...Sports, Health & Fitness Management B Bus (Hons) in Hospitality Management B Bus (Hons) in Public Management B Bus (Hons) in Tourism Management B Bus (Hons) in Islamic Banking & Finance Semester : 1 Commence Date : Week 5 Deadline Date : Week 12 Unit Controller / Examiner : Mohammad A. Labaran Contact Number : 60126086513 ext 8408 E-mail : a.labaran@limkokwing.edu.my Coursework Overview The business world is no longer relying on manual papers and simple calculators to do their daily business transaction. The world is moving towards an advanced era where computers, electronic media and the Internet are going to take over the economy for another few decades. Computer applications are becoming more and more sophisticated in codes yet they can produce results that decision makers can accept to bring benefit and profit to their organizations. This group project contributes 30% out of 60% of the coursework assessment. LUCT Art Shop hired a computer literate sales analyst recently. The president wants this computer literate sales analyst to generate sales summaries for LUCT Art Shop and then present the summaries to the branch manager. You as the computer literate sales analyst have to generate sales summaries by using Microsoft Excel. You have to include all the food and beverage in...
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...develop learners’ ability to evaluate the elements of the macro environment and its relation to an organisation. Select an organisation which you are familiar with. Explain the elements of its macro environment and discuss how these element(s) affect your selected organisation. Recommend improvements that can be made by the organisation in managing the macro environment effectively. Criteria Description on the selected organisation Description on the general macro environment elements Identification and discussion on element(s) of macro environment that affects the selected organisation Recommendations to improve management of the macro environment in the selected organization 1.0 Introduction A macro environment comprises the external factors that can significantly impact its performance and ability to compete in its marketplace. These factors are often out of the control or management ability of a company. Factors typically include economic, demographic, political, and technological forces in business. Business owners and managers often spend copious amount of time and effort to assess the overall economic environment in order to determine the number and strength of each factor. Strategies and performance reviews can help owners and managers use the macro environment factors to create a competitive advantage for their respective companies. For companies with a global foot-print, their exposure to macro environment elements is magnified. The Coca-Cola...
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...Withdrawals are increases in savings, taxes or imports so reducing the circular flow of income and leading to a multiplied contraction of production (output). (1) Investment (I), Capital spending by firms - e.g. on new technology (2) Government (G), Government expenditure - e.g. on the NHS or defense (3) Export (X), e.g. Overseas consumers buying goods and service Leakages: The three leakages -- saving, taxes, and imports. These leakages, like consumption, are how the household sector divides up or uses its income. Most importantly, leakages subtract from the total volume of the basic circular flow. That is, they "leak" income away from the product markets, making less available for factor payments and household income. An economy is in equilibrium when the rate of injections equal to the rate of withdrawals from the circular flow. (1) Savings (S), Put aside for future spending – e.g. saving in banks accounts and other types of deposit (2) Tax (T), Paid to the government in taxation - e.g. income tax and national insurance (3) Import (I),...
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...Finance 202 Alex Low – Course Notes Chapter 10 – bond prices and yields 10.1 Bond Characteristics Bond: A security that obligates the issure to make specific payments to the holder over time. Face value/par value: The payment at which is made at maturity to the bond holder Coupon rate: A bonds annual interest payment per dollar of par value Zero coupon bonds: pays no coupons, sells at discount, provides only payment of par value at maturity. If a bond is purchased between coupon dates the buyer must pay the seller for accrued interest. [Formula] Corporate Bonds: like government bonds except issued by companies. Floating rate bonds: Coupon rates periodically reset according to specified market date. Preference Stock: Although strictly classified as equity, it is often included in fixed income universe. Preference stock often pay a fixed dividend. Other domestic issuers: there are other issuers of bonds. Local governments issue municipal bonds to finance local projects. International bonds: * Foreign bonds: issued by a borrower from a country other than the one in which the bond is sold. These are dominated in the currency of the market country. * Eurobonds: different as denominated in currency (usually of the issuing country) different than that of market. Inflation protected securities: face values change with changes in price level. There is a fixed coupon rate, the amount changes with principle. 10.2 Bond pricing:...
