...Tax Planning for salaried employees DON'T PAY MORE IN ORDER TO SAVE YOUR TAXES. Expert view for tax saving ........................................................................................................................................................ book I About this n India, most salaried people want to increase their personal savings and yearn to achieve financial freedom. But do they REALLY want to save money or are they too busy? Most people are not motivated enough to learn how they can maximize their savings by efficient budgeting of their personal finances. They are unaware of ways to save tax through tax-efficient investment options available in the market. Often, people do not make timely investments and end up paying huge amount of taxes at the end of the year. To make matters worse, lack of updated and timely information makes tax filing a dreaded chore. Salaried people often falsely believe that they do not need any financial planning as their income and expenses are regular. They presume that their savings automatically accumulate in the bank and do not require any intervention to maximize financial gains. But we believe that with some serious effort and knowledge, salaried people can save huge amounts of money and increase their annual income by investing their hard-earned money in tax-efficient schemes. Does tax planning make you nervous? Tax planning is an integral part of personal financial planning. The amount of scattered and incomprehensible...
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...Unit 2 Assignment 2 Task 1 Physical Resources Stock: Tesco need to have stock in order to sell items for a profit, without having any stock it can majorly affect the popularity and the image of the business. The popularity will decrease because Tesco will produce less to sell which will drive customers away to different companies who are capable of giving them what they want. Equipment: Tesco have many resources that are vitally important to the financial development of the company. By having the right resources it allows Tesco to compete with the best in their industry as the equipment used are widely regarded as the industry’s finest. Land and Buildings: With lands and buildings, Tesco are able to keep all stock in a certain location this provides security and safety. Rather than giving to other people who couldn’t care less about the security of the products up for sale. Secondly by having attractive buildings to sale products, it brings in more people as it’s trendy. Customers are more likely to shop at “the biggest superstore in Britain” than the smallest in Britain. Plant and Machinery: By Tesco having plants and machinery it allows them to create their own products, for example a having a pasteurization machine they will be able to make their own milk, yoghurt and cheese. This can bring good income to the company as they can sell them for a cheaper price than leading brands that sell those items. This is a smart business idea because most customers prefer...
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...1 Marketing & Sales Practice The consumer decision journey Consumers are moving outside the purchasing funnel—changing the way they research and buy your products. If your marketing hasn’t changed in response, it should. David Court, Dave Elzinga, Susan Mulder, and Ole Jørgen Vetvik If marketing has one goal, it’s to reach consumers at the moments that most influence their decisions. That’s why consumer electronics companies make sure not only that customers see their televisions in stores but also that those televisions display vivid high-definition pictures. It’s why Amazon.com, a decade ago, began offering targeted product recommendations to consumers already logged in and ready to buy. And it explains P&G’s decision, long ago, to produce radio and then TV programs to reach the audiences most likely to buy its products—hence, the term “soap opera.” David Court is a director in McKinsey’s Dallas office, Dave Elzinga is a principal in the Chicago office, Susie Mulder is a principal in the Boston office, and Ole Jørgen Vetvik is a principal in the Oslo office. Marketing has always sought those moments, or touch points, when consumers are open to influence. For years, touch points have been understood through the metaphor of a “funnel”—consumers start with a number of potential brands in mind (the wide end of the funnel), marketing is then directed at them as they methodically reduce that number and move through the funnel, and at the end they emerge with the one...
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...1. Will you buy a house and lot today or pay in installment of simply rent? Use time value of money. Should I Buy a Home or Just Keep Renting? Kristin Wong Should I Buy a Home or Just Keep Renting? Dear Two Cents, I’m out of debt, and I’m now saving for a down payment on a home. It’s always been my dream to be a homeowner. But lately, I read a lot of arguments against it in favor of renting. How do I know if it’s a good idea for me? Should I buy or keep renting? Sincerely, Hopeful Homeowner Dear HH, For a long time, conventional wisdom seemed to be that you grow up and buy a home because that’s just what you do. But lately, people are realizing that it isn’t always the smartest financial move. Obviously, the housing crisis has a lot to do with that—it’s made people question the standard assumption that homeownership equals financial stability. Five Things I Wish I Had Known Before I Bought a House Homeownership isn’t a good or bad idea on its own. It has everything to do with your own situation. Sometimes, buying a home is the smart thing to do; other times, it really isn’t. Whether or not it’s smart for you will depend on a few different factors. Here’s what you should keep in mind. Don’t Think of a Home as Your Main Investment Should I Buy a Home or Just Keep Renting? The biggest argument for owning a home is that it’s an “investment.” But a lot of people overestimate the return on this investment. People tend to believe that homes are appreciating assets,...
