..."Impact of Government Regulation" Please respond to the following: •* From the scenario for Katrina’s Candies, take a position as to whether government regulation is constraining or enabling in this situation, as it relates to the operational efficiency of the company. Speculate on the fundamental manner in which government regulation could impact the shareholders’ wealth and profitability. Considering the scenario for Katrina’s Candies, I believe the government regulation is enabling in this situation, as it relates to the operational efficiency of the company. The government’s intervention in the US market place process is to; provide for a market that is competitive by keeping monopolistic and other anti-competitive tactics at bay, protect the public interest and enable and encourage innovation. These are accomplished through the antitrust regulation statues and their enforcement which prohibits monopolies as stated in the Sherman Act, 1890 (McGuigan et al., 2014). The presence of anticompetitive business practices of collisional price fixing, wholesale price discrimination, exclusive dealing and tying contracts, anti-merger regulations, and interlocking directorates are specified in the Clayton Act, 1914. The Federal Trade Commission is the nation’s consumer protection agency that works for the consumer to prevent fraud, deception and unfair business practices in the marketplace. Government policies are there to ensure that products are available to the consumer at lower...
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...Principles of Liquidity and Profitability: Need balance of liquid money. * Principles of Perfection: Current assets, fixed assets should be collected with careful consideration. * Principles of Business Cycle: Business depends on various economic conditions (Boom-Recession-Depression-Recovery-Boom.) * Principles of Diversification: Do not put all eggs in one basket. 2. The ultimate goal of a business is to maximize wealth, not profit maximization-Explain. Shareholder’s Wealth Maximization means maximizing the price of the firm’s common stock. It means to increase the net present value of a firm. Shareholders' wealth is maximized when a decision generates net present value. The net present value is the difference between present value of the benefits of a project and present value of its costs. A decision that has a positive net present value creates wealth for shareholders and a decision that has a negative net present value destroys wealth of shareholders. Therefore, only those projects which have positive net present value should be accepted. Wealth maximization is rational because: * It is a clear concept * It considers time value * It has both qualitative and quantitative consideration * It also considers risk and uncertainty * It emphasize on the increase in the share...
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...computers or a new warehouse? The second major question deals with financial decisions. These decisions are primarily concerned with the liabilities and stockholders’ equity (right) side of the balance sheet. They answer such questions as how much debt should we have and should the debt be short or long term or should we borrow in foreign currency? The third major question deals with managerial decisions. These decisions are primarily concerned with firm’s policies and day-to-day operating and financial decisions. They answer such questions as how large should the firm be, and how fast should it grow? 2. What are three problems associated with using profit maximization as the goal of the firm? What is shareholder wealth maximization? How does shareholder wealth maximization deal with these three problems? The three problems associated with using profit maximization as the goal of the firm are the following: First, profit maximization is vague. Profit has many different definitions such as accounting profit based on book value or economic profit based on market value. Second, profit maximization...
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...PORTER’S 5 FORCES & THE RUSSIAN COMMERCIAL BANKING SECTOR AND WEALTH MANAGEMENT INDUSTRY Today’s Russian Federation is characterized by low competitiveness in the context of firm strategy and rivalry, a supportive infrastructure for industries, a mixed bag when factor or input conditions are assessed (human resources, capital resources physical infrastructure, etc.…), and a polarized consumer base, where some hold most of the wealth, while the rest are quite average or below the poverty line. It is an overachieving country, with high income compared to low competitive index. In Porter’s Diamond-E Framework, Russia is in the Efficiency-Driven Stage; it is an investment-driven economy. This is not congruent with the general analysis of the banking industry worldwide, when looking at it through Porter’s Five Forces Model. Applying the model to this sector yields high barriers of entry, a moderate power of suppliers in terms of their ability to lure away human capital, increased power of buyers in terms of switching costs, many substitutes, and a high competitive rivalry. To better assess the entry of The Royal Bank of Canada (RBC) into the Russian market, one must also consider Canada-Russian relations. Being the two largest Artic countries, Canada and Russia share many common opportunities and challenges. The countries have a long history of cooperation on issues such as science, energy and environmental protection, and in 2012, promising areas of cooperation...
