Essays on Dividends

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For purposes of this assignment, the author uses Tesco and Samsung to explain the stakeholder influence in the two organizations.

Business sector Samsung is a recognized brand in the production and distribution of electronic products ranging from smartphones, semiconductors, wearable devices, household items and computers among other electronics. Tesco, on the contrary, is the largest online food and grocery retailer in the United Kingdom, with retail stores in Europe and Asia.

Business purpose

Samsung’s business purpose is to give its customers innovative products to help them discover new experiences, connect them and open doors of possibilities with technologically savvy products. Tesco’s purpose, on the other hand, is to serve shoppers better in the United Kingdom; with ...

TeleTech Holdings, Inc. (TTEC)

TeleTech Holdings is a technology services company whose main business is the provision of telephony services to businesses. The company operates call centers and BPO centers through which it connects customers to their companies. Through the provision of the telephony services, it creates a lasting customer experience, which in turn results in growing revenues and profitability of the companies that it represents. The various industries that it serves include the automotive industry, financial services, healthcare, government agencies, e-commerce entities, and the hospitality industry among others (TeleTech Holdings, 2017). In light of the above brief on TeleTech Holdings, the objective ...

Over the past 25 years, IBM has been divesting from a number of its core businesses. IBM’s core businesses have over a similar period been faced with numerous challenges. As a result, sales and revenue have been declining over the years. However, the paradox of all this is that despite the declining sales and revenue, IBM’s stock value has been rising, a welcome situation for its shareholders (Henschen). The increase in share value despite a shrinking IBM illustrates a shift in the evaluation of companies over the years. Focus has shifted from a company’s value based ...

Rationale for the stock selection

Since the shares of preferred stocks have dividends that must be paid out before bonuses to the common shareholders, they are the class of ownership in a corporation. Thereby, possessing high claims on the company's assets, common stock, and earnings. It does not carry voting rights. Additionally, the preferred shares more rights as compared to the ordinary shares. Therefore, the rationale for selecting this stock rely on the ability of companies to retain the issue options of buying the common shares at an exercise price with a reasonable discount from the prices of the preferred securities. The accounting and ...

Introduction

The direct method for forming a cash flow statement shows the main categories of total cash receipts and aggregate payments. The simplest way to present the components of received cash and cash payments is by arranging operating cash in such a way the operating cash reconciliations take a separate list. Also, the method has additional items under the operating cash flow section including. For instance, the IAS 7 displays the received dividends under the operating activities. The tables below show the direct cash flows for Aden Group Inc. and Consolidated Subsidiaries. The significant items in the direct cash flow ...

The considered company is Tesla Motors Inc. Tesla Motors is an American company established in 2003 in California, United States of America. Under the command of Elon Musk, the company manufactures and markets vehicles as well as components and batteries for other manufacturers such as Daimler or Toyota group. Taking the name of the physical and engineer Nikola Tesla develops induction motors and compact systems with a lower number of a conventional heat engine moving parts. Also, the company has its patents for manufacturing, which have been released to the public since 2014 (Bloomberg, 2016). The main objective of ...

Alpha Group

Consolidated financial statement of financial position for the year ended 31st December, 2015. Items £ (000) £ (000) Long-assets 2014 2015 Investment property, fair value 2500 2500 Property, plant, $ equipment 4324 4818 Total long-term assets 6824 7318 Current assets Cash 200 140 Cash equivalent 30 20 Trade receivables 1900 1200 Inventory 1000 1950 Dividends 100 190 Non-controlling interest share 120 150 Inventory, fair value cost to complete and sell 180 150 Total current assets 3530 3800 Total assets 10354 11118 Equity and liabilities Share capital 1500 1250 Retained earnings 1910 1000 Profits for the year 1000 1250 Dividends payables 100 190 ...

