Essays on Besley

Investment Proposal for Cengage Learning, Inc.

Executive Summary

Purpose of the Paper The main purpose of the paper is to prepare an effective investment appraisal for Cengage Learning by using various financial management tools.

Overview of the Paper

The paper comprises of following material that can be seen in the overall paper. Investment appraisal techniques for introducing new product line Selection of two most common techniques Importance of techniques through literature Testing of Feasibility of new project Interpretation and conclusion on the analysis Techniques Used Results It is found from the above two analysis that the project is viable for the company and has potential to provide high return ...

Fighting global poverty is one of the most important problems to be solved for mankind in our time. This issue is of great importance not only for developing countries, where the number of poor people is huge. The poverty of people around the world is also a challenge for developed countries, since, in spite of the inner well-being, these countries are also influenced by the negative consequences of ill-being in other countries. Everything in our world is interconnected, so, for the sake of human welfare as a whole and an individual, in particular, it is needed as soon as ...

A market is efficient when the stock prices are dependent on all market available information on a given market or stock. When investors either institutional or individual investors invest money into the stock market, the major objective is to more returns on the investment put. The investors don’t just only focus on the profitability performance but also perform much better than the market itself. No investor has an upper hand in predicting the returns on the investment on the stock because it’s not possible to access the information that is not available on the market (Besley and ...

When James Monroe, the fifth president of the United States of America, said that Public Lands are public resources that ought to be disposed of to the best advantage for the people several years ago, America was still a young nation hovering around the Atlantic Coast (Scott). None could have foretold that disputes over public land rights will plague the nation for a greater part of the 20th century. To the West, North, and South stretched broad swaths of unexplored wilderness, territories begging for exploration and conquest (Scott). Like great civilizations before it, America spent the first years of ...

Difference between NPV and IRR

- The first difference between NPV and IRR lies on their implementation. NPV is calculated in currency terms while IRR is expressed as a percentage a firm projects capital project to yield (Besley & Brigham, 2011, p.521).

- NPV measures in absolute terms project return after a period while IRR measures the actual return from the invested funds.

- NPV perceives its cash flows to be reinvested back into the project at the required rate of return while IRR assumes reinvesting of cash flows back into proposed project at the IRR.

Similarities of NPV and IRR

- Both NPV and IRR take into consideration time value of ...

Financial planning is important for businesses today. By preparing the financial plan, an organization is able to determine what kind of objectives the firm would like to achieve. There are different aspects that are covered in a financial plan and some of the important aspects of financial planning include; estimating the profits that the firm would like to generate, the types of resources that would be required to accomplish these objectives, identify the changes in the business environment, analyzing the risk and return of investment, calculating the budget and costs that would be incurred, estimating sales from different departments or ...

Executive Summary

Organizational architecture determines how efficient or inefficient an organization is. An organization has to adopt a harmonized mix of the three core elements of organization architecture. The reward system, assignment of decision rights, and the performance evaluation criteria should display quantitative and qualitative balance. The ability to balance the above three elements brings about success in all organizations. When an organization’s architecture is continuously updated, it is in a perfect condition to respond to market shocks like competition and technological changes. The rate at which an organization successfully alters its architecture in response to market shocks directly influences its ...

For RTWMTC, budgeting is important since it will allow the company to plan its expenditures. It will allow for a balance between the capital and recurrent expenditures. This will ensure that the company maintains growth in a balanced manner hence avoiding illiquidity or insolvency. The other reason is that the budget will allow this company to manage its financial information and also review it on a real time basis. This will be achieved by maintaining an automated budgeting system which will ensure that the company makes timely and right expenditure decisions (Besley & Brigham, 2008). Thirdly, it is a means of measuring performance. In ...

The country of choice

Brazil is the country of choice for foreign investment. According to A.T Kearney consultancy, Brazil is ranked as the third most attractive country for foreign investment in the world. The other best countries include China, India and Poland. Brazil is the 7th largest economy in the world. It has stable political environment and has attained maturity in its institutions. The information technology infrastructure of Brazil is ranked 4th in the world with a turnover of $233 billion in 2012 . Brazil is a country that has shown positive growth since 2002 because of the increased demand for commodities. 2002 was the year ...

Analysis of Coca-Cola and PepsiCo

- Description of the companies

Coca-Cola is a beverage company that owns or licenses and markets non-alcoholic brands. The company started as a Coke brand in Atlanta back in the year 1886. The brand was started by Dr. John S. Pemberton, who was a pharmacist. Large scale bottling of the product commenced in 1899. Coca-Cola currently operates in more than 200 countries, with its daily sales averaging 1.9 billion beverage servings. The company distributes its products through its controlled and distribution stores. It offers a variety of non-alcoholic drinks including Coca-Cola, Diet Coke, Coco-Cola zero, Sprite, Fanta, water, juices and juice drinks, among ...

