...Introduction Situation Details: • Tyrone grosses approx $36,000 per year; Joan makes approx $30,000. • • John and Joan drafted wills when their kids were young. They have not been updated since. • After taking a comprehensive risk tolerance questionnaire it was determined that John was an aggressive investor and Joan, a conservative investor. • The Smith’s spend approximately $5,000 a month on utilities, entertainment, food, and other regular living expenses. • Of all investable assets, the overall fixed income to equity ratio is 33% fixed income and 67% equities (33/67). • John’s Social Security statement shows him receiving $1,600 month at age 66; Joan’s shows $900 at age 66. Why develop a plan? By developing a financial plan, Me and my family: • Will have a better understanding of your current financial situation. • Determine attainable retirement, education, insurance, and other financial goals. • Review goals, funding strategies, and alternatives where goals have to be compromised. • Have the necessary financial resources set aside to fund your goals as they occur. • Reduce the effect of unexpected events, such as disability, premature death, etc. Planning is a life-long journey. For the planning process to successfully work, changing circumstances or life stage requirements must be factored in. When working with a financial advisor, he/she will want to know when personal or financial events occur to clarify whether your goals are affected and...
Words: 316 - Pages: 2
...What does Heather have to do tocapitalize on opportunity? Produce designs consumers want Line up retailers and advertising support Get items produced and delivered on time What are advantages of opportunity? Little capital needed Good market niche: Unserved,fragmented, and growing What are key factors forsuccess? Design sense Ability to sell retailer design General management Ability to manage cash, production,delivery, and quality What is the upside? Lots of expansion potential in“niche” Costs of operations mostly fixed Don’t need to control --Production--Cutting, Sewing, Shipping,infrastructure built up in industry toallow people to do just what she isdoing. Low working capital need Possible risks include: •Will her designs sell?•Successful designs will be “knocked-off.”•Heather’s ability to design for 5seasons, 20-30 designs per season What could Heather do toreduce the design risk? Hire a proven designer. Do some market research. Capitalizes on momentum --Gets key points out inexecutive summary: Incorporated Have a line Hired and paid people Have factor Have building Have production capability Leaves no doubt ininvestor’s mind that this isgoing to happen. Only issueis will it be with my money? Lays out uniquequalifications of Heather andconcept: Financial statements poorlypresented: Only 2 years Not well organized This reads like a preliminarydocument -- much more work isneeded. Arden & Company Don’t put any...
Words: 1187 - Pages: 5
...that they were not willing to share with people on the outside of the organization and to some extent people on the inside as well. For example, Diamond Foods was moving grower payments into different periods, so the growers did not even know what they are being paid for. Also investors and the public always believed that the company way reaching its growth targets, managers were actually engaging in income manipulation. This embodies the idea of moral hazard, where the investor cannot determine whether a manager is shirking their role or acting with the investors' best interests in mind. Investors rely on financial information to tell them what is going on internally, and make decisions based on the good news or bad news presented by these statements, and other sources to information from the company. As demonstrated, an investor cannot learn everything there is to know about a company from the financials; as a result, investors will assess the firm with an amount of estimation risk, lowering the price they will pay for the stock. Diamond Foods' admission of incorrect accounting will mislead speculation of stock and the performance of the whole firm. The lack of reliable information provided to investors and the public over the last three years led to their failure to make accurate forecasts, and ultimately lower the price of the stock. Management information is a useful way to prevent these problems if Diamond Foods decides to disclose information. If Diamond Foods provides...
Words: 383 - Pages: 2
...one looks at the long history of the markets with the repeating boom and bust patterns the world has witnessed, one has to ask why this happens. Many brilliant minds have been doing research into what motivates or de-motivates an investor when it comes to making a purchasing decision. Over time one thing has become clear, full disclosure of any significant enough financial facts that may influence the judgment of an informed reader must be made known to the public. The reason stems from the fact that in order for all markets to operate efficiently, its participants must be able to do the same and that is only possible if companies fully disclose any material events that might affect an informed reader’s decision to buy or sell a stock or other investment. The caveat here is what is material? In some cases, the disclosure of certain items would give away trade secrets or other competitive advantages, thus hindering a company’s future growth, profits, and cash flows. At the other end of the spectrum, if a company fails to report a significant event such as a pending lawsuit and the company has a judgment entered against them that drastically affects stockholders equity, then that needs to be disclosed. In this case, it is easy to see that any investor that purchased stock without knowledge of the lawsuit and then the...
