Asset Case Studies Samples For Students

Asset allocation refers to an investment strategy whose objective is to strike a balance between risk and return through the apportioning of asset portfolio in relations to individual objectives, risk levels and investment horizon. The main asset classes in regards to investment include; equities, cash and fixed incomes, there is no precise asset allocation method which leads to right asset allocation for each an every individual, this leads to the various asset allocation methods (Zimmermann, 2003).
Strategic asset allocation method entails balancing the portfolio to achieve its long term goals of asset allocation, it involves combinations of assets based ...

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- Both Delta Air Lines and Singapore Airlines use straight line method of depreciation. The formula for calculating annual straight line depreciation is

Asset value-Residual valueLife of asset (in years)

In our case we start with the asset value of $ 100 for all cases.
- For Delta Air Lines, we have three cases –
Prior to July 1, 1986, the residual value was 10% of asset value and asset life was 10 years. Hence, annual depreciation was 100 – 1010 = $9.
After April 1, 1993, the residual value was 5% of asset value and asset life was 20 ...

Ch. 13: Case 13-4 Application of SFAC No. 13
a. What is the theoretical basis for the accounting standard that requires certain long-term leases to be capitalized by the lessee? Do not discuss the specific criteria for classifying a specific lease as a capital lease.
The transfer of a lease from the lesser to the lessee automatically shifts all the benefits and risks into the ownership of the lessee, it therefore should be capitalized by the lessee, and the economic effect is like that of installment purchase in many aspects. In both cases the lessee or the buyer enjoys most ...

Cost of Equity Capital

Cost of equity can defined as the opportunity cost of raising finances through equity. Equity comprises of ordinary share capital and retained earnings of a company. The rate of return expected by investors is the same as the cost of equity. Cost of equity is therefore important in valuation of shares. However, unlike debt securities, which have fixed interest, dividend paid on equity securities fluctuate over time. It is in the discretion of the management of any company discretion to determine how much dividend to pay in case they decide to pay dividend. This makes it hard to estimate the ...

All assets even the perishables can be used to transfer current resources into the future. The owner of perishable asset needs to trade it with a nonperishable asset to store the value of his asset. Otherwise, anything whose value cannot be stored in present form or different form cannot be classified as an asset. For example, milk is a perishable asset, but it can be transformed into other forms that take long to be stale.
The adoption of money in place of barter trade enhanced the capability of storing the value of assets. The owner of perishable assets may ...

Evaluation of the appropriateness of the treatments in Carter’s 2015 financial statements

Treatment of exclusive rights
Carter capitalised the amount paid for exclusive distribution rights. Distribution rights are intangible assets. In this case, the asset is not internally generated hence it should be capitalised in the year the cost is incurred. If the asset has a definite useful life, it should be amortised over the useful life. When an intangible asset is acquired, its reasonable useful life should be estimated to determine the amortization expense. However, an intangible asset whose useful life is indefinite shall not be subjected to amortization. Instead, it shall be tested for impairment and any losses recognised ...

US GAAP permits LIFO in valuing inventory while IFRS does not permit LIFO in valuing inventory. Secondly, US GAAP recommends two-step impairment of assets while IFRS recommends one -step impairment of assets. Lastly, in US GAAP, assets are not allowed be revalued upwards whereas in IFRS upward revaluation is allowed.
An expense in financial accounting is a monetary equivalent of an asset or resource that has already been consumed in a given financial period for the purposes of generating revenues for that entity. Examples include; salaries, rent, financing costs, and repairing and maintenance costs. On the other hand, an asset ...

GOODWILL CASE

Despite the fact that, a business venture may claim to own numerous intangible assets, not all of its intangible assets qualify to appear on the balance sheet. Intangible assets will only appear on the balance sheet based on the following criteria of restrictions; intangible assets will qualify to appear on the balance sheet only if; the business venture acquired the assets i.e. if the intangible assets are not developed within the business enterprise. Also intangible assets can only appear on the balance sheet if they can be identified in terms of value and have a useful timeline and therefore ...