- Introduction Nectar Sweets Plc is a company with the main shop in Hong Kong. It is experiencing cash flow problems and is seeking an increase in the overdraft facility from the bank. Statements of the company reveal that its operations are profitable, but it is not efficient in collecting debt. The report identifies and analyses the company’s problems and recommends possible solutions. In addition, it uses financial ratios to assess the performance of the firm. - Problems facing the company - Nectar Sweets Plc has a problem in collection of its accounts receivables. The company takes a ...

The soundness of the health care system in any country is based on the role and prevalence of the public and private sectors in delivering care. People pay for their health benefits and cost either through the public or government insurance schemes or manage it through the private sector. Health insurance providers differ in each country and in some countries the government plays a bigger role providing universal health care to its citizens through tax funded programs. There are also other countries where the government plays a limited role and health insurance is largely handled by the private sector. In the ...

Personal finance

Learning is a continuous experience that starts at birth. Although formal learning takes place within learning institutions, much of human learning is a product of experiences from life. Like in other areas of professional development, financially planning is a product of both formal and informal learning experiences. In this respect, multiple experiences throughout my life have shaped my financial planning skills. My learning experience with respect to financial planning is traceable to my days in college. Being in learning institutions calls for self-discipline and control with regard to financial. This offered the first and extremely important lessons with regard to financial planning. ...

Question 1

Finance management is significant in the making of critical decisions such as investments, capital budgeting and dividend policy decisions. The finance manager uses the financial statements provided by the accountants to make decisions that may positively influence the performance of a corporation. Based on knowledge and information provided to the finance management, the finance manager can be able to select assets, which the firm can invest. Additionally, with the finance knowledge the, finance manager can be able to conduct capital budgeting effectively. Capital budgeting relates to selection of assets that will provide long term benefits to firm. In the selection ...

The governments of the world are looking for ways to improve efficiency, effectiveness and equity of their health care systems. Recently, primary health care has gained acceptance in the quest of achieving its aims (Besley & Gouvea, 2004). Primary health care in many nations is accessible, equitable and mostly favors the poor and the marginalized. The use of primary care physician’s increases patient satisfaction and reduces costs of health (Oxley et al., 2004). Primary health care does not have adverse effects on the quality of health care. It ensures maximum service utilization. The health care insurance through HMO ...

Introduction

There are number of things that come under the ambit of financial management, and among them, the name of Capital Budgeting is one of them (Parkinson, 2012). The main perspective of this assignment is to analyze the Capital Budgeting stance with the help of Net Present Value (NPV) and Internal Rate of Return (IRR).

Analytical Provision

Cash Flow Analysis Initial Outlay = $ 20 Million Equipment WACC = 5% Tax Rate = 35%

The cash inflow is mentioned below,

Net Present Value Net present value commonly denoted as NPV is an important financial tool which is applied to scrutinize the degree of deviation between present value of ...

Project 1 (Table 1 on page 462, n=1-4, r=16%) Yr 1 $144,000 * 0.862069 = $124,138 Yr 2 $147,000 * 0.743163 = $109,245 Yr 3 $160,000 * 0.640658 = $102,505 Yr 4 $178,000 * 0.552291 = $98,308

PV of inflow of cash $434,196

Cost of Investment (400,000) NPV $34,196 Project 2 (Table 1 on page 462, n=1-4, r=16%) Yr 1 $204,000 * 0.862069 = $175,862 Yr 2 $199,000 * 0.743163 = $147,889 Yr 3 $114,000 * 0.640658 = $73,035 Yr 4 $112,000 * 0.552291 = $61,857

PV of inflow of cash $458,643

Cost of Investment (400,000) NPV $ ...

IDENTIFICATION OF THREE ESSENTIAL ELEMENTS IN RESEARCH PROPOSAL

A research proposal basically has nine elements that make the research proposal attractive and effective. Out of the nine elements, three elements are the most essential in a research proposal. The three elements are as follows;

Statement of the Problem

The first element is providing the reader with clear and concise statement of the research or the goals of the project. In simpler words, this section includes the specific question(s) that must be answered along with the significance of the research proposal (Sekaran, 2006). In addition, it has also been indicated in several researches that this particular section provides an explanation of how ...

The cries of children are heard in the thick of the night as mothers try their best to breast feed the infants. Young brothers and sisters push each other and struggle for the last bit of food left in the plate. The elderly sit down in total weakness as they watch their strength drain away one day after another. People that are known to be strong and well ambled sit down in despair as they watch their loved ones perish in hunger and diseases. This is not just a thrilling story for entertainment, but is a reality in a number of the developing ...

Labor union is an association of employees formed with a main objective of improving members’ welfare (Peruek, 5). Over the years the labor union has developed into various forms which are mainly influenced by the economic, social and political changes (Besley, 9). The duties and activities of the labor union vary depending on the sector which the members of the union are drawn from. Despite undertaking different activities, the major goals of any trade union are a right to collective bargain for the welfare of its members and the right to call for industrial action in case they disagree with ...