Words: 728 - Pages: 3
...Assignment on Financial Market and Institution Survey on Investor’s behavior |Name |ID | |MD. ABDULLAH-AL-BAKI |BBA- 029090249 | |MD. ZUBAIR ISLAM |BBA- 03211209 | | | | Section : BBA 41 (D) Date : 03.04.2012 FINANCIAL MARKET AND INSTITUTION Survey questionnaire: 1. Name of respondent : 2. Invest range : |Tk. 5 lakh < |Tk. 5-10 lakh |Tk. 11-15 lakh |Tk. 15-20 lakh |Tk. 20 lakh | | | | | | | 3. Age range: |25y-30y |31 y – 35 y |36y – 40 y |41y – 45y |46 and above | | | | | | | 4. Education level: |School |College |Graduation |Post Graduation |Above Post. Grad | | ...
Words: 1674 - Pages: 7
...that shares with in-built options issued/transferred to non-residents or shares supported by options issued/transferred to non-residents will not be recognized as FDI and such instruments would have to comply with the ECB guidelines.” “In other words, equity shares, fully and compulsory convertible preference shares, fully and compulsory convertible with no in-built options issued to non-residents will be eligible as foreign direct investment.” The revised guidelines, which have now been formally included in the regulatory framework, had earlier been adopted by the Reserve Bank of India which treated instruments with ‘put options’ as ECB. “It is bound to curtail investments in certain sectors and by specific types of investors (e.g. financial investors such as private equity funds) who tend to rely upon put options in securities as an essential component of the transaction structure.” Further, the new FDI policy does not clarify on the retrospective implication for put and...
Words: 478 - Pages: 2
...Just as the convergence of IFRS will benefit investors by allowing them to more easily compare financials from global markets, it will also benefit accounting and finance professionals in the same way. I believe the convergence will prove to be a valuable asset for professionals, as it increases transparency and comparability, it will also allow CPAs and analysts to provide more insightful information to their clients or companies. The convergence will also enable professionals to market their IFRS knowledge and generate more leads or employment opportunities than ever before. Post convergence issues and challenges will leave business in both the U.S. and foreign companies needing well-equipped CPAs and analysts to assist in facilitating the great change. U.S. professionals will not only be able to generate more native business, but will also be able to access cross-border opportunities. George, Ferguson, & Spear (2013) predict that audit fees alone will increase approximately 23% in the first year of IFRS adoption. While this is a significant boost in fees for U.S. companies, it will also boost employment opportunities and revenue in the accounting and finance sector. It is extremely important for professionals to begin familiarizing their selves with IFRS, not only to enable themselves to meet the needs of their clients after the convergence, but also to consult companies on the most efficient and effective strategies to facilitate the change. It is an optimal...
Words: 261 - Pages: 2
...expanding. • Good opportunity because they have a good relationship with the Icedelights owner. • There were not many gelato shops in Florida which made for a very weak competitive market there. • This is a good opportunity because they are able to attempt a career that they all want. 3.) What are the key risk elements? • Risk of having no past experience in the food retail industry. • Risk of Icedelight backing out on supplying the gelato product. • Risk of not knowing Florida real estate. • Risk of Florida not being a suitable spot for the company. • Risk of being able to work productively together because of their different opinions. • Risk of not having enough financial security. • Risk of not having enough financial investors. • Risk of obtaining money but not having enough equity. • Risk of debt and fixed interest payments would restrict their growth and increase riskiness of the venture. • Risk of not being able to handle the responsibilities due to their inexperience. 4.) Did they put together a good management team? • They all had previous experience dealing with administration and finance; however, they had no previous...
