Essays on Fabozzi

Introduction

The choice of capital budgeting methods to be applied by companies defers and at times both recommended and non-recommended methods are commonly utilized by some large corporations which rely more on capital budgeting. The choice of the method to be applied is also influenced by growth opportunities, foreign sales, characteristics of the Management, industry, leverage, dividend payout ratio and growth opportunities and so forth (Blackstaff, 2012). It's good to note that, there exist various methods used to determine investment decisions, the choice is, however, not arbitrary (Blackstaff, 2012). According to Fabozzi and Ake (2013), Many professions in the field ...

QUESTION A

Definition of Credit Default Swaps A CDS is an instrument used to transfer the risk of default or credit exposure between two or more parties (Fabozzi and Kothari, 2008). It protects the lender from the possible loss of default by the borrower. The lender (protection buyer) pays premiums to the CDS seller. In return, the CDS seller guarantees to pay the lender the face value of the loan plus interests due in the intervening period if the borrower defaults.

Cash flows

Annual CDS premium = 4% × 1,000,000 = $40,000 Quarterly payments = 40,000/4 = $10,000 The borrower does not default ...

A unit trust is a form of a collective investment scheme that allows investors to pool their money for the purpose of investing in the Malaysian stock market and other approved investment portfolios (Hassan, 2016). The unit consists of three parties, the fund manager, the trustee, and the unit holder (Hassan, 2016). A unit trust is governed by a trust deed that outlines the objectives of the fund, the investment style, and the relationship between the unit holders, the fund manager, and the trustees (Fabozzi and Markowitz, 2011). The fund manager is responsible of investing the funds of the ...

1.0 Background Capital structure decisions are critical for the profitability and or growth objectives of for-profit organizations. Financial managers are given the liberty of choosing the components of their capital structure as long their maximize the value of the stock and at the same time achieve some of the core objectives of firms. Some of these include maximization of the company’s value. Managers all over the world strive to find a combination of investment with the best gearing ratio. According to Huber (2011) excessive use of debt financing could lead to too much of the firm's profits being ...

Many people got used to understand the bankruptcy as process over. This term is associated with lesions in the business market. However, very few people know that bankruptcy may be a unique tool for solving various problems. For example, the bankruptcy procedure can successfully carry out the liquidation of the legal entity. Therefore, it is possible to identify a number of objectively positive and negative aspects of this method of the “disappearance” from market. Advantages of this procedure include (Elliot and Elliot 64): Bankruptcy is the only currently legitimate way to relieve the company from debts before the ...

(Financial and SWOT analysis and Recommendation to Identified Problems)

Background

The Walt Disney Company is an American diversified firm which focuses its business in mass media where it offers licensing services for the populace to consume their products among other services. Walt Disney headquarter is at Walt Disney Studios in Burbank, California. The firm was founded on October 16th, 1923 by Walt Disney and Roy O Walt Disney in Los Angeles, California. In its most recent full year financial statements, 2015 financial statement, the firm posted a net income of US$8.38 billion, operating income of US$14.68 billion and ...

SUMMERY

INTRODUCTION The manufacturing sector, production means making a product either by using a machine or hand or both. It’s a component of goods producing industry. Unlike trading or service businesses that buy products and sell at a higher price to make the profit, manufacturing instead make products that they finally sell. Manufacturing companies that produce and sell goods needs an accounting system that does not solely look at the accounting aspect only but also sale and purchase of the goods. By this, the accounting system for the manufacturing industry is more complex than the service sector does not ...

Net present value

NPV is gotten by subtracting cash outflows from the sum cash inflows from the project investment. To get current values, a discounted rate used which is the rate of return or the opportunity cost of capital. The opportunity cost of capital is the rate of return that an investor could earn if the money would have invested in financial assets of equal risk (Gollier, 2009). It’s therefore, the return that an investor would expect to receive. It’s vital in capital budgeting because of the determination of the expected profits from the projects to be invested if approved ...

INTRODUCTION ANDBACKGROUND/HISTORY OF THE BUSINESS

Qatar Cultural Creativity Center was established in 2005 following the decision of the President of General Authority of youth no. (2) for year 2005. The board of directors was constituted in 2012 following the decision of Minister of Culture, Arts, and heritage no (116) for year 2012. The Cultural and Creativity Center is a Not for Profit Organization. The Cultural Creativity Center targets the youth and aims at equipping them with both hard and soft skills that fosters the discovery of personal abilities (Ame Info). The Center teaches skills such as how to write and publish a book, how ...

Introduction

Fundraising has been essential for a lot of organizations, particularly charities and non-profit making organizations. Numerous organizations opt to host fundraising events to gather for expenses for needed programs or services. Raising funds have several other benefits besides securing funds for the entities. A consistent and solid fundraising plan assists the organization to spread its mission and to achieve its goals (Larson, & Gray, 2011). This paper will examine Student Fundraising-Project Case Study and discuss and study next steps that the Council of Fraternities and Sororities (CFS) need to take. It will also evaluate three fundraising projects CFS can take ...

The aim of this report is to enhance understanding of the managers at the P &G through an intelligence analysis of the main competitors, and the comparison between the company and its main competitor. Unilever International Corporation has been investigated in detail as the main rival to the company. Its current market analysis has been elaborated in detail, while its current strengths, weaknesses, opportunities and threat are explained in detail in the SWOT analysis section. Opinions on the industry and the marketing strategies have been sought from various sources, in order to allow managers to understand what the ...

Executive summary

The aim of this report is to enhance understanding of the managers at the P &G through an intelligence analysis of the main competitors, and the comparison between the company and its main competitor. Unilever International Corporation has been investigated in detail as the main rival to the company. Its current market analysis has been elaborated in detail, while its current strengths, weaknesses, opportunities and threat are explained in detail in the SWOT analysis section. Opinions on the industry and the marketing strategies have been sought from various sources, in order to allow managers to understand what the ...