...Investment Report Jane & Douglas Breighton Investment Report Jane & Douglas Breighton Best Choice Investment Solutions | FINM3008 Best Choice Investment Solutions | FINM3008 Minggang Gu|u5108473 Kejie Wang|u5133766 Tutorial Thursday 4pm Suggested Asset Allocation Breighton Holdings 14% Australian Equities 0% World Equities, Unhedged 0% World Equities, Hedged 11% Emerging Markets 13% EQUITIES 38% Australian Fixed Income 13% World Fixed Income, Hedged 19% Australian Index-Linked Bonds 0% Australian Cash 1% FIXED INCOME 33% Australian Listed Property 8% Australian Direct Property 9% PROPERTY 17% Hedge Funds 9% Commodities 1% US Private Equity 2% ALTERNATIVES 12% TOTAL 100% Contents Some critical assumption……………………………2 Asset Class Considerations………………………….2 Equities…………………………………………………..2 Fixed Income………………………………………….3 Alternatives and Property………………………4 Analysis Mothod………………………………………….5 Historical 3 Year Rolling Returns…………….5 Bootstrap Analysis………………………………….5 Mean-Variance Optimizer……………………..6 Results…………………………………………………………7 Final Recommendation……………………………….8 Building a Concrete Portfolio for Jane and Douglas Breighton………………………………….8 Appendices………………………………………………….9 References………………………………………………..13 Minggang Gu|u5108473 Kejie Wang|u5133766 Tutorial...
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...Introduction 2 Reasons for Investing in Property 2 Property Versus Other Types of Investment 3 Problems with Property 3 Conclusion 4 Bibliography 4 Property is still one of the safest assets to invest in. To what extent do you agree with this statements? The economies of many countries, currently, are not yet stable. Some economies are returning from the recession, some are continuing to get worse. People are looking for a new business or a new job to earn an additional income. In this difficult economic situation, where everything is not always stable, people are looking to invest in something that will pay them compensations for at least a decade. Property, any physical or intangible entity that is owned by a person or jointly by a group of people, has been said to be one of the safest assets to invest in since property always plays a big role in driving an economy. This essay will state the reasons why property is no longer one of the safest assets to invest in. There are three parts that are going to be included in the essay: reasons for investing in property, property versus other types of investment, and problems with property. Reasons for Investing in Property Property is one of the investments that every investor should focus on because it is one of the safest assets to make an investment in. Firstly, property is a good collateral asset. It is acceptable...
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...Financial Management Financial Management June 4, 2012 Brenda A. Pitts Professor: Dr. Andrea Banto Abstract The following research is a look at Google, a leader in internet information searching, and its comparison to another big name in Internet technology, Microsoft, which launched Bing. The contents will provide a comparison and contrast of each company’s business model and financial management including an explanation of their financial ratio analysis, which will include a comparison and identification of both company’s most recent annual report with six specific financial ratios and of three (3) primary financial-based guidelines that should be used when selecting one of these two companies to invest in. This report will, also, give an explanation of what the profitability ratios can tell about Google and Microsoft’s performance and how that information would influence investing decisions. Financial Management What are the calculation / identification of Google and Microsoft’s most recent annual report for the six (6) financial ratios listed below? Liquidity Measurement Ratio (Current Ratio) Starting with the liquidity measurement ratio, which is also know as the current ratio, shows how each company is able to take its short-term assets and pay off its short-term liabilities. Short-term assets are classified as cash, marketable securities, accounts receivable, and inventory. Short-term debts consist of...
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...excess of $1,968,000 for the subject property located at 3007 P St NW, Washington, DC, 20007. This value will provide a 10% Internal Rate of Return and a 23.2% average cash-on-cash. 2. Issues: ▪ Rental Rate- One main issue was coming up with the appropriate rental rate. REIS, Costar and various other reports were used based on the NW DC/Georgetown submarket. From these studies, a rental rate of $2.89 per square foot was calculated. Using this calculation, the property would have a monthly rental income of $6,878 ($2.89 x 2,830 sq ft). This approach doesn’t take into consideration the English basement as additional income, parking, superior location, and overall quality and appeal of the property. After conducting more research and speaking to broker Nicki Berg from Colliers International on February 1, 2012 at 10am, a monthly rental price of $11,600 was deemed appropriate given the prestige of the property. ▪ Rental escalation- Based on data from Costar and REIS, a rental escalation of 3.5% was projected. Based on conversations with professionals in the industry, a 4.0% rental escalation was used. ▪ Vacancy Rate- Based on a REIS submarket study, the average vacancy for the NW DC/ Georgetown submarket is 4.0% for a five year annualized forecast. Vacancy generally moves inversely with the strength of the market. That is, the weaker the market, the higher the vacancy. If the market turns, vacancy in such a luxury property could be significantly affected. ...