INVESTING IN THE FUTURE

Question 1: Discuss the role of investing in personal financial planning. It has been gathered from the case that Sam Johnson is a hard working guy and he has defined some financial goals for himself. He is about forty years of age, enjoys a great job and ensures that he pays his bill on time. He plans to retire at the age of sixty and he wishes to have enough savings so that he could send his young kids to college when they grow up. In order to ensure that he has ample amount in his savings before retirement, ...

Company Overview

GasLog Ltd. is an international firm engaged in managing, operating, and owner of the LNG carriers that includes a fully owned fleet of 22 carriers (Reuters). The company primarily operating in the liquefied natural gas market by providing worldwide maritime transportation including technical ship management services to five of the LNG carriers owned by third-party subsidiaries. The company’s corporate office is located at Rue Du Ga, Monaco, and currently trading in New York Stock Exchange under the ticker symbol GLOG after being incorporated in 2006 (Reuters). The discussion aims to analyze the GasLog Ltd. in terms of financial ...

Introduction

The company is known for best multi-featured cameras and high quality entry level cameras. The aim of the enterprise is creating cameras that people trust. We have a team of three individuals who are dedicated to ensuring that the goals and objectives of the organisation are met. The culture of the company is strong, and it focuses on strong relationships between individuals. We do create trust building seminars to educate the employees on the importance of having trust. We also have a high corporate social responsibility and sustainable practices.

Strategic plan

The Glo- Bus application is a challenging task. Our team ...

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 ...

Chapter 1: Introduction 3

Chapter 2: Financial Performance and Position of TESCO 6 Chapter 3 Financial Management Policy 14 Chapter 4 Investment Strategy 18 Chapter 5 Valuation of TESCO 22 Chapter 6 Conclusion 26 Abstract The present report provides critical analysis of financial positioning of Tesco Plc. For this, the financial data has been gathered for past five years as well as its competitors to critically assess financial positioning of Tesco in the retail industry. The reports highlight the recent issues of Bretix which has significantly impacted economic conditions of the United Kingdom leading to declining the consumer confidence because of triggering inflation. ...

Financial opportunity of COSTCO and Walmart

COSTCO and Walmart have different financial opportunities due to the different business models. Importantly, COSTCO earns higher profits from membership premiums while Walmart depends on profit margins. The business strategy applied by COSTCO implies that the retailer can sell its products at lower prices compared to Walmart. This aspect gives COSTCO a competitive advantage in the marketplace. The purchasing power of COSTCO continues to increase with respect to its size, which gives the retailer an opportunity to bargain favorable prices and suitable financial condition for its products. Regarding performance, COSTCO has been doing better that Walmart for some years. ...

Galaxy International operates in a niche market; this is because skiing is only possible in very specific areas, and only a limited number of the population skis regularly anyway. Despite this, the company has performed outstandingly well to be achieving the level of sales with a small staff. This being said, Galaxy International needs to raise capital quickly and in an efficient way to successfully continue expanding to fully capture its full market size. By offering a unique product that is flexible yet tough, Jeremy is likely to continue to increase the volume of his sales and therefore the ...

Internal Analysis of Encana

Internal Analysis of Encana

Introduction

The oil and gas industry in North America is currently experiencing challenges and transition stage. The increasing need for the environment-friendly and sustainable forms of energy is affecting the industry negatively as more governments and companies are encouraged to use energy with no or low carbon emission. More companies are now developing solar and wind energy and create vehicles that can rely on electricity rather than oil. Such growing trend in the energy sector resulted to lower demand of oil and gas particularly in the North America. Many oil and gas producing countries and companies ...

Question 1:

Wendy Borg and Jason Kushdog were two entrepreneurs who came together to form Trendsetters Inc. trendsetter Inc. was a startup aimed at providing new warehousing and distribution solutions to clothing retailers. They however had a major challenge of capital as they only had six weeks of operations before they could run out of the initial seed capital they had invested. This prompted them to seek for alternative sources of capital, venture capital being one of the most lucrative one. Neither of them had knowledge in how venture capitals work since Wendy had her background in supply chain management and ...