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...Shifting of wealth concentration; 3) Speed of recovery of markets; 4) Threat to offshore banking; 5) Hard to ensure sustained profitability; IV. Offshore banking in the light of current financial crisis V. Differences in the way different sized banks were effected: 1) Megabanks; 2) Small – medium sized banks; VI. Strategies adopted by private banks after financial crisis: 1) Credit Suisse; 2) UBS; VII. Conclusion Switzerland is one of the most stable, modern and highly developed economies in the world nowadays. Percentage of Swiss Workforce by Sector of Economy is as following: - 1960: Services (39%); Manufacturing (47%) ; Agriculture (15%) ; - 2008: Service (73%); Manufacturing (23%); Agriculture (4%). Economic history of Switzerland is characterized by steady movement to higher productivity industries and services. Traditionally, the Swiss economy used to ran as calmly and soundly as a Swiss clock, well-oiled by the money inflows to Swiss private banks. The country of Switzerland has a small territory compared to surrounding countries and spans only about 16,000 square miles. However we should not underestimate its size. It is a fact that Switzerland is one of the wealthiest countries in the world nowadays. Switzerland is a nation with a gross domestic product (GDP) higher than that of most neighbor western European nations. Swiss Banks are one part of Switzerland’s superior financial system, and contribute to the great wealth...
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...The objective of this note is to identify the crisis effects on both the financial system and the economy and to provide implications on further financial regulations. Effects Financial System: Many institutions collapsed in the USA and Europe within the period. Figure 1 directly shows a considerable rise of the number of bank failure particularly from 2008 to 2010 in the U.S. This deteriorated the macro-structure of many developed countries. Firms called for ‘bailouts’ or recapitalization from governments to help stabilize the financial system. Or, others were closed, forcibly merged with stronger counterparts, or recapitalized using taxpayer’s money. More effects are given below: 1. Banks have been hit hardly by deteriorating capital & liquidity problems and worsening market confidence. * Global banking sector lost almost half of the capital base at the beginning of the crisis in 2007 (Lybeck, 2011). * Low central-bank interest rate: concerns over deflation by monetary policy makers resulted in long-term low interest rates. Figure 2 presents that in the U.S., a slump of 4% in Federal Funds Rate to nearly zero in 2010 while Bank of England has held rates as low as 0.5% for more than three years. * It led to a credit crunch in many developed countries, with annual credit growth between 7% and 10% in the US and the UK from 2003 to 2007 (Valdez, and Molyneux, 2010). * It encouraged the desire of financial institutions to take more risks (high leverage...
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...The electoral system in United Kingdom The electoral system in United Kingdom After the examination of Canadian national institution, it has been nominated that a few reforms are intensely needed in the Canadian institutions for the due management of the regional and the inter-governmental issues (Loiacono, 2010). The three suggested reforms are the reforms in the Supreme Courts, the reforms in the senate, the reforms in the House of Commons Supreme Court The need for the reform is elevated by considering the fact that is it logical to consider Supreme Court as a general court of appeal and are their any specialized needs of constitutional tribunals. The scope of judicial proceedings and judgments needs to be institutionalized in the context. Quebec is indeed the province that responds assertively to the importance of a pure judiciary. Quebec highlights that the existing Supreme Courts are totally appointed in the conformance of federal executives, and it does not differentiate the difference between civil law and the British common law. Additionally the decisions of the Supreme Court are confirmed to be biased against the Quebecers. The debate since 1950s still needs a re-modification in the form of a pure Canadian Supreme Court, where the law holds every Canadian equal in the court of law (Sherman, 1999, p. 68). Senate The second modification proposed is the modification in the senate. The Canadian federation has long been considered to seek the reform in the Canadian...
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...Wealthy, young, and ambitious How banks can profitably serve the rising mass affluent Contacts About the authors Chicago Melbourne Sydney Ashish Jain Partner +1-312-578-4753 ashish.jain @strategyand.pwc.com Suzanne Lyman Principal +61-39-221-1910 suzanne.lyman @strategyand.pwc.com Peter Burns Partner +61-2-9321-1974 peter.burns @strategyand.pwc.com London Mumbai Tokyo Alan Gemes Senior Partner +44-20-7393-3290 alan.gemes @strategyand.pwc.com Jai Sinha Partner +91-22-6128-1102 jai.sinha @strategyand.pwc.com Vanessa Wallace Senior Partner +81-3-6757-8600 vanessa.wallace @strategyand.pwc.com Victor Koss Partner +44-20-7393-3738 victor.koss @strategyand.pwc.com São Paulo Zurich Ivan de Souza Senior Partner +55-11-5501-6368 ivan.de.souza @strategyand.pwc.com Carlos Ammann Partner +41-43-268-2144 carlos.ammann @strategyand.pwc.com Shanghai Andreas Lenzhofer Partner +41-43-268-2156 andreas.lenzhofer @strategyand.pwc.com Jorge Camarate Principal +44-20-7393-3461 jorge.camarate @strategyand.pwc.com Andrew Cainey Senior Executive Advisor +86-21-2327-9800 andrew.cainey @strategyand.pwc.com Paul Hyde was formerly a senior partner with Booz & Company. Ashish Jain is a partner with Strategy& based in Chicago. A member of the firm’s financial-services practice, he focuses on retail banking and the credit card industry. He specializes in operating model transformation ...
