...Investment Company Blue Chip Investment Company is a stock management firm that aims to produce superior investment returns by aggressively seeking capital appreciation in rising markets. The Blue Chip investment Corp. was founded by Eller MBA’s Prag, Neil, Archana, Shalini, Eric with an initial investment of $250,000 from each stakeholder. We endeavor to maintain a portfolio of stocks that generates high profits over a short period of time for the stakeholders. Our goal is to maximize stakeholder wealth by making opportunistic short-term investments based on proactive investment research and a disciplined strategy. Our Strategy Our company’s short term strategy is to invest in US Retail industry’s top performing stocks. We are specifically targeting the high retail stock returns during this US holiday season. The US Retail Industry The National Retail Federation (NRF) estimates that U.S. retail sales will rise 3.9% during this holiday season, overshadowing last year’s growth of 3.5%. Sales during the months of November and December are estimated at $602.1 billion. NRF also forecasts a 13%-15% rise in online holiday sales to $82 billion, stronger than the 11.1% growth seen during the 2012 season. Stocks selected Companies we chose to invest in are Walmart, Target, Macys, Amazon. These retail companies have been around for years, and doing good business. Moreover these companies are industry leaders who’re giving higher returns compared to its peers in the industry. Performance of...
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...Efficiency in engineering: the best possible use of the inputs. An efficient market: investors make the best possible use of information. A useful initial perspective: As speculators we are trying to predict where a stock price will be in the future. Do we know anything today that will help us make this prediction? Week 5 FINS5513 4 Price of GE 104 102 100 98 96 94 92 90 88 0 Week 5 20 40 FINS5513 60 80 100 5 Are Prices Predictable? There are apparently short-run trends If we know we are at the start of a downward trend, sell short If we know we are at the start of an upward trend, buy How do you know when a trend is starting? ending? Can we devise rules (statistical or “technical”)? Week 5 FINS5513 6 Trend and Predictability The price path is simulated: Price(Today) = Price(Yesterday) + x, where x is a standard normal random variable This process is called a random-walk By construction, any trends that appear in a particular sample price path arise purely from chance There are no rules that will help us identify trends in time for us to profit by them Do trends imply predictability? Week 5 FINS5513 7 Efficient Market Hypothesis (EMH) Stock prices reflect all available information: ...
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...presented in the Annual Conference 2003. FISCAL INCENTIVES, THE COST OF CAPITAL AND FOREIGN DIRECT INVESTMENT IN PAKISTAN: A NEO-CLASSICAL APPROACH1 By ZAHIR SHAH• Abstract This paper analyses the attractiveness of Foreign Direct Investment (FDI) in Pakistan with special emphasis on the cost of capital element in effecting the rate of return and the internal cash flow for investment of the investing firms. Using the Jorgenson’s Neo-classical Investment Model the cost of capital is computed after considering the taxation policy and the treatment of invested capital. The paper elaborated fiscal provisions and their implications on the investment environment specifically available to foreign investors in Pakistan. The computed results show consistent and influencing impact of the cost of capital on FDI inflows. The objective of the study is to explore the a realistic and in depth investigation of the tax concessions and the response of investors. The paper argues that fiscal incentives are more appropriate in attracting FDI as these have no direct drain over public resources and are increase the after tax return by availing the tax holidays and depreciation allowances. 1. Introduction Capital can move inside and outside the boundaries of a country and the worldwide competition for it provides numerous special inducements by the capital importing countries. This movement of capital around the world gets significant attention of the policy makers and researchers in both developing...
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...Wisconsin-Stevens Point Stevens Point, WI 54481 (715) 346-3774 (715) 346-2537 | | | | Stock Market Volatility: Measures and Results Gary E. Mullins, Ph.D. University of Wisconsin - Stevens Point | | IntroductionVirtually everyone who is interested in financial markets seems to agree on two things: that markets are now more volatile than ever, and that volatility causes many problems. Let's look at some recent and not-so-recent articles concerning volatility. This week turned out to be slower than expected on the IPO market, as intense volatility on U.S. exchanges prompted many companies to put off much-anticipated debuts. I am writing to you today to address my concerns about trading in a fast market, a current issue of extreme importance to me. I want to give you my perspective and let you know the steps we at Schwab are taking to support investors during this time of market volatility. In recent months, there has been a marked increase in price volatility and volume in many stocks, particularly of companies that sell products or services via the Internet (Internet issuers). In the above quotes, there are two implicit assumptions: that volatility is higher now than it has been in the past, and that this volatility is somehow bad. In the first article, it assumes that (obviously) increased volatility has caused firms to delay their Initial Public Offerings (IPO's). Next, Schwab believes that investors need special support because of the high volatility...