Imperial Oil, founded in 1880 is a giant petroleum producing company, with its headquarters located in Calgary, Canada. It is the second largest integrated petroleum company in Canada and has registered a phenomenal growth since its inception. Its operations consist of exploring and producing oil, manufacturing and distributing petroleum products for energy sources, producing chemicals for industrial and domestic use through innovative and sustainable technology. ( Annual report, 2016) reports a cash generation of $22 bn from operations only during 2010-2015. Its performance can be evaluated from the growing dividends paid to its shareholders in last 21 consecutive years. Imperial ...

Introduction

Multinational corporations across the world usually consolidate and present their operational results in financial and non-financial terms at the end of every term, usually a year. The financial aspect of reporting is supposed to comply with a clearly prescribed set of regulatory standards. The adoption of the International Financial Reporting Standards and GAAPs was meant to ensure that all compliant firms across the world produce financial statements that conform to the industry specific reporting frameworks and thus achieve a degree of uniformity in reporting. Different firms in operating in multiple locations operate under the strict guidelines of the specific ...

The perpetuity and success of any business organization are founded on the ability of the entity to acquire sufficient equity to foot its operations. There exist various ways through which an organization can suffice its long-term financial needs. Other than long-term debt, businesses can obtain financing by the following forms that are cheaper than long-term debt. Due to the tightness of business’ liquidity in the present day, businesses have to rely on cheaper sources of financing to ensure their sustainability. The capital markets also referred to as equity financing forms the cheapest source of funding for business entities 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, ...

Executive summary

The stock price of Southern Cross Media Group Limited did not show any reaction to the announcement of the 2015 financial results. The stock price increased days before the announcement and the day after the event but declined two days after the announcement. Financial analysis of firm indicates that it has a strong liquidity, and this has improved over the last five years. Its debt to equity ratio has increased due to the capital reduction in accordance with the relevant statute. The year 2015 saw a decline in the profitability of the company although this did not affect the ...

About the case:

Rodney Chu, the managing director of Sierra Capital Partners is interested in purchasing 60% equity interest in Arcadian Microarray Technologies, a biotechnology firm founded in the year 2003. At present, Sierra Capital Partners have offered $40 million to Arcadian for selling their equity interest. This amount will be used for expansion of the firm. While Arcadian management have forecasted an optimistic projection for their firm’s performance over the period of 11 years, however, Sierra’s projections reveal a conservative outlook. Therefore, Mr. Chu is interested in ascertaining the terminal value and discounting the cash flows and the terminal ...

Leonardo Pisa of Italy

Leonardo Pisano (Fibonacci) (1170 – 1250) was a popular Italian mathematician of the Medieval Period that made significant contributions to the history of finance. He was the first person to develop the value analysis concept (retracement) that compares the economic value and the contractual cash flow. Influenced by the economic evolution in the Mediterranean, he made lifetime discoveries that had a profound impact on public finance and capital enterprise in Europe. In his arithmetic book, ‘Liber Abaci’, Fibonacci expressed his discoveries of the mathematical concepts in commercial trade. He developed mathematical concepts of interest rates, calculation of profits, conversion of ...

Keurig Green Mountain was founded in 1981 as best coffee and coffeemaker company in the United States of America, initially named as green mountain coffee roasters. It specializes in making best beverages imaginable at homes and workplaces. The company contributes a prominent market share in the coffee industry. The paper highlights the financial department of Keurig Green Mountain and focuses on the assets, liabilities, annual income statements, inventories, stocks, and other financial related concepts. The income statement of Keurig Green Mountain indicates that company is performing well for past few years. The revenues generated by the company are the ...

Introduction to PepsiCo Incorporated

PepsiCo is an American multinational company having its origin in the United States. The company is a market leader in the global beverage industry. The biggest and worldwide competitor to PepsiCo is the Coca-Cola Company. PepsiCo serves the worldwide market and gain access to audience by mainly sponsoring sports events, players and teams.

