...FORE School of Management A DISSERTATION REPORT ON Impact of Basel III norms on select Indian & European banks Submitted By: DEEPANSHU CHANDRA, 053009 FORE SCHOOL OF MANAGEMENT, DELHI A Report submitted in partial fulfilment of the requirement of Post Graduate Diploma Program in Management SUBMITTED TO: Faculty Guide: Prof. Sanghamitra Buddhapriya FORE School of Management 1 FORE School of Management CERTIFICATE This is to certify that Mr. Deepanshu Chandra has completed his Dissertation under my guidance and has submitted this project report entitled Impact of Basel III norms on select Indian and European banks towards partial fulfilment of the requirements for the award of the Post Graduate Diploma Program in Management (FORE, Delhi) 2011-2013. This Report is the result of his own work and to the best of our knowledge. This project was carried out under my overall supervision. Date: Place: ---------------------------------- Prof. Sanghamitra Buddhapriya (Faculty Guide) FORE School of Management 2 FORE School of Management ACKNOWLEDGEMENT I would like to take this opportunity to thank all those who helped me in the successful completion of my Dissertation. To start with, I would like to thank the organization FORE School of Management for providing me the chance to undertake this Dissertation. I wish to place on records, my deep sense of gratitude and sincere appreciation to my Mentor, Prof. Sanghamitra Buddhapriya, Faculty...
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...2012 W. CARL KESTER CRAIG STEPHENSON Hill Country Snack Foods Co. The Chief Executive Officer of Hill Country Snack Foods had never enjoyed analyst conference calls, but in late January of 2012, Howard Keener was yet again asked about the company’s cash balances, capital structure, and performance measures. One analyst complained that Hill Country’s growing cash position, absence of debt finance, and large equity balance made it difficult for a company in a mature industry to earn a high rate of return on equity, and recommended a more aggressive capital structure. “Maybe I don’t fully understand capital structure theory and practice,” replied Keener, “but I have observed that companies don’t get into trouble because they have too much cash; they get into trouble because they have too much debt.” Hill Country had seen its sales and profits grow at a steady rate during Keener’s tenure as CEO, and at the end of 2011 the company had zero debt and cash balances equal to 18% of total assets and 13% of market capitalization. Having just celebrated his 62nd birthday, Keener was approaching retirement, creating speculation by investors and analysts that the company might change to a more aggressive capital structure in the near future. Company Background Hill Country Snack Foods, located in Austin, Texas, manufactured, marketed, and distributed a variety of snacks, including churros, tortilla chips, salsa, pretzels, popcorn, crackers, pita chips, and frozen treats...
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...Microfinance & Education (A Research Study) Poverty, and the alleviation thereof, has been a discussion that has spanned centuries, specifically in the Unites States of America (USA). Now while those discussions have taken shape in various itineration’s (ie: political platforms, debates on entitlement structure, or simply encouraging individuals to help those less fortunate), everyone seems to agree that its ultimate remediation is beneficial to society; however, in terms of the actual path of forward, we open up a gambit of opinions and approaches. While the disagreement is real, we can take solace in the fact that there appears to be significant consensus on the actuals drivers that play a significant role in empowering the poor, being Capital, Knowledge, and Opportunity. In discussing poverty, it’s important to note that, contrary to common belief, poverty is an epidemic not specifically reserved for developing nations, and continues to be a major problem in the US. The below graph, derived from the US Census Bureau highlights the level of poverty, per race within the US in 2011. Some interesting observations include the incredibly high poverty rates among African American and Hispanics, and the obvious intra-race poverty disparity. Regardless of ones opinion on poverty and the mechanism to alleviate it, it’s worth noting that poverty possesses a heavy cost not only on its victims, but on society as a whole. There is significant statistical correlation between high poverty...
