...Stocks & Flows Management URBAN LOGISTICS: THE LAST MILE Introduction: The urban logistics corresponds to the routing of different kinds of flows, in the best conditions, from cities to other cities. In rapidly growing cities and a growing number of people living in these cities urban logistics must increase and improve as well. This growing number of flows implies a growing number of vehicles in urban areas with all the potential issues that go with it. Congestion, air pollution and noise are negatively impacting traffic safety, quality of life and urban economic competitiveness. The last mile of a supply chain is one of the reasons bringing all these issues : it is a very difficult problem to apprehend and to solve. In addition to the heterogeneity of the goods transported, the last mile involves many essential stakeholders such as public authorities, transportation companies and retailers. These stakeholders are not sharing the same interest nor the same objective : As an example, local authorities want to reduce congestion and environmental problems like air and noise pollution, whereas transportation companies and retailers are mainly interested in reducing their cost and improving their profit. Very often this leads to counter-productive decisions. Examples of the initiatives taken to address the issues: Different solutions have already been put into practice in order to improve last mile delivery of goods in cities. These solutions...
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...Thesis for the Degree of Master of...? INCORPORATING LIQUIDITY RISK INTO VAR MODEL TO IMPROVE RISK MANAGEMENT AND APPLYING THE LIQUIDITY ADJUSTED VALUE AT RISK MODEL ON VIETNAMESE STOCK MARKET Student: Ten truong: Ten khoa hoc: September, 2012 INCORPORATING LIQUIDITY RISK INTO VAR MODEL TO IMPROVE RISK MANAGEMENT AND APPLYING THE LIQUIDITY ADJUSTED VALUE AT RISK MODEL ON VIETNAMESE STOCK MARKET by student Avised by Ten giao su Submitted to Ten khoa of Ten truong in the partial fulfilment of the requirements for the degree of Master of ...? Dissertation Committee ...Ten thanh vien hoi dong ABSTRACT In this paper, based on Bangia et. al (1999) Liquidity Adjusted Value at Risk, an explanation and demonstration for the importance of integrate liquidity risk component into Value at Risk Model are presented. The component is considered to be resulted from the exogenous liquidity risk, indeed, the bid-ask spread of a stock or a portfolio. This research is conducted from the analysis of an estimation of Value at Risk (VaR) and Liquidity adjusted Value at Risk for two portfolios containing stocks that are currently trading on Vietnamese Stock Market. After applying the Bangia Model to calculate, the backtesting will be executed to check the accuracy level of the results. The difference between the results of two portfolios, according to separate approaches will be the evidence to reach the conclusion of the research. Table of Contents List of...
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...Q1 what are the annual cash outlays associated with the bond issue? The common stock issue? Bond Issue Q2 Analyze and respond to each director’s assessment of the financing decision. Leo Staumpe believes that MPIS is an excellent buy that will offer tremendous revenue synergy and cost reduction opportunities. Board of directors also agrees with the assessment; the only decision is on the mode to secure funding for the acquisition. Two options available to secure a funding of125 million are for the funds are: 1. Issue bonds for 125 million at 6.25% interest rate and 15 year maturity. Annual principal repayment will be 6.25 million, leaving 37.5 million outstanding at maturity. 2. Issue 7.5 million additional common stocks at the price of $17.75/share. During the board meeting, there was no consensus on the mode to secure the funding. While Andrea Winfield and Joseph Winfield thoughts that issuing stock is a better option; Ted Kale, Joseph Tendi, and Naomi Ghonche did not prefer the approach of issuing stock. James Gitanga, the newest addition to the board was apparently in favor of raising long term debt through bonds. Here is each director’s assessment of financial decision and our response to that: Andrea Winfield Andrea thinks that stock issuing has a lower cost. Issuing a bond will result in additional cash outlay of 6.25 million per year as principal repayment. Andrea is reacting to the long term lease of 15.8 million (exhibit 3) and feels that additional cash...
