...Investment Basics Stephanie M. Council Professor Bartorillo Investments – FIN 320 July 22, 2011 We will discuss the investment process, describe and evaluate four investments for consideration in any investment portfolio. These four investment considerations are bonds (corporate and municipal), stocks (commom and preferred), mutual funds and derivatives. We will analye the risk and return issues associated with each for a portfolio. Finally, we will provide rationale for each of the portfolio selections. The investment process is an investor’s portfolio of his or her assets. We know assets are “anything tanible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value” (“Assets,”). As the portfolio is established, it starts to update once the investor begins to sell securities, buy securities and get additional funds to increase the size of its portfolio. However, investors do sell securities to decrease their portfolio. There are a few key points an investor should note when making investments. One should always create a portfolio based on asset classes which have long term up trends. Secondly, an investor should not buy investments at random and believing for the best. Thirdly, the investor should always monitor the funds. This can be done quarterly to optimize returns on their holdings, returns rankings and etc… Finally, but nottheless, an investor should utilize monitioring organizations...
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...Masters Programmes ------------------------------------------------- Assignment Cover Sheet Question: [Analyze a strategic issue facing Samsung Electronics Company] “This is to certify that the work I am submitting is my own. All external references and sources are clearly acknowledged and identified within the contents. I am aware of the University of Warwick regulation concerning plagiarism and collusion. No substantial part(s) of the work submitted here has also been submitted by me in other assessments for accredited courses of study, and I acknowledge that if this has been done an appropriate reduction in the mark I might otherwise have received will be made.” Introduction Samsung Electronics Company (SEC), Ltd founded in 1969 is a South Korean multinational electronics company and is the flagship subsidiary of the Samsung Group, accounting for 70% of the group's revenue. Since the introduction of monochrome television sets in 1971, it has grown on average 38 percent a year, broadening its product range from simple consumer electronics and home appliances to advanced information and communication equipment, computers and peripherals and semiconductors (Renee, 2007) . It is currently the world's largest manufacturer of mobile and smart phones, LCD Panels and televisions and displaced Apple Inc. as the largest technology company in 2011 (Renee, 2007). Industry boundary Samsung electronics has the following divisions * Consumer electronics (CE)...
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...Introduction AT&T is one of the largest telecommunications carriers in the United States it is head quartered in downtown Dallas. As of 2012 it is the 7th largest company by total revenue, and 5th non-oil company behind Apple, Wal-Mart, GE and Bank of America. AT&T started as South Western Bell one of the seven Regional Bell Operating Companies created 1983 before they were ordered to break up due to the United States v. AT&T Anitrust lawsuit. Southwestern Bell changed there to SBC which also almost caused me my job because I was not expecting a call from “SBC” but rather South Western Bell. I remember answering the phone and asking the young lady to please hold while I was trying to figure out who she was with. Fast forward twelve years later and we have gone through several mergers and acquisitions and we currently have over 200,000 employees around the world. For many years AT&T has been ahead of their competitors. The innovation of their products and services assisted them in increasing their market share within the industry. Over the last couple of years, the competition has introduced several products and services that have challenged AT&T’s market share. And as we look towards the future we willingly accept that there is always room for improvement. Problem Statement We are focused on being the number one carrier in the United States and as we expand our 4g network we have discovered an issue in our quality measurements. We do not have an automated...
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...Deposit Management Practices Of Bank Deposit Mangement: Deposit management consists of acquisitions of stable and low cost deposit for the banking business. Banks are not only dealers in money but also manufacturers of credit money. It is in the sense of manufacturing that the concept of credit creation is used. Similarly deposit creation is an important function of commercial banks. Without deposit they cannot lend at all. When the banks receive cash from customers, deposit are created . These deposits may be current, saving or fixed. Depositors choose the types on the basis of their needs and requirements like; safety, convenience or earning. People deposit their income in commercial banks because bank vault are safer that home coffers. The bank attracts deposits from the people either by means of offering interests or facilities. Business people want seek for facilities rather than interest. Non business people generally select deposits having interests. The type and characteristics of deposits are constantly changing as banks are offering new product to attract new consumers. unlike the past, people are nowadays more aware and have confidence on banks on such the banking habit growing gradually. Deposit management involves the collection of adequate bank deposits required for the efficient and effective operation of banking business. Deposit management doesn’t merely concern with the high volume but also with low cost as well and its stability so as to produce competitive...