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...Overview From September 3rd, 2015 to October 28th, 2015, our group was given the opportunity to manage an investment portfolio, with the goal of maximizing the value of the portfolio through acquiring, holding, and selling stock. The beginning cash balance of the portfolio was $100,000, and our group had the ability to make up to 500 trades. During this time period, our group made 20 stock purchases and sold stock twice. At the close of business on October 28, 2015, the value of our group’s portfolio increased from $100,000 to $106,785.33, yielding a return of 6.78% (((106785.33/100,000)-1) x 100)). In comparison to the S&P 500 returned at 7.16% and the Dow Jones having a return of 8.65% (Yahoo). Strategy We attempted to build a diverse portfolio whilst being observant of any news regarding public companies so as to take advantage of any current events that may have impacted a company’s value. Further, rather than being fickle with our stocks, attempting to time the market, and racking up brokerage fees, we mostly stuck to a buy-and-hold approach. Diversification is an important component of creating a profitable investment portfolio, as Markowitz demonstrated mathematically in the 1950s, because it reduces uncertainty. The group focused on making sure we held securities in as many different industry sectors as possible. We were able to diversify into 15 companies across eight different industries: • Auto • Ford (F) Financial • A.I.G. (AIG) • Citigroup (C) ...
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...finding it difficult to differentiate their physical products. To have that competitive edge over competitors, it is critical for service businesses to understand the special nature of services (Kotler, & Keller). One such company that is finding it difficult to understand the nature of services is Classic Airlines. The company is the world’s fifth largest airlines, they operates in 240 cities with an impressive 2,300 daily flights (University of Phoenix, 2012). The company’s financial report shows it earned $10 million on $8.7 billion in sales last year. Regardless of the profits, Classic has been on a downward trend, factors influencing this trend are; the rising cost of fuel and labor, negative media reports, and a constant decline of its stock prices. The Board of Directors are requiring a 15% cost reduction over the next 18 months, employees morale is low, and there is a lot of negative feedback from its customers in regards to the service provided by the company. I will implement a nine-step problem solving method that I will use to identify the problems at Classic Airlines, what opportunities the market has and create effective marketing solutions with a desirable end results to restore customer loyalty, employee morale, and entice investors’ to increase the company’s market value. Step 1: Define/identify the Problem The company is faced with so many problems; some of these problems need immediate attention so that Classic Airlines will start generating much needed revenue...
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...2016 Starbucks started back in 1971 in Seattle, Washington. Initially, Jerry Baldwin, Zev Siegl and Gordon Bowker sold only coffee beans and coffee making equipment (coffee .org). It wasn’t until the company was sold to its Director of Retail Operations, Howard Schultz, that Starbucks started selling coffee drinks and soon after, Schultz spread the chain of stores throughout the U.S. taking over many small coffee shops in the process (coffee .org) In the 1990’s Starbucks offered stock options to its employees and went public with an IPO which opened the door for higher earnings and more profitability (coffee.org). This analysis will discuss how a single coffee house in 1971 has grown to more than 22,000 stores in 66 countries in 2016. Starbucks’ goals, market strategies, revenue and financial outlook will be discussed. Strategies and Operating Characteristics According to the Global Responsibility Report (2015), Starbucks vision for the future and what will have the greatest potential for impact include working with farmers for ethically sourced coffee beans, pioneering sustainability economically, socially, and environmentally, and creating career opportunities for young people (2015). Starbucks Newsroom reported on March 18, 2015 that their seven strategies would grow market capital to $100 billion (2015). Revenues are currently at $16.4 billion and the U.S. comp growth averaged 7% (Starbucks Newsroom, 2015). Starbucks 2015 annual meeting of shareholders report announced...