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...wanted to know how to get rich because they were tired of other kids not wanting to play with them because they were 'poor kids'. His educated dad told him to learn how to make money. Since he was still a kid that time, he and his best friend Mike came up with a plan of literally making their own money. His educated dad and suggested to seek for Mike‟s father, his rich dad, help because he, himself, doesn‟t know how to make money. This is the start of their journey to becoming rich. There are 6 lessons that are emphasized in this book. Lesson #1: The Rich Don‟t Work for Money Lesson #2: Why Teach Financial Literacy? Lesson #3: Mind Your Own Business Lesson #4: The History of Taxes and the Power of Corporations Lesson #5: The Rich Invent Money Lesson #6: Work to Learn – Don‟t Work for Money The Rich Don’t Work for Money This chapter shows why the poor and middle class don‟t get rich. It is because they keep on working for money, fear and greed cause ignorance and poverty. We were taught of getting a secure and safe job meaning, working for money. Their fear of having no money at all cause them to stay in their jobs and not wanting to risk what they have. But it is not how the rich play their game. They let money work for them meaning they build their own „systems‟ then let those parts of the system do their work. For example, you employ people to do specific job which make them a part of the system that runs a business. Their employees work for them. Their employees...
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...minutes but you should be able to solve it in 1 minute to be able to solve it in interview setting in 2 minutes. Currently, our client . shrimps restaurant . has a person who shells shrimp manually. The worker needs 15 minutes to set up his work space for shelling shrimps each day. Shelling shrimps is not his main task in the restaurant. It takes him 10 min to shell one pound of shrimps. His wage is $6 per hour. It is possible to buy a machine for $3285 that automatically shells shrimps. Its useful life is 3 years. Setup time for the machine is 30 min each day. The same worker will serve this machine. The machine can process 60 pounds per hour. What is break-even volume of shrimps needed to be processed each day to justify the investment into the machine? Solution: Assume 365 working days. 3 years = 1095 days. Cost of machine per day = 3285/1095 = $3. So, we need to recover $3 per day. Now, (variable) cost of shelling per pound is $1. With the machine, this will be $0.1. So, we will save $0.9 variable cost per pound. But we get additional setup time of 15 min per day, i.e. 1.5$. I.e. we need to recover $3+$1.5 = $4.5. To recover $4.5 with $0.9 cost saving we need to process $4.5/0.9=5 pounds. [2] Practice Case 10: Orthopedics company (BCG - Round 1) I. Case scope provided by interviewer Your client is the CEO of a US Orthopedics company (that manufactures and markets joints/shoulder/hip replacement...
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...Special Report Investing in Emerging Market Currencies A Whole New World of Opportunity Editor: Evaldo Albuquerque World Currency Watch 98 S.E. 6th Avenue, Suite 2 Delray Beach, FL 33483 USA USA Toll Free Tel: (888) 358-8125 Email: http://worldcurrencywatch.com/contact-us Website: www.worldcurrencywatch.com Copyright © 2011 by World Currency Watch. All international and domestic rights reserved. No part of this publication may be reproduced in any form, printed or electronic, without prior written permission from the publisher, World Currency Watch. Notice: This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold and distributed with the understanding that the authors, publisher and sellers are not engaged in rendering legal, accounting or other professional advice or service. If legal or other expert assistance is required, the services of a competent professional advisor should be sought. The information and recommendations contained in this brochure have been compiled from sources considered reliable. Employees, officers, and directors of World Currency Watch do not receive fees or commissions for any recommendations of services or products in this brochure. Investment and other recommendations carry inherent risks. As no investment recommendation can be guaranteed, the Society takes no responsibility for any loss or inconvenience if one chooses to accept them. Any information or statements contained...
