...CHAPTER ONE 1.0 Introduction Background of the study In today’s complex business environment, making investment decisions are among the most important and multifaceted of all management decisions as it represents major commitments of company’s resources and have serious consequences on the profitability and financial stability of a company. It is important to evaluate the proposals rationally with respect to both the economic feasibility of individual projects and the relative net benefits of alternative and mutually exclusive projects. It has inspired many research scholars and is primarily concerned with sizable investments in long-term assets, with long term life. The growing internationalization of business brings stiff competition which requires a proper evaluation and weight age on investment appraisal issues viz. differing project life cycle, impact of inflation, analysis and allowance for risk. Therefore financial managers must consider these issues carefully when making capital budgeting decisions. Inflation is one of the important parameters that govern the financial issues on capital budgeting decisions. Managers evaluate the estimated future returns of competing investment alternatives. Some of the alternatives considered may involve more risk than others. For example, one alternative may fairly assure future cash flows, whereas another may have a chance of yielding higher cash flows...
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...http://hbr.org/2013/03/why-fair-value-is-the-rule/ar/2 For the past two decades, fair value accounting—the practice of measuring assets and liabilities at estimates of their current value—has been on the ascent. This marks a major departure from the centuries-old tradition of keeping books at historical cost. It also has implications across the world of business, because the accounting basis—whether fair value or historical cost—affects investment choices and management decisions, with consequences for aggregate economic activity. The argument for fair value accounting is that it makes accounting information more relevant. However, historical cost accounting is considered more conservative and reliable. Fair value accounting was blamed for some dubious practices in the period leading up to the Wall Street crash of 1929, and was virtually banned by the U.S. Securities and Exchange Commission from the 1930s through the 1970s. The 2008 financial crisis brought it under fire again. Some scholars and practitioners have connected its proliferation in accounting-based performance metrics to the actions of bankers and other managers during the run-up to the crisis. Specifically, as asset prices rose through 2008, the fair value gains on certain securitized assets held by financial institutions were recognized as net income, and thus sometimes used to calculate executive bonuses. And after asset prices began falling, many financial executives blamed fair value markdowns for accelerating...
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..................................................................................................................3 B. Potential Market Analysis ........................................................................................................................4 C. Business Model ...............................................................................................................................................5 1. Foreign Acquisition: ...................................................................................................................................5 2. Going alone: Greenfield Entry:...............................................................................................................6 D. Environmental Issue ...................................................................................................................................7 E. F. Critical Risk Factors .....................................................................................................................................8 Conclusion...
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...Social mobility is an important feature of our society, because the “American Dream” is the cornerstone of our national ethos. However, people at the bottom are finding it increasingly difficult to move up the ladder, because doing so requires an investment of time, effort and resources of which they don’t have. Education has been celebrated as the pathway to become successful and move forward, because it is available to everyone regardless of who they are. Yet, education may still not be a viable way of moving up, because of the poor quality of schools in low-income neighborhoods. Consequently, many argue that in order to tackle educational inequality we must address family SES (socioeconomic status), because it’s the most significant factor in educational attainment. However, I posit that the more effective approach to solving this issue is to pursue policies directed towards to...
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...industry and their particular jurisdiction regardless of whether they are covered in this manual. Standards of fairness and good business practice apply in all circumstances. Violations of laws, rules, regulations and firm policies can result in disciplinary or regulatory sanctions against an associate, as well as fines or responsibility for consequential losses resulting from the violation. References to "associate" or "associates" in this manual include general principals and financial advisors unless otherwise specified. Such references also include individuals working both in the home office and in a branch office. Please do not keep the printed manual as a reference as it will eventually be out-of-date. Commissions and Sales Background FINRA Rule 2121 requires prices and commissions charged to the client be fair and reasonable. Policy The firm and vendors with whom it has dealer agreements has either set commission amounts or a range of commissions that may be acceptably charged to a client. Individuals may not make any arrangements with clients outside the parameters set by the firm in its commission policy. The Field Supervision department may review commissions charged on a transaction as part of the normal supervisory review process to determine if the commissions charged were fair and reasonable based on all relevant factors. These include but are not limited to: Reason for the transaction or repositioning How commissions charged matched intended and actual...