Pro-Forma Financial Statements of PepsiCo Incorporated for 2016 (the next period)

This section is aimed at displaying the financial statements of PepsiCo for the next financial accounting period (2016) as well as the last statements for 2015. The pro-forma income statement and balance sheet are prepared by assuming a ten percent increase in sales revenue and cost ...

The firm does not have debt. Therefore, the firm value is the outstanding number of shares multiplied by market share price. Value of Wrigley’s = 232.44 million *56.37 = 13.103 billion dollars

We assume that Wrigley uses the debt that has been raised to pay dividends to shareholders

Value of Wrigley’s = Market value of Equity + Debt Value Value of Wrigley’s = 13.103 billion + 3 billion = 16.103 billion dollars The proposed coupon rate is 13 percent. After the re-capitalization, the total debt ratio will be 73 percent. Therefore, the Bond will be rated between grade BB and grade B. The effective debt yield for a grade B debt security is 14.67 percent while that if grade ...

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 ...

1.0 Abstract Stakeholders are of central importance to every business organization. The success of any business hinges on the relationship that it has with its stakeholders. Disclosure of quality financial reports is significant for the capacity of business organizations to build confidence with their key stakeholders. Corporate governance and the audit quality have attracted the interest of researchers to determine how they impact stakeholders. Additionally, the implementation of IFRS (International Financial Reporting Standards) has impacted the direction of business organizations especially with regards to corporate governance. The question of whether the quality and extent of disclosure of financial information ...

Internal Analysis of McDonald’s Corp.

Introduction McDonald’s is the biggest chain of hamburger fasts food cafes around the world with over 50 million consumers. The corporation was started in 1940 by two brothers in San Bernardino, California (McDonald’s. com, 2016). Today, McDonald's is the leader in global food service retail with around 35,000 locations in more than 100 nations. However, most of its worldwide restaurants are owned and operated by independent local business people. Additionally, the alignment strength in McDonald’s is its franchisees and suppliers. This system has been the reason for the long-term success of the corporation. In the ...

Vodafone

Introduction This report seeks to assess the expected returns for Vodafone using the CAPM model. The CAPM model is based on three inputs: risk-free return, market return and company beta. Therefore, the report will estimate these three parameters and use them to find the expected return of Vodafone. Finally, it will provide a critique of the CAPM estimation technique.

The risk-free rate of return is often taken as the return of short term government securities. The 3-month treasury bill for UK is 0.48 . Therefore, we assume that the risk free rate.

Market Return

Expected market return are the average rate of ...

About the report

The report is based on our assistance given to Wheel Industries where we have analyzed the long term investment opportunities available with the company using the techniques of capital budgeting. To facilitate better understanding for our readers, we have included all the calculations within this report while every calculation is explained comprehensively.

Project Details

Wheel Industries is considering a three-year expansion project, Project A. The project requires an initial investment of $1.5 million. The project will use the straight-line depreciation method. The project has no salvage value. It is estimated that the project will generate additional revenues of $1.2 million per ...

Business Report

The A2 Milk Company Statement of Academic Honesty This assessment has been written by me and represents my own work. This work has not been previously submitted. All sourced information has been appropriately acknowledged and ARA referenced. I permit this assessment to be copied for academic processes (such as moderation). I have retained a copy of this assessment electronically.

Part 1 – Introduction

1.1 What is the name of the Entities Reporting (Quote the page number from the Annual Report)

Answer:

The name of the entity reporting is company FMC. It is created for the purpose of part 7 of the Financial Markets Conduct ...

Question OneDoes the IRS view the cost of laser eye surgery (“LASIK”) as a valid § 213 medical expense deduction – or, alternatively, is it nondeductible cosmetic surgery? Yes, it is viewed as a valid medical expense deduction as it promotes the proper functioning of the body under § 213(d) (9). (IRS Publication 502, 8) Question Two Brother and sister operate a farm as a family corporation inherited from their parents. Differences over how the farm should be operated have led to a serious breakdown in their relationship. Is this a sufficient “business purpose” to support a tax-free split-up per § 355?  ...

