Stock Market Case Studies Samples For Students

The following case study corresponds to an analysis of the known facts going around the Swiss Franc and the effects it has from the point of view of investors, managers, employees, manufacturers and tourists. In order to show this breakdown, the next set of questions will be answered accordingly.

- Why is the Swiss Franc a “haven currency” according to many international investors?

For international investors, the Swiss Franc represents a “haven currency”, thanks to its ability to protect capital and revenues since it ...

Given the harsh economic time, state of the economy and the rise in basic commodity prices such as food, fuel and cost of housing, personal finances has become a hot topic for a while. Many people live a debt-ridden life mainly on unsecured credit instruments like credit cards. In the financial market, so many other credit instruments are available to provide money to borrowers for many different reasons.

Modern financial systems are extremely complex with markets being made up of many forms of investment instruments and different kinds of investors. This has made the financial market extremely difficult to analyses especially when ...

Answer 1)

Dividing the period of analysis in three periods i.e 1981-1991, 1992-1997, 1998-2011 we could easily interpret the actual trend in the bond ratings by Standard and Poors.
1981-1991: This was the period of slow economic growth and as a result, once could witness that till 1991, number of bonds downgraded had exceeded the number of bonds upgraded.
1992-1997: This was the time of blue chip stocks and when US economy was introduced to the boom of technology. As a result, with the rejuniveation of US economy, the number of bonds upgraded exceeded the number of bonds being downgraded.
...

Lehman Brothers Holdings Inc. was ranked as the fourth largest bank in the US before it declared bankruptcy in 2008. The company was dealing in investment banking, equity and fixed income-income sales and trading, research, investment management, private equity, and private banking. A significant number of clients withdrew their accounts from Lehman Brothers and the share price of the stocks fell at an exponential rate. Consequently, on September 15, 2008 the company filed for bankruptcy under Chapter 11. Lehman Brothers played a major role in the recession of the late 2000’s which drastically affected the entire country. The company ...

i) Calculating cost of equity using CAPM Model:
Capital Asset Pricing Model, often abbreviated as ‘CAPM’, is the most fundamental concept in the investment theory of present time. This is an equilibrium model that predicts the expected return on a stock, given the expected return on the market, the stock’s beta-coefficient and the risk free rate. Considered from the borrower point of view, this model is used to calculate the cost of equity for the company using the following formula:
Cost of Equity= RFR+ Beta(Equity Risk Premium)

Below is the detailed explanation of cost of equity calculated for Tim Hortons Inc:

Risk Free Rate: This refers to rates being offered by ...

In the article, ‘Trying to See Apple from a Different Angle’, Jeff Somer on February 1, 2014, has explained about the Apple Incorporation, which has started its business in 1970, and then worked hard and retained its identity. Now Apple Incorporation is the biggest company of the world and is enjoying favorable investments from the investors. The author further tells that, in the year 2010, the company has generated 52% revenue, which has risen to 66% in 2011 and then fell to 45% in the year 2012. Recently in 2014, the company has introduced iPhone, which has gained remarkable fame ...

International Financial Management

Answer-5)
All the money supply in the country is controlled by the Central Bank and it has a number of options to control it. The best of them is Open Market Operations (OMO). It will be used in this particular analysis. Let’s assume that Thailand’s central bank is looking for the ways to prevent the withdrawal of the funds from the country.
It is fully controlled by the government and the country. The country may issue government based T-Bills and securities of different maturities like 1 year, 6-Months, 2 years and others. This would help investors ...

Accounting

Background Information about AMD
AMD stands for Advanced Micro Devices, Inc. This company was registered publicly on May 1, 1969 and hence bound by law to file Form 10-K. This company is being involved in selling x86 microprocessors for all categories of the customers, video, multimedia and another different type of related products for desktop and laptops. This company holds a significant market share in the computer industry and also got many awards.

Financial Information Consideration by Any Company for Investors

In this competitive world, it becomes very important for a company to disclose the financial information to their investors in more easily understandable and full detailed way ...

Whenever investors want to make a good buy, they always look at a number of parameters including earnings per share, earning growth rate, and debt-to-profit ratio. These parameters are very important to an investor because they ensure that investors identify the best companies for investment. However, there are other parameters that enhance an investor’s returns. A company’s beta value is one of the most important parameters that enhance returns. This is because investors can use it to analyze the tradeoff between risk and return. Understanding Apple’s beta value is an important factor in stock research for any investor. ...

