...Introduction This essay mainly discussed the market for information, although this market is invisible, it plays an essential role in financial and banking industry. In part I, the essay will try to explain why the market will exist as well as why the different kinds of participates exist. The market for information is a complex market with a large number of chains and relations between information producers and information buyers. However, some chains and relations of the market are the core part for the market to function well. The essay will also discuss the “Chains of transacting and accountability” and “Networks of assurance”. However, in the process of information producing, there will be some difficulty in learning and knowledge creation. In part II, the essay will firstly introduce the ideal process of learning and knowledge production and secondly discuss the reason for the ineffectiveness of learning and knowledge creation processes. Based on the possible reasons of ineffectiveness, it will also give some suggestions on how to avoid the difficulties in the future. This essay is mainly based on John Holland’s two papers; therefore, in the end, the report will discuss some limitations of these two papers. I. Information production and assurance roles of participants in the ‘market for information’ What is the market for information and why does this market exist? Information markets are usually a place where individual knowledge is organized and aggregated...
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...Academic assistance is the defined as an activity for teaching available for students in all subjects including science, mathematics, management, business studies, business and law and information technology. In the academic assistance, all subject related helps is being provided to the students to meet specific subject related queries. It is defined as a tutoring practice, which provides support to the students in solving particular subject related queries. Apart from this, this makes the learning process easy for the students through providing ready to learn or tailor made notes and helps in solving specific subject problems. Basically, academic assistance is the new method of tutoring by a large number of institutions to facilitate the students in their studies. Academic assistance encompasses all types of subjects from English to Management. In the academic content development, a number of subjects such as business studies, marketing, accounting and financial management, operations management, qualitative techniques, history, science, statistics, dissertation and its proposal development, human resources and organizational behaviour are covered. In pertinent to the given subjects, academic assistance is a kind of help provided to the students in developing particular topic related subjects content. Academic assistance is not only limited to provide a notes specific to subjects, but also it covers a full helps in completing the project steps such as authentic data collection...
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...Module 9 Essay BUS550: Business Finance 01/19/2015 1. What is a constant interest coverage policy and how does it impact the levered value of a project? The constant interest coverage policy is an alternative leverage policy. The Constant interest coverage policy utilizes a target fraction for the firm, dependent upon each projects free cash flow to determine the leverage a firm and its projects specifically. This in turn will help the firm take advantage of the corporate tax shield. “With a constant interest coverage policy, the value of the interest tax shield is proportional to the project’s unlevered value”. (Berk & DeMarzo, 2011) The constant interest coverage policy takes targeted interest into account for the project’s free cash flow to increase leverage and determine the project’s total value. 2. Why should issuance costs and mispricing costs be included in the assessment of the project’s value? How do you include them? Issuance cost is another cost of doing business for the specific project and should be included as a cost of the project, which will in turn lower the NPV of the project during the assessment. One would include issuance cost by subtracting the issuance cost just as with the investment cost during the NPV calculation. Mispricing costs are also subtracted from the NPV of the project and are to be included during evaluation. 3. Why is it important to calculate the value of the interest tax shield if a firm adjusts its...
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...INTELLECTUAL CAPITAL OVERVIEW The purpose of the article is to examine the result of intellectual capital towards financial aspects of organizational performance and what it constitutes of its performance indicator. Influence of intellectual capital on Hong Kong stock exchange, Australian financial sector, hotel industry, India pharmaceutical industry and its general impact on firms are discussed in this essay. The most famous methodology used was the value added intellectual coefficient policy, where regression models were made to inspect the association between IC and the corporate financial performance indicator. The results were positive and suggested that IC, was positively connected with success of productions by VAIC methodology. To be precise, structural capital was found to be the main component of IC. INTRODUCTION It has been acknowledged by different scholars that universally the financial sector is converting into knowledge and fact based and the value of financial sector is acquired from intellectual capital than just from physical capital. Although the significance of intellectual capital is repeatedly expanding but companies are confronting measurement difficulties. The growing gap was noticed among market price and the book price of numerous organizations which attracted consideration towards examining the worth absent from records. Various definitions of IC are given by different economist, academics and practitioners. Still not even a single meaning...