EXECUTIVE SUMMARY

Ratio analysis is one of the most common methods of analyzing a company. They are simple to calculate needing only public information from financial statements. The purpose is to use past relationships of financial accounts to predict future results. Perhaps the most important ratios involve operating income. ROE, gross profit margin, operating margin, and net profit margin give information about how the company achieved results in the past. Of these, operating margin is the most important. This ratio demonstrates a company’s ability to generate income from normal business operations. Look for at least a 10% margin. Extraordinary items ...

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: ...

Financial Statements

The Coca-Cola Company's fiscal year begins on 1st January every calendar year and ends on 31st December every calendar year. Since the 2016 fiscal year is not yet over or even half way through, this assignment assumes the 2015 fiscal year as the current one and uses data for the fiscal year ended 2015. The net income from the 2015 fiscal year is $7,351 billion. This is up from 2014’s net income of $7,098 billion. The net income, therefore, increased by $253 million which represents a 3.56% increase in net income ("The Coca-Cola Company", 2016). Net ...

Several accounting transactions occurred during the month of December 20X5 and were as follows:

A withdrawal was made at a value of £15,000 from the business for the personal use of the owner. An existing retail store was purchased by the company for £150,000 on December 1. 10 desktops were purchased at a total cost of £3,500. The purpose of which is for the administrative and retail operations of the business. 10 printers totalling to £500 and miscellaneous computer accessories worth £275 were purchased. The purpose of which is to improve the purchase ordering as well as the selling operations of the business. 5 security cameras and other shop fittings ...

Introduction

Modern global economic system is a considerably distinct from the dogmatic frameworks of political economy (Mankiw, 2014). Professor Blanchard contests that extreme increase in production and substantial automation of the business processes have seriously changed the global economic landscape (2011). In order to stay competitive the companies have to develop and implement new business solutions, as well as they have to stay socially and environmentally responsible (Goldin, 2014). In addition, Gartner wrote that there is an increasingly important need to stay in line with the perpetually evolving customers’ preferences (2006), and the smallest disharmony with their predilections may result ...

A Real Estate Investment Trust (REIT) is an investment vehicle in which resources are pulled from small and large-scale investors and consequently invested in the real estate sector. The REIT is then traded on an open market exchange. The attractiveness of REITs to investors is because of the special tax incentives and high dividends that they usually receive. The basic structure of a REIT is that it must at least have 75% of its assets in the real estate sector and must not have less than one hundred investors at any period. REITs are legally mandated to remit at ...

Introduction

The objective of this report is advise and recommend whether Restaurant Brand New Zealand Limited or Xero Limited is the better company to work for in relation to long-term employment. As companies that have the capacity to provide their employees with stable, long-term employment usually show strong growth and are thriving economically in their chosen market. This report is also based on the financial information provided by the NZX Company Research database from the past three years and articles sourced from NEWZTEXT in order to present a comprehensive view of how each company is performing in the current environment.

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Abstract 2

Introduction . 3 Lessons from Capital Market History . 3 Return, Risk and the SML .. 5

Cost of Capital 7

Financial Leverage and Capital Structure Policy 9 Conclusion 11 Abstract This paper entails a critical analysis and discussion of the components of the corporate finance and its subsequent application in the contemporary business environment. The discussion and analyses contained in this paper are centered on the book by Ross, Westerfield and Jordan (2012) which is titled: “Fundamentals of Corporate Finance.” In this book, different aspects and components of this subject of corporate finance have been discussed in great depth and this paper essentially entails ...

The conflict of interest occurs when the director or the manager of the company performs to generate personal gain from the operations of the business. According to the corporate governance codes the conflict of interest happens in every form of business. However, the most important form of business in relation to the conflict of interests is the company because of the involvement of the common public and higher level of funds. Therefore, the corporate governance codes provide the guidelines for the companies to follow to reduce the conflict of interests. (Strier, 2005) The first risky area is the related ...