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...Monitary Policy Paper Money is the great common denominator in the post industrial modern world. It is used as a means of measureing wealth, s common medium of exchange, and as a method of storing wealth for later use in the exchange of goods and services. It is derived from the ancient barter system, and in fact some monitary systems, such as that of ancient japan, actually used minted coins not as money per say, but as certificates of ownership to bushels of rice, which was the commodity by which all other comodoties were measured. Money provides a common scale for valuing everything. A means to enact a transaction even if only one party wants what the other has to offer, means for saving for future purchases and borrowing for large purchases. Money doesn't age, die, or grow stale as certain goods do. The Federal Reserve is the Central Bank of the United States. Being the nation's money manager, the Federal Reserve implements monetary policy to manage the money supply and credit in the economy. If money and credit expand too rapidly, businesses cannot produce enough goods and services to keep up with increased spending. Prices (and eventually, market equilibrium) will rise, causing inflation. If the flow of money and credit contracts in too rapid a fashion, spending will dwindle, workers will lose their jobs as business spending declines, and a recession will roccur given time. As our nation's money manager, the Federal Reserve impliments monetary policy to attempt to...
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...Australia and New Zealand Banking Group Limited Corporate Overview Corporate Profile • • Founded in 1835 and headquartered in Melbourne, Australia, ANZ is one of the four largest Australian banks and ranked in the top 25 banks globally by market capitalisation Listed on the Australian Stock Exchange (ASX) with a secondary listing on the New Zealand Stock Exchange (NZX) Key Data – 31 March 2015 ASX / NZX Code ANZ Market Capitalisation A$101.3bn Ordinary shares on issue ~2.76bn Total shareholders ~500,000 Credit Ratings S&P AA- / stable Moody’s Aa2 / stable Fitch AA- / stable Strategy SUPER REGIONAL STRATEGY To become the best connected and most respected bank across the Asia Pacific region Strong Core Markets Profitable Asia Growth Enterprise Approach Strengthen our position in Australia and New Zealand Grow in Asia, focused on corporate and financial institutions supported by our Asia retail branch network Share common technology, processes, products and services that are designed with our customers in mind, and to reduce costs, complexity and risks Manage risk, balance sheet and capital to drive superior return for shareholders. Develop the best connected and most respected people in banking. ANZ presence and regional delivery network • ANZ serves ~10 million retail, commercial and institutional customers and employs over 50,000 staff • We operate in 34 markets ...
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...Cosimo di Giovanni de’ Medici eventually disobeys that order, which is why he will later be reverently known as Cosimo pater patriae, father of his country. His dates are 1389 to 1464 which makes him the longest lived of our five wealthy men. Having survived brief imprisonment and exile, Cosimo takes the Medici bank to its maximum extension and profitability and moves decisively into politics to the point of more or less running the Florentine Republic. He is a friend to philosophers, architects and painters, a patron to the arts and benefactor of major public works. At his death the bank has already entered a decline from which it will never recover. Piero di Cosimo de’ Medici came to be known as Piero the Gouty. Many male members of the Medici family suffered from gout, a hereditary form of arthritis involving painful and ultimately chronic inflammation of the joints. If Piero was the one singled out for the unhappy nickname, it was simply because he didn’t outlive his father long enough to be known for much else. To Piero, however, goes the merit, or blame, of establishing a principle of succession there where no succession should have been. Piero was head of the Medici bank by hereditary right, but there was no constitutional reason why he should have taken over from Cosimo as key man in the Florentine state. Frail, bedridden and bad-tempered, he was nevertheless more determined and effective than his republican enemies. Born in 1416, Piero ran the show for just five years before...