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...Wilfrid Laurier University Scholars Commons @ Laurier Theses and Dissertations (Comprehensive) 2010 Three Essays in Corporate Governance Vishaal Rabindranauth Anand Baulkaran Wilfrid Laurier University Follow this and additional works at: http://scholars.wlu.ca/etd Part of the Management Sciences and Quantitative Methods Commons Recommended Citation Baulkaran, Vishaal Rabindranauth Anand, "Three Essays in Corporate Governance" (2010). Theses and Dissertations (Comprehensive). Paper 1121. This Dissertation is brought to you for free and open access by Scholars Commons @ Laurier. It has been accepted for inclusion in Theses and Dissertations (Comprehensive) by an authorized administrator of Scholars Commons @ Laurier. For more information, please contact scholarscommons@wlu.ca. 1*1 Library and Archives Canada Bibliotheque et Archives Canada Published Heritage Branch Direction du Patrimoine de I'edition 395 Wellington Street Ottawa ON K1A 0N4 Canada 395, rue Wellington Ottawa ON K1A 0N4 Canada Your file Votre reference ISBN: 978-0-494-75409-2 Our file Notre reference ISBN: 978-0-494-75409-2 NOTICE: AVIS: The author has granted a nonexclusive license allowing Library and Archives Canada to reproduce, publish, archive, preserve, conserve, communicate to the public by telecommunication or on the Internet, loan, distribute and sell theses worldwide, for commercial or noncommercial purposes, in microform, paper...
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...the massive change in respect to cost and still being able to provide excellent care for their patients considering the expansion that the industry is continuously facing. As a result, the financial accounting aspect of the healthcare industry needs more attention than ever. The advancement in the financial aspect of healthcare requires more people to assume administrative duties. Cleverly, Song, & Cleverly (2011). For healthcare organizations to function properly in the increasing change in cost, revenue, and reimbursement by third parties, certain principles are necessary to be in place. According to Voelm, K. (2013), some generally accepted financial principles in healthcare are: Accounting Entity, money measurement, duality, cost valuation, stable monetary unit. Accounting principles related to Nursing Accounting Entity: Accounting entity is the part of a business that specializes in economic activities. Once an entity is established, accountants are able to determine the cash flows and transactions that will impact the entity's financial statements. Accountants in organizations focus on accounting entities and report transactions that are related to that entity. Accounting entities control the economic resources, but are separated or different from the personal dealings of the owners of the business (businessdictionary.com). In healthcare, accounting entity takes care of the budgetary systems, financial statements, cost analyses payroll, Medicare bills and cost reports...
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...TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Home Page » Business and Management Jc Penney In: Business and Management Jc Penney 1. I feel J.C. Penney’s strategy is to do with away constant “sales” and have every day lower prices. I also feel that Penney’s will favor the promotion of brand names and doing away with in-house labels. 2. Yes I think Penney’s has a good strategy for growth. The new CEO Ron Johnson is providing direction and encouraging new ideas. By using the “apple” model for Penney’s he is incorporating new ideas. Mr. Johnson is trying to develop a competitive advantage by changing the way Penney’s does business. His ideas are innovative and are being responsive to customers. Finally by offering brand names he is promoting quality over cheaper in-house labels. 3. Ron Johnson has established the mission and vision with his vision on how Penney’s needs to change to become competitive. He has established the grand strategy by assessing Penney’s current performance and lays out the game plan on how the mission will be accomplished. Mr. Johnson has clearly formulated his strategy by analyzing Penney’s internal problems along with the problems they have are facing from their competitors. Penney’s is currently n the strategy implementation part of the process this will take much investment but cost cutting and the elimination of sales have...
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...hundreds of ratios at our disposal. However, we will use only those that are common, and of some meaning for the analysis of the banks. Also, it is important to note that we should use only major and comparable ratios in order to fully understand the financial position of these banks as compared to all those ratios that may include some vagueness in the research. Mainly five categories of these financial ratios are used to eliminate the vagueness created by redundant use of the financial heads and items from the financial statements. Hence, the five categories are: (CFA 2009, p498): - Profitability Ratios - Activity Ratios - Liquidity Ratios - Solvency Ratios - Valuation Ratios However, for the banking industry, which is our main concern, we will use only the first four categories, making an exception of the Valuation category. The financial stability department of the State Bank of Pakistan, which is the central bank of this major economy in the Muslim world, and actively involved in the promotion of Islamic Banking, suggests that the financial ratios fairly reflect the stability, health and the performance of the banks. Hence, these ratios can be used for our purpose. 2. Z-score Instead of just doing the Financial Ratios Analysis, we should also do the analysis of the banks’ insolvency risk, which is measured by the z-score. This will be done for both the categories of banking systems: Islamic Banks; as well as the Commercial Banks. The statistic based on z-score is calculated...
