Essays on Capital Gains

A) In the article titled Corporate Policies of Republican Managers the authors tested the effect of personal political preferences of corporate managers on corporate policies. The authors specifically focused on the Republican managers who had 73% likelihood of identifying themselves as conservative, 24% chance of identifying as moderate, and only 3% chance of being liberal (Hutton, Danling and Kumar 1279). The study found that majority of the managers identifying themselves as politically more inclined towards the Republican also adopted conservative corporate policies. Consequently, the organizations that they led were characterized by low debt levels, low capital, low investment in ...

Abstract

The aim of this project is to conduct risk assessment and return analysis on the investment vehicles in my portfolio. The investment vehicles chosen are Ford Motor, Walt Disney Company, Citigroup Inc., Wal-Mart Stores Inc., Time Warner Inc, Johnson & Johnson, US Treasury Bills, and Johnson & Johnson bond. The portfolio includes securities drawn from three categories that are the money market fund, corporate bonds, and shares. In the first scenario, the project tested the impact of novice asset allocation on return and risk in the sense that the investor allocates assets to the portfolio at own discretion. In this scenario, ...

Part A – Company’s Background 3

Part B – Comparative Financial Data of Last Three Years 3 Part C- Comparative Financial Performance Analysis from 2013 to 2015 5 Current Ratio 5 Inventory Turnover and Receivable Turnover 6 Total Debt Ratio 7 Net Profit Margin 8 Key Findings and Investment Decision – Conclusion 9

References 10

Comparison of Financial Performance between PepsiCo and Coca-Cola from 2013 to 2015 Part A – Company’s Background This research aims to compare financial performance of PepsiCo and Coca-Cola Company from 2013 to 2015. These two companies are actually market leaders as well as largest competitors to one another in the global beverage industry. Both ...

MEMORANDUM

Dear Sir, This memo is written to address the problems faced by the Big Corp. as a result of the bankruptcy of its subsidiary Sub Corp. the memo discuss the different statutory and regulatory matters applicable in this matter. It also recommends the solution on whether the dividends paid by the company should be treated as a return on capital or ordinary dividends. At first, it is important to understand the basic difference between preferred and ordinary stocks. Preferred shareholders have a preferred claim to the earnings and profits of the company. When the company has excessive cash and ...

Price: 438.31 GBP Date: 4 May 2016

Company profile: Aviva Plc provides insurance, savings, and investment products to over 31 million customers around the world (Aviva, 2016). Aviva is a composite insurance that combines life insurance, general insurance, and asset management (Aviva, 2016). Aviva operates worldwide with its headquarters in London United Kingdom (Yahoo! Finance, 2016).

One-year Price chart:

Figure 1: One-Year Aviva Price Chart

Source: Bloomberg

Price performance: Valuation (by DDM and by comparables):

Analysts’ recommendation:

Introduction 3 Price performance and news analysis 3 News 4 Valuation 5 Multi-stage DDM 5 SML analysis 6 Discussion of pros and cons of the methods used for the above valuation 7 Conclusion 10

Appendix 13

Exhbit1: ...

Introduction

In financial management, the finance managers primarily make several kinds of decisions including investment decisions, financing decisions, routine decisions and dividend decisions. For this case, the paper focusses on dividend decisions. The paper shall evaluate the theoretical framework and empirical evidence that examines the relationship between the firm’s dividend policy and its market share price. Quantitative business analytics refers to application of mathematics and statistics to solve business problem. From the definition, it means that one to define the business problem to solve first then apply the relevant techniques. In this case, the paper hopes to understand the ...

The increase in taxes to those wealthy Americans will have a statistical impact on the growth of the economy and to its driving factors including the savings, investments, labor supply and the productivity growth. Having high taxes on the wealthy helps in financing more in investments that are found in different fields including those investments in the education, scientific research and infrastructure of which are critical to the growth of the economic prospects especially those in the middle class. It is possible because the high taxes on the wealthy leaves the country with much to spend on other main ...

The role and regulation of Mauritius financial institutions

Mauritius is the largest island in the world. It is one of Africa’s economy that is stable, competitive and success. The state of the economy has enabled the country to be both vibrant and thriving in sectors such as the export sector, offshore financial sector, and manufacturing. The success has allowed the country to attain a Gross Domestic Product of $11.9b. Also, its convenient position has enabled it to be an established international financial center with easy access to Asia, Europe Middle East and South Africa enabling active investment. The report aims to understand the roles and regulation ...

Risk, Return, and Portfolio Allocation: Why Stocks Are Less Risky Than Bonds in the Long Run

Risk, Return, and Portfolio Allocation: Why Stocks Are Less Risky Than Bonds in the Long Run

Summary of Chapter 2:

In the current article by Siegel J. J, the main idea explained is that the risk associated with the corporate bonds and the stocks is based on the market value in the future. The main focus of the article is on the lower risk levels long term investments in stocks as compared to the investments in the bonds. The techniques used in the article are analyzing the historical data and few statistical formulas such as correlation and the standard deviation. At the same ...