Question 1

Given the chance to change the 401k pension plans, I would do the following three things.
- Delink the contribution from employers i.e. commoditize it. This means opening the plan to anyone willing whether one is under formal employment or not.
- Define the contributions such that one cannot withdraw the money for any other purpose other than after retirement.
- Open up the amount one can save any given moment

How would theses suggestions work to improve the current state of 401k?

The first one separates employers from the 401k contribution by ensuring that it is open to more people. Such would ensure that more people would ...

Preferred stock is the class of business ownership in a company where there is a higher claim on the assets and profits than that of common stock. Under preferred stock, the dividends must be paid out before dividends to common stockholders. The shareholders under a preferred stock ownership usually do not have rights to voting at the company meetings.
Financing of preferred stocks is usually equity based financing sources. The company can decide to issue securities to raise capital to finance an approved stock company. Under this arrangement, proceeds from the sale of securities would be used to fund the expansion ...

1. Valuation ratio analysis
I have analyzed the health of Northwest Savings Bank (Ticker Symbol: NWBI), hereafter referred to as Northwest, with several relevant valuation ratio. These ratios are useful to determine whether its stock is currently undervalued or overvalued. These presents a kind of measure as to whether the stock is a potential buy or otherwise. We have also made comparisons between Northwest and its competitors, which includes PNC Bank (Ticker Symbol PNC) and Erie Bank (a division of CNB Bank, Ticker Symbol CCNE. Table 1.1 gives an overview of the financial data that we will be using for the ...

Tidal Community Bank is a perfect example of a company embroiled in conflicts attributed to differing opinions on the best growth strategy to adopt. While the management prefers to expand into new markets through acquisition, the institutional investors are interested in growing their earnings per share. The two protagonists are involved in vicious disagreements that are observed even at the investor conferences. They are all determined to force through their proposal, and none is willing to give a thought to any opposing views. One investor was quoted saying that they do not care about the strategies the management was proposing. On the ...

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- Situation Analysis

Zumba Fitness is a business model that is aiming to make revenues and thereby profits from selling Videos of exercises.

1.1 Strengths:
- Zumba’s routine is unique and has the potential to become another successful global brand like Pilates
- Consumers or the target market for Zumba accept the product fully
- Zumba has an association and exposure with a great brand – Kellog’s
1.2 Weakness:
- Lack of organization structure
- Too small team trying to achieve a lot
- ...

3) Peralta National Bank’s ALCO committee has lots to consider and lots on their plate given the circumstances and the future likely events. Currently, they are witnessing an upward sloping yield curve. However, they have to decide whether to investment in long-term or short term. Both investment alternatives have their own drawbacks and own benefits. As a result, even the ALCO committee is divided over which investment tenor to pursue. There was an argument that if the banks invest in short term they will have to sacrifice one percent of their net income over the limits set by the ...

Emerging Financial Market

Over the past more than ten years, world economic growth is characterized by emerging economies that represent different economic portfolios. Countries that are in the phase between developed and developing economies are emerging markets. They face a number of challenges ranging from underdeveloped financial markets to heavy reliance on debt capital. Inadequacy of accurate information is also a challenge in these economies thus affecting their decision-making. The investors in emerging markets finance their business ventures with short-term loans as opposed to long-term loans. Due to their poorly developed financial markets, they primarily rely on debt from banks as opposed to bonds ...

The organization may benefit and the investors or the users of financial information who rely on the information to make a decision may be harmed. They are likely to be harmed if they make a decision to invest in an organization which has manipulated the financial information. The investors may end up losing their money. The right to know adequate information about the organization which is fair and true is violated. The claims made by the investors for their money may also be violated. The interests of the organization and the statutory requirement to report correct financial information is in conflict. ...

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 ...

How should Jonathan describe the rationale of the dividend discount model (DDM) and demonstrate its use in calculating the justifiable price of PCU share?
Firstly, Jonathan should explain to Dwayne that there are different methods how a financial or a security analyst can analyze the fundamental and technical aspects of a security, which in this case is the PCU share, including its price, the forecasted growth rates, and a lot of other aspects. There is more than one way of predicting the future stock price of a company . A security analysis can focus on the fundamental aspects of the company such as the ...

