...Ex-MBA 2010-2013 Batch II Semester -3 Subject : Capital and Money Markets CMM Assignment-2: Choose 20 manufacturing company which are traded on stock exchange on all working days and 5 years of working and should have average trading volume more than 50,000 with share price range should be 100 to 250.Evaluate only profitability ratios of these company and co-relate with return on capital employed and market capitalization. Executive Summary Following 20 manufacturing companies are considered for the assignment. |Sr. |Company |Industry | Trading |Share | |No. |Name | |Volume |Price( Rs.) | |1 |Tata Motors |Auto |2140263 |170.3 | |2 |Crompton Greaves |Electric Equipment |265566 |123.15 | |3 |ITC |Cigarettes |304792 |202.15 | |4 |Amar Remedies |Personal Care |199938 |123.25 | |5 |Astral Polytechnik...
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...discussion explaining how to get the answer correct next time 1 I really appreciated the prompt feedback. It’s like having a tutor there to explain things to you, whereas you can’t always make use of consultation hours. Angela, University of Sydney How to register Go to www.perdisco.com/students Click ‘Create a new account’ Follow the instructions on screen 1. The e-workbook has brought up my grades from a Pass to a Distinction… with this e-workbook I have a greater ability to excel in my studies. Adam, ACU 2. What do other students think of their e-workbook? 3. From Last Week Lecture (we discussed): What is a financial system and role of money? What are financial instruments (assets)? What is a financial market? Primary and secondary markets Wholesale and retail markets Money and capital markets Categories of Financial Institutions Financial Model Flow of goods and...
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...value of money: The underlying principle is that a dollar worth today is worth more than a dollar in the future simply because, we can invest that dollar and earn a return on it. When financial managers make key operating decisions, it is certainly important for them to worry about the time value of money simply to understand the worth of a financial decision made by them. It is actually a key metric for the discounted cash-flows model which allows organizations to declare the value of an investment today, based on the expected return from the investment in the future. Importance: The fact of the matter is that capital budgeting is directly linked to time value of money, by that I mean, any investment that the firm intends to make has strategic objectives behind it. All of the investments, not necessarily bring in positive cash-flow in year 0 or year 1. It may be years before the project begins yielding a positive cash-flow. To understand the business perspective of whether or not an investment is worth upfront and whether the cash-flows composes the appropriate vision and direction of the organization. Time value of money is also directly linked to the discount rate, the discount rate is the rate used to convert the future money into present value that is to determine what the value of $1 at the given time in the future is worth today. There are multiple factors that can affect the discount rate some of them are; the interest rate at which a company can borrow money, investment...
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...difference between capital and revenue items of expenditure and income Capital income Capital income is money coming into the business, but not necessarily from direct sales of products or services. Capital income is money that comes into the business but not as revenue from what the businesses main frame of making profit is. Zara’s capital income would be any loans that the business receives. Another form of capital income Zara receives is money that comes into the business from sales of shares. Sole trader’s capital investments is also another form of capital income. Revenue income Revenue income is money coming into the business from sales of goods or services. This is the form of revenue that the businesses main purpose for setting up is to make profit in this form of revenue income. Revenue income could also be from receiving payments loans given out with interest in return or money coming in from rent payments that come into the business. Zara’s main form of revenue income is from the sales of their clothing goods both online and in store. Difference between capital and revenue income The difference between capital and revenue income is that capital income is made from money that comes into the business but not from the direct method that the businesses main purpose of making profit is. For example a business’s main objective may be to make as many sales from a product as possible, the money that they receive from this is revenue income because it is money from sales of...
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...business prior to investing any money with the purchase of stock. The discussion below will cover the a couple of main financials to consider, such as, keeping paid-in capital separate from earned capital, In addition, an analysis of whether paid-in capital or earned capital is more important to an investor; and from an investor’s perspective, whether basic or diluted earnings per share is most important. The importance of keeping paid-in capital separate from earned capital The funding provided to a company from the sale of "capital stock" is known as paid-in capital. The money that the company earns as a result of generating business is known as earned capital. Keeping these two forms of capital separate is important because they represent two different sources of money. Paid-in capital is new money for a company to use to increase their earned capital. By combining the two it would make it very difficult to determine what the actual earned capital would be. Paid-in or Earned Capital? The money that a company earns from sales, earned capital, is more important to an investor than paid-in capital or the money raised from the sale of stock. Also, the way a company handles both paid-in capital and earned capital is important to investors. If the owners do not have very much of their own money invested in the business they may be less concerned with the success of the business. Companies in which the owners have invested little money are in danger of either not making...