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...FNCE90013 Case Studies in Finance SUBJECT GUIDE July – August, 2015 Prepared by George Kester Department of Finance Faculty of Business and Economics Objective To develop an understanding of applied corporate finance including financial analysis and forecasting, financing sales growth, short-term versus long-term financing, capital structure policy, capital investment analysis, cost of capital, and company valuation. The course will be experiential and focus upon selected Harvard Business School cases describing actual business situations faced by financial managers, requiring analysis, and decision-making. Professor Professor George W. Kester Texts Robert C. Higgins, Analysis for Financial Management (10th Editon), McGraw-Hill Irwin, 2012. Cases You should read and analyze each assigned case. The cases are available on the LMS page for FNCE90013. Readings Selected readings will be distributed during the course. Group Study It is recommended that you form yourselves into small study groups for the purpose of routinely reviewing and discussing assigned before each class. Your learning experience will be enhanced by such interaction and you will be better prepared for class. Presentations Copies of the PowerPoint slides of the presentations are available on the LMS page for FNCE90013. It is recommended that you print them out prior to each class. Attendance The class attendance will be taken. Participation ...
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...Myers, & Marcus. Fundamentals of Corporate Finance (8th Edition) Note: please buy a version that comes with the online “Connect” access. We will use Connect for problem sets. HBS Press & SHRM. The Essentials of Finance and Budgeting (Business Literacy for HR Professionals) Link: https://hbr.org/product/the-essentials-of-finance-and-budgeting-business-literacy-for-hrprofessionals/5720-PBK-ENG Additional materials, including case studies, may need to be purchased throughout the semester. OPTIONAL TEXTS (do not purchase prior to class) *Berman, Knight, & Case. Financial Intelligence for HR Professionals: What You Really Need to Know About the Numbers (Harvard Financial Intelligence) †Fridson & Alvarez. Financial Statement Analysis: A Practitioner’s Guide (4th Edition) †Koller, Goedhart, & Wessels. Valuation: Measuring and Managing the Value of Companies, University Edition (5th Edition) *This text covers the “big picture” aspects of accounting and finance, especially as they relate to HR management. I will start the class at a very basic level, but if you think I’m speaking a foreign language after our second or third class this book may help. † These texts take an in-depth look at financial statement analysis (Fridson & Alvarez) and technical valuation techniques (Koller et al.). Most students will not need these texts for our class. However, if you are interested in going deeper into the “nitty gritty” of corporate finance, these books are a good place to start. ...
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...Introduction: Staples is the largest office supply retailer in the United States. Founded in 1985 in Brighton Massachusetts, Staples has grown to operate 1,575 stores and 58 distribution centers in the US with and an additional 387 stores and 66 distributions centers across the globe. Current Mission Goals and Strategy: Staples mission is “to make it easy to buy office products”.¹ By utilizing its “Staples Soul” program, the company aims to provide exceptional value, selection and customer service. INTERNAL ANALYSIS: Staples is a strong company with an IFEM score of 2.64 Finance Staples has a weak financial rating despite its overall strong IFEM rating. In looking at valuation ratios, Staples does look pretty good if you were looking to invest in this industry. Although Staples is performing well below the industry in P/E Ratio (9.11 vs. 14.5) they do have a lower price to cash, price to book and price to sales ratios and they are paying higher dividends (3.45 vs. 1.80) when compared to the industry. These indicators do paint a more favorable picture for investors. This fact does not offset some of the weaker financial indicators. Even though their 5 year growth rate is nearly double the industry (6.82 vs. 3.86), recent growth rates are very alarming as they measuring far below the industry average (-1.10 vs. 5.11). This is especially concerning because it shows growth in the industry but a retraction for Staples. Total debt to equity looks...