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)
...

Stock Valuation of Northwest Savings Bank

Many people think that investing is merely the act of buying something on low and selling it in high, which makes the investment seem very easy. But it is truly a difficult task as one needs to understand if making an investment is worth the price paid for the security and determine if the investment is expensive or cheap.
Investment is a very crucial task and should be done with great care. Making investment seems easy, but earning a good return on investment is difficult. Therefore, investment should be done after analyzing the company or stock or any instrument on which ...

The bank: If interest rates increase naturally the EMI per month increases which for a short time

Increases its revenue but in the long run it finds difficult to generate new leads by acquiring new customer Base. On the other hand if interest rates decrease, it motivates the borrower and increases new base For the bank.The Investor: With interest rates increasing the Monthly Installments increases which becomes an Additional burden on the investors. On the other hand if it decreases it becomes a bit easier to repay Back the loan.Industrial Group: If interest rates decreases, businesses can expand and economy becomes much Agile and healthy. Decreased interest rates motivates the traders to acquire more business loans from ...

Alcoa has been reporting an increase in its profits for the past three years like in the year 2010 the revenue announced was $210 billion a 14% increase from the year 2009. This steady increase has continued to be announced up to the year 2012. The company credits this increase to an increased demand for aluminum in worldwide, an increase demand for their products and also an increase in the value of their products.
Alcoa has mainly financed its growth through the sale of its assets though at prices below market. This many analysts believe is the main reason ...

Question 1:

According to FASB ASC Topic 810-10-25-10, protective non-controlling rights are rights that have been formulated to give the non-controlling shareholder power to obstruct corporate dealings that would be classified as protective rights by the investor holding a majority of shares in an organization. This help to ensure that the interests of the non-controlling shareholder are protected in order to ensure that decisions that may affect his or her wellbeing are implemented-

Question 2:

Substantive participating non-controlling rights are rights that allow the non-controlling shareholder to take part in some corporate actions that overcomes the presumption that states that the investor possessing a majority ...

In the coming weeks, Workbrain board of directors will have a meeting to determine the best exit strategy for the company. This comes at a time when Workbrain needs to move through the next phase of growth; in an organization’s life cycle, growth and development is inevitable and, every entrepreneur wishes to see his/her company reach this level. This is exactly where Workbrain is at the moment. However, to many of you, the big question is whether Workbrain should go for an IPO or acquisition. As the company’s CFO, I have thought about this subject for quite some time ...

Introduction. 3

Question 1 3
Question 2. 8
Question 3. 9
Question 4..10
Question 5..10

Question 612

Introduction
Thunder Electronic Company is one of the players in the electronics industry. The strength of any company within the industry that it operates is determined by its financial position. The basic aim of any venture or business is to make or increase its profits. There are several financial ratios that are used in determining a company’s financial position.

Question 1

Liquidity ratios gauge a company’s ability to convert its short term assets into cash. Liquidity ratios for TEC Company are moderately poor ...

Introduction

The null hypothesis is wrong since the two group means are not equal. The monthly mean returns for the Democratic Party group is greater than that for the Republican Party. Therefore, Democratic Party is best for the investors. Since 1926, American stock market has essentially experienced gains of 300 percent. However, the net gain under the Republican administrations has been zero percent during a similar period. This implies that a person who started to invest in the stock market in 1926 with 10,000 US dollars during the administrations of both political parties would have earned 11,733 U.S dollars under ...

Environmental Studies

Deutsche Bank of Germany is a globally powerful banking and financial institution. It has been recognized in both the financial and the environmental sectors for environmentally positive actions. The eco-friendly activities include both internal and external ‘green’ actions. The Deutsche Bank’s mission statement claims that the goal of the company is to find long term financial solutions for everyone who needs financial services.
“The bank competes to be the leading global provider of financial solutions, creating lasting value for its clients, shareholders, people and the communities in which it operates.” (Mission Statement, Deutsche Bank, 2013)
Deutsche Bank ...

