...list of Frequently Used Symbols and Notation A text such as Intermediate Financial Theory is, by nature, relatively notation intensive. We have adopted a strategy to minimize the notational burden within each individual chapter at the cost of being, at times, inconsistent in our use of symbols across chapters. We list here a set of symbols regularly used with their specific meaning. At times, however, we have found it more practical to use some of the listed symbols to represent a different concept. In other instances, clarity required making the symbolic representation more precise (e.g., by being more specific as to the time dimension of an interest rate). Roman Alphabet a Amount invested in the risky asset; in Chapter 14, fraction of wealth invested in the risky asset or portfolio AT Transpose of the matrix (or vector)A c Consumption; in Chapter 14 only, consumption is represented by C, while c represents ln C ck Consumption of agent k in state of nature θ θ CE Certainty equivalent CA Price of an American call option CE Price of a European call option d Dividend rate or amount ∆ Number of shares in the replicating portfolio (Chapter xx E The expectations operator ek Endowment of agent k in state of nature θ θ f Futures position (Chapter 16); pf Price of a futures contract (Chapter 16) F, G Cumulative distribution functions associated with densities: f, g Probability density functions K The strike or exercise price of an option K(˜) Kurtosis of the random variable x x ˜ L A lottery...
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...Course : Managing operation MBA 515 Semester : 2014 – 2015 1 Lecturer : Dr.Mohamed Gamal Back ground This report is going to discuss the operation management of Mubadala Development Company (Mubadala) is a catalyst for the economic diversification of Abu Dhabi. Established and owned by the Government of Abu Dhabi, Mubadala’s strategy is built on the management of long-term, capital-intensive investments that deliver strong financial returns and tangible social benefits for the Emirate. Mubadala brings together and manages a multi-billion dollar portfolio of local, regional, and international investments. It partners with leading global organizations to operate businesses across a wide range of industry sectors including aerospace, energy and industry, healthcare, information communications and technology, infrastructure and real estate. By doing so, Mubadala accomplishes its mission to expand the economic base of the Emirate and contribute to the growth and diversification of its economy. Introduction Mubadala operation management is providing components to the different sectors and activities, such as airports, universities, industrial businesses, offices and commercial activities. In other side, Mubadala directors are planning to increase profitability of the business, Mubadala is a big company and it makes Mubadala in every thing in life, health, house, transportation and in some cases, it give full Mubadala for people, who are...
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...economic slowdown worldwide and also the accumulation of common stock of the company. Revenue per share has fallen to 30 Euros at the end of 2000 from around 60 Euros at the end of 1999. Original Assumptions | | | Suggested Assumptions | | Annual Output | 250000 | | Annual Output | 250000 | Output Gain/Original Output | 7% | | Output Gain/Original Output | 7% | Price/ton (Pounds Sterling) | 541 | | Price/ton (Pounds Sterling) | 541 | Inflation rate (Prices and costs) | 0% | | Inflation rate (Prices and costs) | 0% | Gross margin(Ex Depr.) | 12.50% | | Gross margin(Ex Depr.) | 12.50% | Old Gross Margin | 11.50% | | Old Gross Margin | 11.50% | Tax Rate | 30% | | Tax Rate | 30% | Investement outlay (in mn) | 9 | | Investement outlay (in mn) | 11 | Discount Rate | 10% | | Discount Rate | 7% | Depreciable rate (yrs) | 15 | | Depreciable rate (yrs) | 15 |...
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...INCYTE : BIOTECH FEST EVENT : BIOTECH BUSINESS PLAN INDIVIDUAL ENTRY : PROPOSAL : An R&D and production based organisation specialized in tissue culture and stem cell technology , skin and epidermal tissue culture and reintegration, cell-tissue-organ banking, cultivation of tissues which are compatible according to individual requirements. The venture will also have a humanitarian aspect of extending help to patients looking for organ replacement, burn victims in need of skin for skin grafting. The venture will have three intertwined multiple wings. An R& D wing to develop and improve on existing techniques, different production wings to execute the techniques, management groups to improve on marketing strategy advertising and spreding awareness. The main goal of this venture is to develop cell and tissue compatible with the recepient’s requirements and serve consumers with better availability of tissue and cell types . Easy availability will greatly increase survival rates, especially in case of burn victims who badly need skin grafting to survive. MARKETING STRATEGY : Purpose: Investments in Niche Biological Products and Services will lead to increases in export revenues of biologically-based products (apart from food products) with returns significantly above commodity levels based on global market-led and valued, research-based...