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...Chapter 2 1. The three main sections of this report are the introductory section, the financial section and the statistical section. 2. A) The entity’s annual report for 2007 was awarded a “certificate of achievement for excellence in financial reporting by the Government Finance Officers Association. This certificate is awarded when the reports meet in the standards of accounting and reporting of the Government Finance Officers Association. B) The key issues addressed in the letter of transmittal are; * The overview of City’s government and economic condition and economic outlook. * Major initiatives; Waller creek Tunnel Project, Zero Waste Initiative Redevelopment of Green Water Treatment Plan & Austin Climate Protection Plan. * Others; Financial Policies, Internal Controls, Budgetary Control, Cash Management, Risk Management and Pensions. * Certificate of Achievement for Excellence in Financial Reporting. * Acknowledgements 3. A) Yes, the city received an unqualified audit opinion. B) Yes, the report contains management’s discussion and analysis. The key issues are: Financial Highlights, Overview of the Financial Statements, Financial Analysis of the Government-Wide Statements, Financial Analysis of the Government’s Fund Level Statements, and Other Information. C) The report does provide reconciliation between total governmental net assets per the government-wide statement of net assets and total governmental fund balances per the...
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...differentiate the numbers from rival companies. According to readings “capital expenses are extensive and mostly hold a company’s substantial amount of money. Companies invest in prime property, plant, machinery, buildings and other forms of fixed assets, which also act as securities for the company. I chose to look up the Capital Expenditures of two companies that are known in many households: Walmart and Target. The annual report of mutually businesses over the past three years will be examined. This paper will examine and compare the reports and the amount of capital spending over the past three years while defining how the amount of capital spending remains constant or if it’s altered. Capital expenditures can determine the major financial decisions that a company must make in order to acquire a sound investment. This paper will attempt to expand on the clarification of capital expenditure and the impact it can have on the organization’s debt capacities and capital structures. As stated by Byrd and associates in the text, there should be a comparison of the level of capital spending across the two firms. The paper will further point out how the spending was similar and/or different and speculate why the similarities or differences might exist. The capital spending over the past three years for Walmart (Mergent, 2013): 2013 2012 2011 Net Fixed Assets $213,115,000 $185,506,000 $180,663,000 Depreciation Expense $9,601,000 $8,350,000 $7,741,000 Net Capital Spending $311...
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...OBJECTIVE OF PROJECT Developing the property risk scoring matrix for investors investing in investment grade commercial yield assets. INTRODUCTION At the point when a speculator is putting resources into any benefit, the sole choice is focused around the valuation report. However in valuation report the primary attention is given on deciding the estimation of an advantage. As the Valuer deals with all the danger included in the advantage for deciding the estimation of property yet the these danger are not legitimately imparted to customer for instance the amount of danger is included in useful obsolesce of the benefit. So our gathering is enthused about determining the danger scoring framework for customer that can all the more unequivocally...
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...------------------------------------------------- Test Problems 1. A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a: b. User market 2. The market in which required rates of return on available investment opportunities are determined is referred to as the: d. Capital market 3. The actions of local, state, and federal governments affect real estate values d. All of the above 4. Approximately what portion of U.S. households own their own home? b. Approximately two-thirds 5. Of the following asset categories, which class has the greatest aggregate market value? d. Nongovernment real estate 6. Storm water drainage systems are best described as: b. Improvements to the land 7. What is the single largest asset category, in terms of value, in the portfolio of the typical U.S. household? a. Housing 8. Real estate markets differ from other asset classes by having all of the following characteristics except: d. Homogeneous product 9. Which of the following is not important to the location of commercial properties? c. Access to schools 10. Which of the following attributes of a home are the most difficult to observe and value? c. location attributes ------------------------------------------------- Study Questions 1. The term real estate can be used in three fundamental ways. List these three alternative uses or definitions. Solution: Real estate is most commonly defined as land and...