Question 1 Directors’ Duties

Issue For a business to register as a company it should satisfy the following requirements: a name, one or more shares and shareholders having limited and unlimited liability. Having directors is also a requirement. Once a venture has this, it can go ahead, apply for registration as stated in section 11, and send an application to the registrar. The application must be in a prescribed form and signed by each applicant; this includes the named directors and shareholders. The proposed company’s name and constitution should be included in the application, as stated in section 12. Once the application ...

I. 1. Alpha Corporation’s major sources of cash from 1989- 1991 were proceeds from cash from operations, disposal of obsolete assets, proceeds from disposing of discontinued operations, sale of common stock and proceeds from raising long term debt. Its major uses of cash were purchases of fixed assets, capitalized software and treasury stock, re-payment of long term debt and payment of dividend. Major sources of cash for Beta Corporation were cash received from customers and proceeds from issue of common stock. The major uses were purchase of marketable securities and other capital expenditures, re-payment of subordinated debt and ...

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 ...

There are some companies whose products and service, impacts the global lifestyle in a significant manner, and for this reason, becomes part of the consumer’s everyday life. There are very few brands that connect with consumers on a personal level and on a daily level. Google has been part of the consumer’s life at all times, the mission of Google is to organize the world’s information and make it collectively accessible and useful in an effective manner (Company Overview, 2016). The impact of Google is remarkable that, the name of the company is used as a ...

There is a considerable and sizeable population of small business in the US economy. Statistically speaking there are over 28 million small business that occurs with small business specifically indicating businesses with fewer than 500 employees. Over 22, million individuals are self-employed without any additional payrolls or having employed other persons. Of the working population, a considerable percentage of over 50% that translates to 120 million individuals work in the small business (US statistics and data, 2016). Small business on average have modest turnovers that attract income taxes on the cash generated. Business entities are relevant in the generation ...

Briefing Paper I: Critical Legal Thinking:

United States v. Bhagat: Case Questions: Question 1: Insider trading is the practice in which a person who knows of insider information within a publicity traded company either sells their stock prematurely that they know is going to fall or who tips off a client that the stock is going to plummet in which case, causes the client to sell early and have an unfair advantage in the market, (Cheesemann, 2013). The practice of insider trading is higher regulated by the SEC within the United States. Tipping is the practice of providing insider trading information to another person who ...

a) The ratio of average equity to the average assets improved in the last five years from 2010 to 2014. The value increased from 8.30% to 10.37%, the previous value for a company in the financial sector as banking is a value over the average value of the industry of 10%. A higher ratio of equity over assets gives the confidence to the clients that the bank has at least one dollar per ten dollars that the company “owns” to the clients in the form of deposits. The ratio of return on average assets improved slightly from 1.10% to ...

Introduction

Report’s aim Comprehensive analysis of a company is crucial for decision making regarding its inclusion in a portfolio. That requires forecasting a company’s performance to estimate the expected value of the stock and comparing it with the current market price so as to decide whether it is overvalued or undervalued. In that view, this analysis seeks to analyze the IMB Company with application of the Discounted Cash Flows method as well as WACC. With the values calculated, the value per share is compared with the current market price to make recommendations whether the stock is a buy, ...

British Petroleum is a company that operates in a high risk industry with many factors having an impact on the revenues. A drop of the prices on the oil market can lead to significant financial losses that will result in the cut of dividends paid out to the shareholders. BP Oil Company is known for its strategy of having dividends paid out to the shareholders on a constant and regular basis as a top priority of the corporation, but current events in the oil industry have had an influence on some managerial decisions. According to the article published in ...

Introduction

Carvajal, S.A is a family-owned holding company that provides printing-related and other products and services to both the Latin America and outside markets. The company had seven other subsidiary companies.It had grown into a leading company in sectors that included yellow pages, notebooks and textbooks, and office furniture. It also funded the family’s efforts of helping the needy in the community. Alberto Carvajal and Mary Alice Crump were worried about the financial returns and the growth of the company. Alberto, 49 years old, was chairman of Carvajal’s board. Mary, 56, was a member of the holding company ...