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...------------------------------------------------- CHAPTER 18 ------------------------------------------------- DERIVATIVES AND RISK MANAGEMENT (Difficulty: E = Easy, M = Medium, T = Tough) Multiple Choice: Conceptual Easy: Risk management Answer: d Diff: E N . Which of the following statements concerning risk management is correct? a. Risk management can reduce the volatility of cash flows, and this decreases the probability of bankruptcy. b. Risk management can reduce the likelihood of low cash flows, and therefore reduce the probability of financial distress. c. Companies with volatile earnings pay more taxes than more stable companies due to the treatment of tax credits and the rules governing corporate loss carry-forwards and carry-backs. Therefore, our tax system encourages risk management to stabilize earnings. d. Statements a, b, and c are correct. e. None of the statements above is correct. Derivatives Answer: d Diff: E N . Which of the following is an example of a derivative? a. Futures. b. Options. c. Swaps. d. All of the above are examples of derivatives. e. None of the above are examples of derivatives. Options Answer: b Diff: E . An option that gives the holder the right to sell a stock at a specified price at some time in the future is called a(n) a. Call option. b...
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...capital) * Markets * Common Stock (long-term security) * Bonds (long-term security) * Derivatives (long-term security) Financial Markets * Exchanges * Specialists (NYSE has SPECIALISTS maintain an orderly market in a stock at a trading station) * Intermediary Firms (NASDAQ has INTERMEDIARY FIRMS maintain a market for a given share * Publicly Traded (Security, corporations register through the FCC) Forms of Ownership * Partnership * Corporation (Shareholders have limited liability of their own share) * Privately Held * Publicly Trade Common Stock: Is a share in the ownership of the firm Issuer Advantages (the company): 1. Beyond the public offering there are no fixed charges. 2. There is not fixed maturity. 3. Common stock increases the credit worthiness of a firm. 4. Common stock can at times be sold more easily than debt. Issuer Disadvantages (the company): 1. Extends voting rights or control to additional stockholders 2. Gives more owners the right to share income. 3. Initial costs of “underwriting” and distribution are higher than bonds. 4. Changes the debt/equity mix of the firm. 5. Dividends are not deductible form taxable income. (why isn’t dividends a deductible for companies) Investor Advantages (the individual): 1. Participate in growth of firms value 2. Receive dividends (Quarterly income) 3. Limit liability 4. Vote for management/directors Investor Disadvantages...
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...company had to analyze how certain each offers were, how probable was any of them to pull out the offers as well as what to do with the money they would get in case the judge let them do the sell. Family Control Adelphia was founded and managed by Rigas family, the case talks about how the company after 1985 decided to go public in order to acquire the capital investment to expand and become one of the biggest cable providers in the country. Nevertheless the Rigas family managed to keep almost full control of the company by keeping special type stocks with decision making power in the board. The company kept being managed by the funding family as well as the family keeping some of the cable assets for themselves in separate private partnerships and continuing to buy properties privately as well as for the company. The case explains how the privately owned assets of the family were managed by already-public Adelphia Corp by some management agreements and with this the expenses of such assets were consolidated with the expenses of Adelphia by some accounting system the company had; however the profits and revenues of such assets were not consolidated. This created the first red flag. The case shows clearly the structure of the board of directors; which was entirely created by family and friends, John (founder) being the Chairman of the board and CEO and his sons as high end executives with two family friends added to...
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...Chapter 01 Investments: Background and Issues Multiple Choice Questions 1. Financial assets represent _____ of total assets of U.S. households. A. over 60% B. over 90% C. under 10% D. about 30% 2. Real assets in the economy include all but which one of the following? A. Land B. Buildings C. Consumer durables D. Common stock 3. Net worth represents _____ of the liabilities and net worth of commercial banks. A. about 50% B. about 90% C. about 10% D. about 30% 4. According to the Flow of Funds Accounts of the United States, the largest single asset of U.S. households is ___. A. mutual fund shares B. real estate C. pension reserves D. corporate equity 5. According to the Flow of Funds Accounts of the United States, the largest liability of U.S. households is ________. A. mortgages B. consumer credit C. bank loans D. gambling debts 6. ____ is not a derivative security. A. A share of common stock B. A call option C. A futures contract D. All of the above are derivative securities. 7. According to the Flow of Funds Accounts of the United States, the largest financial asset of U.S. households is ____. A. mutual fund shares B. corporate equity C. pension reserves D. personal trusts 8. Active trading in markets and competition among securities analysts helps ensure that __________. I. security prices approach informational efficiency II. riskier securities are priced to offer higher...