The responsibility of the external auditor is to provide reasonable assurance on the financial statements and to make sure that the material areas of the business are following the accounting standards such as IFRS, IAS or GAAP. In the current scenario of AMC Company, the amount or valuation of the plant assets is 60% of the overall assets of the organization. Therefore, the plant assets are the material area of the business and the external auditor must increase the sampling size of plant asset account’s transactions at the planning stage of the audit. (Stuart, 2012)
The treatment of ...

The taxation of the capital gains made during the disposal of the property by James will be considered under the Income Tax Assessment Act of 1997, section 104-105 which deals with capital gains for individuals. This is wholly embedded in the Goods and services Tax act of 1999 (div 9-11). Using this act, considerations will be made on each tax event under the capital gains tax and analysis made on how each will be treated under the act. In the disposal of the property, either a capital gain or a capital loss is made, and such a gain or loss will have to ...

ANALYSIS OF ISLAMIC BOND (SUKUK) MARKET OF DUBAI AND MALAYSIA

Analysis of Islamic Bond (Sukuk) Market of Dubai and Malaysia
Introduction
As the business has expanded all across the world due to rise of internalisation or globalisation, it has become necessary that both the sources of equity and debt capital must be obtained for financing operational activities. In this regard, experts in financial management designed different modes of finance in which issuance of bonds, in case of debt management, forms an integral position. However, these conventional form of bond issuance require trading based on interest rates and are not backed by any security.
Therefore, based on Islamic principles, a ...

Introduction

Financial performance analysis is crucial for various stakeholders given the varying needs for performance information on various business aspects. In that respect, effective analysis entails evaluating performance over a period or comparing a company’s performance with industry peers. It also entails evaluating various performance areas using varying tools including financial ratios. In that view, the following is a report on Wyndham Worldwide Co. financial performance identifying the performance trend for the period beginning 2012 to 2014 and comparing its 2014 performance with that of the industry peers.

Analysis

Company Overview
Organization and history
Wyndham Worldwide Co. is a brand offering hospitality ...

The estate plan is intended to reduce the amount of both federal and state tax payable on the gross estate of the clients. The estate plan seeks to develop efficient gifting plans by the clients to specific beneficiaries and effectively reduce the amount of tax that is payable from the gifting plans to the minimum. The estate plan should enable Rich distribute his estate to all his beneficiaries without any conflict of interest arising from the remarriage of his wife after his death.
The estate plan seeks to revise the client’s will to be more effective and ...

About the report

The objective of this report is to assist One-World Investment Consortium, who is planning to invest £150 million in Thomas Cook PLC, a British global travel company listed on the London Stock Exchange under the ticker sign of ‘TCG’. We duly understand the impact of our professional recommendation on Consortium’s final decision making related to investment, and therefore, we intend to be comprehensive in the approach our analysis.
As for the structure of this report, it will be a two-part report. In the first section of the report, we will evaluate the past 5 year(2007-2011) financial performance ...

Introduction

The return on asset ratio shows the profitability of the company in relation to its total assets (Gibson). It also indicates how efficient management is employing the total assets of the company to generate profits. Therefore, the higher the ratio, the higher the return on assets ratio, the more there will be an efficient utilization of the asset base of the company. This ratio is generated by making a comparison between the net income and the average of the total assets in a percentage form. For instance, in the case of a capital intensive company such as Walmart with ...

Part A: Classification of items as assets or liabilities

Under this section, we will classify each of the given accounting transactions under appropriate category. Below presented is the snapshot of the excel sheet indicating the correct answers followed by the reasons for their classification under the relevant category:

Reasons for classification of each item:

a) An amount of £40K owed in incorporation tax: Since the company owes an amount, it will be classified under the liabilities section.
b) Stock worth £15K in the stock room: Stock/ Inventories are the current assets of the company and hence will be classified under current assets only.
c) An amount of £20K paid to a supplier for a product yet ...