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...also familiar with share capital, and its various kinds. Share capital is one of the main sources of finance for a company. In this lesson we shall study the procedure of issuing shares for raising capital and its accounting treatment in the books of the company. OBJECTIVES After going through this lesson you will be able to explain the procedure of isssuing shares; explain that the share money may be called in lump sum or in two or more instalments; state that shares may be issued at par, at premium, and at discount; make journal entries to record the isssue of shares; explain the terms calls in arrears and calls in advance. 23.1 PROCEDURE OF ISSUE OF SHARES Face value of a share is the par value of the share. It is also known as the Nominal value or denomination of a share. To issue shares a company follows a definite procedure which is controlled and regulated by the Companies Act and Securities Exchange Board of India (SEBI). There are different ways of issue of shares which may be: (A) For consideration other than cash (B) For cash (A) Issue of shares for consideration other than cash Sometimes shares are issued to the promotors of the company in lieu of the services provided by them during the incorporation of the 255 ACCOUNTANCY MODULE - 5 Accounting for Shares and Debentures Issue of Shares compnay. The issue price of these shares is normally debited to ‘Goodwill A/c’ and journal entry is made as follows : Goodwill A/c To Share Capital A/c Dr Notes In...
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...Executive Summary Over the last few years, the capital market of Bangladesh has witnessed a haughty growth which is not in line of development in the real sector of the economy. Although, the Securities and Exchange Commission (SEC) of Bangladesh has tried to correct the irregular behavior observed in the market, very often it is argued that lack of proper and firm decisions from the regulator’s side has contributed to make the market more unstable rather than to reduce it. The paper attempts to identify the inter relationship between the capital market and money market. The Capital Market of Bangladesh is passing tough times since December 2010 as high volatility is eroding the capital of Thousands of Investors that might turn into social instability. This fall is caused by many factors that I tried to identify and tried to link up between causal factors of market crash and regulatory failure and also tried to find out the inter-relationship between capital market and money market. Primary issue related problems was faulty listing methods and IPO overpricing, few numbers of new listings, revaluating assets before company listing, high premium in issuance of right share/Repeat IPO etc. while secondary market related problems was stock splits and stock price manipulations through block trading, circular trading and insider trading. Investor’s greed and irrational behavior played a big rule to make the stock prices sky rocking as they were crazy to buy shares without judging...
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...Venture Capital valuation 31 responses When your startup company raises capital, valuation is a key question that must be tackled Rey Maualuga style. (If you are unfamiliar with “Rey Maualuga style,” click here for a Youtube example.) The two main valuation concepts in a venture capital financing are pre-money and post-money valuation. In a venture capital transaction, the venture capital firm invests cash in the startup company in exchange for newly-issued (preferred) stock. The startup company’s value immediately before the funding is called “pre-money valuation” while the startup company’s value immediately after the transaction is called “post-money valuation.” (Technically, pre-money and post-money are more about price than a startup company’s valuation.) Pre-money Valuation and Post-money Valuation Equations (1) Pre-money Valuation = Post-money valuation – Venture Capital Investment (2) Post-money Valuation = Venture Capital Investment/Venture Capital Ownership Percentage You can determine share price by the following equation: (3) Share Price = Pre-money Valuation/Number of Pre-money shares. You can determine how many shares to issue the venture capital firm by this equation: (4) New Shares Issued = Venture Capital Investment/Share Price Pre-money Valuation and Post-money Valuation Examples Example 1 Let’s say Google’s new venture fund comes to you and offers to invest $3MM into your startup for 30% of the company. Plugging the numbers into equation (2), we...
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...market is where buyers and sellers trade. An example of a well-known financial market is the New York Stock Exchange. This establishment trades trillions of dollars on a daily basis. Both financial markets and financial institution play a vital role within any economy. There are also primary and secondary markets as well as money markets and capital markets. We will take a look at the differences and what role they play in the economy. Let’s start with financial institutions and the example I gave earlier was a bank. A bank is the most common financial institution and is pretty straight forward. You give the bank money and they hold it for you. Then, you ask, how does a bank make money? A bank also lends out money to individuals that are looking to make a large purchase, such as a house. The bank uses the money people deposit to loan out to others and interest is paid on the loan. A bank allows consumers to take out loans for purchases, then with a set time frame, pay back the money loaned with interest. That is one reason the recession of 2008 hit so hard. The bank loaned many people money but then many of those people were not able to pay the money back. Another financial institution is an insurance company. You pay the insurance company a monthly payment and they cover damages done to your home or your car. Financial markets are quite different from financial institutions. A financial market is a term that describes a place where buyers and sellers trade assets...
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...Introduction The stock market is comprised of two distinct markets, the primary and secondary market. While both of these markets may operate on the same exchange they are distinctively different. When making distinctions between a money and capital markets the primary determinant is time. Broadly speaking capital markets are for long term assets that extend beyond one year. This is in contrast to money markets that are used for short term assets that are up to one year. Learning Materials Primary and Secondary Markets Primary market The primary market is the initial market that securities are sold on. When you hear of a firm having an initial public offering, such as Facebook, this is a transaction on the primary market. The issuing firm will receive the funds from this initial sale which is why it is referred to as the primary market. This is a common way for firms to receive substantial amounts of capital. Practically speaking the primary market is not equally available to all. Given that firms solicit help of investment bankers it becomes necessary that they take a role in selling shares. These shares are commonly first offered to preferred customers which of course leave out the average retail investor. From a corporate perspective an IPO is also not always feasible since the firm must have a solid reputation and a potential for longevity and success. Secondary market Once a stock has been purchased directly from the firm in the primary market it will continue...