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...TUTORIAL 1 (11 – 15 AUGUST) SOLUTION GUIDE FOR SUBMISSION QUESTION SAVING AND INVESTMENT: (TEXTBOOK REFERENCE: CHAPTER 2) Question 7* This question re-examines Patrick’s decision (Example 2.5, Chapter 2, BOF) to purchase a ride-on lawn mower. Patrick wants to calculate the annual cost to himself of owning the ride-on lawn mower (this is called the user-cost or user-cost of capital). He has the following information: Initial purchase price of lawn mower = $5,000 Nominal interest rate = 6% per annum (Patrick has to borrow the $5,000) Physical rate of depreciation on a lawn mower = 10% per annum Expected sale price of lawn mower at end-of-year = $4,800 (i) Calculate in $s the cost to Patrick of owning the lawn mower for a year. (Hint: You will get a slightly different answer depending on how you treat depreciation. Either way is acceptable) One issue with this question is how to interpret the expected sale price at the end of the year. (I will make sure to be clearer in the future). One way is to assume that it is the market price of the depreciated lawn mower at the end of the year. In this case $4,800 will reflect two things: - The effect of physical depreciation and - Any change in the market price of new lawn mowers (a pure capital gain or loss) Under this assumption User-cost = initial purchase price + interest cost on borrowing – expected sale price User-cost ($) = 5000 + 0.06(5000) – 4800 User-cost ($) = $500 An alternative approach (and the one we will use) is to measure...
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...In order to double or triple Roger’s Chocolates revenues in the next decade, the following strategic actions must be taken: More effectively utilize the company’s Website and the vast reach of the Internet to expand customer base. Current Internet sales represent only four percent of total sales. The Internet can create the largest increase in sales with the least amount of fixed costs all with tremendous contribution margin. The upcoming Olympic Games present an opportunity for Roger’s Chocolates (RC) to showcase itself as a uniquely Canadian treat to the people arriving from all over the world. The reach of the World Wide Web allows RC to stay accessible to the tourists even as they go back home. The only negative to focusing so heavily on Web sales is the high cost of shipping. However, negotiation and partnering with shippers can create discounted shipping rates. Increase the wholesale business of Roger’s Chocolates Margins have remained strong for RC. With these strong margins RC can afford to use two level distribution to further create demand without the costly expense of additional store fronts. While RC’s brand recognition is strong within the Victoria area, by utilizing distribution methods other than direct retail, RC can increase brand awareness outside the local geographic area. The main detractor of increased wholesale sales is the degradation in margin due to added channels of distribution. Nevertheless, increased revenue by expanded distribution...
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...Table of contents Introduction in Macro-economy………………………………………..3. Unemployment………………………………………………………….5. Labor, Land ,Capital…………………………………………………6,7,8. Currency&Inflation……………………………………………………. .9. Hyperinflation…………………………………………………………..10. Demand and Supply…………………………………………………….11. Conclusion………………………………………………………………12 Introduction of Macro-economy It is perhaps mostly for this reason that macroeconomics, the study of these economy-wide phenomena, is so exciting. Macroeconomics is more than just headlines, however; it is a fascinating intellectual adventure. The breadth of issues it covers is evidence enough of its inherent complexity. All the same, we will see that simple economic reasoning can take us a long way. And it is often surprising how well a few simple ideas fit complex situations. Macroeconomics can also be useful. The economic well-being of all consumers, rich or poor, is afected by movements in interest rates, exchange rates, and the rate of inflation. Businesses stand to gain or lose considerable amounts of money when their economic environment changes, regardless of how well they are managed. Being prepared for such changes in fortunes can have considerable value; more generally, it makes us all better citizens able to grasp the complex challenges that our societies face. Macroeconomics is relevant to voters who wonder what their governments are up to, and can also help governments avoid the worst economic crises that have a7icted modern industrial...
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...duty and honor to inform you of the current state of our country’s macro-economy. The proceeding will cover when there is a surplus of imports brought into the U.S. and its impact is has on the U.S. businesses and consumers involved. How government choices regarding tariffs and quotas affect international relations and trade. Foreign exchange rates, and how are they determined. Finally, import policy and procedure. When there is a surplus of imports brought into the United States the local economy suffers because the price of imports are lower and compete with the local brand. For example, the Chinese auto part industry has received heavy subsidies for doing business in the United States; as a result have increased their imports to our country. The heavy surplus has caused a major offset in the price of imports in comparison to domestic parts. As a result, American dollars are still going overseas instead of remaining on domestic soil. The automobile business is on an upswing but still cannot recoup the 400,000 jobs lost as a result of this recession. Instead it only has recouped approximately 60,000 out of the 29.1 percent sales increase. The local economy suffers and takes longer to stabilize because of the amount of money leaving the country (Economic Policy Institute, 2012.) The GDP is the formula for gross domestic product is the total market value of all final goods and services produced in an economy in a one-year period. It is composed of four expenditure categories...