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...landscape of background investigation in hr | OBJECTIVE: To know the need for background investigation in hiring a candidate. Through this paper, we bring out the logic behind the investigations and discuss some cases to corroborate that logic. Laws and rules governing the investigations will also be looked into. Some of the best practices will then be discussed as a practical approach to the issue. DEFINITION: A background check or background investigation is the process of looking up and compiling criminal records, commercial records and financial records of an individual or an organization. REASON: Litigation problems can arise if employees have an incorrect background to them. Every employer has a legal duty to exercise due diligence in hiring and protecting its employees and assets. Estimates are that 30%-40% of job resumes includes some false or inflated facts. Additionally, some Federal and State Laws require background checks be conducted for certain positions. Background checks are often requested by employers on job candidates for employment screening, especially on candidates seeking a position that requires high security or a position of trust, such as in a school, hospital, financial institution, airport, and government. These checks are traditionally administered by a government agency for a nominal fee, but can also be administered by private companies. Background checks can be expensive depending on the information requested. Results of a background check typically...
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...Finance - 2012-2013 Vrije Universiteit Amsterdam - Fac. der Economische Wet. en Bedrijfsk. - M Finance - 2012-2013 I Inhoudsopgave Vak: Institutional Investments and ALM Vak: Valuation and Corporate Governance Vak: Thesis Vak: Asset Pricing Vak: Derivatives and Asset Management Vak: Empirical Finance Vak: Research Project Finance Vak: Financial Markets and Institutions Vak: Private Equity and Behavioral Corporate Finance for Finance Vak: Financial Risk Management (Quantitative Finance) Vak: Real Estate Management Vak: Adv Corporate Finance 4.1 Vak: Valuation and Corporate Governance for Finance Vak: Institutional Investments and ALM for Finance 1 2 3 3 4 6 7 9 10 11 12 13 14 14 Vrije Universiteit Amsterdam - Fac. der Economische Wet. en Bedrijfsk. - M Finance - 2012-2013 II Institutional Investments and ALM Course code Credits Language of tuition Faculty Coordinator Teaching staff Teaching method(s) E_FIN_IIALM () 6.0 English Fac. der Economische Wet. en Bedrijfsk. prof. dr. C.G.E. Boender prof. dr. C.G.E. Boender, prof. dr. T.B.M. Steenkamp Lecture Course objective Achieve advanced knowledge of the investment process of institutional investors, like pension funds and insurers. The main objective is to fully understand the most important theoretical concepts in the institutional investment process and the way these concepts are used in practice. After following the course, you: - Have a good oversight and thorough understanding of the theory of strategic...
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...Financial Products and Market Entities C. Market Infrastructure Institutions D. Conflicts of Interest Quantitative Background to Debt A. The Nature of Debt B. The Price of a Debt Security C. D. Perpetual Debt Discount Instrument Coupon Instrument Price-Yield Relationship of a Debt Security Modified Duration of a Debt Security Debt – Investment Drivers & Approaches A. Interest Risk B. Forward Rates Yield Curve Estimation Shape of Yield Curve Debt Portfolio Structures Credit Risk & Yield Spreads Assessment of Sovereign Debt Servicing Ability Assessment of Private Debt Servicing Ability Credit Rating Structured Obligations Yield Spread & Changes in Credit Risk Financial Statements: Analysis & Projections for Equity A. Financial Statement Analysis Revenue, Cost & Margin Structure Capital Efficiency Dividend Yield Price – Earnings Ratio B. Financial Projections Equity – Valuation & Investment Decisions (Part 1) A. Required Rate of Return on Equity B. Weighted Average Cost of Capital (WACC) C. Fundamental Valuation Approaches D. Dividend Discounting Free Cash Flow Enterprise Value Earnings Multiple Price to Book Value Multiple Margin of Safety Equity – Valuation & Investment Decisions (Part 2) A. Economy & Industry Analysis B. C. Economy Analysis Industry Analysis Top-Down or Bottom-up? Technical Analysis Derivatives A. Background B. Interest Rate Futures C. Credit Default Swaps (CDS) D. Currency Futures E. Currency Options F. Equity Futures...