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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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...KULIYYAH OF ECONOMICS AND MANAGEMENT SCINECES | ISLAMIC ACCOUNTING AND FINANCE | MASTER OF SCIENCE (FINANCE) | ACC6810 | ACCOUNTING IMPLICATIONS OF JIONT MUDARABAH (MUDARABAH MUSHTARAKAH) SUBMITTED TO: Prof. Dr. Abdul Rahim Abdul Rahman Basheer Hussein Altarturi G1111009 Semester 1 2012 Contents 1 Introduction 3 2 Mudarabah in a Traditional Viewpoint 4 2.1 Traditional Mudarabah; an Overview 4 2.2 Business Issues in the Traditional Mudarabah 5 3 Introduction to the Joint Mudarabah (Mudarabah Mushtarakah) 6 3.1 The Joint Mudarabah (Mudarabah Mushtarakah) Concept 6 3.2 Main Features of the Mudarib Mushtarak 8 3.2.1 The Conditions Issue 8 3.2.2 Capital Guarantee Issue 8 4 Accounting Issues in Mudarabah Contract 9 4.1 Profit Distribution 9 4.2 Reporting and Presentation 12 4.3 Agency Problem 13 5 Conclusion 14 6 Bibliography 16 Introduction Islamic banking and finance (IBF) emerged as an alternative from conventional banking and finance. IBF are different from conventional banking and finance as their objectives, operations, principles and practices must compliance with Islamic ethics and Islamic law (Shari’ah). Among other things, Shari’ah prohibits dealing in interest (riba), gambling and undertaking speculative transactions which subject matter and outcome are unknown (gharar), while it requires transactions to be lawful (halal). Therefore, IBF have tended to modify the conventional banking and finance...
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...What is the capital structure of your business? Discuss the ratios that are used to describe capital structure and assess their importance. * How can you use operating leverage in your business? * · Assess the level of financial and operating risk for your business * · What factors are likely to influence your CFO's debt policy? You often hear corporate officers, professional investors, and analysts discuss a company's capital structure. You may not know what a capital structure is or why you should even concern yourself with it, but the concept is extremely important because it can influence not only the return a company earns for its shareholders, but whether or not a firm survives in a recession or depression. Sit back, relax, and prepare to learn everything you ever wanted to know about your investments and the capital structure of the companies in your portfolio! Most corporate financing decisions in practice reduce to a choice between debt and equity. The finance manager wishing to fund a new project, but reluctant to cut dividends or to make a rights issue, which leads to the decision of borrowing options. The issue with regards to shareholder objectives being met by the management in making financing decisions has come to become a major issue of recent times. This relates to understanding the concept of the agency problem. It deals with the separation of ownership and control of an organisation within a financial context. The financial manager can raise...
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...“The Performance Of Capital Market And Its Impact On The Economy Of Bangladesh.” (Based On Recent Unstable Capital Market Situation.) Assignment on # Macro-Economices (Course Code: FIN-2209) 14th February, 2011 ►Prepared by, Anik Ahmed BBA, 3rd Batch, Department Of Finance Jagannath University, Dhaka. Capital Market Overview A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year. The capital market includes the stock market (equity securities) and the bond market (debt). Financial regulators, such as the Bangladesh Bank (BB), and Securities and Exchange Commission (SEC), oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties. Capital Market Primary Market Secondary Market In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere. In Bangladesh there are two capital markets in our country. One is Dhaka Stock Exchange (DSE), and another is Chittagong Stock Exchange (CSE). History of capital market in Bangladesh: The Dhaka Stock Exchange (DSE) was setup on 28th April, 1954 that started formal...
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... | FS3032 – Capital Markets MODULE HANDBOOK 2014/15 - Semester 1 Module Lecturer: Dr Phan Tran Trung Dzung Faculty of Banking and Finance / FTU fandzung@ftu.edu.vn This module is supported by Weblearn – students are advised to access the site on a regular basis, at least once a week FS3032 Capital Markets |Teaching Location |A1101 | |Teaching Semester |1 | |Module Level |H | |Home Academic Department |LMBS | |Module Leader |Dr Phan Tran Trung Dzung | |Module Web Site |FS3032C | |Teaching Mode |Day | |Module Title |Capital Markets | |Timeslot | | |Credit Rating For Module |15 | Module Summary CODE: FS3032C TITLE: Capital Markets: Investment & Portfolio Management BRIEF DESCRIPTION: The world...
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