Risk Management at Old Mutual Group

Old Mutual risk management strategies are shaped by the potential impacts on the company's reputation, earnings, liquidity and future sustainability. They are strategic, and the companies closely monitor them. Owing to various strategic changes that the company underwent in the period under review, strategic execution risk is the principal risk facing Old Mutual. The company is faced with other principal risks including, economic situations in the country of operation, shifting credit risk across the group and currency devaluations. There are also other inherent potential risks owing to the changing customer needs, market exposures, liability insurance risks, and interest volatility. ...

Introduction

Carvajal S.A is a family business which was founded on the 29th October 1904 and is located in Cali, in Columbia. The business was founded by a man by the name Emmanuel together with two of his eldest sons. The business began as a printing and publishing business. It has since expanded into the sale of notebooks, yellow pages and office furniture even outside the country. With the emergence of new consumer trends such as the internet, the business is faced with a lot of competition such as the availability of the services provided by the business over the ...

BUSINESS FINANCING

Introduction Business owners and managers seeking financing encounters an essential decision regarding choice of whether to borrow money or to make use new equity capital. Given that equity and debts have very varied characteristics, each of them has different effect on cash-flow, earnings, and taxes as well as on balance sheet. They also have different impacts on any company`s dilution, leverage as well as a host for other financial metrics by which companies are measured. Lastly, each business financing options presents a different kind of relationship in relation to the financing source. Thus, a company`s plan on ...

Every organization is established with a certain purpose. Every organization has its own purpose and the objectives of the firm differ from one another. Regardless of this difference in the objective and purpose of the existence of the business organization, they all have a common in them. All of the organizations involve themselves in some money related transaction. They purchase some goods, sell some other things, pay salary, performs some investments and does several other financial related tasks. The business must analyze its financial position at a certain period so that it can make certain decisions. To simplify this ...

Dividends and Share Buy-Backs

Dividends refer to the money regularly paid to shareholders by a company. Often the money is paid quarterly. Modigliani and Miller argued that dividends are irrelevant and that they do not affect the value of a firm’s shares. However, as Dan McCrum (2016) argues, dividends are exactly what investors get from an investment in the company. According to McCrum, dividends matter. In recent years, companies have been cutting their payout to shareholders due to the hard economic times in Europe, (Oakley 2016). The interest rates have also reduced to zero or negative favouring borrowing that equity. In the ...

Strengths:

■ The cash flow of the family is positive; the total income is 122,782 USD per year, and the total outcome is 116,024. The net cash flow per year is 6,758 USD. ■ Both Chris and Grace are economically productive. Both are professionals and invest in the education of their sons. That will guarantee a good economic performance in the present and future. ■ The family is the owner of business. Although they are employees, the business gives to the family an increasing positive cash flow.

Weakness:

■ They don't have almost any asset that generates positive cash flow except ...

Equity right offering is the disbursement and the invitation for security holders in a firm to subscribe or buy addition shares in the public traded company (Robert, 2000 p.131). The shares are classified as non-dividends size for size way of floating capital. Exiting shareholders are accorded the opportunity and benefit to acquire new shares of the firm in a prospectus issue. In reality the right issues is a public offering to the corporation shareholder to inject more equity for purpose of expansion and operation. Equity offering is more appropriate for Public traded firms because they don’t erode the ...

Introduction

This paper explores the costing and pricing methods applicable to firms in the tourism and travel sector using Allegiant Travel Company as an example. Allegiant Travel Company is an American company providing leisure travel products and services to under-served cities in the US. It provides air transport, air transport-related products, travel protection products, hotel rooms and other third party travel products. The paper also analyses the financial statements to assess its financial state.

Costing methods

Several costing methods can be applied in the tourism industry depending on the nature of the assignment and the operations of the organization. Applicable costing methods ...