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...[pic] 1.0 INTRODCTION Square is one of the leading organizations in Bangladesh. It has a tremendous performing history in the different sector of the Bangladeshi business sector. Square pharmaceutical is the leader of the visionary revaluation in the drug sector of Bangladesh. Not only pharmaceuticals sector but also another different sector square provides their contentious and quality full service by providing a standard class products and services. We are going to describe the overall preview of square pharmaceuticals limited that’s why we divide our project into four parts. First part contain the company overview, second part contain the financial overview of square for the last couple of years. Appraisal of dividend policy in the third part and the capital structure in fourth part. 2. CORPORATE PREVIEW: 2.1 Vision Square see business as a means of the wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization. 2.2 Mission Square mission is to provide quality and innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders and other stakeholders. 3. Objective Square objective are to conduct transparent business operation within the legal and social frame work with aims to attain the mission reflected by our vision. 4. Corporate focus Squares vision, squares...
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...ownership and management and represents one distinctive feature of a corporation. In theory most financial managers would agree with the goal of maximising wealth for the owners of the corporation. In practice however, it could be suggested that managers are also concerned with their personal wealth, job security, lifestyle and other benefits such as golf club memberships, company vehicles and impressive offices all provided at company expense. Such concerns may make managers reluctant or unwilling to make decisions that while it may increase the owner’s wealth, may result in the loss of their job and damage to their personal wealth. This compromise between management’s personal goals and owner maximisation produces a less-than maximum return and could mean potential loss of wealth for owners. Such a phenomenon commonly referred to as the agency problem is prevalent in modern day corporations. Jensen & Meckling (1976) define the agency relationship as a contract under which one party (the principal) engages another party (the agent) to perform some service on their behalf. As part of this, the principal will...
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...My Task – P1 Scenario –I Barry Andrews work as a junior journalist for the local newspaper which is planning to run a feature article on businesses. Tesco: Jack Cohen was reluctant to go back to tailoring after the First World War. This is when he started selling stuff on market stalls. In 1919, Jack Cohen started selling surplus groceries from a market stall in the east end of London. He then owned a number of stalls which at first were ran by his family but after time he gradually employed non-family members. By now he had also had a wholesale business. In 1924 Jack sold his own-brand product which was tea. This tea had come from a firm of tea suppliers of whom T.E Stockwell was a partner. Jack then came up with the name of Tesco by using the initials from T.E Stockwell and the first to letters of his surname. After a while the market trading business became difficult as partners became unreliable so he eventually turned to high street shops without doors. The first two Tesco stores were opened in London in a large estate in the Borough of Barking and Dagenham. This area was called Becontree. The other was in Burnt Oak. These were opened in 1931. By 1939 Jack Cohen had opened up over 100 Tesco Stores. Tesco showed its expansionary zeal early on by buying up rival shops. In the 1950s the retailer bought 70 Williams stores and 200 Harrow stores, followed by 97 Charles Philips stores and the Victor Value chain in the early 1960s. In 1961 Tesco Leicester entered the Guinness...
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...CONTENTS 1. Tesla´s business model 3 2. Percentage of sales method 4 3. Valuation 5 i. Growth rate determination for the terminal value period 6 ii. Payout determination for the terminal value period 6 iii. Market risk premium and risk free rate determination 6 iv. Equity beta determination 6 v. Required rate of return determination 7 vi. Flow to Equity 8 vii. Company valuation 8 4. Robustness check 8 5. Reflection 1. Tesla’s business model Tesla Motors Inc. is a company that focuses on designing, developing and manufacturing fully electric cars and advanced electric vehicle powertrain components. The enterprise also provides development services for the powertrain systems and components it produces by selling them afterwards to other automotive manufacturers. Among the products Tesla offers the market are the sedan Model S, the Tesla Roadster sports car, the Model X minivan and other stationary energy storage products the company has developed. Because of environmental consciousness, the impact of rising oil and gasoline prices, the new government regulations and the shifting consumer needs, the electric-based vehicle industry is intense and evolving. Tesla Motors is facing a strong competition nowadays and expects to deal with even a stronger one in the future. The company finds itself to be placed in an unfavourable market position regarding its competitors, who all...
