...Assessment 1- Reducing Risk, Company: R.M Williams Functional RM Williams clothes and boots are steeped in history and the company has been trading since 1932 and has coined itself as “The Bush Outfitter”. Their functionality has always been core to their business. RM Williams is unique as they manufacture, distribute and retail their products and brand. They have been Australian designed and made, with high quality materials and great cuts. At the launch of Regional Express Airlines (or REX as it is known), the staff, Pilots, and flight attendants all wore RM Williams clothing and footwear. This moved RM Williams from just country clothing consumed by country people to clothing consumed by business people, and a business. Not only was the airlines bringing country people to the cities, it was bringing their fashion too. Perhaps RM Williams was expanding their target market from predominantly rural and country people to city people, and further segmentation to the urban young professional. The target market shift may have been due to economic forces – RM Williams looking for more stability from a city market, not just from people from the land, who had good seasons and bad. What was once a utilitarian need being met, may now be a hedonic need being met – or both. Physical The distribution of RM Williams clothing and boots has also changed with the times. From its humble beginnings of a mail order business, to only in a limited amount of stores and presence in Myers...
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...Internal Control Case Study #2 Acct 504 Accounting and Finance Managerial Use Table Of Contents 1. New Internal Control requirements if company goes public (pg. 2) 2. Suggest what company is doing correct and why ink machine should not be purchased. Pg. 3 3. Internal control principle used 4. What are the wrong internal control methods being used and Principle that is being violated and recommendations on how to improve Good afternoon Mr. president. I have been given some information about your interest for your company to go public. My colleague has provided some information about some various questions you have had. I will go over some your recent request as ordering a new ink machine, taking the company public and what new internal control methods we can keep and some we can enhance. The first topic we will discuss is the request about going public. When going public there are some internal control methods that have to be followed for a publicly traded company. The company will have to follow a series of Internal control methods to adhere with SOX (Sarbanes and Oxley Act) 1. • A control environment. It is the responsibility of top management to make it clear that the organization values integrity and that unethical activity...
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...retain a copy of the assessment item on its database for the purpose of future plagiarism checking).I certify that I have read and understood the Institute Rules in respect of Student Academic Misconduct. | | | | | | | Date | Student Signature | B. MARKER TO COMPLETE Comment : | Grade | | | | | | | | | | | | | | | Date | Marker’s Signature | | | IV’s Feedback | | | | | | | Date | IV’s Signature | Higher National Diploma in Business Management | Unit Title: Managing Financial Resources and Decisions | Assignment Title & Number:QCF-S1-A1-MFR | Learning Outcomes Covered:Outcome1: Understand the sources offinance available to a businessOutcome2:Understand the implications of finance as a resource within a businessOutcome3:Be able to make financial decisions based on financial informationOutcome4:Be able to evaluate the financial performance of a business | Assessment Criteria Covered: 1.1, 1.2, 1.3, 2.1, 2.2, 2.3, 2.4,...
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...UNIVERSITI KUALA LUMPUR Report ID : PQR029 Page : 1 of 10 Exam Schedule Draft Date : 25-NOV-2015 11:36 AM Semester September 2015 Date 28/12/2015 MON Session 1 Code Tot Student Name Institute EAB11103 MANAGEMENT 44 UniKL BiS EAB41703 BUSINESS RESEARCH 66 UniKL BiS EBB20203 USUL FIQH & QAWAID FIQHIYYAH 120 UniKL BiS EDB20203 CONSUMER BEHAVIOR 107 UniKL BiS EIB20503 09:00 AM BUSINESS RESEARCH METHODS 366 UniKL BiS Total 2 703 59 UniKL BiS FINANCIAL ACCOUNTING AND REPORTING 4 219 UniKL BiS EBB30803 INVESTMENT MANAGEMENT 149 UniKL BiS EIB10703 CREATIVE PROBLEM SOLVING 137 UniKL BiS EIB10903 02:00 PM FINANCE 2 98 UniKL BiS EAB21403 STATISTICS FOR BUSINESS EAB30703 Total 29/12/2015 TUE 3 662 EAB20903 TAXATION 1 254 UniKL BiS EAB41603 GLOBAL ENTREPRENEURSHIP 140 UniKL BiS EBB20103 ISLAMIC LAW OF CONTRACTS 138 UniKL BiS EIB10203 09:00 AM PRINCIPLES OF ECONOMICS 252 UniKL BiS Total 4 02:00 PM 784 EAB31103 AUDIT 2 121 UniKL BiS EBB20303 ISLAMIC BANKING OPERATIONS 190 UniKL BiS ECB20403 E-MARKETING 350 UniKL BiS Total 661 Venue UNIVERSITI KUALA LUMPUR Report ID : PQR029 Page : 2 of 10 Exam Schedule Draft Date : 25-NOV-2015 11:36 AM Semester September 2015 Date 30/12/2015 WED Session 5 09:00...