MGM Resorts International is a reputable hospitality firm with diverse networks and investment portfolio in major parts of the globe. The gaming industry is one dynamic sector and viable corporate are thus advisable. This fact has been the informative factor for MGM Resorts International has been merger and commercial acquisition of casino and other firms in the industry. This strategy has seen the Resort increase its asset portfolio and assets base in different parts of the globe where the acquisitions lay. As much as MGM Resort International has strived to give the bet in terms of customer services, improving the ...

Profitability ratios carry great significance as it indicates the level of profit margins being earned from its business. These ratios have the capacity to influence the investment decisions of the shareholders. The paper describes the profitability ratios of Starbucks Inc and Jamba Juice over the period of two years, i.e. 2012 and 2013:
i) Gross Profit Margins:

Analysis:

The above data indicates that Gross Profit Margins of Jumba Juice was significantly higher than that of Starbucks Inc, however during 2013, the gross margins of Starbucks Inc increased from 56.29% to 57.14% courtesy decline in percentage of cost of sales to ...

Introduction:

Our analysis of a company listed on US Stock Exchange is based on Starbucks Corporation, while for the purpose of comparison with the competitor within same industry, we shall be analyzing financial statements of Dunkin Donuts.

Starbucks Corporation is a leading marketer and retailer of coffee, having its outlets in 60 countries around the world. The stock of the company is listed on NASDAQ Stock Exchange with the tick symbol of ‘’SBUX’’. Apart from selling coffee, the company is also involved in tea, beverages and variety of fresh food items. Today, Starbucks is a leading and most recognized coffee brand in the ...

It makes use of data mirroring. This is achieved by combining two physical drives and then striping data across them. In this arrangement, the first stripe is the original data while the second is the mirror data, which is a copy of the original data but is written in RAID –level 1. This level provides 100% data redundancy but have diminished data storage space.
Relative value of an asset is the likeability of an asset when compared to another one. One factor that needs to be put into consideration when determining this is the ease with which the asset ...

Mike Mayo takes on Citigroup (A) and (B)

Do you agree with Mike Mayo’s concerns about the extent of Citigroup’s DTA’s? Why or why not?
I agree with Mike Mayo’s concern about Citigroup’s Deferred Tax Assets (DTA’s). Citigroup’s DTA’s increased from $4.7 billion at the end of 2006 to $38 billion by the third quarter of 2009. Citigroup would use the huge DTA’s to shield future profits from taxation to a tune of $38 billion. However, the accounting rules require that a firm can only carry the DTA’s if it is reasonably probable that the firm would ...

In the present paper the first question that will be addressed reflects on the three major objectives of Estate Planning: asset protection, wealth accumulation and wealth distribution. Each of the aspects will be dwelt upon separately as it pertains to the situation in which Barry as a single parent with two children aged 7 and 8 years old respectively has found himself in. In other words, estate planning will be considered in the context of its relevance to this particular complex life situation.
First of all, it can be said that Barry does really need to do some estate ...

Five Below, Inc. is a retail chain belonging to the specialty retail industry which was incorporated in Pennsylvania, USA in 2002. It offers “dynamic, edited assortment of exciting products, all priced at $5 and below, including select brands and licensed merchandise” ("Overview | Fivebelow"). Five Below’s products range from sports equipments, styling merchandise, small décor items, craft works to candies and party items. It largely targets customers who are teenagers or pre-teens.
Since the company’s inception, it has expanded its business to almost all regions of the United States and has been successful in opening more than ...

Financial Accounting

[Student ID]
[Section No.]
[Submission Date]

Computations of the 2014 liquidity ratios for Coca-Cola and PepsiCo

The computations of the 2014 liquidity ratios for Coca-Cola and PepsiCo, including the current ratio, accounts receivable turnover, average collection period, inventory turnover, days in inventory and current cash debt coverage, are provided below.