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...……………………………………………………………………….…….. 7 Conclusions …………………………………………………………………………………….. 8 Bibliography ……………………………………………………………………………...…… 10 Appendix A – Home for Sale.……………………………………………………………….…. 11 Appendix B – House for Rent.…………………………………………………………………. 14 Chart 1 - Existing 1-Family Home Sales: United States ………………………………………. 15 Chart 2 - Share of Distressed Properties in Sales of Existing Homes …………………………. 15 Chart 3 - Number of Sales ……………………..………………………………………………. 16 Chart 4 - Median Sales Price.…………..………………………………………………………. 16 Chart 5 - Average Price per Sqft ………………………………………………………………. 16 Chart 6 – Number of Listings… ………………………………………….……………………. 17 Executive Summary This technical paper analyzes scenarios of renting a house and purchasing a home in Waukesha, Wisconsin. The format of this technical paper includes an overview of the United States housing market trends and an overview of Waukesha’s housing trends leading to the process of how the homeowner’s budget for either a house to rent or a home to buy. The decision of paying rent for a house or purchasing a home will yield to a financial decision or a permanent investment for the homeowner. I think people travel to the United States to establish themselves and...
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...Significant Accounting Policies (SSAP) 14 Note Disclosure (other than SSAP and pension-related disclores) 19 Required Supplementary Information (RSI) 19 Combining and Individual Fund Information and Other Supplementary Information 21 Statistical Section 22 Other Considerations 23 Executive Summary The purpose of this report is to conduct a comprehensive analysis of the County of Ventura’s Comprehensive Annual Financial Report otherwise known as the CAFR. This analysis afforded the group members an opportunity to apply concepts and theories acquired through a graduate level governmental accounting course and provided the group members with a more intimate view of local government finances. The County of Ventura was selected for three primary reasons: 1) the county is located in Southern California and can easily be compared to the County of Riverside; 2) Ventura County is for the most part a suburban community and as such has been significantly impacted by the housing crisis; and 3) Ventura County is noted as a desirable place to live due to overall quality of life and low crime rates. The formal analysis was conducted using the Government Finance Officers Association’s General Purpose Checklist which is available online at www.gfoa.org. This checklist is...
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...Employing workers 8 2.4 Registering property 9 2.5 Getting credit 9 2.6 Protecting investors 10 2.7 Paying taxes 11 2.8 Trading across borders 12 2.9 Enforcing contracts 12 2.10 Closing a business 13 2.11 The ranks trend of 10 Factors from 2007 to 2010 in Venezuela 13 2.12 The ranks trend of 10 Factors from 2007 to 2010 in China 14 3 Global Competitiveness Index 15 3.1 The comparison (Score) of GCI with Venezuela and China in 2010 16 3.2 The comparison (Rank) of GCI with Venezuela and China in 2010 16 3.3 The trend of GCI (Rank) 2 countries from 2002 to 2010 17 3.4 The trend of GCI (Score) 2 countries from 2005 to 2010 18 4 Conclusion 18 4.1 Market Challenges in Venezuela 18 4.2 Market Opportunities in Venezuela 19 4.3 Experience from China 19 4.4 Recommendation of Strategy 20 4.5 Venezuela Economy: Impact of Nationalization 20 *Executive Summary My selected country Venezuela is the worst rank, in order to evaluate the business environment, first, I do some research for Venezuela profiles, which include basic information, population, political system, economic system, market spotlight, and trade agreement. Second, according to the data form doing business website, analysis related factors rank, Venezuela ranked 177 out of 183 countries in 2010. I draft an illustration to doing business in Venezuela, and compare with China based 10 dimensions, through comparison of doing business easily in 2 countries...
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...Property yields as tools for valuation and analysis Rosane Hungria-Garcia in collaboration with Hans Lind Björn Karlsson This report has been sponsored by the Real Estate Academy at the Division of Building and Real Estate Economics. Stockholm 2004 ______________________________________________________ Report No. 52 Building & Real Estate Economics Department of Infrastructure KTH Summary This project was started in order to get an overview of conceptual problems, measurement problems, theories of determinants of yields, the use of yields in different contexts and how the actors on the Swedish market looked upon yields. Important issues discussed in the report is the need for: - Conceptual clarity: A number of different yield terms exist on the market and it is very important to be clear about how the specific terms are defined. - Operational clarity: There are measurement problems both concerning rental incomes, operating and maintenance costs and property values. This means that reported yields can be “manipulated” by choosing suitable operationalisations and pushing estimations of uncertain factors in directions that are favourable to the actor in question. - Specify the purpose for which the yield should be used. The most important distinction is between using yields/income returns for valuation purposes and using yields as benchmarks or bubble indicators. In the first case various types of normalization of the net operating income can be rational. In the second...