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...Mahjabeen Ahmad has authorized this report on March 27, 2002 with the date of submission being June 30, 2002. 1.2 Objective The main objective of the report is: ▪ To portray the role that a Credit Rating Agency (CRA) can play in the capital market development of Bangladesh The sub-objectives of the report are: ▪ To review the current situation of the capital market of Bangladesh ▪ To discuss the activities /operations of a Credit Rating Agency 1.3 Scope The scope of the report is limited to the presentation of a broad overview of the capital market of Bangladesh, definition and description of general activities of a Credit Rating Agency and the impact it can have on Bangladeshi capital market. The depiction does not include any discussion on the Stock Exchanges of Bangladesh or the International capital market. Since the rating business in Bangladesh is still at its infancy, no practical example of rating in Bangladesh could be mentioned. 1.4 Limitation The major constraints faced while writing the report were unavailability of historical information, technicality of the topic and novelty of the subject. Assimilating relevant information was a challenge because of information overload in the financial sector. 1.5 Sources and Methodology To write the report...
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...UNIT 1 The travel and tourism industry Introduction T he travel and tourism industry is one of the biggest and fastest growing industries in the UK. This unit will give you an introduction to the industry, providing a sound basis for further study. You will find out about the nature of the industry, its size and scale, and you will be introduced to the types of organisations that form its structure. In addition you will investigate the development of the industry and the factors which have affected the growth of travel and tourism. How you will be assessed This unit is assessed through an external assessment set by Edexcel. A variety of exercises and activities is provided in this unit to help you develop your understanding of the industry and prepare for the external assessment. After completing the unit you will achieve the following outcomes: ✱ Understand the nature and characteristics of travel and tourism and the travel and tourism industry ✱ Understand the development of the travel and tourism industry ✱ Explain the structure of the travel and tourism industry ✱ Explain the scale of the travel and tourism industry. UNIT 1: THE TRAVEL AND TOURISM INDUSTRY 1 1.1 The nature and characteristics of travel and tourism and the travel and tourism industry What is tourism? Defining tourism is not a simple matter, as it is a complex industry made up of many different businesses, the common theme being that they provide products and services...
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...Race and Ethnicity Should racial profiling be a legitimate law-enforcement policy in some areas? Should Affirmative Action for state university enrollment be continued? Should the primary method of public school funding--property taxes in individual school districts--be amended to create more fairness in schools? Should high-school history classes and social-studies curriculum be changed to reflect diversity and multicultural perspectives? Should Christmas, Easter, and other religious observances be considered national holidays? If a university offers "African-American Studies" or "Black Studies" as courses, should it also offer "European-American Studies" or "White Studies"? How do certain television programs perpetuate racial or ethnic stereotypes? Should Columbus Day be discontinued in favor of a new post-colonial perspective? Should schools only purchase textbooks that offer revised or alternative histories of historical events? What should be done about racial disparities in the sentencing of criminals? Should the American government pay reparations and return land to Native Americans? Should hate groups have the right to distribute literature on university campuses? If research shows that certain racial or ethnic groups receive poorer medical care on average, how should this problem be corrected? Should governmental organizations have staffs that accurately reflect the racial, ethnic, and gender balance in society? Gender and Sexuality What should be...
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...investments. http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073791119&type=RESOURCES In order to produce and sell goods and services, the business uses raw materials and labor, which must be paid for. In other words, a company has to spend money to make money. Here's where the bulk of cash outflows go: purchase of stock, raw materials or tools, wages, rents and daily operating expenses , purchase of fixed assets - PCs, machinery, office furniture, etc., loan repayments, dividend payments, income tax, corporation tax, VAT and national insurance contributions, etc. According the consolidated statements of cash flows of 10-K form, net income of each fiscal year from 2009 to 2011 are 623,369, 734,940, and 880,800, which are also can be found in consolidated statement of income.Net sales are 3,230,468, 3,607,636, 4,158,507. Clearly, sales are the primary source of cash inflow and show a stable and gradual growth. As what is mentioned in 10-K form about SEASONALITY which is an important factor of sales, Coach Products are frequently given as gifts, higher sales and operating income in the second quarter of its fiscal year, which includes the holiday months of November and December. In addition, fluctuations in sales and operating income in any fiscal quarter are...
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