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...CAPITAL BUDGETING PROCESS HSM 340 3/30/12 Organizations that decide to issue bonds generally have six steps to go through. Let’s discuss them. The first step is for the issuer to select bond counsel and the underwriter or financial advisor. The issuer and the solicitor work with these participants to structure the financing. Some basic questions need to be answered: (1) what is the purpose of the issue -- to fund a capital project, to refund prior debt, or a combination of both (2) what are the legal parameters involved -- does the capital project serve a proper legal purpose, can the debt be refunded under the federal tax rules (3) how should the bonds be sold -- through negotiation with one underwriter or through a bidding procedure with multiple underwriters (4) does credit enhancement make economic sense (that is, is the cost of the insurance or letter of credit less than the resulting debt service savings to the issuer). (1) Once the structure is formulated, the issuer needs to select the paying agent or trustee and the credit enhancer, and all the participants begin to prepare the required documentation. The underwriter or financial advisor and the issuer prepare the disclosure document which is usually called the preliminary official statement. Bond counsel drafts the ordinance or resolution and other legal documents. When the preliminary official statement is in proper form, it is distributed to potential purchasers. The marketing period usually lasts about...
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...Internal controls: an overview XACC/280 Internal controls are absolutely essential to the functioning of any public company, and without them companies are doomed to economic turmoil and even collapse. Simply put, internal controls are the various methods that a company uses to “Safeguard its assets from employee theft, robbery, and unauthorized use” and “enhance the accuracy and reliability of its accounting records” (Weygandt, Kimmel, and Kieso, pp. 340). As the text implies, without these controls the corporation would be vulnerable to any number of external and internal problems. In fact, the Sarbanes-Oxley Act (SOX) has many regulations to ensure the creation and maintenance of these internal controls, with severe penalties to those companies that do not do so. When the government passed the SOX in 2002, it was intended that SOX force “companies to pay more attention to internal controls” (Weygandt, Kimmel, and Kieso, pp. 341). This was in direct response to several corporate scandals that involved corrupt business practices, poor accounting, and non-transparent public financial statements, and inevitably the loss of billions in investor dollars. These laws help to ensure that internal controls are developed using “sound principles of control over financial reporting” and that they “must continually verify that these controls are working” Weygandt, Kimmel, and Kieso, pp. 341). All of this means that they are a watchdog ensuring that companies are honest and forward...
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...The Effects of Technology on the Accounting Profession ACC/340 The Effects of Technology on the Accounting Profession Advancements in technology have allowed companies, small and large, to keep accurate financial records and eliminate paper entries. Technology has also allowed individuals in the accounting field the ability to interpret the financial information efficiently and effectively. With the introduction of the internet, a company now has the option to expand their business beyond a specific geographic area, and seek new opportunities for expansion around the globe. The introductions of new software programs, which can be designed to meet the specific needs of an industry, assist with the internal operations and profitability. While this new form of conducting business has been beneficial for an organization, it creates new challenges for the accounting field. Technology and Changes in Accounting Over the years technology has continued to provide valuable tools not only to a business, but to individuals who manage the financial aspect of the company. The introduction of the Microsoft Excel program allowed accountants to utilize an electronic spread sheet, eliminating pencil and paper entries as well as minimizing errors. As time advanced software programs such as Quick Books, Microsoft Money, and industry specific programs emerged. For smaller companies it allowed the business owner to have all financial information related to their company at their...
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...Does your career plan include a world of lifelong success? Program of Professional Studies THE CERTIFIED GENERAL ACCOUNTANTS ASSOCIATION OF BRITISH COLUMBIA We see more than numbers. Choose a career that places you on the path to lifelong success. It’s all about opportunity. Accounting professionals can work in any sector, anywhere in the world. And when you choose CGA, you’ll gain the leadership, problem-solving and technical skills that are sought after by organizations in the private, public and not-for-profit sectors. The CGA Program of Professional Studies gives you the tools to succeed in business, no matter where your career takes you. You’ll enter the workforce with the applied knowledge and demonstrated expertise that employers want, including specialized technical knowledge, sectorspecific competencies, problem-solving skills and the ethical integrity to lead. CGA’s competency-based curriculum is simply your best way to prepare for a rewarding career in financial management. Flexible study options and the freedom to choose the career you want CGA is all about choice. You choose the professional-studies path and real-world experience that best match your career goals and interests. We give you the skills and freedom to work in any type of organization, in any industry, at any level of management. With a CGA designation, your opportunities—both professional and personal, at home and around the world—are limitless. Take your place as a highly respected...
