...Capital required for a business can be classifies under two main categories: Fixed Capital Working Capital Fixed capital It refers to any kind of real or physical capital (fixed asset) that is not used up in the production of a product and is contrasted with circulating capital such as raw materials, operating expenses and the like. Fixed capital is that portion of the total capital that is invested in fixed assets (such as land, buildings, vehicles and equipment) that stay in the business almost permanently, or at the very least, for more than one accounting period. Fixed assets can be purchased by a business, in which case the business owns them, but also leased, hired or rented, if that is cheaper or more convenient, or if owning the fixed assets is practically impossible. FIXED CAPITAL Every business needs funds for two purposes for its establishments and to carry out day to day operations. Long term funds are required to create production facilities through purchase of fixed assets such as plant and machinery, land and building, furniture etc. Investments in these assets are representing that part of firm’s capital which is blocked on a permanent or fixed basis and is called fixed capital. Permanent or fixed working capital is the minimum amount which is required to ensure effective utilization of fixed facilities and for maintaining the circulation of current assets. There is always a minimum level of current assets which is continuously required by the...
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...1/12/15 What does Portal Instruments do? - a Cambridge company seeking to develop needle-free drug delivery systems, which is designed for administering viscous biologics as well as other formulations. - enhancing both safety and patient compliance What do you think are the prospects for Portal Instruments? - liquid needle How do you think Patrick Anquetil thought about the terms of the series A - A start-up entrepreneur has to be very comfortable with that uncertainty. But even if you solve the problem, you still need to sell your idea. You have to demonstrate that you have the right skills and the right team. You also have an obligation to make sure that the technology you develop will be used properly to help people Customers Industry Products Geography Size Form Debt: you have to pay back, cost of capital – interest rate Equity: you get part of the shares for paying back, cost of capital – CAPM calculate the equity capital Equity investments come in: assets go up, equity go up Institutional VC: financial Corporate VC: Info flow, sourcing, spying , HR Determine the cost of capital Equity capital 1/13/15 Nest: smart, next generation thermostat maker, where it can automatically learn about you, what temp you like, your schedule, your home, also it can help with saving energy Customers: people who own their own house – to equipped better device Form: corporation Geo: Palo Alto, California Industry: technology Product: connected home devices / home automation...
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...Finance Analysis Paper Yahoo! Finance Yahoo! Finance is a service from Yahoo that provides financial information in various ways including stock quotes, corporate press releases, financial reports, stock exchange rates as well as popular message boards for discussing a company's forecasts and stock valuations. It holds the title for the top financial news and research website in the United States, with an astounding 23 million visitors in February 2010. It also offers tools for personal finance management. Yahoo! Finance includes similar portals identified to diverse large countries in South America, Europe, and Asia. Yahoo! is one remarkable website that is not only a favorable site for people linked with finance but is fairly easy to navigate. Anyone from experts who are tech-savvy to beginners who are just exploring the world of technology will able to find the most up to date and beneficial information regarding finance and investment with this website. There are many practical tools such as currency calculators, and a finance glossy that will help you uncover the world of finance and even personal investments you may be interested in. This site offers information in personal finance, latest news and of course investing. These sections are then sub-divided into additional categories that will help fulfill your curiosity in finance. Beginners especially will be excited to learn and understand the concepts of the finance market more properly. A few helpful sections beginners...
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...IAG INTERNATIONAL AIRLINES GROUP Corporate finance 2013 ------------------------------------------------- Index 1. Company profile 1. Core activities 2. Competitors 3. External finance 1. Corporate governance 4. Corporate governance 5. Compensation of member of the Board of Directors 6. Investor relation section 2. Stock price data and analysis 7. Daily stock prices 8. Comparison with market and sector indexes 9. Dividends policy 10. Investment magazines reports 11. Five selected new facts 3. Financial information 12. Capital structure 13. Liquidity and solvency analysis 14. Beta coefficient and cost of equity 15. Discounted cash flow analysis and implication of fundings 4. Recommendation ------------------------------------------------- 1. COMPANY PROFILE 1.1 Core activities MISSION: "To be the leading international airlines group in future industry consolidation on a regional and a global scale" International Airlines Group (IAG) is one of the world's largest airline groups: with 377 aircraft and an average of 69 million passengers each year flying to 230 different destinations, IAG is the third- largest based in Europe and the sixth in the world. Formed in January 2011 as a result of the merger between British Airways and Iberia, it is a Spanish registered company whose shares are traded on the London and Spanish Stock...