Question One

The article shows the impact of the global financial crisis on financial market. The financial market is a market which involves the trade of shares and financial securities. The financial meltdown in the United States, which occurred in 2008, had negative impacts on the financial performance of a company. The financial crisis led to the decline of the value of a company's stock in the stock exchange market. Some companies collapsed as a result of the financial crisis. The need to cut costs by the companies in order to survive the crisis emerged. Employees lost their jobs. In addition, companies needed a lot of ...

According to the Ford Motors balance sheet, it may seem that it indeed does have too much cash reserves. However, in deciding whether or not the company has too much cash, several factors will have to be considered. Companies hold cash for various reasons, chief among them the financing of routine transactions of the company, meeting covenants with lending institutions and other debtors, for speculation purposes and as a source of flexibility in the operations of the company.
Cash reserves held by Ford are high for the reason that the company intends to conduct a value enhancement plan. Such a move ...

Question 1

The most important issues confronting the FPL Group is whether to review their dividend policy. FPL has employed a high dividend policy over the years. The dividends pay-out has been increasing consistently in the last 47 years. 1993 was a best year for the group which saw it record the highest revenue. Management expected the company perform better in 1994. However, events took another turn. It was expected that Florida may allow Retail Wheeling which will significantly increase competition and change the entire competitive landscape in the industry. Therefore, management of FPL Group feel that the dividend pay-out of 2.58 for ...

Part I: a) Based on the above information, please calculate bond's price today.Bond Face value calculation formula

F=face value
C=Coupon Payment = F *contractual interest rate
N=number of payments
i= market interest rate
M= Value at maturity
P=Market price of the bond also known as the fair market value
F=200000 (face Value) ; C= 200,000*5%=50 ; N= 5; i= 4% ; M=200,000
So Bond’s Price today is = 10000((1-1.04^(-5))/ 0.04) + 200,000(1.04)^(-5) = $208,903 so the bond is undervalued. This makes it a great bond to but for any investor at face value.

Part I: b) What is the bond's price today if market rate is 6%?

F=200000 (face Value) ; C= 200,000*5%=50 ; N= 5; i= 6% ; ...

Part 1

ProShares UltraShort Silver
Asset Market value at the beginning of 2011: $200,000,000
Total Financial obligations: $10,000,000
No. of stocks outstanding: 17,393,910
NAV by the end of 2011: $10.94
Income and capital gain distribution per share/unit: $0.23
i. Net asset value (NAV) of the fund in the beginning of the year
NAV = (Market value of assets liabilities) / Shares outstanding
=$200,000,000/17,393,910= $11.50
ii. What was the rate of return to an investor in the fund?
Rate of Return = (NAV1 NAV0 ...

SpiffyTerm

- assumptions suggested
These assumptions suggest that the valuation is through the venture capital method of valuation. This is because the founders intend to find and use only one venture capitalist to finance their venture. The valuation that they are taking also involves raising an initial amount of $4 million and making share allocations for that amount. They later intend to raise an additional amount at a later date (after two years).
Further support that the valuation is on the venture capital method of valuation is that there is a pre-money valuation of the company which the owners have ...

Introduction

R. Allen Stanford, through the Stanford Financial Group, was involved in a financial scam in which investors lost an estimated $ 7.2 billion. This was through a massive ponzi scheme in which the Stanford financial Group offered investors a return on their investments which was higher than market rates. The investors were misled into believing that their investments were made conservatively.
Fraud was committed through the issue of certificates of deposit to investors through the Antiguan bank which was a subsidiary of the Stanford Financial Group. These certificates of deposit sold to investors were later discovered to be bogus.

Claims against Stanford’s auditors

Stanford’s auditors, BDO ...

Executive summary

Regan Inc. has been involved in the installation and manufacturing of commercial heating, ventilation and cooling (HVAC) units. This report uses dividend growth model to estimate the price of the stock. The report calculates the price of the stock of Regan Inc. after including the super growth period that the company would observe after advancement in technology. Price to earnings ratio of the company has been used and compared it with the industry to analyze how the investors think about the company’s future as well as the industry future. Return on equity has also been calculated if the ...

Business

Qstn 1: What Political factors explain Indonesia’s poor economic performance? What economic factors? Are these two related?
Indonesia which is the fourth largest country in the world is arguably among the worst economies of the century. President Suharto’s three decade dictatorial regime could be held responsible for the struggling current economic status of the country. Despite his exit from power in 1997, the country has not been able to recover from the mess left by the past dictator. The countries currency has lost more than 70% of its value (Wahyuni & Ng 2012). In addition, most financial ...

