...Finance theory and Financial strategy Strategic Planning means several things. But it certainly is a part of the decision-making in resource management of the business benefits. Finance theory has significant advantages in understanding the function of capital markets, the valuation of real assets and financial assets. Discounted cash flow analysis(DCF) is a tool that derived from finance theory which has been widely used. However finance theory also has little effect on strategic planning and there are three differences between financial theory and strategic planning: 1. Traditional financial theory and strategic planning might have some differences in language and culture. 2. Discounted cash flow analysis might be used in an incorrect way of strategy therefore it is not acceptable in terms. 3. Discounted cash flow analysis might fail to apply a strategic, even if it is used properly. The most relevant financial concepts in strategic planning is firms’ capital investment decisions and it is also a critical component of “financial theory”. The theory is focused on cash flow and return on the investment. The tool used in investment decisions is net present valued (NPV) which was calculated from present valued minus required investment or which was reduced to discounted cash flow formula because the net present value is a matter of cash flow that will gain in the future. [pic] ...
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...Status 6 Section 1.3 Finance Goal 8 Chapter 2 Personal Finance Status analysis Section 2.1 Family Assets Structure Analysis 9 Section 2.2 Family Financial Ratio Analysis 9 Section 2.3 Family Financial Features Analysis 10 Chapter 3 Financial Plan Section 3.1 The Basic Assumptions of Financial Plan 11 Section 3.2 Financial Advice 11 Plan Summary Financial management is a kind of life attitude, also a good living habits and enjoyable process of life. This financial plan detailedly analyzes the my family and my personal situation, financial information, and financial needs, on this basis, combined with the family members’lives and occupational characteristics, I have made the consumption and cash flow plan, investment and risk management plan, retirement plan, as well as the implementation of tracking and periodic inspection program, in order to timely adjust the plan according to personal circumstances change in the future. Financial Goals: 1. Reasonable arrangement consumption and investment spending, ensure quality of life, at the same time create a safe and stable...
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...| | | |Equivalent Modules Master List |Equivalent courses offered at Aalto University, School Of Economics. | | | | | |Courses offered are subject to changes. | | |Updated information on the courses will be sent to successful candidates by Aalto | | |University, School Of Economics. | | | | | |*The same course can be transferred only as 1 course. | |First Level Modules | | |ACC1006 Accounting Information Systems |International...
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...RE-INVENTING XYZ Financial Analysis Report Finance Team Prepared for: XYZ BPE Project XYZ Ministry of Government Services November, 1994 XYZ BPE Project Financial Analysis Report Table of Contents Executive Summary ...................................................................................................................................................................................1 Financial Model Review ............................................................................................................................................................................3 Financial Baseline Review .........................................................................................................................................................................4 Base Case Financial Analysis ....................................................................................................................................................................4 Significant Costs and Benefits .................................................................................................................................................................5 Forecasted XYZ Operating Expenditures ..............................................................................................................................................14 Forecasted Operating Expenditures Comparison..........................................................................
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...Correlation Analysis and Regression G. Time Series Analysis H. Simulation Analysis I. Technical Analysis III. Economics A. Market Forces of Supply and Demand B. The Firm and Industry Organization C. Measuring National Income and Growth D. Business Cycles E. The Monetary System F. Inflation G. International Trade and Capital Flows H. Currency Exchange Rates I. Monetary and Fiscal Policy J. Economic Growth and Development K. Effects of Government Regulation L. Impact of Economic Factors on Investment Markets IV. Financial Reporting and Analysis A. Financial Reporting System (with an emphasis on IFRS) B. Analysis of Principal Financial Statements C. Financial Reporting Quality D. Analysis of Inventories and Long-Lived Assets E. Analysis of Taxes F. Analysis of Debt G. Analysis of Off-Balance-Sheet Assets and Liabilities H. Analysis of Pensions, Stock Compensation, and Other Employee Benefits I. Analysis of Inter-Corporate Investments J. Analysis of Business Combinations K. Analysis of Global Operations L. Ratio and Financial Analysis V. Corporate Finance A. Corporate Governance B. Capital Investment Decisions C. Business and Financial Risk D. Capital Structure Decisions E. Working Capital Management F. Dividend Policy G. Mergers and Acquisitions and Corporate Restructuring VI. Equity Investments A. Types of Equity Securities and Their Characteristics B. Equity Markets: Characteristics, Institutions, and Benchmarks C. Fundamental Analysis (Sector...