The 2014 liquidity ratios for Coca-Cola and PepsiCo

According to the above-performed analysis, PepsiCo had better liquidity ratios in 2014 comparing to Coca-Cola’s financial performance in this regard.
Thus, PepsiCo’s liquidity ratios, such as the current ratio, inventory turnover and current cash debt coverage, are significantly larger than Coca-Cola’s similar financial figures.
As a result, PepsiCo’s average collection period, as well as the ...

Question 1: You are tasked with completing a coaching discussion with Linus Carver. How would you go about this discussion?

Before starting a discussion with Linus Carver, I need to ascertain objectives which need to be fulfilled from the discussion. The meeting may be started by appreciating the fact that he is handling the department extremely well by coming out with wonderful product designs and is an asset to the company. However, there are some behavioral fallacies which have been observed in the manner Carver handles his team. Carver solely handles a department and does not allow others to voice their ideas and opinions which make his team extremely frustrated. He improvises on the ideas given by his staff and presents ...

What is Miller’s management approach?

I would assess Bill Miller as an intellectual investor who has been successful for continual fourteen years with his long-term vision and success concerns. He was clearly a Fundamental analysis advocate. One key pattern in his strategy was the purchase of stocks having a high intrinsic value with low prices.
Though there were some allegations regarding the market skills of Bill Miller and his investment instincts, it was proved that the mantra of management that Miller followed was based on his investment knowledge, market skills and slightly luck. We can trace certain elements in the management approach used by Miller ...

13th, November, 2013

Analysis of Electronic Arts: Ratio Analyis and Effect of Alternative Accounting Methods on Ratios
Profitability Analysis:
The ratio analysis reveals that over the years, the profitability of the company is improving. In terms of net profit margins, the company has made an applausable leap from -25.8% to 2.6% over the years.(2009-2013 ) This year the net profit margin of the company has surpassed industry benchmark of 2%.
Analyzing the ratios relating to decomposition of profit figures provides us with a better picture relating to working of the company over the years. Both Gross Profit Margins and Operating ...

Element of business

Introduction
Business functions and operations can be defined on a basis on relevant rationale within which an establishment is projected through specific operational models. In order to enhance business success, important attributes need to be out into consideration through major enhancement of integrating the required reasoning and well guided measures in the overall business structure. In this analysis, we discuss the ideal business elements and how they are relevant in a business and its overall performance levels.

Basic legal, social and economic environments

Basic Legal
For any organizations to function in a state it has to confine to the countries laws and regulations. For a multi-national company ...

In the United States, Federation of Accounting Standard Bodies sets Generally Accepted Accounting Principles(GAAP) and outside United States,International Accounting Standards Board, sets the International Financial Reporting Standards(IFRS).
The approach carried out in IFRS and GAAP accounting standards is different. There are many accounting treatments for various transaction that differ under both of the accounting standards.

LIFO Inventory accounting is not allowed under IFRS. However, US Firms following GAAP accounting standards are required to dislcose LIFO reserve in the footnotes of financial statements.
LIFO Reserve = COGS LIFO - COGS FIFO

This adjustment enhances the comparability between US GAAP and IFRS firms.

Treatment of Interest and Dividends ...

Executive summary

Special purpose financial statements that are conventionally provided by small businesses usually offer limited information in both quality and quantity. The main reason behind this is the freedom in reporting that small businesses have. Consequently, lenders have to be careful when using these statements in lending decisions. As a small business, Boat Builders Pty Ltd’s financial statements may not be in a good state as provided to be used in a lending decision. A critical evaluation of whether they represent the true status and performance of this business is necessary before a detailed financial analysis is done. A number of concerns arise ...

Each company has its own marketing strategies to ensure that its products and services are purchased by a wide variety of customers. A company has to come up with a good marketing mix in order to generate a high amount of revenue. This means that the marketing department of that company has to search for adequate information regarding the factors that affect its services. One of the variables that may affect the marketing mix may include physical evidence and the people. In addition to this, the service process is also important in determining the marketing mix of a company (Martin 2011).