Words: 433 - Pages: 2
...September 2011 (updated January 2012) Effect analysis IFRS 10 Consolidated Financial Statements and IFRS 12 Disclosure of Interests in Other Entities In The IASB’s approach to effect analysis Before we issue new requirements, or make amendments to existing IFRSs, we consider the costs and benefits of what we are proposing. This includes an assessment of both the costs incurred by preparers of financial statements and the costs incurred by users of financial statements when information is not available. We also consider the comparative advantage that preparers have in developing information that users would otherwise have to develop themselves. What is the measurement bar for our assessment? We expect our standards to have economic effects, and we understand that those effects may be beneficial for some entities and detrimental to others. For example, a change in financial reporting requirements might affect the cost of capital for individual entities by changing the absolute or relative level of information asymmetry associated with those entities. We assess these associated costs and benefits by reference to the overall objective of financial reporting. We try to understand how the changes will contribute towards the development of a single set of high quality global accounting standards by improving the allocation of capital. We therefore also consider the benefit of better economic decision-making as a result of improved financial reporting. The boundaries of our assessment ...
Words: 14620 - Pages: 59
...That's the type the startups we fund are doing on Demo Day, and this essay is the advice we give them. Forces Fundraising is hard in both senses: hard like lifting a heavy weight, and hard like solving a puzzle. It's hard like lifting a weight because it's intrinsically hard to convince people to part with large sums of money. That problem is irreducible; it should be hard. But much of the other kind of difficulty can be eliminated. Fundraising only seems a puzzle because it's an alien world to most founders, and I hope to fix that by supplying a map through it. To founders, the behavior of investors is often opaque—partly because their motivations are obscure, but partly because they deliberately mislead you. And the misleading ways of investors combine horribly with the wishful thinking of inexperienced founders. At YC we're always warning founders about this danger, and investors are probably more circumspect with YC startups than with other companies they talk to, and even so we witness a constant series of...
Words: 2719 - Pages: 11
...Create a Wholesale Enterprise for Gram Vikas: The business success of a social enterprise lies in the self-sustainability; however, Gram Vikas is under financial distress and is highly dependent on often-delayed government grants and decreasing donations. These situations restrict Gram Vikas’ ability to expand its societal impact, and further undermine the creation of social value to the target stakeholders. (Nicolas Pless). To make Gram Vikas more sustainable and less reliant on donor money, while not restricting the access to original funding streams such as Government grants and donations, a stand-alone profit-generating company could be set up to ensure a more steady revenue stream for Gram Vikas. This stand-alone company would complement current GV’s activities and help both GV and the villagers sustain their income revenues. Thereby proposing a wholesale enterprise that integrates the distributing process for household individual income generating activities. Business Description: Currently, GV provides skill-building activities and advices on sustainable forestry, agriculture, and livestock husbandry to ensure food security and generate additional income for the villagers. Plantation of agriculture commodities, such as cashews, pineapples, mangos, jackfruits and vegetables is highly encouraged by GV, as these crops enable a steady source of income. (p.6) On top of that, many families have started income generating activities with the loans from Self-help Groups...
Words: 913 - Pages: 4
...Governance SCGOP Contents Foreword 3 1 The mission of the Foundation for Corporate Governance Research for Pension Funds and the purpose of this manual 5 2 Corporate governance in practice in the Netherlands 7 3 Basic principles of corporate governance 11 4 Corporate governance and performance 14 5 Institutional investors and corporate governance 16 6 Formulation of a voting policy 19 7 2 The exercise of voting rights 23 8 Reporting on the implementation of the voting policy and voting behaviour 26 9 Pension fund governance 27 10 Socially responsible investing 28 11 About SCGOP 30 Appendix: Recommendations on Executive Remuneration 32 Foreword Pension funds strive to protect the benefits of their members as effectively as possible from the consequences of inflation. They therefore invest part of their assets in shares. But the accounting scandals over the past few years have severely damaged investors’ confidence in shares. Rebuilding this trust is now a high priority everywhere. Pension funds and other institutional investors are expected to contribute to this rebuilding process. In the Dutch Corporate Governance Code presented by the Tabaksblat Committee on 9 December 2003, the role of the shareholders is described as follows: "The general meeting of shareholders should be able to exert such influence on the policy of the executive board and the supervisory board of the...