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...controlled by the same mechanisms controlling markets. Nevertheless, an important distinction exists between market for factors of production and that of goods and services. Indeed, demand for the various factors of production is often stated as derived demand due to the fact that when a firm actually develops a demand for such factors, it is often as a result of a decision to supply certain goods and services to the target market. Demand for factors is often steered by the ability and willingness of a firm to employ the diverse factors of production (Hirschey, 2008). Often, demand for factors is associated with quantity and price and thus connotes the ranges of prices and quantities for such factors. Therefore, the four factors namely capital, entrepreneurship, land and labor are considered in the factor demand. Investopedia explains derived demand as an economic analytical term used in describing how demand is often placed on a good or service as a result of demand of another good or service (Investopedia, 2013). In a nutshell, derived demand is demand of factors of production by a firm brought about by demand for a firm’s goods and services in the market. There are various factors affecting demand for production factors. Nevertheless, three major forces determine the demand for production factors. To start with, the prices of products highly affect derived demand. This is also associated with factor productivity. Therefore, when the price of the product...
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...working capital simulation, we were able to analyze what investments should be made regarding growth and cash-flow improvement opportunities. In addition to financial details of Sunflower Nutraceuticals Company (SNC), we examined the outcome of each decision during three phases within a nine year period. This paper will describe what decisions had the best outcome in regards to the SNC’s working capital. Sunflower Nutraceuticals Background Jane Cheng CEO founded sunflower Nutraceuticals in 2006 in Miami, Florida. SNC is a privately held company that provides dietary supplements such as vitamins, minerals, and herbs for women and other products for all age groups. Over the years, Cheng expanded into new retail outlets and private brands such as women’s sports drinks, teenage vitamins and metabolism boosting medication. Over the past few years, more than one Cheng was unsure how she was going to pay all the overhead and the line of credit was overdrawn several times. Currently, the business is breaking even with sales growth of total revenue being $10 million. The facility’s credit limit, $3.2 million, is based on the percentage of accounts receivable and inventory. The credit line is set at 8%, and SNC uses 12% cost of capital to evaluate possible investment opportunities. In 2010, the nutraceutical market was estimated to be worth $126.6 billion, and it is forecasted to grow 4.9% compounded annually. By 2017, it is estimated to be at 180.1 billion due to increase in the elderly...
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...The accumulation of capital is the gathering or amassing of objects of value as judged by one’s perceived reproductive interest group, the increase in wealth through, concentration, or the creation of wealth. Capital is money or a financial asset invested for the purpose of making more money (whealth in the form of profit, rent, interest, royalties, capital may also be seen as a form of capital, investment in one’s personal abilities, such as through education, to improve their function and therefore increase their income potential in a market economy. Poverty is the inability of getting choices and opportunities of human dignity. It means lack of basic capacity to participate effectively in society. It means not having enough to feed and cloth a family, not having a school or clinic to go to not earn one’s living, not having acces to credit. It means insecurity powerlessness and exclusion of individuals house holds and communities. A developing country, also called a less developed country (LDC) is a nation with a lower living standard, underdeveloped industrial base and low human development index (HDI), relative to other countries. The development of a country is measured with statistical indexes such as income per capital (per person), (gross domestic product), life expectancy, the rate of literacy (ignoring reading addiction). Developing countries like Tanzania, Kenya, Ethiopia and others are, in general countries that have not achieved a significant degree of industrialization...
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...Income Mobility: Up & Down the Economic Ladder by Tom Thompson Dr.Walker Senior Seminar 7/29/2009 Thomas L. Thompson Dr. Christopher Walker Senior Seminar July 29, 2009 Income Mobility: Up & Down the Economic Ladder People always say they do what they do to make life better not only for themselves, but for the future well-being of their children and hopefully those actions will get passed on to their children. This is my way of thinking of the paying it forward theory; giving all I have, to make the lives of my children better than the one I grew up with and the one I currently live. One of my most favorite quotes about getting ahead in life came from a philosopher and pastor Russell Conwell that is hand-written by my grandmother in a Bible that was given to me some years ago. It goes like this, “For a man to say, I do not want money, is to say, I do not wish to do any good to my fellow men" (Conwell). Everyone wants money, only if it is to do good for your family’s future. From the rich business professional perched high in their penthouse to the lowly street peddler on the corner, everyone has a story on how and why they ended up in that position. The United States is seen as the place where everyone has the opportunity of the “American Dream”. That includes the opportunity for one's children to grow up and attain to their fullest potential in which they are capable of, and seen for what they are and not what they are born with. It is the opportunity...