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...1. What is financial intermediation? a. The process by which bank lends money to households. b. The process by which bank accept deposits from customers c. The process by which a bank borrows money from one source to give it to another individual or company that needs funding, investment or resources d. The process by which a bank trades in securities market 2. What is the core banking services? a. Collecting deposits; making loans; arranging payments b. Collecting deposits; making loans; financing infrastructure projects c. Making loans; arranging payments d. Collecting deposits;; arranging payments 3. What is money creation? a. The process by which a bank transforms the assets of depositors into a new asset with very different characteristics b. The process by which additional assets are created through effectively loaning a deposit multiple times through fractional reserve banking. c. The process by which a bank lends to Central Bank. d. The process by which a bank borrows from Central Bank. 4. What is the moral hazard? a. Moral hazard arises whenever, as a result of entering into a contract, the incentives of the two parties change, such that the riskiness of the contract is altered. b. Moral hazard arises whenever, as a result of entering into a contract, the incentives of the two parties do not change c. Moral hazard arises whenever, as the average quality of a pool of borrowers decreases...
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...RESEARCH DESIGN OBJECTIVES OF THE STUDY ➢ Understanding credit risk management conceptually. ➢ Studying the various private banks practicing credit risk management. ➢ To make a depth study of the method in which the private banks in India go about credit risk management. ➢ Studying the difference between retail credit risk management and corporate credit risk management practiced by private banks. ➢ Understanding the importance of the credit risk management and how useful it is to the private banks and how it benefits them in various ways. PURPOSE OF THE STUDY The main reason to select “CREDIT RISK MANAGEMENT” as a topic is to understand the importance of the Role played by credit risk management department and/or practices when the bank lends money to its borrowers. In this project, I have tried to understand the difference between corporate credit risk management and retail credit risk management. The analysis and interviews with industry personnel has given me a practical and real life exposure to the banking scenario as far as the credit risk management goes, whereby I could correlate between the theory and their practical application. RESEARCH METHODOLOGY DATA COLLECTION The data collection i.e. the raw material input for the project has been collected keeping in mind the objectives of the project and accordingly relevant...
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...the business. 1.2 The Financing Mr. Doe is seeking to raise $1,000,000 from an investor. The terms, dividend payouts, and aspects of the deal are to be determined at negotiation. This business plan assumes that an investor will receive 50% of the Company’s stock, a regular stream of dividends, and a seat on the board of directors. The financing will be used for the following: • Financing to acquire the initial Apartment Complex property. • Financing for the first six months of operation. • Capital to purchase a company vehicle. Mr. Doe will contribute $10,000 to the venture. 1.3 Mission Statement Mr. Doe’s mission is to develop Apartment Complex, Inc. into a premier regional real estate investment firm that will acquire apartment complexes and rent properties profitably. 1.4 Mangement Team The Company was founded by John Doe. Mr. Doe has more than 10 years of...
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...ADITYA KUMAR DASH BTM 2nd Stage Bangalore, Karnataka India – 560076 adi.k.dash@gmail.com +91‐9620936796 Summary of Skills Business Analyst with People Management Skills, Customer Relationship Management and expertise in Software project development and management in Agile methodology • Over 5 years of experience in gathering requirements for software application development projects • Eliciting requirements using interviews, document analysis, requirements workshops, site visits, product related descriptions, use cases, scenarios, business analysis, and task & workflow analysis. • Delivering IT Solutions involving requirement analysis and management, project scope definition, implementation and testing of applications built for Windows, Mobile devices and Web in internet/intranet infrastructure • Critically evaluate information gathered from multiple sources, reconcile conflicts, decompose high-level information into details, abstract up from low-level information to a general understanding, and distinguish user needs from the required system • Proficient in documenting business requirements in Agile methodology, creating Functional specifications, User Interface design, Use Case Modeling, Process flows and reviewing Test Case document • Expertise in Software Development Lifecycle (SDLC) management and Business to Business (B2B) integration concepts • Proficient at Scrum model & processes and Agile methodologies...