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...expand its business through acquisitions. In 1985, a merger acquisition with Houston Natural Gas (HNG) took place. The following year, the company’s name was changed to Enron Corporation. Shuffling the management, Kenneth L. Lay (HNG’s chairman), emerged as chairman. In 1991, Enron began overseas expansion. From being a natural gas pipeline company, the company shifted to brokering energy commodities as energy markets were deregulated. Although targets and projections were not met as promised to investors, Enron continued to spend heavily in advertising and lobbying for deregulation. In 1999, Enron ventured into the e-commerce market with the launching of EnronOnline to make the company more attractive to investors. The company stock prices went up but losses were disguised in elaborate partnerships and joint ventures. Such high stock prices fueled suspicion. In 2001, the U.S. Securities and Exchange Commission looked into Enron transactions and its partnerships. Andersen (auditing firm of Enron) destroyed Enron documents that could have been used as evidence. The company’s credibility was still questionable, thus, creditors and investors pulled out. In the latter part of the year, Enron announced its overstatement of earnings dating back to 1997 by almost $600 million. Stock price hit rock bottom and then the company filed for bankruptcy. The verdicts of the case? Altogether, 16 former Enron executives were sentenced to prison. Andersen, the former auditing giant, collapsed...
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...Microsoft Name Institution Microsoft 1.0 Introduction Financial management is the efficient management of funds in such a way that an organization can achieve its objectives (Brigham & Ehrhardt, 2014).A Company either has short-term objectives or long-term goals. However, these depend on the planning phase of a particular Company. Several U.S publicly traded Companies provide attractive investment opportunities to investors. One of my clients seeks to invest in Microsoft Corporation. Microsoft is a multinational Corporation based in America. It specializes in technology products. The headquarters for Microsoft are in Washington a place known as Redmond. This Company manufactures, develops, licenses, sells and supports consumer electronics, computer software, services and personal computers. Bill Gates and Paul Allen initiated this Company way back in 1975. My client wishes to invest in Microsoft. Analyzing Microsoft stock and financial performance is critical to allow me advice my client appropriately. 2.0 An Overview of Microsoft Corporation Microsoft is best known for its software products such as the line of operating systems, Microsoft Windows, Internet Explorer, Microsoft Office suite, Skype and Edge web browsers. Microsoft is the world’s largest software producer or maker by revenue. Microsoft is one of the most valuable companies in the world (MSFT: Summary for Microsoft Corporation- Yahoo! Finance). Microsoft...
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...Mergers and Acquisitions Basics Mergers and Acquisitions Basics All You Need To Know Donald DePamphilis Amsterdam • Boston • Heidelberg • London New York • Oxford • Paris • San Diego San Francisco • Singapore • Sydney • Tokyo Academic Press is an imprint of Elsevier Academic Press is an imprint of Elsevier 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA Elsevier, The Boulevard, Langford Lane, Kidlington, Oxford, OX5 1GB, UK Copyright © 2011 Elsevier Inc. All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the publisher. Details on how to seek permission, further information about the Publisher’s permissions policies and our arrangements with organizations such as the Copyright Clearance Center and the Copyright Licensing Agency, can be found at our website: www.elsevier.com/permissions. This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein). Notices Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary. Practitioners and researchers must always rely on their own experience and knowledge...
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...that will affect you monetarily and possibly credit wise. Funding a Business Venture The pros and cons to starting-up a business have been weighed. I do not have the money to start-up a business and neither the patience or time to see a business venture through. I weighed my options in starting a business: borrow money, sell stock, or license the technology. I have decided to license my technology. By doing this, I will have freed up my time and will not have to worry about incurring the expense in manufacturing, marketing, distributing, and selling a product. (Jackim, 2009) Nothing is easy in business. Sacrifices have to be made and deciding in which direction to go are major decisions. Go and talk with an investment banker. An investment banker is someone who specializes in different areas of economic growth. By hiring an investment banker, this person can assist in the legal and controlling obstructions in getting financed. He or she knows what to do in order to get the business the finances that are needed. The next step is to pay attention to the Stock Market. The Stock Market is an electronic public existence where...