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...OF ACCOUNTANCY FIRST SEMESTER 2014/2015 BKAF 3123 FINANCIAL STATEMENT ANALYSIS CLASS GROUP: B TUTORIAL 1: TOPIC 1 (GROUP NO. 8) Date: 23 Sept. 2014 PREPARED FOR: PROF. MADYA DR AZHAR ABDUL RAHMAN PREPARED BY: CHOY HUI NI 213209 PUN KAH MAN 213305 NURUL ‘AIN AMIRAH BINTI ROSLI 216423 1-15. Identify and discuss at least two areas of financial analysis. Financial analysis is a process to evaluate financial position and performance using financial statements. It consists of three broad areas which are profitability analysis, risk analysis, and analysis of cash flows. The common tools of financial analysis are ratio analysis and cash flow analysis. Profitability analysis is the evaluation of a company’s return on investment. It focuses on a company’s sources and levels of profits and involves identifying and measuring the impact of various profitability drivers. Profitability analysis also evaluates two major sources of profitability that are margins and turnover. Profitability analysis also focuses on reasons for changes in profitability and the sustainability of earnings. Risk analysis is the evaluation of a company’s ability to meet its commitments. Risk analysis involves assessing the solvency and liquidity of a company along with its earnings variability. Analysis of cash flows is the evaluation of how a company is obtaining and deploying its funds. This analysis provides insights into a company’s future financing implications...
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...Integrated Case study AN ANALYSIS OF THE CASE MAN GROUP (A) January 2013 Integrated Case Study: Man Group (A) Contents Page Acknowledgements Executive Summary Chapter 1: Introduction 1 Chapter 2: Case brief 4 Chapter 3: Problem statement and Analysis 8 3.1 Problem statement for Man Group Plc (A) 3.2 Literature review 3.3 Proposed plan of analysis 3.4 Sources of data Chapter 4: Analysis and Findings 22 An assessment of the current position Chapter 5: Proposed solution to Problems 29 5.1 Integrated discussion of the analysis 5.2 Recommendations 5.3 Proposed plan of action 5.4 Limitations of the study, scope for further research Chapter 6: Application to another case 35 6.1 Background 6.2 Description of the comparator company’s situation 6.3 Testing the recommendations on the comparator company Appendices References Word count: 11,980 Acknowledgements My sincere regards and gratitude goes to Almighty God who gave me strength and will to complete my studies successfully. I give my deepest regards to my supervisor Dr. K. Vijay Shenai for his guidance, support and dedication towards all his students. I extend my regards to all my friends who supported me through my studies and were of immense help to me. My warm regards and love for my parents who have always been an inspiration to me and have always supported me throughout my studies, this would...
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...Industry Analysis 3. Financial Analysis - Profitability & Growth Analysis - Cash Flow & Cash Uses - Liquidity & Solvency 4. Outlook & Investment Recommendation 1. COMPANY ANALYSIS Amazon has continually been growing; although the company suffered from a $ -241 M net loss at $ 89 B revenue in 2014. Analysis based on latest audited data FY 2014 by EY. REVENUE & NET INCOME Revenues of $ 89 B with a net loss of $ -241 M in 2014 HISTORY Jeffrey Bezos launched Amazon.com in July 1995 SOURCES OF REVENUE Products (online retail with 79% / $ 70,080 M) and services (= 21% / $ 18,908 M) compuDng services, consumer electronics, digital content & adverDsing services DIVERSIFICATION Constant efforts to diversify by acquiring companies/start-ups and supported by high investments in R&D (e.g. IntegraDng the value chain by creaDng digital content provided online) CORPORATE STRATEGY Amazon at a glance ROE BREAKDOWN ROE -2.35% = NI Assets -241 47,332 -1% X Assets Equity 47,332 10,244 Main focus on strong growth above market average to gain market share rapidly since the company’s foundaDon. Focus on expansion esp. in Europe in 2016 (Example: + 2,500 employees, +3 R&D centers and + 10 warehouses in U.K.) 462.07% ESADE MBA - Class of 2017 - Section A - Group 8 3 1. Company Introduction 2. Industry Analysis 3. Financial Analysis - Profitability & Growth Analysis - Cash...