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...1.1 Shareholder analysis Group Limited (TGR) is the leader of producing Atlantic salmon in Australia. TGR was founded in 1986 and become public company listed on the ASX in 2003(Tassal 2014). In 2012, TGR formed partnership with the World Wide Fund and Nature Australia (WWF). TGR’s efforts in food safety, social welfare, animal welfare and, environmental and traceability aspects of the operations has earned itself the first company to achieve Best Aquaculture Practices (BAP) certification at farm level from Global Aquaculture Alliance (Sustainable Aquaculture 2014). TGR is making effort to excel in its management without ignoring its principles regarding quality, community and the environment. While producing superior salmon, TGR still prioritize customer needs by assuring them the food are safe for consumption. Hatching, farming processing , sales and marketing are the main business activities of TGR in Tasmanian Atlantic Salmon. TGR has made a in-depth research regarding the ethical aspects of fish farming, involving the feasible effects of antibiotics on consumers. Besides that, TGR is the retailer and wholesaler who offers different range of Atlantic salmon to the market. Their salmon comes in fresh, smoked, frozen, canned, hot smoked and small good ranges. These products are bought by Woolworth and Coles supermarket. According to the TGR's annual report 2013, the chairman and chief executive officer of the TGR had delivered the message to shareholders regarding the...
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...Mary Kay India: The Hair Care Product Line Opportunity http://www.marykay.com/ 1. Synopsis : Based on a request received from GM -MK- India, Sheryl Adkins Green, vice president –Brand Development at Mary Kay Cosmetics Inc. is evaluating the expansion of MKC –Indian operation portfolio through a customized Hair Care Product line which will include the soap launched recently in 2008 and which outcome cannot be considered relevant for a decision due to the short launching time span. Previous introduction of hair care line in USA and Europe respectively In 1970 and 1990, proven to be unsuccessful, mainly due to MKC little experience in the Hair Care line being not part of its core business which encompasses: * Skin care * Makeup * SPA * body care * Sun care Products * Lip and eye care Prior to make a decision Sheryl-Adkins called for a staff meeting to debate two issues: a. Market Opportunity: Whether to launch introduce hair care products in India? b. Which elements of MKC’s culture; philosophy; distribution practices might be transferable? c. What would be the launching plan? 1. Hair Care Product line components and characteristics 2. Packaging Characteristics and sizes 3. When to launch the line 4. Mar-com Plan 5. Training of the Independent Sales Force 2. Situation Analysis 3.1 Mary Kay Inc. * Founded in 1963 headquartered in Dallas –Texas * Vision The vision of...
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...through three layers of management system. The Board of Directors performs the responsibility of the main risk oversight, the Executive Committee monitors risk and the Audit Committee oversees all the activities of banking operations. In the context of opinions regarding use of risk management techniques, it is found that internal rating system and risk adjusted rate of return on capital are relatively more important techniques used by banks. Key Words: Risk, Risk Management, Risk Management Techniques, Banking. 1. INTRODUCTION In the past two decades, the banking industry has evolved from a financial intermediation between depositors and borrowers, to a “one-stop” centre for a range of financial services like insurance, investments and mutual funds. The advancement of information and communicative technology (ICT) is given credit for the evolution of banking services, in particular, online banking. The development in ICT has not only provided vast banking opportunities...
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...Introduction and Overview Business complexity and increase in uncertainty amplifies the conflict between documented means of managing risk and current practices. While companies had been conventionally addressing issues of foreign exchange, taxation, interest rate and prices, the widespread adaptation of internet in sourcing customers and online facilities are creating a new wave of corporate risks. Do current corporate risk practices prove wrong the established academic theories? Large Corporation such as Lehman Brothers, Northern Rock, Royal Bank of Scotland and many organisations had fallen to receivership all across the world showing the evident of the necessity of risk management strategy and a business continuity strategy. Some multi national organisations had also been exposed to risks such as Sony with unidentified battery issue before release of product in 2006, Dell supply chain problem in 2007, fiasco caused by software failure in 2008 to British Airways etc. This is because they had failed to take into account risks that could be created by people, resources and occurrence that is outside the normal business practises. Risk management is now an essential element of organisation’s strategy by putting in place a process to handle risk in priority of the likelihood of occurrence. The managerial decisions necessary for smooth running of organisation cannot be taken without element of risk. As a cornerstone of business practice the question management need to be...