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...“New trends of Middle East Economy” Middle East Economy Background Main economic sectors & main actors Current trends with alternative investment apart from oil industry” by Panakant Raschasri 5303640691 Middle East Economy Background The economic structure of Middle Eastern nations are different in the sense that while some nations are heavily dependent on export of only oil and oil-related products (such as Saudi Arabia, the UAE and Kuwait), others have a highly diverse economic base (such as Cyprus, Israel, Turkey and Egypt). Industries of the Middle Eastern region include oil and oil-related products, agriculture, cotton, cattle, dairy, textiles, leather products, surgical instruments, defense equipment (guns, ammunition, tanks, submarines, fighter jets, UAVs, and missiles). Banking is also an important sector of the economies, especially in the case of UAE and Bahrain. Main economic sectors & main actors Middle Eastern Oil-Exporting Countries The oil exporters comprise 12 countries: the six countries of the Gulf Cooperation Council (GCC—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates) and Algeria, Iran, Iraq, Libya, Sudan, and Yemen. Together, they account for 65 percent of global oil reserves and 45 percent of natural gas reserves. The countries are mainly exporters of oil, gas, and refined products, with oil and gas contributing about 50 percent to GDP and80 percent to revenue. They are diverse and differ substantially in terms of per...
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...Background The manager’s hot seat addresses a situation between Jason and Gina. Jason is the Director of New Accounts and has been faced with a fall in department-wide investments of nearly 50% in the past two years. Gina is the Assets Manager and is responsible for investments of up to six million dollars. To date for the current year, she has brought in 3.5 million dollars in investments. Statement of the Problem The company is faced with layoffs and downsizing, if Fourth Quarter numbers do no improve, up to half the staff will be laid off and year-end bonuses will be eliminated. Cause of the Problem Jack, the chairmen of the board, wishes to invest 4 million dollars to the company before the shareholders can meet to approve the investment essentially bypassing them. Decision Criteria Utilitarian Model – The greatest good in this case would be to save the jobs of the employees. However, the correct steps for making a deal would be skipped and there could be problems in the future if the deal is found to be illegal or wrong. Moral Rights Model – The moral rights model would be that the employees are affected by the actions of their superiors. The superiors should follow honest business practices. Justice Model – The just thing would be to treat this deal as all other deals are treated by going through the correct pathways. Just because Gina is a friend of Jacks doesn’t mean his deal should get special treatment and pushed forward, Recommendation ...
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... The requested capital investment for Super was $200,000, and its production would take place after modifying an existing building, where Jell-O was manufactured and by using available capacity of Jell-O agglomerator. Cost for the key machine was not included in the project. On the basis of test market experience, once the product is introduced, it was expected to capture a 10% of dessert market share, 80% of which would come from growth in total dessert market share and 20% of which would come from erosion of Jell-O sales. There are basically four categories of capital investment project proposals at General Foods corporation: (1) safety and convenience; (2) quality; (3) increase profit; and other. Super project was considered into third category, as a profit-increasing project. Crosby Sanberg, a manager of financial analysis at General Food Corporation calculated return on investment in three different ways of on Super Project. The first technique was Incremental basis, which projected Super project would have an attractive return of 63% in 7 years, which in-turn could directly identify with the decision to product Super. The second technique was Facilities-Used Basis, which consider after using half of an existing agglomerator and two-thirds of an existing building, pre-existing Jell-O equipment. It projected Super project would have a return of 34%. The third technique was Fully Allocated Basis, which accounted by increasing the cost and investment base developed in second...