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...24-Cost of equity capital=(current annual dividend per common share/current market price per common share)+expected dividend growth rate;Payback period=initial investment/annual operating cash flows; Accting rate of return on initial invest= average annual increase in NI/initial investment;Accting rate of return on average investment=average annual increase in NI/Average investment; 23-ROI=invested center income/investment asset base;ROI=investement turnover{[sales/investment center asset base]} x return on sales{[investment center income/sales]}; 22-Actual cost=Actual quantity(AQ)*Actual price(AP);Stnd cost of actual input=actual quantity(AQ)*stnd price(SP);Flexible budget cost=stnd quantity allowed(SQ)*stnd price(SP);Material price variance=AQ(AP-SP);Material quantity variance=SP(AQ-SQ);total flexible budget material variance=Material price variance + Material quantity variance; Actual Cost=Actual hrs(AH)*Actual Rate(AR);Stnd cost of inputs=Actual hrs(AR)*Stnd rate(SR);Flexible budget cost=Stnd hrs allowed(SH)*Stnd rate(SR);labour rate variance=AH(AR-SR);labor efficiency variance=SR(AH-SH);total flexible budget labor variance= labour rate variance + labor efficiency variance; Revenue variance=(actual volume*Actual price)-(budgeted volume*budgeted price);sale price variance=(actual selling price-budgeted selling price)*actual sales volume;sale volume variance=(actual sales volume-budgeted sales volume)*budgeted selling price; net sales volume variance=(actual volume-budgeted...
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...MSC101 Coursework Recomendations – Describe how these suggestions could be implemented. You should identify any barriers to the implementation, such as the culture in place, and propose possible ways to overcome them, in the light of earlier finding. Lean Operations When the customers have to wait between different stages of the operation, this holds up the following stages of the process. Waiting itself causes waste in manufacturing as when the business orders inventory, if the waiting time increases this means less of the product can be manufactured. Less end product means perishable inventory will be wasted and cast off as an expense. At the moment Subway only has one till at the end of the manufacturing process. I recommend that the company should invest in more tills at the payment stage or a self-service checkout. This would improve the process flow and thus create a leaner operation, especially in larger branches or branches in more crowded areas. Location Decision The Subway situated on campus is ideally located as it’s in close proximity to its customers and it also has little competition. However, the Subway in town has a greater amount of competing food chains food chains located nearby therefore loses more custom. To maximise its custom it could offer some deals to entice people to make purchases. Subway could also offer a student discount as many of its main competitors (McDonalds) already offer additional items free of charge if you are a student...
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...CONSOL 1996 Sales Cost of Goods sold Gross Margin Research and Development Expenses Other selling, General & Administrative Expenses Total Operating Expenses Total Operating Income Other Income (Expense) net Interest Expense EBT Tax on EBT Net Income Tax rate $ $ $ $ $ $ $ $ $ $ $ $ 75,947 45,408 30,539 4,654 16,854 21,508 9,031 707 716 9,022 3,158 5,864 35% 1996 Assets Cash Receivables, Inventory and pre-paids Total Current Assets Property & Equipment (net) Investments and Other Assets Total Assets Liabilities and Shareholders' Equity Accounts Payable, Taxes & Accruals Debt Maturing within One Year Total Current Liabilities Long Term Debt Other Liabilities & Deferred Taxes Total Liabilities Total Shareholders Equity Total Liabilities and Shareholders' Equity $ $ $ $ $ $ $ $ $ $ $ $ $ $ 8,137 32,558 40,695 17,407 23,030 81,132 21,043 12,957 34,000 9,872 15,632 59,504 21,628 81,132 Decomposing Profitability (Traditional Approach) Net Income Sales ROE= ROA X FINA 1996 $ $ 5,864 75,947 Assets Shareholder's Equity ROS Assets Turnover ROA FINANCIAL LEVERAGE ROE $ $ 81,132 21,628 7.72% 0.94 7.23% 3.75 27.11% Decomposing Profitability (Alternative Approach) Net Interest Expense after Tax NOPAT Operating Working Capital Net long-term Assets (suppose all long term liabilities are Interest-bearing) Net Debt (suppose all long term liabilities are Interest-bearing) Net Assets Net Capital ROE Operating ROA Gross Profit Margin ROE = NOPA/Equi 1996 $ $ $ $ $ $ $...