There are a ...

A diversifiable risk refers to risk that an investor can eliminate if he held an efficient portfolio while a non-diversifiable risk refers to risk that still present in all adequately diversified portfolios. The investor, therefore, seeks to eliminate the diversifiable risk by adding more assets to the portfolio.

a) A substantial, unexpected increase in inflation is a non-diversifiable risk. This is because a substantial, unexpected increase in inflation will affect all assets that an investor can invest in. Therefore, the risk cannot be eliminated by adding more assets to the portfolio.
b) A major recession in the U.S is a non-diversifiable risk. This is ...

PERSONAL FINANCE INVESTMENT IN QATAR: INVESTING QR 1000000

Abstract
This article describes a personal finance project which entails the investment of QR 1000000 in a short time frame, from 1 March to 27 May 2016. We first define personal finance and establish the five steps of a personal financial planning process, which entails: (1) assessment of the individual’s financial situation; (2) determination of the individual’s financial goals; (3) creation and details of the financial plan, based upon the determined goals; (4) execution of the aforementioned plan; (5) monitoring and reassessment of the plan. For each one of the five stages, we carry out the required ...

Executive Summary

Financial planning is both a science and an art. To properly determine the viable asset allocation for each individual, their time horizon and life goals are given prime consideration. In this case, the near retirement couple would be suitable for investments that provide a fixed return. Since they expect to derive income from their retirement fund, it should likewise be able to create a positive fixed income stream. Meanwhile, the risk level of their fund should be at the low end. The couple does not have the chance to recover losses if any, as compared to when they were ...

Introduction

Decisions on new investments entails considering various aspects of a project. In that respect, the cost and return aspects of a project are key to an investor and there are various methods of analyzing the value expected from such projects. With that, capital appraisal is a crucial process for businesses and investors and this report presents an analysis of the Deluxe case that considers introducing a new range of clothes to address the market changes. Capital budget appraisal, referred to also capital budgeting primarily is a process facilitating firm’s investments determination concerns for both long-run and short-run. It ...

About the report

The report is commissioned to discuss the possible financing options for Outdoor Limited which is currently seeking external funding for expansion purpose and is also likely to face liquidity issues once three of its five investors, liquidate their holdings. Henceforth, each of the possible sources of funds will be evaluated considering the present situation of the company
The second part of the report will be used to discuss the tools of foreign exchange risk management as the company is exposed to FX risk, citing an outward transaction as part of which it will be paying $2 million in six ...

ISLAMIC FINANCE

Introduction
“During the past decade, the Islamic finance industry has witnessed significant developments, particularly in the field of Sukuk (Islamic bonds)” (Chermi, 2015, p. 1). Sukuk signifies one of the best fruitful merchandises in Islamic finance. They have enticed the notice of numerous backers and turn out to be progressively well-liked in many marketplaces international. They have gotten fame as monetary tools supplying both government support through the issuance of sovereign sukuk and private sector backing through commercial sukuk.

According to Brian (Kettell, n.d.), a sukuk has financial features related to those of a conventional bond, nonetheless is arranged ...

Corporate Finance

Answer 1)
Compound Annual Growth refers to growth over the years and is calculated by adding each year growth to the original amount. As for the sales of the company, the compounded growth rate for sales over 5 years time horizon is 11.05%. In other words, starting with the year 2000, when the sales of the company were $600000, by the end of 5 years, the sales of the company following 11.05% growth rate had increased to $1013376.
However, the net income of the company grew with annual compound rate of -136.10%. In other words, there was ...