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...Memorandum to the File Date: August 1, 20XX From: Carie Ford Re: Summarize the tax issue/purpose of the memo. Background Provide a concise yet complete overview of facts/background. Issue State the issue(s) in question format. Authoritative Guidance List all authoritative guidance used to form conclusion and analysis. Refer to p. 718 in your tax textbook for citation reference guidance. Analysis Discuss each issue separately. Describe the logical, defendable, legal alternatives to each issue/problem. Provide support and detail for your reasoning. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx...
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...Issues paper ISLAMIC FINANCIAL SERVICES BOARD and INTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS ISSUES IN REGULATION AND SUPERVISION OF TAKAFUL (ISLAMIC INSURANCE) August 2006 THE JOINT WORKING GROUP: Islamic Financial Services Board International Association of Insurance Supervisors Members • Professor Rifaat Abdel Karim Ahmed • Islamic Financial Services Board • Dr Simon Archer • Islamic Financial Services Board • Abdullah Haron • Islamic Financial Services Board • Arup Chatterjee • International Supervisors • Abdul Rahman Tolefat • Bahrain Monetary Authority • Peter Casey • Dubai Financial Services Authority • Kholoud Saqqaf • Insurance Commission of Jordan • Dana Janbulat • Insurance Commission of Jordan • M'unis Haddadin • Insurance Commission of Jordan • Zabidi Othman • Central Bank of Malaysia • Wan Malawati Wan Mansor • Central Bank of Malaysia • Wan Mohd Nazri Wan Osman • Central Bank of Malaysia • Fahad A. Al Zomea • Saudi Arabia Monetary Authority IFSB & IAIS – Issues in Regulation and Supervision of Takaful (Islamic Insurance) Association of Insurance Page 2 of 16 Issues in Regulation and Supervision of Takaful (Islamic Insurance) Table of contents Background ..............................................................................................................................4 SECTION 1 – BACKGROUND TO TAKAFUL .........................................................................4 Islamic...
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...Standard, Socony, and Vacuum Oil. After 100 years in business the company went through yet another name change to Mobil Oil Corporation. In 1972 Jersey Standard becomes Exxon Corporation. In November 30, 1999, Exxon and Mobil join together to become Exxon Mobil Corporation. The merger increased their ability to be a more effective global competitor in the volatile economy and in an industry that is very competitive. In 2005 both Exxon Mobil and Qatar Petroleum with joint venture partners expanded the development of the giant North Field offshore Qatar, which is the largest non associated gas field in the world. Increased global energy demands and managing the risk of green house gases are the two critical challenges for them. They address these issues by applying science and innovation to find better, safer, and cleaner...
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...MacLaughlin, Jake Baker 1) In general, what attributes make a company a good candidate for an IPO? - Good Business History and Background: Investors will forecast future earnings off of the historical background of the company. It will also show that your company is stable. Many investors will be looking to hold the stock long-term, so if investors trust the background of the company, more people will be willing to invest. - Experienced Management: Good management can ensure that the company will make decisions that are best for the company and to ensure profitability. Also, good management is the basis for growth and performance. Strong management will creates a good public image. - Profitability: A profitable company tells investors that they will actually get a return on their investment. It also shows potential for growth, which can lead to dividends for investors. - Growing Industry: A company can’t grow in a shrinking industry. In a growing industry, the company has better potential to capture a larger portion of market share. - Growing Company: More is better. Investors will reach their maximum utility with a growing company. The objective is to maximize shareholder wealth. A growing company has the best chance of reaching this goal. 2) How does TRX compare on these dimensions? - Good Business History and Background: This company started up in 1999. This case has 6 years of data. - Experienced Management: The management team made a good decision...
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