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...Summary 5 3. Financial Analysis 5 3.1. Profitability 5 3.2. Analysis of Investment Performance 13 3.3. Financial Condition 17 3.4. Dividend Policy 22 4. Conclusion 26 5. References 27 Introduction The analysis supplied within this report has been undertaken from the perspective of a current shareholder in Singapore Airlines (SIA). The report provides critical assessment of the company's overall performance, assessment that would be relevant and meaningful to shareholders. Two major airlines have been selected to provide competitor comparison throughout this report. The two competitor airlines - Japan Airlines Ltd and Qantas Airways - have been selected because they are representative of current commercial passenger aviation competition within SIA's predominant operating region (Asia Pacific region). It should be noted that the 2010 and 2011 reporting periods occurred during a time of major reorganisation for Japan Airlines. In February 2010 Japan Airlines Corporation was de-listed from the Tokyo stock exchange and, after corporate reorganisation proceedings, was re-listed in 2012 as Japan Airlines Co. Ltd. Thus, financial information during this period is unavailable. We have utilised a number of analysis tools to generate a transparent position of the financial position of SIA and measured this position against competitor airlines operating in the same region and flying similar routes. Executive Summary This report provides an analysis of Singapore...
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...Supervision of Dr. M. Sadiqul Islam Professor Department of Finance University of Dhaka Prepared by Robin Kumar Saha BBA ID: 16-039 BBA 16th Batch Department of Finance Faculty of Business Studies University of Dhaka Date of Submission: ............, 2014 Letter of Transmittal .................., 2014 Dr. M. Sadiqul Islam Professor Department of Finance University of Dhaka Subject: Submission of Internship report. Dear Sir, Here is the report on ‘Portfolio Mix and Operational Performance of NBFIs in Bangladesh’ you asked me to conduct. Working on a practical field with theories helped me to build my theories strong and specific. I believe that this report will help me to know about the perfect mix of investment portfolio of NBFIs in Bangladesh and its relation with the operational performance of the firm. During preparing this report I have enforced my best effort. Surely, it enriches our knowledge and promotes our study. Thank you for giving me such an opportunity for working on the topic. I will be honored to provide you any additional information, if necessary. Sincerely yours, (Robin Kumar Saha) BBA ID: 16-039 BBA 16th Batch Acknowledgement I would like to express my sincere gratitude and cordial thanks to some person who helped me In the course of preparing this report. First of all, I want to mention my honorable Supervisor Dr. M. Sadiqul Islam, Professor, Department of Finance, for giving me this opportunity to prepare...
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...Financial Analysis & Management Assignments 1. Discuss the extent to which the legal and professional regulatory framework of accounting ensures that corporate reports provide reliable, relevant, objective, and comparable information to users. 2. Critically evaluate the importance of discounted cash flow techniques in investment decisions. Illustrate your answer with your examples. 3. Discuss the relative importance profitability and liquidity for the survival of a business and explain how the working capital can be managed to minimise the risk of liquidity problems. Shahrzad Parhizgar Student Number: B0229JTJT1112 February 2013 Lecturer:PalanAmbikai Word Count: 2980 Financial Analysis & Management Assignments February 1, 2013 Table of Content LEGAL & PROFESSIONAL REGULATORY FRAMEWORKS ENSURING RELIABLE, RELEVANT, OBJECTIVE, AND COMPARABLE DATA ........................................................................................................................................ 3 INTRODUCTION ....................................................................................................................................................... 3 FINANCIAL INFORMATION USERS ................................................................................................................................ 3 LEGAL AND PROFESSIONAL REGULATORY FRAMEWORKS ................................................................................................. 4 FINANCIAL REPORTS...
