company that you selected, indicating the significant factors driving your decision as a financial manager. As the financial manager, I have decided to recommend to my investor that they invest heavily in the stock of Apple Incorporated. There are several reasons why I am going to advise my investor to invest in Apple Incorporated. The first of these reasons that have caused me to recommend Apple as a good investment is because at the end of 2012 according to Bernstein analyst Toni Sacconaghi Apple
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Basics of Corporate Finance May 1994 Basics of Corporate Finance Warning These workbook and computer-based materials are the product of, and copyrighted by, Citibank N.A. They are solely for the internal use of Citi-bank, N.A., and may not be used for any other purpose. It is unlawful to reproduce the contents of these materials, in whole or in part, by any method, printed, electronic, or otherwise; or to disseminate or sell the same without the prior written consent of the Professional
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Basics of Corporate Finance May 1994 Basics of Corporate Finance Warning These workbook and computer-based materials are the product of, and copyrighted by, Citibank N.A. They are solely for the internal use of Citi-bank, N.A., and may not be used for any other purpose. It is unlawful to reproduce the contents of these materials, in whole or in part, by any method, printed, electronic, or otherwise; or to disseminate or sell the same without the prior written consent of the Professional
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EXAMPLES OF POSSIBLE MIDTERM QUESTIONS (These are not the actual midterm questions) 1. You would like to speculate on the rise in the price of a certain stock. The current stock price is $87 and a three month call with a strike price of $90 costs $8.70. You have $17,400 to invest. Identify two alternative strategies, one involving stocks, the other involving options. Briefly identify the advantages and disadvantages of each. (10 marks) 2. A US company expects to have to pay GBP sterling 1
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capital investment opportunity that has arisen recently. You are required to outline your understanding of the budget process and also make some suggestions as to how the company would attempt to raise finance for the proposed investment. (60 Marks) Evaluate the need for companies to maintain an adequate cash-flow and discuss how you would attempt to measure one company’s performance against another with the use of ratios. (20 Marks) Discuss briefly, in your opinion, what the main causes of
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Confidential Financial Investment Opportunities Prepared for: Ms. Joey Lai (Lecturer) Financial Investment Opportunities Banking Academy, Hanoi BTEC HND in Business (Finance) Prepared by: BBQ CLASS: F06B 1 Confidential Table of Contents INTRODUCTION .......................................................................................................................... 3 1.1 Assess the risk tolerance/attitudes of individual investors to risk when evaluating the suitability of investments
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1. Trader A enters into futures contracts to buy 1 million euros for 1.4 million dollars in three months. Trader B enters in a forward contract to do the same thing. The exchange (dollars per euro) declines sharply during the first two months and then increases for the third month to close at 1.4300. Ignoring daily settlement, what is the total profit of each trader? When the impact of daily settlement is taken into account, which trader does better? Answer: When we ignore daily settlement each
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annual figures for 2009 and 2010. Based on the below table we can see that the total sales for the company has decreased from $1,720,755 to $1,672,695 in 2009 to 2010 respectively. There has also been a significant drop in its cost of goods sold. Their opening inventory reduced that means that the company has been able to sell most of its inventory which is a good sign for the shareholders and shows constant cash flows of the company in the two years. [pic] Though their net profit before tax for
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main objective toward its pension clients to increase their return as high as possible while keeping as low as possible the risk taken by their investments. We are asked to analyze the pertinence for TW to recommend to its clients the Research Affiliate Financial Index (RAFI) strategy over traditional indexing and over a more actively managed strategy. The RAFI is presented to Tower Watson as a new efficient B2B tool to invest, to help investment advisory firms to better establish their strategy. Indeed
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returns to proportional with the various types of risks borne and market conditions. Risk can be defined as the chance of financial loss in the common of basic definition. Assets having greater chances of loss are viewed as more risky than those with lesser chances of loss. While for the return obviously assess to risk on the basis of flexibility of return then we need to be certain for what return is and how to measure it. For a company, investments and shares are always being the common equity
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