Words: 12983 - Pages: 52
...Relationship Marketing Index Using Holistic Approach A project report submitted in partial fulfilment of the requirements for B.Tech. Project B.Tech. By Katum Yomcha (2010IPG-50) Divyank Shekhar Singh (2010IPG-34) Pradeep Kr. Meena(2010IPG-109) ABV INDIAN INSTITUTE OF INFORMATION TECHNOLOGY AND MANAGEMENT GWALIOR-474 010 2013 CANDIDATE/S DECLARATION We hereby certify that the work which is being presented in the B. Tech. Project Report entitled “Relationship Marketing Index Using Holistic Approach”, in partial fulfillment of the requirement for the award of the Degree of Bachelor of Technology and submitted to the institution, is an authentic record of our own work carried out during the period from May/2013 to September/2013 under the supervision of Prof. Deepali Singh. I/we also cited the reference about the text(s)/figure(s)/table(s) from where they have been taken. The matter presented in this report has not been submitted by us for the award of any other degree elsewhere. Date: Signature of Candidates Katum Yomcha Divyank Shekhar Singh Pradeep Kr. Meena (2010 IPG 050) (2010 IPG 034) (2010 IPG 109) This is to certify that...
Words: 9270 - Pages: 38
...THE INTELLIGENT INVESTOR A BOOK OF PRACTICAL COUNSEL REVISED EDITION B E NJAM I N G RAHAM Updated with New Commentary by Jason Zweig To E.M.G. Through chances various, through all vicissitudes, we make our way. . . . Aeneid Contents Epigraph iii Preface to the Fourth Edition, by Warren E. Buffett viii A Note About Benjamin Graham, by Jason Zweig x Introduction: What This Book Expects to Accomplish COMMENTARY ON THE INTRODUCTION 1. 1 12 35 The Investor and Inflation 47 COMMENTARY ON CHAPTER 2 3. 18 COMMENTARY ON CHAPTER 1 2. Investment versus Speculation: Results to Be Expected by the Intelligent Investor 58 65 COMMENTARY ON CHAPTER 3 4. A Century of Stock-Market History: The Level of Stock Prices in Early 1972 80 General Portfolio Policy: The Defensive Investor 88 COMMENTARY ON CHAPTER 4 5. 101 124 Portfolio Policy for the Enterprising Investor: Negative Approach 133 COMMENTARY ON CHAPTER 6 7. 112 COMMENTARY ON CHAPTER 5 6. The Defensive Investor and Common Stocks 145 iv 155 COMMENTARY ON CHAPTER 7 8. Portfolio Policy for the Enterprising Investor: The Positive Side 179 The Investor and Market Fluctuations 188 v Contents COMMENTARY ON CHAPTER 8 9. Investing in Investment Funds COMMENTARY ON CHAPTER 9 213 226 242 10. The Investor and His Advisers 257 COMMENTARY ON CHAPTER 10 272 11. Security...
Words: 224262 - Pages: 898
...beverage sector. Their unique idea of a microbrewery and fine dining restaurant stemmed from a law amendment of California in 1983 which allowed brewing and serving of beer in the same locale. They envisioned the concept of providing high quality fine dining with outstanding service in an attractive ambiance featuring exceptional German-style lagers in on-site breweries. Their target market was the fairly sophisticated, yet not so young natives of Palo Alto as well as the Stanford University faculty, staff and graduate student body. Their unique idea came to realization in July 1988 after rigorously detailed planning pertaining to atmosphere, food selection and German-style brewery. The capital was raised by the contribution of five investors, (Dean’s family friend...
Words: 5459 - Pages: 22