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...investment vehicles that are extremely risky such as indeterminate emerging markets or foreign bonds. At the same time, do these investments guarantee the safety that we as investors are comfortable having? In times of uncertainty like today’s market has bred, we must look towards alternative investments that are capable of hedging risk while yielding a more than reasonable return. One alternative real estate investment that has attracted investors for many years in the United States is the commercial parking industry. Commercial parking as an investment is virtually a recession proof investment due to the nature of its industry. Although the industry demand is driven by the occupancy rates of commercial real estate, the need for parking will always exist as long as there are cities that breed jobs and suburbs that house workers. From the perspective of a conservative investor, investments that are safe from risk and show promise for moderate financial growth are generally very appealing. In terms of growth, the output of US parking lot and garage management is forecasted to grow at an annual compounded rate of 2 percent per year between 2012 and 2015 after a surprising growth of 5% in 2011. (First Research, 2012) Although these numbers sound relatively general compared to other industries, the growth rate of the commercial parking industry shows promise for the future. We now will look further into the details of the commercial parking industry and explore many of the essentials that...
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...advice. Laws and practices often vary from state to state and if legal or other expert assistance is required, the services of a professional should be sought. The author and publisher specifically disclaim any liability that is incurred from the use or application of the contents of this book. Although based on a true story, certain events in the book have been fictionalized for educational content and impact. RICH DAD’S GUIDE TO INVESTING. Copyright © 2000 by Robert T. Kiyosaki and Sharon L. Lechter. All rights reserved. No part of this book may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without permission in writing from the publisher, except by a reviewer who may quote brief passages in a review. Published in association with CASHFLOW Technologies, Inc. “CASHFLOW” is the trademark of CASHFLOW Technologies, Inc. For information address Warner Books, 1271 Avenue of the Americas, New York, NY 10020. A Time Warner Company ISBN 0-7595-8139-8 A trade paperback edition of this book was published in 2000 by Warner Books. First eBook edition: February 2001 Visit our Web site at www.iPublish.com ACKNOWLEDGMENTS On April 8, 1997, Rich Dad Poor Dad was formally launched. We printed a thousand copies, thinking that quantity would last us for at least a year. Over a million copies later, and not a dollar spent on formal advertising, the success of Rich Dad Poor Dad and the CASHFLOW Quadrant continues to amaze us...
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...Chapter 01 Introduction 9. The key to organizational architecture is: A. assignment of decision rights, reward structure and evaluation systems B. the methods of rewarding (paying) top management C. a complicated structure of performance evaluation systems D. the initial establishment of golden parachutes for top management 10. The authors argue that successful corporations assign decision rights in ways that: A. effectively link decision-making authority with good information. B. structure moneymaking tools for all employees. C. eliminate the potential for fraud completely. D. rely on monitoring and evaluation for all creativity. 11. The example of Enron shows that: A. selection of people is the key to organizational success or failure. B. large incentives are the keys to getting people moving in a corporation. C. business success is possible in a regulatory environment. D. organizational structure is extremely important in business success. 12. Many economics texts discuss the question "Which markets should a firm enter?" This text focuses on the following question: A. How should the firm price its products? B. Who are the firm's competitors? C. How should the firm be internally structured? D. What mix of inputs – labor and capital – is most efficient? 13. In the textbook, there is an example of a software firm in which the managers provided a financial incentive to get rid of software bugs. The result was that software writers added more...
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...the close linkage between a country’s economic policies and the degree of exchange risk, inflation risk, and interest rate risk that multinational companies and investors face, it is vital in studying and attempting to forecast those risks to understand their causes. Simply put, attempts to forecast exchange rates, inflation rates, or interest rates are helped immensely by a deeper understanding of how those economic parameters are affected by national policies. At the same time, no one can intelligently assess a country’s risk profile without comprehending its economic and political policies and how those policies are likely to affect the country’s prospects for economic growth. I spend some time discussing the nature of property rights and their implications for political risk and economic development. The chapter examines the experiences of Latin American countries and Eastern European countries and addresses the question of what it takes to promote economic growth. A good discussion of property rights and their effects on economic growth can be based on the end-of-chapter problems. This discussion serves to introduce the topic of country risk analysis–the assessment of the potential risks and rewards associated with making investments and doing business in a country. This is a vital task for multinational firms and international banks, who must constantly assess the business environments of the countries they are already operating in as well as the ones they are considering...