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...Table of Contents Introduction 2 Changes in the market 3 Economical 5 Political-legal 7 Regulatory pressure 8 Conclusion 8 References 11 Introduction The UK property market has experienced remarkable development in the last 50 years; with a notable shift in the trends investors tend to use, (Halifax, 2010). The housing market in the UK has seen great change when comparing the figures over the last 15 years. According to Beckett (2014), the rise of housing prices have led to the creation of a good investing opportunity both in the residential and in the commercial property market. The housing boom has been in chaos since the market crashed in the 2007, but as many industries continue to struggle, the UK housing industry is to experience a recovery, many experts speculate. This is due to the increase in the need for housing due to the increase in demand of properties, both for commercial and residential use; and the decrease in supply. Even with most individuals in the UK still struggling to recover from the 2007 market crash, market watchers estimate that the base line is bound to increase and revive the industry. The property industry though has been experiencing a constant boom through the years. A survey by De Montfort University in 2005 showed that the development finance was at £23 billion; this was up from £9 billion, 6 years earlier, (Gibertson, 2006). The trend has been in constant growth despite a few setbacks due to the strain in the economic pressures...
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...9 4.3 Net Profit Margin …………………………………………………………………. 9 4.4 Return on Assets (ROA) ………………………………………………………… 10 4.5 Return on Equity (ROE) ………………………………………………………… 10 5 ASSESSMANT OF LIQUIDITY AND CASH FLOWS …………………………….. 12 5.1 Liquidity …………………………………………………………………………… 12 (a) Current Ratio ………………………………………………………………... 12 (b) Working Capital …………………………………………………………….. 12 (c) Quick Ratio ………………………………………………………………….. 13 5.2 Solvency ………………………………………………………………………….. 13 (a) Debt to Equity Ratio ………………………………………………………... 13 (b) Leverage Ratio ……………………………………………………………… 13 5.3 Cash Flows ………………………………………………………………………. 14 (a) Cash Flow from Operations (CFO) ……………………………………….. 14 (b) Cash Flow from Investment (CFI) ………………………………………… 14 (c) Cash Flow from Financing (CFF) …………………………………………. 14 5.4 Operation Management ………………………………………………………… 15 (a) Account Receivable (Receivable Ratio) …………………………………. 15 (i) Debtors Turnover (Sale / Accounts Receivable) …………………... 15 (ii) Average Collection Period ……………………………………………. 15 (b) Inventory (Inventory Ratio)...
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...Financial Analysis and Comparison I Google & Yahoo! Financial Analysis & Comparison I. II. INTRODUCTION CASH III. ACCOUNTS RECEIVABLE IV. REVENUE V. VI. VII. VIII. IX. LIABILITIES CONTINGENT LIABILITIES FIXED ASSETS MERGERS & ACQUISITIONS CONCLUSION II Google & Yahoo! Financial Analysis & Comparison I. INTRODUCTION Google Larry Page and Sergey Brin, two Stanford graduates, are the founders of Google. It was incorporated in California in September 1998 and reincorporated in Delaware in August 2003, the IRP raised an initial $1.67 billion. In October 2000, it launched Google AdWords, which forms the company’s primary source of revenue till date. Its advertising services include performance advertising and brand advertising. While Google is the internet search giant, it still has to keep innovating to ensure that it grows and doesn’t stagnate or go down the curve. This is the reason Google spends a considerable share of its revenue on acquisitions and research and development. Yahoo! Jerry Yang and David Filo, two Stanford graduates, are the founders of Yahoo!. It was incorporated in March 1995 and raised $33.8 million during its IPO. Yahoo began its operations as a Web Directory and its primary source of revenue has been advertising since then. It was a successful in 1990s, until Google started dominating the search engine industry starting mid 2000's Since then, Yahoo...
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