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...TOPIC: ANALYSIS OF EQUITY SHARE CAPITAL AS A SOURCE OF FINANCE IN AN ORGANISATION RESEARCH PAPERS The 2 research papers under study are 1. The effect of CEO ownership and shareholder rights on cost of equity share capital. 2. What motivates seasoned equity offerings? Evidence from the use of issue proceeds. COST OF EQUITY CAPITAL AND ITS EFFECTS TO THE MANAGEMENT Introduction This paper investigates the cost of equity capital and its effects to the management which intends to hinder shareholders right. The purpose of which is to investigate whether managerial ownership affects the associations between the shareholders rights and the cost of equity capital. There are two variables in the article which can be clearly identified. The variables are; 1) The shareholders rights and 2) The cost of the equity capital. 1) THE SHAREHOLDERS Shareholders should have the right to discipline the managers, who are the employees of the organization, in the case of the mismanagement or the improper use of the funds. The shareholders have right to demand for the success of the organization through competing aggressively in order to gain profitability. The shareholders have right to elect and remove the management from the office and also to access or evaluate the books of accounts of the organization. 2) COST OF EQUITY CAPITAL Rate of return of equity Current market price and the nominal value of equity capital CONCEPTUAL FRAMEWORK THE AGENCY PROBLEMS: THE MANAGEMENT...
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...------------------------------------------------- Allied Motion Technologies, Inc. ------------------------------------------------- Financial Analysis Project Team # 5 Waleed Albuhayri ,Ahmad Aljammaz, Sulaiman Alshehri, Nina Hafezi December 5, 2013 MSE 608C, Prof. Scott Wainess Table of Contents 1.Executive Summary……………………………….......………………………………3 2. Problem Statement...……………………………………………………………………4 3. Company Overview…………………………………..……………………………5 4. Trend Analysis 4.1 Trend Analysis of Balance Sheet…………………………….……………………7 4.2 Trend Analysis of Income Statement………………………………….……………9 4.3 Trend Analysis of Cash Flow…………………………………………………………10 5. Common-size Analysis 5.1 Common-size Analysis of Balance Sheet……………………………….……..…11 5.2 Common-size Analysis of Income Statement……………………………………13 6. Analysis of Cash and Liquidity 6.1 Current Ratio……………………………………………………………………………14 6.2 Quick Ratio…………………………………………………..………………………….17 7. Analysis of Capitalization 7.1 Total Debt to Owner’s Equity Ratio………………………...…………19 7.2 Total Debt to Total Asset Ratio……………………………………………………20 7.3 Long-Term Debt to Total Capitalization Ratio…………………………………22 7.4 Times Interest Earned Ratio………………………………………………23 8. Analysis of Operations 8.1 Gross Profit Margin……………………………………………………………….25 8.2 Operating Profit Margin………………………………………………………27 8.3 Return on Sales……………………………………………………………..……28 8.4 Return on Asset………………………………………………………….......29 9. Conclusions And Recommendations on Investment Potential…30 ...
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...Can Do Academy Week 3: Project Schedule and Resource Allocation Analysis Crystal DeBose-Walker DeVry University / Keller Graduate School of Management PROJ586 - Project Management Systems November 21, 2015 Schedule Analysis Work breakdown structure The main project objective is to open a successful fully certified child enrichment center where activities such as the construction, furnishing, and setting up of the business venture should be done within two months. . Therefore, a necessary and predetermined work breakdown structure (WBS) is a prerequisite to ensure the success of the project (Gido and Clements, 2009). Essentially, the project calls for a well-structured working schedule that will give guidelines on how to complete the project in the timeframe provided Task name | Budget cost | Event | Duration | Start | finish | Capital cost exercise | 300000 | | 1 day | 25-october | N/A | Capital budget | 200000 | 0 | | N/A | N/A | Expense budget | 100000 | 0 | | N/A | N/A | Obtain licenses | | | 1 day | 25-october | N/A | Make business plan | | | 2 days | 26-october | 27-october | Create buzz | | | 3 days | 28-0ctober | 30-October | Find location | | | 2 days | 31-october | 1-november | Research and obtain contractor | | | 2 days | 2-november | 3-november | Pre-fire inspection | | 0 | 1 day | 4-november | N/A | Contractor plan and approval | | 0 | 3 days | 5-November | 7-november | Completion of zoning review...