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...consumption B) invisible hand C) law of demand D) classical theory of investment ANSWER: ______________ 2) According to the life-cycle theory of consumption, people tend to consume ________ they earn during their early and later years. A) more than B) less than C) the same as D) an amount unrelated to what ANSWER: ______________ 3) The opportunity cost of leisure will rise if A) the wage rate increases. B) the wage rate decreases. C) nonlabor income increases. D) nonlabor income decreases. ANSWER: ______________ 4) A rise in the interest rate A) decreases the opportunity cost of consuming today. B) increases the opportunity cost of consuming in the future. C) increases the opportunity cost of consuming today. D) decreases the opportunity cost of consuming in the future. ANSWER: ______________ 5) Over time, spending on ________ is ʺsmootherʺ than spending on ________. A) durable goods; services B) nondurable goods; durable goods C) services; nondurable goods D) durable goods; service ANSWER: ______________ 6) The largest increase in the labor-force participation rate since 1950 is among A) prime-age men. B) teenagers over the age of 16. C) prime-age women. D) males in their 20s. ANSWER: ______________ 7) Which of the following is NOT a transfer payment? A) Social Security payments B) welfare benefits C) unemployment compensation D) dividends ANSWER: ______________ 8) The tendency for ________ to decrease when ________...
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...G R O C P A PYL D P (03) 95072651 w w O D N A IT L T T h: w .gordonc apital.c .au om MGM WIRELESS (MWR) UPDATE MGM Wireless launches a new app for schools and parents DIRECTORS Mark Fortunatow, Executive Chairman Mark Hurd, Executive Director Shaun Collopy, Non-Executive Director KEY POINTS MGM Wireless launches MGM PinPoint™, a world leading app enabling schools and parents to locate children who are missing from school. Global PCT patent application filed Primary empathise on children safety to drive demand. Will boost revenue yield per school and is potentially a major contributor to revenue. MARKET DATA ASX Code: Current Price 52 week Share Price Range: Market Capitalisation: Economic Value: Shares on Issue: Unlisted Options: MWR $0.86 $0.32 - $0.89 $7.0 million $6.9 million 8.1 million 0.65 million CAPITAL STRUCTURE INVESTMENT PROPOSITION Over the past two years, MGM Wireless has demonstrated that its business model is sustainably profitable, underpinned by a high proportion of recurring revenue, and has positioned its itself to drive an acceleration in its growth path. The company’s growth over the next few years will be sourced from continued building of market penetration in the core schools and child care centre market, software upgrades and extension business from the existing client base, SMS traffic growth and from new products. The company’s immediate priority is to build sales momentum for its expanding product offering...
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...Part I: The Operating Budget for Charles County Maryland Strayer University PAD 505 October 29, 2015 Introduction Charles County was created by an Order in Council in 1658. The County was named for the 3rd Lord Baltimore, Charles Calvert (1637-1715) who lived in Maryland from 1661 to 1684 before returning to England. Charles Calvert was Proprietor of the Maryland colony from 1675 to 1689, until he lost his right to govern. Maryland was governed as a royal colony, from 1692 until Calvert's death in 1715. Charles County is located in Southern Maryland, along the banks of the Potomac River, just south of Washington D.C. Charles County in bounded south & west by Potomac; east by St. Mary's County; north by Prince George's County. According to the U.S. Census Bureau, the county has a total area of 643 square miles and estimated population of 154,747 and an estimated population growth thru 2030 of 204,200. There are several divisions within Charles County such as Fiscal and Administrative Services, Public Works, Community Services, Planning and Growth Management, Health Services, Social Services, Economic Development, Conservation of Natural Resources, and Financing Uses. The mission of Charles County Government is to provide its citizens the highest quality service possible in a timely, efficient and courteous manner. To achieve this goal, its government must be operated in an open and accessible atmosphere, be based on comprehensive long- and short-term planning and...
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...Dividends Policy Theories In the last decades, the valuation of companies and capital markets have been increased rapidly due to show the dynamic growth of the financial markets and the company’s growth [1]. The financial manager of any company should face three crucial decisions: the first one capital budgeting, what are the real assets the company should acquire?. The second one is the financing decision, how these real assets should be financed?. The last decision is concerned about when the company starts to generate more and more profit should the company keep this profit to reinvest it again and keep it in its retained earnings? Or it should distribute a portion of it and keep the rest for a new investments? Or should the company distribute...