4. Do you agree with the argument that investors with a shorter investment horizon fail to understand the value of a firm as well as investors with a longer investment horizon? Explain.
I do not agree with the above statement. The first part of the statement about shorter term investments was actually right because it cannot really define the success of an investment venture. What makes the statement wrong was the second part which suggests that longer term investors fail to understand the value of a firm. Warren Buffer indirectly stated that investors who make decisions based on short term trends and ...

The case study of Brent Dorsey

The options available to Brent do not seem easy at all. The option given by Megan is that Brent and Scott take just a little fewer invoices and other source documents as they did the past year. This option is based on the presumption that, since the company has always been right in the preparation of the payable accounts then they would still be right this time. This option has various weaknesses, key among them, and the fact that it relies upon assumptions. It is grossly wrong to assume that any company will prepare its accounts the same way it ...

Apple Incorporation is a company that was established in California in 1977 and which consists of wholly owned subsidiaries that manufacture, design and market a number of products which include iPad, iPhone, Mac, iPod and various software applications for both consumers and professional applications (Annual Report, 2011). The company caters to a number of consumers which include small and mid-sized businesses, Government, education and enterprises. The fiscal year of Apple consists of either 52 or 53 week period and it ends on last Saturday of every September.
The business strategy that the company has chosen for itself is providing the best ...

The themes of the two articles focused on the two Central Banks’ (the Federal Reserve and the European Central Bank) attempts to stimulate their respective economies through the use of ‘unconventional’ monetary tool (i.e., open-ended bond purchases to drive down the interest rates also known as quantitative easing). Though the Fed and the ECB have used the same monetary tool to affect economic activity, the goals were different: the Fed aims to boost the economy’s output while the ECB aims to save the euro.
I am interested in exploring how monetary policy affects the economic activity of a ...

The European sovereign debt crisis dominated international financial markets during 2010-2012. Economies fell into recession and financial market volatility was high. Critically analyze how the government debt problems initially faced by a few relatively

Introduction

The European financial crisis has extended beyond borders and is now affecting other countries in various condiments. China and United States of America are the most affected nations because they depend a lot on European countries for exports. The world is facing a critical problem brought about by the financial crisis, and financial experts are yet to determine the solution to this problem. The global economic meltdown of ...

Analysis of the negotiation

Following between the co – owners of the Hackerstar Company, I was appointed the chief attorney representing one of the owners by the name Alan Hacker. This negotiation is taking place so that the two can come to an agreement that will see Litigation ruled out, Hackerstar receive royalties that Star is claiming and Hacker gets to move on with his innovations with another group of investors.

The peripheral elements that may have an impact on the negotiation include sharing of HackerStar’s assets, possibility that Star may have a personal grudge with Hacker. Star may be out to sue Hacker ...

Warren buffet is undoubtedly one of the most successful investors in the world. He has an estimated net worth of $44 billion, he is one of the wealthiest men alive. His fortunes grew from investments made through Berkshire Hathaway, which started as a cotton manufacturer in 1889. Berkshire Cotton Manufactures went into a business merger with Hathaway Manufacturing in 1955. This union was faced by grave technological challenges, which threatened its profitability. Warren Buffet saw an opportunity and bought into the company. He secured its profitability by diversifying into other industries such as Insurance and slowly exiting the textile industry (Bruner, ...

1. Background to the Acquisition
This proposed acquisition is between two firms, Congoleum Corporation (Abridged) and Prudential Insurance Company of America where by Congoleum is the targeted company and Prudential the acquiring one. The negotiations of the acquisition shall be handled by First Boston and Century Capital Corporation whereby the former is the lead negotiator while the latter shall one of the prospective equity participants. Congoleum is a highly diversified company with three products market segment; home furnishings, ship building and automotive and industrial distribution. The firm has an asset and revenue base of $323million and $576million respectively. In ...

Wage expenses and miscellaneous expenditure: The wage expense for the year X0 is arrived at by deducting the depreciation and miscellaneous expenses from the total operating expenditure. The Wage expenses for the 5 years, X1 through X5 are calculated by adding up a certain assumed percentage to the wage expense of the year X0. Similarly, the miscellaneous expenditures for the 5 years, X1 through X5 are calculated by adding up a certain assumed percentage to the wage expense of the year X0. This assumed percentage remains constant throughout 5 years. The percentage assumed to calculate the wage expenses and miscellaneous expenditure ...