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...moving away from independent countries to interconnected counties 2. Status ( where we are + measurements) Wave of globalization after WOII * 50 – 60 domination of the US (“free market wave”) The trade rules are set by the US * Now domination China, Asia US domination is gone, different countries dominate the world The demographics of the world economy has changed How do you measure globalization? * University of zurich * http://globalization.kof.ethz.ch/ The KOF Index of Globalization measures the three main dimensions of globalization: 1. Economic globalization * Actual flows (37%) * Trade (percentage of GDP) * Foreign direct investement, flows (percentage of GDP) * Portfolio investement (percentage of GDP) * Income payments of foreign nationals (percentage of GDP) * Restrictions * Hidden import barriers * Mean tariff rate * Taxes on international trade (percentage of current revenue) 2. Social (39%) * Data on personal contact * Data on information flows 3. political. (25%) * Embassieses 3. Types of globalization 1. Globalization of products 2. Globalization of markets Active vs passive globalization Globalization can also be passive. Companies that do not want to globalize could also be affected by globalization. Companies might lose everything if they do not globalize 4. What are the drivers...
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...Case Study THE ROCCOCO NEW YORK HOTEL 1- Identify the symptoms -Clients’ complaints (low satisfaction rate, service standards don’t meet expectations) -Service standards don’t meet expectations -High managerial turnover -Unqualified employees -Unfavourable financial situation (budget cuts, unachieved revenue goals) -Low occupancy (especially on weekends) -Decline of the repeat customer base (- 10% in the past few years) -Average Daily Rate : wide price differencials for guests -GOP about 2 to 4% points below the average 2- Identify & Analyse the problems : * Service Room service, waiting tome too long Reception : check-in time 6pm (too late) Wake up call forgotten * Personnel Lack of clear explanations of hotel policies, and procedures Poor relation between managers & employees, due to the high management turnover No special personnel training program Inefficient orientation process (Follow Mary Around Approach) No power to react -Managers Management can’t find an agreement on the overall policy Sylvia Jenkins’ management of doing everything by her own (no delegation of duties) Lack of confus from the Front Office Manager - Customers Service is not adequate to high-class positioning of the hotel Service doesn’t meet client’s perceprtions concerning the high-class hotel (especially Asian market) 3- Develop alternative solutions -Do nothing -Implement a well...
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...Summary of Harvard Management Company (2010) By: Satrio Abi and Yanuar Budi Baskoro * Harvard Management Company Introduction: Harvard Management Company is a company which built by Harvard University itself. That means HMC is a wholly owned subsidiary of Harvard University. The company built for managing the financial matter and development of the university. Because the company is wholly owned by Harvard University, the Directors of HMC is directly choosen by President and Fellow of Harvard College. The function of HMC is for managing University’s financing especially endowment. Endowment become the important income for HMC. The main job of HMC is to earn money for the endowment. The management do some investment to get the endowment funds. They have the unique ways to do the investment which is using the Hybrid Theory. This case is focusing on the endowment. * Endowment: Why endowment become so important? Because the endowment fund is used for developing the university. The fund is for establishing new research program, creating more scholarship for student and buy some new art and collection. The fund also for increasing financial aid, reducing tuition fee for students and improve facilities for learning such as hiring new profesional academic intiatives or creating new laboratorium for research. The total value of endowment for 1990 until 2009 is increased continuosly. The total value in 1990 is $4.7 billion, in 1995 is $7 billion, in 2000 is $18.3 billion...
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...Wahe Guru Satnaam Case Report Structure: I. Case background (0.5 mark) • Create a table with the key dates, events, and decisions to be made. |Keys Date |Events |Decisins to be made | |1998 |Closing of seven retail store of creative computers and |Development of Ubid Website | | |selling of factories excess and other reburised goods through| | | |internet | | |6/07/1998 |Selling of 20% of Ubids equity in Intial public Offerings and|Increasing the market awarness about Ubid | | |remaining 80% to be dustributed among the share holders | | |3/12/1998 |Ubid Intial Public Offerings took place |Sold 1.817 million share at $15 | |4/12/1998 |Ubid recognised as publicly traded company |Market Capitalization | |9/12/1998 |Elena Kings first investment as a hedge Manager |To invest the funds in appropriate internet company for | | | ...