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...Pass-Through Effect of RMB Exchange Rate on China’s Inflation Contents Chapter 2 Literature review 3 2.1 Introduction 3 2.2 Exchange rate pass-through effect 3 2.2.1 Narrowly defined exchange rate pass-through effect 3 2.2.2 Broadly defined exchange rate pass-through effect 4 2.2.3 Complete and incomplete exchange rate pass-through 5 2.3 Relevant theories of exchange rate pass-through 7 2.3.1 Theory of complete exchange rate pass-through 7 2.3.2 Theory of incomplete pass-through 9 2.4 Empirical research on exchange rate pass-through 13 2.5 Summary and reflection 16 Reference 19 Chapter 2 Literature review 2.1 Introduction This chapter reviews the theoretical and empirical researches on exchange rate pass-through effect. Specifically, this chapter firstly introduces the definition of exchange rate pass-through effect, incomplete and complete exchange rate pass-through. Then, this chapter analyses the theory of exchange rate pass-through effect, with focus on the reasons for the common incomplete exchange rate pass-through effect. After theoretical analysis, this chapter reviews and analyses the empirical research on exchange rate pass-through effect. A major part in this section is the review of the perspective and method for analysing exchange rate pass-through effect. Empirical researches generally referred to McCarthy (2000)’s research method, used VAR model, and selected specific area and time window data to empirically analyse exchange rate pass-through...
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...The History of Finance An eyewitness account. Merton H. Miller MERTON H. MILLER is Robert R. McCormick distinguished ser- vice professor emeritus at the University of Chicago (IL 60637). SUMMER 1999 * * * IT IS ILLEGAL TO REPRODUCE THIS ARTICLE IN ANY FORMAT * * *| t five years, the German Finance Association A is not very old as professional societies go, but then neither is the field of finance itself. Finance in its modern form really dates only from the 1950s. In the forty years since then, the field has come to surpass many, perhaps even most, of the more traditional fields of economics in terms of the numbers of students enrolled in finance courses, the numbers of faculty teaching finance courses, and above all in the quantity and quality of their combined schol-arly output. The huge body of scholarly research in finance over the last forty years falls naturally into two main streams. And no, I don’t mean “asset pricing” and “cor-porate finance,” but instead a deeper division that cuts across both. The division I have in mind is the more fundamental one between what I will call the business school approach to finance and the economics department approach. Let me say immediately, however, that my distinction is purely “notional,” not physical — a dis-tinction over...
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...Economic Assessment: Outcome 2 &3 [Pick the date] 1a).What is Gross Domestic Product? GDP stands for Gross Domestic Product. GDP is the monetary value of all goods and services produced in a country within a given time period. Any goods or services produced outside the specified country is not included the country’s GDP. GDP is usually used as an indicator of an economy’s health and it also measure a country’s standard of living. GDP is often calculated quarterly and yearly and is used as a comparison to the previous quarter or year. GDP is composed of overall consumption of the country, government spending, investments and net exports (exports – imports). The formula for calculating is GDP = C + I+ G + (X-M). b).Distinguish between real gross domestic product and nominal gross domestic product. Nominal Gross Domestic Product is a monetary measure of the value of finished goods and services produced for a period of time (quarterly or annually). Nominal GDP does take inflation into consideration. Real Gross Domestic Product calculates the value of economic productivity in a given year accustomed for changes in price. It takes into consideration inflation before giving results. Real GDP is very different from Nominal GDP. This is proven below: 1. Nominal GDP does take inflation or deflation into consideration in its calculation whereas Real GDP is obtained only after including the effect of inflation or deflation. 2. Nominal GDP is calculated at current...