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, ...

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 ...

Abstract

Many individuals who have had great ideas have in most cases fallen short of their dreams mainly due to the fact that they could not find proper funding for their dreams. In most cases, there has been procrastination of startup of a business venture with the notion that in the near or distant future, there will be available funds to kick start the venture. To their disappointment, there have been stricter demands for loans and other financial assistance from lending institutions like commercial banks coupled with ever increasing interest rates on the loans applied for mainly due to financial crisis ...

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 ...

Abstract

The world is characterized by different kinds of organizations which have different obligations that they carry out. In order for the organizations to run smoothly, they must have capital to sustain their activities or rather to fulfill their obligations. It is quite unfortunate that many of the organizations are normally characterized with lack of funds to carry out their activities. Presbyterian Homes Inc. is one such organization which is affected by lack of funds. For this reason, its members opted to look for an alternative and that is to apply for a loan to some of the markets for credits ...

Andrew Fastow, Enron’s Chief Financial Officer (CFO), devised two limited partnerships in 1999 – the LJM Cayman, LP (LJM1) and LJM Co-Investment LP (LJM2). The underlying purpose for this scheme was to buy back the stocks and stakes of Enron that were performing badly and in this way improve the appearance of the company’s financial statements. These partnerships were formulated exclusively to operate as independent equity investors intended for the special purpose entities that were being exploited by Enron (Bratton 31). Special purpose entities (SPEs) were utilized by Enron to finance and deal with risks related with particular ...

Financial Contracting

Introduction

According to Hart, (2001), financial contracting refers to the theory where there is a compromise between the investor and the entrepreneur in matters relating to running the business. An entrepreneur can obtain capital from various sources that are: personal savings, angel, venture, private, banks, and credit unions. In this paper, the source of capital is venture capital financing which is whereby an investor provides capital to a start up entrepreneur that has no operating history. However, Ellingsen & Kristiansen, (2010), proved that financial contracts might prove disadvantageous to one party hence the need to select a specific type of financial contract that ...

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 ...

Investor Communication Plan

Investor Communication Plan

Background

Western States Electric Components Group, a subsidiary of Consolidated Electrical Company, mistakenly misrepresented its sales income for the past four years. Western has been selling about 55% of its connolator generators to various ConsoE’s divisions at lower internal retail prices. The different divisions resold these connolators acquired from Western to outside companies. Unfortunately, the financial department has been recording these activities as two separate earnings, hence double booking. Upon the revision of the accounts for the four years, profits for the following financial year will come out as big loses hence affecting the prices and ...

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 ...

Cases of fraud usually take place in both huge firms as well as small firms, and in this case, we will focus on Mamtek, which was a small firm. There are various reasons that usually led to cases of fraud in the various firms. Most of the fraud cases usually involve manipulating the various stakeholders for personal gain. Such decisions to commit fraud are usually for personal gains or to achieve performance within short durations rather than following the right procedures which would bring positive results in the long run. Mamtek was a Hong Kong based manufacturing firm that ...

The company has financed its operations using the initial investment, limited partnership, and five different private equity offerings. The initial investment was $2,000 put into the company by Jim Hornthal, its founder. The company also entered into a limited partnership that enabled it to raise $387,000 from wealthy individuals. It then raised money by issuing preferred shares (Series A shares) in a private equity offering. These funds were used to finance the Non-broadcast Program Development. Series A shares raised $98,000.
The firm’s Television Programming development phase was financed through 13 different private equity offerings. This ...

A)
In the article titled Corporate Policies of Republican Managers the authors tested the effect of personal political preferences of corporate managers on corporate policies. The authors specifically focused on the Republican managers who had 73% likelihood of identifying themselves as conservative, 24% chance of identifying as moderate, and only 3% chance of being liberal (Hutton, Danling and Kumar 1279). The study found that majority of the managers identifying themselves as politically more inclined towards the Republican also adopted conservative corporate policies. Consequently, the organizations that they led were characterized by low debt levels, low capital, low investment in ...

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 ...