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...Project Financing Asset-Based Financial Engineering Second Edition JOHN D. FINNERTY, Ph.D. John Wiley & Sons, Inc. Project Financing Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation, and financial instrument analysis, as well as much more. For a list of available titles, visit our Web site at www.WileyFinance.com. Project Financing Asset-Based Financial Engineering Second Edition JOHN D. FINNERTY, Ph.D. John Wiley & Sons, Inc. Copyright C 2007 by John D. Finnerty. All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. Wiley Bicentennial Logo: Richard J. Pacifico No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States...
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...Equity Investments: Valuation, and Managing Investment Portfolios: A Dynamic Process. Ackerman, Carl, Richard McEnally, and David Ravenscraft. 1999. “The Performance of Hedge Funds: Risk, Return, and Incentives.” Journal of Finance. Vol. 54, No. 3: 833–874. ACLI Survey. 2003. The American Council of Life Insurers. Agarwal, Vikas and Narayan Naik. 2000. “Performance Evaluation of Hedge Funds with OptionBased and Buy-and-Hold Strategies.” Working Paper, London Business School. Ali, Paul Usman and Martin Gold. 2002. “An Appraisal of Socially Responsible Investments and Implications for Trustees and Other Investment Fiduciaries.” Working Paper, University of Melbourne. Almgren, Robert and Neil Chriss. 2000/2001. “Optimal Execution of Portfolio Transactions.” Journal of Risk. Vol. 3: 5–39. Altman, Edward I. 1968. “Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy.” Journal of Finance. Vol. 23: 589–699. Altman, Edward I. and Vellore M. Kishore. 1996. “Almost Everything You Wanted to Know about Recoveries on Defaulted Bonds.” Financial Analysts Journal. Vol. 52, No. 6: 57−63. Altman, Edward I., R. Haldeman, and P. Narayanan. 1977. “Zeta Analysis: A New Model to Identify Bankruptcy Risk of Corporations.” Journal of Banking and Finance. Vol. 1: 29−54. Ambachtsheer, Keith, Ronald Capelle, and Tom Scheibelhut. 1998. “Improving Pension Fund Performance.” Financial Analysts Journal. Vol. 54, No. 6: 15–21. Ambachtsheer, Keith. 1986. Pension Funds and the Bottom...
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...CHAPTER 15 Capital Structure: Basic Concepts Multiple Choice Questions: I. DEFINITIONS HOMEMADE LEVERAGE a 1. The use of personal borrowing to change the overall amount of financial leverage to which an individual is exposed is called: a. homemade leverage. b. dividend recapture. c. the weighted average cost of capital. d. private debt placement. e. personal offset. Difficulty level: Easy MM PROPOSITION I b 2. The proposition that the value of the firm is independent of its capital structure is called: a. the capital asset pricing model. b. MM Proposition I. c. MM Proposition II. d. the law of one price. e. the efficient markets hypothesis. Difficulty level: Easy MM PROPOSITION II c 3. The proposition that the cost of equity is a positive linear function of capital structure is called: a. the capital asset pricing model. b. MM Proposition I. c. MM Proposition II. d. the law of one price. e. the efficient markets hypothesis. Difficulty level: Medium INTEREST TAX SHIELD a 4. The tax savings of the firm derived from the deductibility of interest expense is called the: a. interest tax shield. b. depreciable basis. c. financing umbrella. d. current yield. e. tax-loss carryforward savings. Difficulty level: Easy 15-1 UNLEVERED COST OF CAPITAL b 5. The unlevered cost of capital is: a. the cost of capital for a firm with no equity in its capital structure. b. the cost of capital for a firm with no debt in its capital structure. ...
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...© 2002 American Accounting Association Accounting Horizons Vol. 16 No. 3 September 2002 pp. 233–243 COMMENTARY The “Incomplete Revelation Hypothesis” and Financial Reporting Robert J. Bloomfield Robert J. Bloomfield is an Associate Professor at Cornell University. INTRODUCTION The most common form of the Efficient Markets Hypothesis (EMH) states that market prices fully reflect all publicly available information (Fama 1970). The EMH has been highly influential among academics, but practitioners and regulators appear unconvinced. Investors work hard to identify mispriced stocks on the basis of public data, or pay others to do so, even though the EMH asserts that such efforts are wasted. Managers seek to boost stock prices by hiding bad news in footnotes, and regulators work hard to defeat such efforts, even though the EMH asserts that information is reflected in prices no matter how obscure its presentation. Beliefs about inefficiency play a central role in the debate over recognizing expenses for incentive stock options. Opponents of expensing argue that the resulting lower net income will inappropriately reduce market prices, while proponents argue the market does not fully recognize compensation costs reported only in footnotes. In efficient markets, however, expensing these costs has no direct effect on prices, as long as the details of the compensation are included in footnotes. The decision to expense option costs could reduce stock price indirectly, even in efficient...