Results of the analysis of the Cooper Processing Company case (Bowersox et al., 2013).
In order to get the data to calculate the ROA, we need to get all the necessary data. The detailed cost for the retail and foodservice channels.
For the employees cost, the retail have 40 employees and the food service 10. Considering 5.000.000,00 USD the values are:
Employee_Retail: 4.000.000,00 USD Employee_Foodservice: 1.000.000,00 USD

The calculation of the sales promotion cost, we consider that 100% of all the cost are considered in the retail channel:

Promotion_Retail: 8.000.000,00 USD Promotion_Foodservice: 0,00 USD
The cost of the order processing for each channel is proportional to the number of orders of ...

Answer 1)

a)There's a substantial unexpected increase in inflation:
Undiversifiable/Systematic Risk: Since inflation and related increase in it is a macro economic factor and something not related to performance of stock or related companies, the diversiifcation process cannot deal with it and hence effect of inflation will remain in the portfolio construction even if we include all the availble stock in our portfolio.
b) Major Recession in US:
Undiversifiable/Systematic Risk: Just like Inflation, Recession is also an macro economic factor and an investor cannot deal with it. Important to note that an investor is always compensated for bearing systematic risk not ...

Question one: Strategic profit model for Wal-Mart and Tiffany

Figure 1: Strategic Profit Model for Wal-Mart
Figure 2: Strategic Profit model for Tiffany in 2009

Comparison between strategic profit models for the two organizations

Question two:
Gross margin percentage = Gross marginNet sales
Wal-Mart: $95,086$401,200 = 23.7%
Tiffany: $1,530$2,709 = 56.5%
Expenses-to-sales ratio = Total ExpensesNet sales
Wal-Mart: 78461401244 = 0.1955
Tiffany: 11442709 = 0.422
Net profit margin after taxes = Net Profit (After taxes)Net Sales
Wal-Mart: 10939401244 = 2.72%
Tiffany: 2622709 = 9.6%
Inventory turnover = Cost of goods soldAverage inventory
Wal-Mart: 30615834511 = 8.871
Tiffany: 11791427 = 0.8262
Asset turnover = Net Sales Total Assets
Wal-Mart: ...

Introduction

International business environment imposes more challenges on contemporary corporations, driven by the complexity of global business, supply chain and the variety of external pressures, which shape and determine the direction in which the organizations develop. The case dwells upon the development and current strategic issues, which are set in front of the Chabros International Group management, looking at the future development of the organization on the edge of global financial crisis and drastically droppings sales. The company´s owner and the president, Antoine Chami, is to take a strategic decision whether to close part of the Serbian sawmill, re-boost the ...

Question 1 CRP is required by the banks to hedge its interest rate exposure for a minimum amount and period. Which of the hedging instruments would you advise CRP to choose and why? (50 marks)
At normal interest rate, Expected probability of risk is 0.87x0.5=0.435
At higher interest rate, expected probability of risk is 1.385x0.25=0.34625
At lower interest rate, expected probability of risk is 1.1175x0.25=0.2794
The probability of the risk occurring is lower at the lower interest rating therefore the company should take the option at lower interest rate. The scenario with the lower interest should ...

Describe your department/agency/division budget, and main focus

or purposes of the document (Mission, Vision, and Values)
The Ventura county probation agency is given the mandate to supervise offenders of different ages on probation. It also has the role of preparing sentencing report required by the courts. On the juvenile context, it ensures there is preparing for an equivalent for their facilities operations. The mission of this agency is to safeguard the community security by initiation of a program that graduated sanctions. The sanctions are purposed to bring balance of services between the lawbreaker and the community. Under the jurisdiction of the agency, the young , adult and ...

The following strategic management paper is about one of the largest organizations in the world, Google Corporation. Google Corporation was founded by Larry Page and Sergy Brin in the year 1998, and it is centred in 1600 Amphitheatre Parkway, Mountain California (Manjoo, 2011). Being an international organization involved in technology, Google has been providing internet-related services over the years. The most commendable developments have been seen in its enhanced internet search, advertising technologies and cloud computing services. With the rapid technologies in the current world, Google has managed to improve on its products and services, while introducing new technological ...