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...BUSN 5200 Homework Assignment for Week 1: 1. Describe the field of finance. How is it different from the field of accounting? Finance is a multifaceted field that relates to many aspects of life and business and it is beneficial to understand its impact. Knowing how finance works in different areas is crucial in budgeting investing and making your assets go far. In the text, Finance consists of three areas; corporate finance, investments and financial institutions. Corporate finance ( synonymous with business finance). Investments, which consist of financial assets like stocks, bonds; in this field you deal a lot with stock brokers as well as security or financial analysts. Financial institutions which are most commonly banks, insurance agencies, etc. and deal with financial transactions. There is a fourth element which the former three categories fall under which is international finance; however, is overseas and expands the definition of finance. Accounting vs Finance. Accountants should possess at least a general knowledge and more depending on their occupation because Finance and Accounting should go hand in hand, meaning one cannot exist without the other. In areas of corporate finance it is required to have accounting experience or education because many accounting principles use finance in its business decisions and duties. Additionally, as finance grows and changes it affects accounting practices, i.e. financial statements. Furthermore, cost accounting...
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...competition will be less fierce when entering into the market as a first mover. Since the economic environment has changed a lot in 2006, there is a growing trend in purchasing luxury goods and increasing likeliness of using card. Although Romanian banks has already been marketing in the business, other competing banks are bullish the market (Exhibit 4) and it is hardly for them to take the same strategy in the near future. With the premise that top 10% of households by income have nearly 24% of the wealth (Exhibit 5), launching credit card business is profitable in the long term. Affluent are less price-sensitive to annual fees and are more likely to use cards with great frequency. Revenues generated by annual fees and interchange are sustainable, for affluent customers in emerging market are more sticker than in developed market. (Alpen bank should position its credit card as a high end premium product as its existing customers belong to the affluent class and it would be easier to establish itself in this segment. Furthermore this class represents the top 10 % of population which has about 24% of wealth. They are less price sensitive andmore conscious of their image so positioning the card on high end would be beneficial for the bank. This segment includes professionals who would like to purchase products and services through credit card considering it a status symbol. Moreover, for countries like Romania, it is seen that credit cards are somewhat stickier as compared to the...
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...DIVIDEND POLICY AND ITS IMPACT ON SHARE PRICE (ANALYSIS OF SELECTED “A” CLASS LISTED COMPANIES) Submitted By Bijendra Bahadur Malla Roll No.: 740090 Reg. No: 2007-2-22-0056 A Research Report Submitted To Prof. Dr. Prem Raj Pant Apex College Pokhara University In partial fulfillment of requirements for the course on Research Methodology For the degree of Master of Business Administration Kathmandu August, 2009 ACKNOWLEDGEMENTS This Study has been under taken to analysis the “Dividend Policy and its Impact on Share Price (Analysis of selected “A” Class Listed Companies)” under partial fulfillment of the requirement of MBA degree. The thesis mainly covers the dividend policy and its impact on share price of “A” class listed companies of Nepal. I would like to express my deep gratitude to Professor Dr. Prem Raj Pant, for his kind support, advice and continuous support for the thesis writing. I would like to express my deep greet to my respected supervisor, Mr. Pushpa Raj Joshi and Mr. Bharat Singh Thapa for his continuous guidance and supervision. The report in this form is the result of their inspiring and invaluable guidance and supervision. I express sincere thanks to all librarians of Apex College who helped me directly and indirectly in the course of review of literature. Finally, I would like to thank my family and friends for their help, blessings, love and support for me to prepare for the thesis writing. ........…….……........ Bijendra Bdr. Malla ...
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...in Global History since 1500 C.E. How Does History Repeat Global History It’s common for historians to argue about different events of history and to provide their opinions from the facts they have collected and studied. The only thing that historians tend to agree on is that history tends to repeat itself. Our various history lessons always tell the tale of a society faced with an issue and then goes into detail how our predecessors were able to confront it. A question we can ask ourselves when faced with a similar situation is “Can the solution that may have worked 300 years ago work in these modern times?” President Barack Obama has spoken on many proposals that can be linked back to Adam Smith’s “The Wealth of a Nation” like strengthening our domestic products, progressive taxes, war and its effect on the economy. Many are also arguing that he may have socialist intentions that are supported by the theories of Karl Marx where there is an even distribution of wealth. Our economy is in disarray because of policies that weren’t kept in check to prevent what we are experiencing today. Many of Adam Smith’s ideas are being experienced today in both a negative and positive way and along with certain ideas of Karl Marx, will be essential to our current administration in leveling our economy and rebuilding the wealth of our nation. What worries me the most about our current times is that people are worried about it. Have we not been in a...
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