
For Paramount, the price of the stock increased from $52.00 to $83.00. etween November 24 and January 7, Viacom would trade in a price range of $46.25 to $51.00 for the class A shares. While, the class shares traded between: $41.00 and $46.25. At the same time, QVC traded from: $39.25 to $46.50. In the case of Viacom and QVC, they are range bound based upon the uncertainty of the deal going through, with shares fluctuating to the higher end of the spectrum based upon these changes occurring. ("Paramount Communications," 1994)
What do you think of the plan by Viacom's investment bankers to use CVRs? What do the CVRs add to the mix?
The use of CVRs was a brilliant strategy to sweeten the deal for Paramount shareholders. What they are adding to the mix is the potential for them to receive an even greater price appreciation if they accept…
Theory (MPT) and its role in asset allocation and diversification. The paper reviews arguments in favor of and against MPT, in addition to reviewing how MPT affects portfolio management.
MPT describes a theory on how risk-averse investors can build portfolios that optimize or maximize expected return based on a given level of market risk, while emphasizing that risk is an inherent factor of higher reward. MPT posits that it is possible to construct an "efficient frontier" of optimal portfolios that offer the maximum possible expected return for a given level of risk (Modern portfolio theory, 2011).
Modern Portfolio Theory
Typically, an investor looking for the ideal investment, would choose one whose attributes included high returns coupled with low risk. The ideal investment probably does not exist, but the search for it has caused financial managers and investment analysts to spend time to develop methods and strategies, many of which are…
Bernstein, W.J. (1996). The expected return of precious metals equity. Retrieved May 31, 2011 from http://www.efficientfrontier.com/ef/197/preci197.htm
McClure, B. (2011). Modern portfolio theory: why it's still hip. Investopedia Web site. Retrieved May 31, 2011 from http://www.investopedia.com /articles/06/MPT.asp
Modern portfolio theory: Dynamic diversification for today's investor. Vision Financial Markets. Retrieved May 31, 2011 from http://www.usafutures.com/modernportfoliotheoryinvesting.pdf
Modern portfolio theory -- MPT. (2011). Investopedia Web site. Retrieved May 31, 2011 from
Economy (Maket) Analysis
Bief Histoy of the Company
Analysis of Financial Statements (Ratio analysis)
Liquidity Ratios: Cuent atio
Opeating Efficiency: Asset Tunove
Opeating Pofitability Ratios: Net pofit magin, Retun on Equity, and Du Pont
Risk Analysis: Business Risk and Financial Risk, Vaiability, and Debt/Equity
Application of CAPM and Analysis
10F.Estimating the Value of the Company and Analysis
11• Sustainable Gowth Rate
12• Investment Decisions
13G.Additional Measues of Relative Value and Analysis
14H.Measues of Value Added and Analysis
15I.Comments and Conclusion
1.Economy (Maket) Analysis
Consume spending poved vey esilient against the challenge of gadually ising enegy pices, as indicatos of sales in the etail secto show. Howeve, the difficulties caused by huicanes Katina, Rita and othe topical stoms, as well as tensions in oil-ich aeas might lead to ecod-high enegy pices.
1. Morningstar report on Coach Inc.- www.morningstar.com
2. Investopedia - www.investopedia.com
3. Value-Based Management www.valuebasedmanagement.net
4. The Coach 10k form, publicly available (including the Internet)
This should always be the case and bad things will happen again if Toyota stumbles. The fact that Toyota is not a domestic car maker will be used against them by opportunists.
A struggle that has been encountered by many car makers is the "complex web" (as the case study calls it) of dealers, parts suppliers, offices and so forth that have to be managed when running a car company. Toyota has nearly nine thousand employees in the United States alone and they (as well as the dealers) are strewn across the United States.
The management of inventories, parts and customer support in general needs to be as complex as it needs to be but it should not be made less simple than it can be. Building up the corporate morass of bureaucracy is idea because it limits the company's ability to react to crises, such as the…
Yahoo. (2013, February 24). TM Profile | Toyota Motor Corporation Common Stock - Yahoo! Finance. Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Retrieved February 24, 2013, from http://finance.yahoo.com/q/pr?s=TM+Profile
Yahoo. (2013, February 24). TM: Summary for Toyota Motor Corporation Common- Yahoo! Finance. Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Retrieved February 24, 2013, from http://finance.yahoo.com/q?s=TM
Yahoo. (2013, February 24). TM Key Statistics | Toyota Motor Corporation Common Stock - Yahoo! Finance. Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Retrieved February 24, 2013, from http://finance.yahoo.com/q/ks?s=TM+Key+Statistics
Yahoo. (2013, February 24). TM Competitors | Toyota Motor Corporation Common Stock - Yahoo! Finance. Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Retrieved February 24, 2013, from http://finance.yahoo.com/q/co?s=TM+Competitors