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...Microeconomics and the Laws of Supply and Demand Introduction of Micro and Macro Economics Microeconomics and macroeconomics are used in order to help economists come to conclusions and the economy of a city, state, and country. Microeconomics is the study of the economic decisions and actions of individual people and companies according to the Merriam-Webster dictionary (Merriam-Webster, 2014). This practice is the study of economics on a small scale where macroeconomics will study the whole system (Merriam-Webster, 2014). Principles and Concepts The simulation provided for an in depth experience into an example of supply and demand in the housing market. GoodLife Management is the only apartment owner in the city of Atlantis, because of this GoodLife has a monopoly in this market. This monopoly allows more control over the pricing structure of the apartment living in Atlantis with little outside influence. Even with a monopoly there are a few things that can enhance or diminish the pricing structure of apartment living. An example given was the current state of the economy which did not provide enough income to fill the housing units with the higher rental rates therefore the rates had to be lowered in order maximize profits. Although the state of the economy as a whole is macroeconomic, the cause forces a microeconomic change in the rental rate (University of Phoenix, 2003). The simulation also creates a supply change by building new apartment complexes, which...
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...ABSTRACT The research question of this study is whether the weighted moving average as a technical method and simple trading plan as a fundamental approach can help Indonesian trader and/or investor in gaining consistent profit. The finding of this study will be useful to all the traders because it will show whether the usage of both fundamental and technical analysis will give better result than just using one of them as an analysis method. Upon answering the research question, researchers went through a deductive cross-sectional study by surveying companies in the Indonesia stock exchange to explain the effect of using both technical and fundamental analysis to analyze the price fluctuation of stocks. The data collection method is quantitative data collection by taking the sample of 5 companies from 5 different sector industries and then analyze the data gathered using the proposed analyzing technique: technical and fundamental analysis method. Keywords : Technical analysis, Fundamental analysis, Stock price I. Introduction Like any other countries around the world, Indonesia has a financial market that consists of several investment choices available for public, such as: Stocks, Bonds, Foreign Exchange, Futures, etc. Those investment choices have different level of liquidity, risk and return profile. Stocks are one of the basic types of investment based on the corporate venture. Moreover stocks are popular for Indonesian investors and traders because it gives...
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...Introduction to Finance Return, Risk, and the Security Market Line COMM 298 Outline 1 Portfolios 2 Portfolio Expected Return 3 Portfolio Variance 4 Systematic Risk, Specific Risk, and Diversification 5 Market Portfolio and Measure of Systematic Risk 6 CAPM: From Risk to Return COMM 298 Return, Risk, and the Security Market Line 1 / 54 Outline 1 Portfolios 2 Portfolio Expected Return 3 Portfolio Variance 4 Systematic Risk, Specific Risk, and Diversification 5 Market Portfolio and Measure of Systematic Risk 6 CAPM: From Risk to Return COMM 298 Return, Risk, and the Security Market Line 1 / 54 Portfolios Investors are risk averse. COMM 298 Return, Risk, and the Security Market Line 2 / 54 Portfolios Investors are risk averse. To reduce risk, it is good idea “not to put all your eggs in one basket”. COMM 298 Return, Risk, and the Security Market Line 2 / 54 Portfolios Investors are risk averse. To reduce risk, it is good idea “not to put all your eggs in one basket”. This is achieved by building a portfolio, which is a collection of assets. COMM 298 Return, Risk, and the Security Market Line 2 / 54 Portfolios Investors are risk averse. To reduce risk, it is good idea “not to put all your eggs in one basket”. This is achieved by building a portfolio, which is a collection of assets. The process is called diversification. COMM...
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...infrastructure through Special Purpose Vehicles (SPV). With the changing regulations, however, infrastructure finance so far has been untouched by the commercial banks. but this is the new avenue to gear up their fund based activities. With increased exposure in infrastructure, banks need to be cautious about the credit risks inherent in the projects with long gestation periods. It was found that infrastructure development has a high correlation with the macroeconomic factors like GDP growth rate of the country. Such macroeconomic trends actually influence income generation and timely recovery of the credit extended. So for greater risk sensitivity a model pricing mechanism has been developed to address the macroeconomic changes in the economy for better risk management. It is an obvious fact that risk is inherent in every action. In extending credit to other parties one of the main risks of the Bank is Credit Risk. The possibility of losses associated with diminution in the credit quality of borrowers/counter parties is called credit risk. In a simpler way, credit risk may be defined as the potential threat that a borrower will fail to meet its obligations in accordance with the agreed terms. But for that reason banks cannot stop extending loans to borrowers. For business growth banks are required to find out new avenues to deploy their funds and generate income. Infrastructure sector is one where funding was done previously by government funds and with the assistance...
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