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...Aswath Damodaran INVESTMENT VALUATION: SECOND EDITION Chapter 1: Introduction to Valuation Chapter 2: Approaches to Valuation Chapter 3: Understanding Financial Statements Chapter 4: The Basics of Risk Chapter 5: Option Pricing Theory and Models Chapter 6: Market Efficiency: Theory and Models Chapter 7: Riskless Rates and Risk Premiums Chapter 8: Estimating Risk Parameters and Costs of Financing Chapter 9: Measuring Earnings Chapter 10: From Earnings to Cash Flows Chapter 11: Estimating Growth Chapter 12: Closure in Valuation: Estimating Terminal Value Chapter 13: Dividend Discount Models Chapter 14: Free Cashflow to Equity Models Chapter 15: Firm Valuation: Cost of Capital and APV Approaches Chapter 16: Estimating Equity Value Per Share Chapter 17: Fundamental Principles of Relative Valuation Chapter 18: Earnings Multiples Chapter 19: Book Value Multiples Chapter 20: Revenue and Sector-Specific Multiples 3 16 37 81 121 152 211 246 311 341 373 425 450 487 533 593 637 659 718 760 Chapter 21: Valuing Financial Service Firms Chapter 22: Valuing Firms with Negative Earnings Chapter 23: Valuing Young and Start-up Firms Chapter 24: Valuing Private Firms Chapter 25: Acquisitions and Takeovers Chapter 26: Valuing Real Estate Chapter 27: Valuing Other Assets Chapter 28: The Option to Delay and Valuation Implications Chapter 29: The Option to Expand and Abandon: Valuation Implications Chapter 30: Valuing Equity in Distressed Firms Chapter 31: Value Enhancement: A Discounted Cashflow...
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...CPCU eJournal Published by the CPCU Society August 2011 Underwriting—A Profit Engine or Lost Opportunity? Current Challenges and Potential Solutions to an Evolving Underwriting Environment by G. Clinton Harris, CPCU, ARe, ARP, Ronald C. Licata, CPCU, AIM, Raymond S. Nichols, CPCU, FCAS, FCA, MAAA, CIDM, ARe, William F. O’Connor, Jr., CPCU, AIM, ARM, Lisa Poirier, CPCU, Thomas E. Quinn, CPCU, ARM and Gregory Riley, CPCU Introduction unning an insurance company is like managing a supermarket, where the price of the product is determined by the checkout clerk.” This decades old quote was meant to accurately describe a process in which subjectivity and perceptions of individual underwriters determined prices. This highlights the historical concern for fairness, accuracy, and consistency in underwriting. When we look at the underwriter’s role today we find two startling realities: (1) the underwriting function, however described and accomplished, is pivotal for any insurer and (2) the industry does not appear to be investing adequately in the development of professional underwriters for the skills being demanded. This is most notable with the impending loss of senior talent to retirement and the increasing availability of electronic tools to support the function. The research in this article examines the changes in the underwriting process. The professional underwriter still brings accuracy, fairness, and a consistent approach to profit to the table for the future oriented...
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...development, RTD inEurope) is a specific group of activities within a business. The activities that are classified as R&D differ from company to company, but there are two primary models. In one model, the primary function of an R&D group is to develop new products; in the other model, the primary function of an R&D group is to discover and create new knowledge about scientific and technological topics for the purpose of uncovering and enabling development of valuable new products, processes, and services. Under both models, R&D differs from the vast majority of a company's activities which are intended to yield nearly immediate profit or immediate improvements in operations and involve little uncertainty as to the return on investment (ROI). The first model of R&D is generally staffed by engineers while the second model may be staffed with industrial scientists. R&D activities are carried out by corporate (businesses) or governmental entities. R&D is a form of applied research. BACKGROUND New product design and development is more often than not a crucial factor in the survival of a company. In an industry that is changing fast, firms must continually revise their design and range of products. This is necessary due to continuous technology change and development as well as other competitors and the changing preference of customers. Without an R&D program, a firm must rely on strategic alliances, acquisitions, and networks to tap into the innovations...
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