Introduction

Budgeting is one of the most important parts of financial management. Budgeting allows the management to identify the areas where the company will be making expenses along with identifying cash inflows. Thus it helps the management to analyze the difference between the expenses and revenues and therefore by comparing these two, budget can provide estimated profits that the firm would make. Budgeting therefore helps the management of the firm to make decisions, to analyze the future cash inflows and outflows and thus make decisions accordingly (Besley, & Brigham, 2007). This report has been divided into three parts. The first ...

Introduction

Financial analysis helps organizations to analyze their performances over the period of times. Thus it helps the management in identifying issues as well as areas that can be further enhanced so that the performance of the firm can be improved over the period of time. This report presents the financial analysis of UPS. In order to analyze the company’s performance techniques such as Net operating working capital, Operating capital, Net operating profit after taxes (NOPAT), Free cash flow (FCF), Market value added (MVA) and Economic Value Added (EVA) have been used.

Financial analysis

Net operating working capital Net operating ...

INTRODUCTION

Conch Republic Electronics is a medium sized electronic manufacturing organization. The company has been operating over the last 70 years and during this time period; it has expanded its product range. The company also manufactures Smartphone. The previously introduced Smartphone has been highly successful in the market and therefore the management is planning to decide whether to invest in the new Smartphone or not. For this purpose, this report uses different capital budgeting techniques to analyze whether the company should accept the project and start manufacturing new Smartphone or not. Different capital budgeting techniques have been applied such as payback ...

Part # 1:

The net operating income is calculated by deducting the operating expenses from the operating revenue. This is calculated before deducting the income tax and interest payments. The formula used for the calculation of the new operating income is as follow (Besley & Brigham, 2007): Net Operating Income = Net operating revenue – net operating income In reference to the case of the hospital under discussion, amount which will be paid by the hospital for different type of cases are given in the table below:

Next the total revenue which will be generated from the cases is given in the table below:

In order to find the total revenue generated from the cases by the hospital it ...

introduction Financial performance of the company is one of the main indicators that influence the investors to decide whether to invest in the company or not. Financial performances of different companies are analyzed using financial ratios. By using financial ratios, investors are able to analyze how different companies have rewarded the investors and these ratios are also used to predict the future trend as well. Therefore these ratios are widely and consistently used by investors. This report analyzes the financial performances of Abbott which is a pharmaceutical company. In order to analyze the performance of Abbott, the performances ...

Executive summary

Regan Inc. has been involved in the installation and manufacturing of commercial heating, ventilation and cooling (HVAC) units. This report uses dividend growth model to estimate the price of the stock. The report calculates the price of the stock of Regan Inc. after including the super growth period that the company would observe after advancement in technology. Price to earnings ratio of the company has been used and compared it with the industry to analyze how the investors think about the company’s future as well as the industry future. Return on equity has also been calculated if the ...

introduction Time value of money is an important concept of finance and financial management. It has been said that the present consumption reveals more value than a future consumption and it is because of the fact that consumers have two options; either to consume it right away or forego it to avail it in future by investing the present amount (Houston, and Brigham, 2009). This report defines and highlights the importance of time value of money and also discusses the importance of time value of money for the financial managers. The report also calculates present value of money ...

Health care services can be provided by public or private sectors. Health care service system in most nations is made up of both private and public health providers. Health care services can also be provided with an aim of making a profit or just for helping the community. Private hospitals and independent medical practitioners who are self-employed are examples of profit making health care providers. The objectives of private health care are different from those of public health (Besley and Gouveia, 1994). Public health care sector is a government sponsored system that provides health care services as a basic human right to ...

Can we understand poverty in every way? Let’s try

Interpretations deposed by Poverty Indicators Poor individuals don’t focus so much on their poverty, the biggest example is that as in earlier times, it was very easy task for them to go at the nearest job opportunity which was 60 km apart without any resources. The poverty should be considered in reference to the period in which an individual lives. Townsend’s assert – He claims that those groups or individuals whose resources fall short of the resources taken by groups or individuals in the “‘The meaning of poverty” 105 British Journal of Sociology © London School of ...

Introduction

All of us constantly strive to satisfy our needs and improve our economic welfare. According to Certified Financial Planner Board of Standards (2011), they define this as personal financial planning, which denotes the process of determining whether and how an individual can meet life goals through the proper management of financial resources. Thus, personal financial planning is both an organized process and attitude that considers improved lifestyle elements of an individual’s financial affairs and is focused at fulfilling his or her financial set-goals. This confronts everyone – including recent college graduates, professionals to senior corporate executives to develop a personal ...

FORMS OF BUSINESS ORGANIZATIONS

There are three main categories of business organizations. They include; sole proprietorship, partnership, and corporations (Moran, 1963, p. 4). Each of the business organizations has different operational structures. Therefore, there are both advantages and disadvantages of adopting each form of business organization.

A sole proprietorship has the advantage that no formal procedure is required for setting up such a business (Besley & Brigham, 2007, p. 8). Further, the business enjoys direct input from the owner, which is positive considering that the owner wants the business to grow. The biggest disadvantage of this form of business regards raising money. The financing of ...