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...persons who do business with the entity for information about the entity and its management.5) Consider the need for individuals possessing special skills or knowledge to complete the audit (e.g., IT auditor, valuations specialist, industry specialist)2. Overall, after calculating a few of Ocean Manufacturing ratios and comparing them with the industry, the company’s figures are not performing up to others in the industry. ROE = NI/Stockholder Equity (2011,2010)= 8.9% and 7.1%ROA = NI/Assets= 4.5% . 3.8%Both return on equity and assets are lower than industry ratios but are improving.Accounts Rec Turnover—could not calculate without % of credit sales from cash sales. Profit Margin = Operating income/ Sales(rev) = 5.5%, 6.0%PM are also low compared to the industry average. 3. There are a few non-financial items the company should consider. a) The VP of finance was charged with a misdemeanor related to illegal gambling. Raises questions about the tone at the top and the integrity of management. b) The company is struggling with the implementation of a new IT system that may require the team to spend more time testing data or even obtaining data c) The company has changed auditors three times in the last 12 years. Couple that with the fact that the VP of Finance was hesitant to grant permission to speak to the previous auditor, it should raise some flags. d) The new controller has little experience...
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...Assume an immediate and sustained one percent across-the-board rise in interest rates. Based on a review of Exhibit 3, discuss how one would use interest rate sensitivity gap information to estimate the impact of rising interest rates on the earnings of Norwest Corporation. If the interest rates are anticipated to increase by 1 percent then to reduce the impact on earnings the corporation must keep a Positive Gap. This means that the rate sensitive assets should be more than the rate sensitive liabilities. If this is positive then the increase in interest rates increases the net interest income. The Gap of the corporation is mostly positive for all the time periods except for the investments that are of less than six month maturity. On all the classes with a positive gap the corporation will benefit due to the anticipated increase of 1%. It will only lose on the negative gap because the net interest income will reduce for the assets and liabilities of six months maturity. The interest expense will be more on account of increase in the rate and the gap being negative i.e. the amount of liabilities exceeding the amount of assets, there will be a fall in the net income. The cumulative gap of the corporation is positive at $1194 million. Describe in your own words Norwest’s methodology for determining ‘accounting risk’ and economic risk and differentiate between them. Interest rate risk is the risk where changes in market interest rates affect a bank’s financial position. Changes...
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...Business Strategy Case 3 The O-Fold Kyle Huffman Olds College Submission Date: February 14 2013 O-Fold Business Opportunity Introduction Alex Richards was a 4.0 GPA student, double majoring in finance and accounting. Before taking a trip to Colorado, Alex was faced with a problem: whether or not to take a suit on the plane, he did not want to wear it on the plane nor pack a suit case due to having the clothing wrinkle. He came up with the idea of the O-Fold, a cylindrical tube that clothes could be wrapped around, secured with straps, packed into tight spaces, and arrive wrinkle free. After completing a preliminary patent search online and finding nothing similar to his idea, Alex had to make a choice whether or not to start a company. He came up with four options, sell the idea, license the idea, outsource production, or use a crawl-walk-run strategy. External analysis With more then $5 billion in sales the luggage industry strengthened, as the baby boomer generation reached its peak travel ages (45-54). With profit margins growing from 28.9 percent in 1990 to 45.9 percent in 2000 the industry is looking profitable. As well having around 75 percent of the merchandise imported, this lowers the cost of production and materials. An important trend to look at is the use of handbags or carry on items. With the rising cost of fuel airlines started charging for check baggage, resulting in an increase of people buying carry on/handbags. Handbags sales increased from 3...
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...OUTLINE OF MBA 520 Fall Semester 2008 Business Finance Instructor: Grant McQueen Teaching Assistants: Mark Cherrington & Office: 636 TNRB Christian Hsieh Phone: 422-3017 Office: 324 TNRB Office Hours: MW 2:00 - 3:00 p.m. Phone: 422-6835 e-mail: Office hours: forthcoming Home page: Course Description and Objectives This course introduces basic financial concepts all business managers should understand regardless of functional specialization. Topics include financial analysis and planning, time value of money, valuation, capital budgeting, risk/return trade-offs, cost of capital, and capital structure. The pedagogical approach used is a mixture of lectures and case examples. Cases are often used as a vehicle for discussing the complexities of real-world financial problems. To benefit most from this method of teaching, you will want to come prepared to discuss the cases in detail. By the end of the semester, students should be able to: (1) describe essential characteristics of the finance profession and institutions, (2) be conversant in basic financial jargon, (3) value paper assets (stocks and bonds) and tangible assets (capital budgeting) using the tools of time value of money, including NPV and IRR, (4) explain the various sources of financing, their associated costs, and their advantages and disadvantages, (5) calculate and use financial statements and ratios to analyze a business and create and use pro forma statements for planning...
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