A good investment portfolio requires proper investment decision based on the past, present and future market trends. This calls for thorough analysis of both the industry and the individual investment in order to ascertain the portfolio’s viability and profitability. This paper therefore highlights the investors’ profiles in the USA’s capital market and considers the current capital market information of the USA to help in building an investment portfolio.

The United States Capital Market is the world’s largest capital market with seven sectors and six categories of instruments.

The main sectors or the players are: Households, fund managers, corporate managers, bankers and brokers, foreign investors, insurance executives, and government officials. The securities (securitized instruments) include corporate equities, ...

Vernon Rudolph established Krispy Kreme Dougnuts (KKD) in 1937 in North Carolina as a single doughnut shop. By the turn of the millennium, KKD had grown in leaps and bounds. As of April 2000, the company shares were trading at 62 times earnings. As of April 2000, KKD had charmed Wall Street analysts with 80% of them recommending a buy. However, as of 2004, the glamour story of KKD started to fall apart.

Historical Financial performance

Exhibit 1 shows that KKD top line grew by 202.2% from $220,243,000 in 2000 to $665,592,000 in 2004. Net income grew by ...

The Second Amendment of the United States Constitution which deals with the legal right of American citizens states that “A well regulated Militia, being necessary to the security of a Free State, the right of the people to keep and bear Arms, shall not be infringed”. The general consensus regarding the interpretation of the amendment is that it grants the legal right to any citizen of the country to own and carry weapons. However, given the broad scope of the amendment, it is difficult to determine the limits of what the law allows and disallows. What is clear however ...

Website: http://www.keuriggreenmountain.com/

Industry: Produces and sells coffeemakers, specialty coffee, and related products (teas, hot cocoa, among others).

BACKGROUND and HISTORY
Green Mountain Coffee Roasters was created in 1981 in Vermont, as a small specialty coffee roaster, which expanded rapidly in the next 20 years. The company acquired the brewing-machine maker Keurig in 2006. It was a publicly traded company from 1993 to December 2015, when investors led by JAB Holding Company acquired GMCR for the amount of $13.9 billion (Yahoo Finance).
GMCR describes itself as a “personal beverage system company revolutionizing the beverage experience through the power of innovative technology” (Keurig Green Mountain, Inc.). Their portfolio is comprised of 80 brands and more than ...

International Business Strategies: Case Study of Netcare

Introduction
In a sector such as the medical industry where the aspect of acquisition and development of knowledge is an essential part of growth and maintained profitability, the health industry is hugely impacted by national political and legal restrictions. Organizations in this industry have to leverage the numerous obstacles to attain competitive advantage and survive in the foreign markets. Recently a renowned medical care company Netcare experienced a changing dynamics in its primary market in South Africa. This compelled the review of its internationalization process. Internationalization process is the activity of increasing involvement in international markets by local enterprises. ...

a)
The ratio of average equity to the average assets improved in the last five years from 2010 to 2014. The value increased from 8.30% to 10.37%, the previous value for a company in the financial sector as banking is a value over the average value of the industry of 10%. A higher ratio of equity over assets gives the confidence to the clients that the bank has at least one dollar per ten dollars that the company “owns” to the clients in the form of deposits.
The ratio of return on average assets improved slightly from 1.10% to ...

Q1: Provide at least two examples of EACH type of Intellectual Property.

Patents, copyrights, trade secrets and trademarks are the four forms of intellectual property. Utility, design, and patents are the three kinds of patents. On the other hand, the different forms of trademarks are brands, company names, and logos. On the contrary, the different forms of trade secrets are marketing plans, product formulas and employee rosters. Copyrights take forms in live recordings, photos or artistry (Bouchoux 4).

Q2: How can an intangible asset create value for an organization? Explain with examples.

An intangible asset such as trademark increases the organizational value by safeguarding the company production secrets from being stolen. An example of a trade secret is the coke’s formula. Nonetheless, an intangible ...