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...It is defined as the weighted average rate of return a company must pay to its long-term creditors and shareholders for the use of their funds. When WACC is used as the discount rate, it serves as a screening device in net present value analysis. To calculate WACC we must first find the expected return on share i E(Ri), using the securities market line equation, as follows: E(Ri) = RF + βi (E(RM) - RF) = 3% + 1.2 (13% - 3%) = 15% E(Ri) = expected return on share i E(RM) = expected return on the market = (Market risk premium + the risk free rate of return) = 13% RF = risk-free rate of return = 3% βi = beta of share i =1.2 As such, WACC can be calculated using the following equation: WACC = [D/(D+E)*RD](1-T) + [E/(D+E)*RE] = [40%*6%(1-28%)] + [60%*15%] = 10.728% D = value of total debt E = value of shareholders’ equity RD = cost of debt RE = cost of equity T = corporate tax rate b) NPV, IRR, & Payback Period Assumptions: - Generally speaking, because of difficulties related to identifying costs with particular activities and determining the future benefits, all R&D costs are expensed when incurred. They do not become part of the capitalised investment asset. As such, the €20m OMG has spent on R&D will be excluded from the NPV calculations, since this cost will be incurred regardless of the decision to proceed with the project. - The scenario also implies that regulatory approval...
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...publications Quantitative Methods for Investment Analysis, Analysis of 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...
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...Users of Financial Information Managers Managers require Financial Statements to manage the affairs of the company by assessing its financial performance and position and taking important business decisions. Shareholders Shareholders use Financial Statements to assess the risk and return of their investment in the company and take investment decisions based on their analysis. Investors Prospective Investors need Financial Statements to assess the viability of investing in a company. Investors may predict future dividends based on the profits disclosed in the Financial Statements. Furthermore, risks associated with the investment may be gauged from the Financial Statements. For instance, fluctuating profits indicate higher risk. Therefore, Financial Statements provide a basis for the investment decisions of potential investors. Financial Institutions Financial Institutions (e.g. banks) use Financial Statements to decide whether to grant a loan or credit to a business. Financial institutions assess the financial health of a business to determine the probability of a bad loan. Any decision to lend must be supported by a sufficient asset base and liquidity. Suppliers need Financial Statements to assess the credit worthiness of a business and ascertain whether to supply goods on credit. Suppliers Suppliers need to know if they will be repaid. Terms of credit are set according to the assessment of their customers' financial health. Customers use Financial Statements...
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...Simple Diagnostic Medicine – Financial Analysis Executive Summary Introduction This report provides an analysis and evaluation of the current and prospective profitability, liquidity and financial stability of Simple Diagnostic Medicine (SDM). The purpose of this analysis is to determine if SDM is a suitable investment opportunity. Methods include horizontal and vertical analyses as well as financial ratios examining SDM’s liquidity, solvency and profitability. Other calculations include rates of return on Shareholder’s Equity and Total Assets and Return on Investment. All calculations can be found in the appendices. This report is divided into three sections: the first section presents the financial analysis of SDM’s 1999 and 2000 fiscal year financial statements. The second section is a detailed examination of the financial statements notes and the third section presents our conclusions. Results of the financial statement analysis demonstrate that the company appears to be able to produce significant revenues and profit and is in a relatively good financial position. However, further analysis of the financial statement notes have identified significant areas of concern that weakens SDM’s financial position and profitability, and ultimately forms the bases of our recommendation not to invest in SDM at this time. 1. Financial Statement Analysis Horizontal and Vertical Analysis (Trend Analysis) A complete horizontal analysis for SDM shows significant increases...
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