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...1. The person generally directly responsible for overseeing the tax management, cost accounting, financial accounting, and information system functions is the: (Points : 3) treasurer. director. controller. chairman of the board. chief executive officer. | 2. The person generally directly responsible for overseeing the cash and credit functions, financial planning, and capital expenditures is the: (Points : 3) treasurer. director. controller. chairman of the board. chief operations officer. | 3. The Securities Act of 1933 focuses on: (Points : 3) all stock transactions. sales of existing securities. issuance of new securities. insider trading. Federal Deposit Insurance Corporation (FDIC) insurance. | 4. The process of planning and managing a firm's long-term investments is called: (Points : 3) working capital management. financial depreciation. agency cost analysis. capital budgeting. capital structure. | 5. The rules by which corporations govern themselves are called: (Points : 3) indenture provisions. indemnity provisions. charter agreements. bylaws. articles of incorporation. | 6. The Sarbanes Oxley Act of 2002 is intended to: (Points : 3) protect financial managers from investors. not have any effect on foreign companies. reduce corporate revenues. protect...
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...The Outcome Assuming the Merger is Completed Per Share Market Value of BT at Merger Completion 60.00 50.50 45.00 Gain / (Loss) on Long Position: Value of each BT share received 60.00 50.50 45.00 x Number of BT shares received 1.30 1.30 1.30 Value of consideration received 78.00 65.65 58.50 - Basis in MCI stock (62.00) (62.00) (62.00) Gain / (Loss) on Long Position 16.00 3.65 (3.50) Gain / (Loss) on Short Position: Price of BT at time of short sale 50.50 50.50 50.50 - Market value at merger completion 60.00 50.50 45.00 (9.50) 0.00 5.50 x Number of BT shares shorted 1.30 1.30 1.30 Gain / (Loss) on Short Position (12.35) 0.00 7.15 Total Gross Spread at Merger Completion 3.65 3.65 3.65 Source: Note on Risk Arbitrage No matter at what prices the deal closed, merger arbitrageurs are be able to lock-in a risk-free profit. And the only risk of the merger arbitrage is the completion risk. MCI & BT Controversy The two companies were expected to gain the benefit from global communication merger by using each other competency; such as, a large multinational customer base in MCI and the local market expertise in BT. To merge the new global communication company, BT agreed to offer .54 of American Depository Share (ADSs) for each MCI share, plus $6 cash per MCI shares, and also gave a dividend with a total...
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...1) Evaluate Nokia’s strategy and historical operating performance. Nokia, the global leader in mobile communications, competes in a fast moving and highly competitive mobile phone industry. Threatened by intense competition from iPhone, Android phones on the high end and rival products in the larger, lower-priced segment as well, Nokia’s strategic plan is to partner with Microsoft to build a new ecosystem with Windows Phone (WP) serving as Nokia’s primary smartphone platform while its own Symbian platform phasing out gradually and a combined approach to capture the next billion in emerging growth markets. Operating performance has been weaker in the past five years (2007-2011). Sales decreased from 51 billion to 39 billion, gross profit margin from 34% from 29%, net profit margin from 19% to -3%, ROE from 42% to -8%, EPS from 1.83 to -0.31 per share. Its asset turnover was trending down, showing less efficient asset utilization. Compared to its peers, Nokia’s has the lowest net profit margin and second to lowest EPS. 2) Nokia estimates it may need EUR4.3 billion in external funds by 2013 under the downside scenario. What are the key drivers of these funding needs? For D&S, key drivers of these funding needs are as below, though part of them would be offset by savings from restructuring efforts and Microsoft’s support for R&D and marketing functions: • Continued significant loss of Symbian and overall Nokia market share • Competitive price pressure • Royalty payments to...
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...PURPOSE OF A SWOT ANALYSIS 1 The Purpose of a SWOT Analysis Charles Anderson Joyner III Grantham University PURPOSE OF A SWOT ANALYSIS 2 Abstract Every business to include the largest ones that control their areas of industry--has a limited supply of manpower, production capacity and capital. Evaluating the company’s strengths, weaknesses, opportunities, and threats helps it determine how to allocate these resources in a manner that will result in the highest possible potential for revenue growth and profitability. The management team examines where the company can compete most effectively. The company more times than not discovers competitive strengths that have not been fully utilized in the past in addition to critical areas that needs to be improved in order for the business to more effectively compete. A realistic assessment also prevents strategic blunders like entering a market with products that are clearly inferior to what well-entrenched competitors are offering. Continuous improvement in all areas of a company’s operations is an important aspect of staying ahead of competitors. Weaknesses and opportunities can--and must--be turned into future strengths. PURPOSE OF A SWOT ANALYSIS ...
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