Cohort Name

CESR
Finance
An “angel investor” is an individual who is affluent and provides the seed or capital for a business startup. Usually he or she provides this funding in exchange for ownership equity in the business and or convertible debt. During the years 1994 through 1996, NN focused its asset investment on improving their distribution and increasing inventory. They also secured better independent bottlers. In doing so , they implemented a wide-scale advertising campaign to increase brand awareness (Biotti 2000) They also opted to move their product through an independent network of distributors that would be able to carry multiple ...

Midland Energy is a global company, which operates in oil and gas exploration refining and marketing (R&M), and production (E&P) and petrochemicals sectors. The major objective of the financial strategy of midland is to invest in the projects that are valuable, to achieve an optimal structure for the capital, to fund the substation growth and repurchasing of shares that are undervalued. In addition, it is necessary to calculate the cost of capital if midland wants to meet all the objectives.
There is different level of risks for all the divisions of the midland, therefore a single corporate WACC cannot be ...

Eddison electronic company is firm that engages in manufacturing and selling of electronic products. Based on the journal entries posted in 2005 financial year, it is evident that the firm has been in operation in yesteryears. The assertion is confirmed by the postings of raw materials, work in progress and finished goods inventory in the month of January. Like in most companies, Eddisson creates an allowance opportunity for customers to purchase items for cash or credit basis. In particular, the firm’s journal entry indicates that the sales department recorded $29440 and $28460 worth of electronic goods sold on ...

Introduction

Most business enterprises are normally creations of ingenious business minds that make difficult financial decisions in order to take the business to the next level. In most occasions, only businesses with spectacular principles and competitive managers have an edge over competitors thereby staying in a market. An important aspect of a business is its mode of financing which can either be equity or debt business financing. This paper gives a comprehensive discussion on the advantages and disadvantages of both equity and debt as business financing strategies. Additionally, the paper gives a recommendation on the decision of AMSC to settle for equity financing.

Discussion

Advantages ...

The study of Bear Stearns abrupt fall and demise reveal the importance of credibility for a financial institution in a specific sense irrespective of its robustness. A business in general could fall if credibility and illiquidity become questionable. Bear Stearns is the first ever major investment bank to fail during the global financial crisis (Li and Mizrach, 2010). The 85 years old firm has survived a number of economic turmoil and recession, yet it fell when it was least expected to fall. A number of factors become apparent when studying the Bear Stearns demise, and these include the role of management, illiquidity, ...

Tools for Evaluating the Projects

Biz Systems Consultants Ltd is a firm that is set up by experienced persons. Now they are in consideration for the projects that have investment of 17, 00,000$ and three projects are mutually exclusive. In this report we will find out the ways and tools that can help the firm in accessing the feasibility of the project. There are different methods of accessing the feasibility of projects as well as many sources of finance but we will discuss here the three major sources of finance that are best suitable for the company (Bearse, 1993).
For the company Biz ...

Introduction

GE was under Jack Welch´s leadership for 20 years. During the period, GE achieved impressive financial results and high production effectiveness. The success of the company was, without a doubt attributed to the vision and leadership style of Jack Francis Welch that gain his popularity as a leader, among other qualities, for the creative approach to management. For the purpose of this analysis, it is important to mention that the leadership qualities and vision of Welch as a CEO, where influenced by his personal background; he comes from a working class family and goes through all the stages of professional development within ...

Report on Financing Wetsuits Private Limited Company.

Report on Financing Wetsuits Private Limited Company.
Equity Beta is a signal of the consequential risk that comes from ordinary shares returns. It is also referred to as levered beta. The difference between the equity and asset beta is that there’s a positive correlation with debt amount on the financial structure of the firm. The Wetsuits equity beta is derived from

Stock’s rate of return = (2 / 8) x 100 = 25%
Market rate of return = 12%
Beta is obtained by = (Stock rate of Return – Risk free Rate) / Market Rate of return – (Risk Free rate)
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