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...When evaluating the liquidity of Tootsie and Hershey, both organizations hold fairly strong positions with respect to its ability to meet their current and expected short term, less than one year, obligations. Upon reviewing the current ratio, Tootsie holds a very strong position with over 2 times the current assets versus current liabilities. While the figure is favorable, it does suggest perhaps that their ratio may be too high and that they are not efficiently using its current assets. Though, they have be specifically improving on this aspect since their ratio did decline from 3.9 in 2003 to 2.3 in 2004. Hershey’s current ratio is not nearly as strong as Tootsie’s, coming in at .93 in 2004 down from 1.93 in 2003 but in comparison to the industry average of 1.1 it is still within an acceptable range but has steadily decreased since 2002 when it was 2.3. This may be suggestive of a decision to purposely reduce their liquidity. This leads into the current cash debt coverage ratio analysis, which helps adjust for the current ratio only calculating year end figures, and utilizes the company’s cash provided by opertions to account for the entire year. Tootsie’s current cash debt coverage ratio is more favorable coming in at 1.05 versus Hershey’s ratio of .85. However, both exceed the acceptable level recommended of .40, showing both have adequate liquid positions. In further reviewing the liquidity of both company’s and looking at the accounts receivable turnover ratio, which...
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...QUESTION You are the project manager responsible for the overall construction of a new international airport. Draw a dependency map identifying the major groups of people that are likely to affect the success of this project. Who do you think will be most cooperative? Who do you think will be the least cooperative? Why? As an project manager in building a new international airport, important tasks of the project managers across any work scope or vertical is to ensure that the planned projects get finished well in time within the given budget and the planned time frame. Project management is one of the most high ranking areas of study and plays a meaningful role in organizations across all the scope. The main responsibilities of the project manager contain appropriately and strategically mapping available backup with the project. A project manager need to check and identify the different kinds of risks and also need to identify the danger of the project on time to avoid the delaying in project due date. There are both good and bad side in being as project manager. Some people will help company to finish up the project on time while others may lead to a danger. Likewise is the case of a project manager responsible for the overall construction of a new international airport. The project is huge with lots of stakeholders and unimagined level of complexities.The dependency map drawed in following picture and the were cateorgazid according to most cooperative group and least...
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...Its real GDP growth averaged 6% a year and export grew by about 5% a year during the period 1992-2001. Annual inflation averaged about 4% and investement had risen to 16% of GDP by 2000/01. Compared to the period 1975-2001, these outcomes are much better and the positive trends are expected to continue with increased GDP growth. But still, poverty remains deep and severe in Ethiopia with nearly half of the population living below the poverty line (ECA 2002). Since 1992 the government has focused on reorienting the economy through market reforms. As a result the state intervention has declined. Tariffs have been reduced, quota constraints relaxed, licensing procedures simplified foreign exchange controls eased, compulsory cooperative membership and grian delivery discontinued, and privatization began. As a central plank of its development programme, the government has adopted Agriculture...
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...In this assignment we will briefly outline our investment philosophy based on our current knowledge of markets. Further discussed will be the adopted investment strategies as well as techniques for investing on the JSE. Lastly, a listed description of the companies and types of shares that will be invested in. Investment Philosophy: Since there is a time constraint of six month for this investment challenge, this investment strategy will be based on the short to medium term. This is based on our current, acquired knowledge and experience of the market. As time goes by there is expectation that the philosophy will evolve as more will be learned about the markets. After evaluating the personal and financial characteristics of the overall group, the following principles were agreed upon: * Don’t lose capital * Know the stocks you own * Research, Read and Think thoroughly before buying * Invest in no more than a total of eight companies Given the short period, the underlying goal is to make the highest possible profit in this time by carefully studying the market and following the trends produced. Our underlying philosophies based on goals and time horizon are ; to buy stocks based on trend lines and high trading volume; buying after positive market news; buy stocks that have gone up in the last few months, buy small capital stocks with substantial insider buying. The motto being followed:“ As long as the outcome is income”. INVESTMENT STRATEGIES: In choosing...
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