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...Late Reports will not be accepted. Hard copy (2) must be handed in; email reports not accepted. Summarize the activity of your portfolio, including the performance of each security. Performance includes purchase price on close of business January 27, price at close of business February 28 and the dollar and percentage return (which would include any dividends you legitimately would have received by this point). It includes return on cash and return on the whole portfolio. (Performance must be provided on a spreadsheet and then there should be discussion of it). Do NOT assume the instructor knows every ticker symbol. Either on the performance spreadsheet or a separate one, you are also required to list each security in your portfolio, the number of shares, the indicated ANNUAL Dividend per share, the indicated ANNUAL dividend for your holdings and in separate columns the most recent record date, ex-date and payment dates for dividends. In that spreadsheet you will also include a row labeled money market, your current amount in the money market fund and in the column labeled Annual dividends, the indicated annual interest on your holdings in the money market fund. The portfolio return should be briefly compared to that of Standard and Poor’s 500. You should comment on any relevant news items that occurred for each of your securities during the relevant period. You should also include a paragraph indicating what portfolio actions you plan on taking during...
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...1) factors that led you to pursue this degree and your purpose for engaging this level of scholarship. Include the academic influences that have shaped your thinking regarding your field of study—these should include primarily books The, scholars, and well-known professionals. Personal references, such as family or religious inspiration, are often too individualized for the purposes of this assignment and course; however, if these influences play a significant role in your practice and in your continuing engagement with doctoral studies, they are appropriate for inclusion. Exercise judgment in your choices for this assignment. 2) Your current level of preparedness and your sense of your current position in the field. a) How do you see your studies affecting your current practice in the field? b) What professional and personal contexts do you bring to the course of study? c) How might these contexts assist you in learning? How might they limit you? d) How have your professional and personal contexts shaped your identity? 3) The outcomes you anticipate from completing this degree program. a) What are your aspirations for the program? b) What areas would you like to refine? c) How might enhanced scholarship, practice, and leadership capacities augment your personal and professional life and that of others whom your work affects? d) How do your goals align with the program’s espoused goals? (To locate SAS program goals, go to http://doctoral.phoenix...
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...has been around for many millennia. As a third year student at SHMS, this subject has been following me for three years, which was first seemed to be too complicated and struggling in solving the problem; therefore as long as understanding the core issue, it excites me the most. In this third year, I was introduced to the “game”, which is about analyzing, predicting, decision making and calculating the financial analysis. Through three given course works, I realize that in accounting, there are always two basic notions; the first one is accountancy is a profession and it is also consider as the methodology. It is basically defined as the method of measuring financial figures to bring assurance of decision, which is primarily utilized by managers, investors, and bankers. While working on this project, I have had an amazing opportunity to work...
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...INTRODUCTION We are required to collect stock prices of 35 public listed companies. There are 20 Malaysia, 5 United State, 5 United Kingdom, 5 Indonesia and KLCI index for the period of 2006 until 2013 based on weekly basis. Malaysia stock prices in this project based on Bursa Saham Malaysia. The stock prices of 20 Malaysia public listed company named by Prostaco, Raya International, Tiong Nam, Tong Herr, Toyo Ink, TSH, Turiya, United, Vitrox, UPA Corporation, Zecoon, Yokohama Industries, Woodlandoor, Wong Engeenering, White Horse Berhad, Whelcal Holding, Weida, Warisan TC Holding, Yinson Holding Berhad and YTL Power. While, the stock prices of 5 United State public listed company named by Adobe System INC, Alaska Air Group INC, Apple INC, The Aes Corporation and The NewYork Mellon Corporation. For stock prices of 5 United Kingdom public listed company named by Barclay, Bg Group, Big Yellow Group, Black Mount and Bovis Homes and lastly for the stock prices of 5 Indonesia public listed company named by Astra International, Bank Central Asia, Bank Danamon Indonesia, Kimia Farma and Unilever Indonesia. We also are required to demonstrate and explain the computations of annual return, risk, Sharpe ratio, return, covariance, beta, Treynor Ratio, portfolio standard deviation, and build a graph. THEORETICAL CONCEPTS In this assignment, we used the formula of Variances, Annual, Standard Deviation, Covariance, Correlation Coefficient, Beta, Variance Of Portfolio, Risk, Sharpe Ratio...