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...be evaluated based on sales forecast and capacity constraints within the businesses. I will evaluate Gillian Giles strategy and propose possible solutions for capacity constraints and other potential operational issues. II. Background In 1993, Fred and Gillian Giles opened Holly Farms for agri-tourism to supplement declining profits from their traditional farming business. Holly Farms invested all of their savings in a 40 space car park and six space park for 40 seater coaches, a milking parlor, ice cream factory, and various touring attractions. Gillian Giles stopped her promotional activities to focus on operations and as a result paying attendance leveled out around 15,000. To improve its return on investments Gillian plans to increase ice cream sales by increasing the number of visitors by 50 percent and expanding the ice cream line from 4 flavors to 10. III. Methods/Procedures Holly Farms is open to tourists April through October and operates Friday through Monday with twice as many customers on Saturday and Sunday. The The staff performs traditional farm work Tuesday through Thursday. The farm is open from 11am to 7pm but 90 percent of the customers arrive after 12:30pm, picnic until 2pm, and tour the farm until 4pm. The milking takes place from 4:30 pm until 7:00pm and 80 percent of visitors stay to view from the milking parlor...
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...be laying too much emphasis on the drawbacks of India’s public education system because it has been an issue well debated over in the past and the main flaws have already been pointed out before. I will be focusing on how the education system’s failure is leading to another social issue of income inequality and hence, suggest certain policies to improve India’s education system and reduce inequality. The really critical aspect of Indian public education system is its low quality. The actual quantity of schooling that children experience and the quality of teaching they receive are extremely insufficient in government schools. A common feature in all government schools is the poor quality of education, with weak infrastructure and inadequate pedagogic attention. What the government is not realizing right now is that education which is a source of human capital can create wide income inequalities. It will be surprising to see how income inequalities are created within the same group of educated people. Let me illustrate this with the help of an example: Let us take P be an individual who has had no primary or higher...
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...In the second half of the 19th century neoclassical economists emerged as a revolt against the school of classical economic thought. Neoclassical economics sought to explain the maximisation of utility with an underlying theory of rational choice theory. In the post war period a movement occurred that sought to synthesis the macroeconomic, long run theories of John Maynard Keynes with the microeconomic, short-run theories of neoclassical economics. This essay will explore how John Hick’s ISLM synthesis of Keynes is related to the neoclassical growth model. In addition it will explore how both the growth model and theory of capital reproduce problems inherent in the explanation of multi-sector economies. The Keynesian revolution, one of the “most significant events in twentieth century economic science,” disputed society’s adherence to classical laissez-faire economics (Yaroufakis, Halevi, & Theocarakis, 2011). The unsubstantiated ability of the self-clearing markets to maintain equilibrium was challenged during the early twentieth century by John Maynard Keynes in his text The General Theory. Yet as the depression strengthened and the global economic climate changed, a group of economists emerged that ceased to be either anti- or pro-Keynesian. Known as the Neo-Keynesians, they incorporated the macroeconomic framework of Keynes’ theory for understanding short run aggregate issues while the neoclassical model remained relevant for long term microeconomic analysis of growth. With...
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...Neoclassical growth theory proposes that cross-country and per capita income will converge due to diminishing returns to capital and the diffusion of technology. There are samples of countries that display this ‘absolute convergence, however, such a phenomenon is not universal. These seemingly inexplicable variations in growth present an important question of what are the determinants and is there a role for stabilizing policy. Explain why the study is important. Why is economic growth so important? Coexistence of Growth miracles, Growth Disasters Barro (1991) provides that it is ultimately the relationship between the level of human capital and initial GDP that allows some poor countries to converge on rich countries. Ultimately, our conclusion parallels that of Barro’s and we find that the driving determinants of growth are Human capital, Investment and the initial GDP level. Our analysis follows the key ideas and assumptions of Barro’s model. We use both Primary and High School enrolment as a proxy for the accumulation of Human capital, however, this does pose some restrictions on our analysis. To examine this, a new index of human capital stock will be recommended. Most significantly… Summarise the findings of the paper. Our finding will ultimately accord with recent models such as Lucas [1988] and Romer [1990] that assume constant returns to reproducible capital. Although in these models the growth rate is independent of the starting GDP. We divorce...
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