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...Journal of Banking & Finance 22 (1998) 613±673 The economics of small business ®nance: The roles of private equity and debt markets in the ®nancial growth cycle Allen N. Berger a a,b,* , Gregory F. Udell c Board of Governors of the Federal Reserve System, Washington, DC 20551, USA b Wharton Financial Institutions Center, Philadelphia, PA 19104, USA c Kelley School of Business, Indiana University, Bloomington, IN 47405, USA Abstract This article examines the economics of ®nancing small business in private equity and debt markets. Firms are viewed through a ®nancial growth cycle paradigm in which different capital structures are optimal at dierent points in the cycle. We show the sources of small business ®nance, and how capital structure varies with ®rm size and age. The interconnectedness of small ®rm ®nance is discussed along with the impact of the macroeconomic environment. We also analyze a number of research and policy issues, review the literature, and suggest topics for future research. Ó 1998 Published by Elsevier Science B.V. All rights reserved. JEL classi®cation: G21; G28; G34; E58; L89 Keywords: Venture capital; Small business lending; Bank; Mergers 1. Introduction The role of the entrepreneurial enterprise as an engine of economic growth has garnered considerable public attention in the 1990s. Much of this focus * Corresponding author. Tel.: 1 202 452 2903; fax: 1 202 452 5295; e-mail: aberger@frb.gov. 0378-4266/98/$19.00 Ó 1998 Published...
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...Project Finance Module NATIONAL STOCK EXCHANGE OF INDIA LIMITED Dtp-Sys-9\D:\F\2012\F-902-12-Project_Finance/F-902-12-Project_Finance.indd Test Details: Sr. No. Name of Module Fees (Rs.) Test Duration (in minutes) No. of Questions Maximum Marks Pass Marks (%) Certificate Validity 1 Financial Markets: A Beginners’ Module * 1686 120 60 100 50 5 2 Mutual Funds : A Beginners' Module 1686 120 60 100 50 5 3 Currency Derivatives: A Beginner’s Module 1686 120 60 100 50 5 4 Equity Derivatives: A Beginner’s Module 1686 120 60 100 50 5 5 1686 120 60 100 50 5 1686 120 60 100 50 5 7 Interest Rate Derivatives: A Beginner’s Module Commercial Banking in India: A Beginner’s Module Securities Market (Basic) Module 1686 120 60 100 60 5 8 Capital Market (Dealers) Module * 1686 105 60 100 50 5 9 Derivatives Market (Dealers) Module * 1686 120 60 100 60 3 1686 120 60 100 60 5 1686 120 60 100 60 5 12 FIMMDA-NSE Debt Market (Basic) Module Investment Analysis and Portfolio Management Module Fundamental Analysis Module 1686 120 60 100 60 5 13 Financial Markets (Advanced) Module 1686 120 60 100 60 5 14 Securities Markets (Advanced) Module 1686 120 60 100 ...
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...Sources of Funding, Funding Raising & Disclosure Promoters and Pre-registration contracts • Who is a promoter? o Whaley Bridge Calico Printing v Green – court has recognised the term promoter as not a term of law but rather one of business. o Emma Silver Mining v Lewis & Son – see Twycross case – used in connection with companies involves the idea of exertion for the purpose of getting up and starting a company and also the idea of some duty towards the company. o Jubilee Cotton Mills v Lewis – professional people, such as lawyers, accountants and bankers, are often involved in carrying out professional services during the incorporation of the company. They are not regarded as promoters if they act purely in their professional capacity in the ordinary course of their profession. o Active promoters – Twycross v Grant Any person who is actively involved, either playing a minor or central role, in organising the formation of a company falls within the definition of promoter. Typical activities associated with promoters – Negotiation of preliminary agreements Preparation of company’s constitution Identifying prospective directors and shareholders Preparation of the company’s fundraising documents (e.g. an offer info statement or profile statement or prospectus) Raising capital, either before or after incorporation Payment of registration fees; and Registration f the company with ASIC. o Passive promoters – Tracey Mandalay Also extends to people...
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