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...Finance Executive summary The purpose for this report is to find out the best option portfolio to invest through Telstra, Rio Tinto, Westfield, and Westpac Banking. The process is by explaining the relationship between risk and return, and then will explain how the risk can be measured and reduced, after this going to discuss diversifiable and non-diversifiable risk. By justifying the above relationship this report has chosen to analysis monthly opening and closing prices from four company shares and the opening and closing values for the all ordinaries index for 48 months from 1 January 2009 to 31 December 2012. In the end this report going to find out which is the most suitable option that choose to invest. Table of content 1. Executive Summary ……………………………………… 1 2. Introduction…………………………………………….….3 3. The relationship between risk and return…………………...3 4. Diversifiable and non-diversifiable risk………………….….3 5. Risk measurement……………………………………….…..4 6. Reducing risk when investing in securities……………….…5 7. Analyze the average monthly return of the shares and the expected value of the portfolios.............................................................5 8. Analyze the value of the individual betas and the beta of the portfolio...................................................................................6 9. Analyze the value of the individual standard deviations and the standard deviation of the portfolio...
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...CHAPTER 13 Financial Statement Analysis LEARNING OBJECTIVES After you have mastered the material in this chapter, you will be able to: 1 2 3 4 5 6 7 8 Describe factors associated with communicating useful information. Differentiate between horizontal and vertical analysis. Explain ratio analysis. Calculate ratios for assessing a company’s liquidity. Calculate ratios for assessing a company’s solvency. Calculate ratios for assessing company management’s effectiveness. Calculate ratios for assessing a company’s position in the stock market. Explain the limitations of financial statement analysis. LP13 CHAPTER OPENING Expressing financial statement information in the form of ratios enhances its usefulness. Ratios permit comparisons over time and among companies, highlighting similarities, differences, and trends. Proficiency with common financial statement analysis techniques benefits both internal and external users. Before beginning detailed explanations of numerous ratios and percentages, however, we consider factors relevant to communicating useful information. 674 The Curious Accountant On May 14, 2007, DaimlerChrysler (DC) and Cerberus announced that Cerberus, a private-equity firm, was buying 80 percent of the Chrysler Group from DaimlerChrysler. The sale closed on August 3, 2007. Some analysts claimed the “sale” actually involved DaimlerChrysler paying Cerberus to take Chrysler off its hands. After the sale, DaimlerChrysler planned to...
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... Here are stock market and Treasury bill percentage returns between 2006 and 2010: Year Stock market return T-bill return 2006 17.27 6.3 10.97 7.1040 50 2007 7.41 6.06 1.35 -2.5160 6.33 2008 -38.83 1.8 -40.63 -44.4960 1980 2009 29.7 0.9 28.8 24.9340 622 2010 19.36 0.52 18.84 14.9740 224 2883 a. What was the risk premium on common stock in each year? Year Risk Premium 2006 10.97 2007 1.35 2008 -40.63 2009 28.80 2010 18.84 19.33 3.866 b. What was the average risk premium? Number of year 5 Avg risk prem 3.87 c. What was the standard deviation of the risk premium? 576.523224 24.01 Consider the following scenario analysis: Rate of return...
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...Assess the financial performance and position of Venice Ltd for the year ended 30 September 2011 compared to the previous year. Your answer should also refer to the information in the Chief Executive’s report and the impact of the purchase of the net assets of Roma Company. Chief Executive’s report To: Management From: Accountant Date: 7 December 2011 Subject: Financial Appraisal of Roma Company using Accounting Ratios Introduction The purpose of this report is to analyze the financial performance of Venice Ltd for the year ended 30 September 2011 compared to the previous year using the accounting ratios, and impact of the purchase of the net assets of Roma Company. The report specifically comments on the following ratios. 1) Return on year-end capital employed 2) Net assets turnover 3) Net profit margin 4) Current ratio 5) Closing inventory holding period 6) Trade receivables’ collection period 7) Trade payables’ payment period 8) Gearing The report also highlights of Venice’s performance for the year ended 30 September 2011: Return on capital employed Capital employed and operating profits are the main items. Capital employed may be defined in a number of ways. However, two widely accepted definitions are "gross capital employed" and "net capital employed". Gross capital employed usually means the total assets, fixed as well as current, used in business, while net capital employed refers to total assets minus liabilities. On the other hand, it refers...
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