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...My Personal Financial Plan I. Current A. Description Currently I am a full time student, and senior, at majoring in Accounting and Finance. I do not have a part time job and do not plan to work until I graduate. I currently have taken out student loans to support myself through the rest of my college education. My parents pay for insurance payments for my car, cover my phone bill, and provide me with medical insurance. I pay for all the rest of my expenses, including rent, food, gas, and all other daily expenses. I currently have no investments and no substantial assets with a value of over $1000. I graduate in May and have signed a contract with KPMG to start work as an auditor in August after I complete the CPA. I will be auditing companies in the telecommunications industry as well as the financial industry. My starting salary is $47,500 a year plus benefits. I use a car that my parents bought me to commute right now but will purchase my own car and become 100% financially independent of them when I start work in the fall. B. Balance Sheet- (Find in Appendices- #1) C. Cash Flows Statement/Income Statement- (Find in Appendices- #2) D. Mission/Vision Statement Mission Statement- To secure financial stability with minimal leverage by age 50. To have the ability to be generous with my money and consistently give a larger percentage away every year while maintaining my standard of living. Vision Statement- When I start my job I plan...
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...WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH SPECIALISATION PROJECT ON ANALYSIS OF INVESTMENT OPTIONS BY MAHIMA SUHALKA PGDM RM 2014 – 2016 (FINANACE SPECIALISATION) ROLL NO. 48 PROJECT FACULTY GUIDE PROF. PRITI SAMANT PROJECT COMPLETION CERTIFICATE This is to certify that project titled “Analysis of Investment Options” is successfully done by Ms. Mahima Suhalka in partial fulfilment of her two years full time course ‘Post Graduation Diploma in Management’ recognized by AICTE through the Prin. L. N. Welingkar Institute of Management Development & Research, Matunga, Mumbai. This project has been completed under my guidance. ___________________________ (Signature of Faculty Guide) Name: ______________________ Date: ______________________ Acknowledgement I take this opportunity to express my sincere gratitude to everyone who supported me throughout the course of this PGDM project. I am thankful for their aspiring guidance, invaluably constructive criticism and honest advice during the project work. I express my warm thanks to Prof. Priti Samant, my project guide who provided me with critical insights on this project and helped me make this a success. I would also like to acknowledge the help of all my friends and respondents who enabled me to conduct this research project. Thank You All!! Table of Contents Chapter 1 Introduction ...
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...Term paper of Ef4461 Topic : Shadow Banking in China Created by Pan Date: 24/4/2015 Abstract: In this paper , I will examine the China’s shadow banking for its potential risks. China, an expansion of risky and complicated financial practices in the world’s second-largest economy , what is the potential risk behind? Introduction: From Bloomberg, the definition of“shadow banking” encompasses risky investment products, lending between individuals, pawnshop and loan-shark operations in emerging markets, as well as more respectable activities like derivatives, money-market funds, securities lending and repurchase agreements at financial institutions These activities are beyond the control regular banking system and regulators. Therefore are exempt from the limited regulations and oversight placed on the traditional banking sector. So it is hard to restrict risky lending for the regulators. In china, savings deposit rates of 3 percent which is lower than the target for inflation, combined with at least 90% of small businesses could not get bank loans which propelled the shadow-banking sector to an estimated $6 trillion. Overview of shadow banking in the world and China There are $75 trillion global shadow banking assets worldwide in 2013 according to Financial Stability Board Report,(Appendix 2). After 2008 crisis, The U.S. and the euro area each accounted for a global shadow banking assets, followed by Britain with a 12 percent share and Japan’s 5 percent share(Appendix3)...
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...is an option - an option to defer or time the investment decision. Pharmaceutical companies, for example, frequently enter into agreements with small biotechnology companies and Universities for research and development. The traditional DCF methodology does not work well in case of such projects because of prolonged development and uncertainty in cash flows. For gaining access to research, the pharmaceutical company makes an up-front payment and a series of progress payments. These contingent payments give the pharmaceutical company the right but not the obligation to make further investments. Such investments are best evaluated as options . The chapter has the following objectives: • Highlight different types of financial options • Bring out an analogy between financial options and real options • Highlight the different types of real options • Introduce valuation of real options Consider a project that has a best outcome of $ 13 m and a worst outcome of $ 9 m. Each of these outcomes are equally likely to occur (probability is 0.5). The expected value of the project, the weighted average of outcomes, is $ 11 m. i.e. (13*0.5 + 9*0.5) = 11 The discounted value at a discount rate of, say, 10 % is 11/1.10 = $ 10 m. If the initial investment is $ 9.5 m, the NPV is $10m -$9.5m = $ 0.50 m. Based on NPV, most managers would go ahead with the project. But NPV does not deal with the management's ability to time the project. Suppose the...
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