Essays on Interest Rate

Carry trade is a means of trading where an investor borrows money from a financial institution then invests the same in assets with the hope of getting a profit from the assets. This means of trading is popular in the foreign exchange market. It involves borrowing from low-interest rate currency then converting that currency into that of a high yielding one. There are two ways in which an investor can earn for the carry trade. One can either invest in a high yielding currency or invest in an asset that has prospects of increasing its worth. These assets can ...

Impact of Policy Changes on Financial Stability of Commercial Banks in India

Paper Due date Abstract The study envisages financial stability of Indian Banks, especially schedule commercial banks, in the backdrop of macro-prudential policy changes. Banks are put under microscopic vision in terms of performing as commercial units while strictly adhering to the policy norms. The effect of regulatory and supervisory policy changes can be evidently seen in stressed performance of banks in the recent years, in-spite of growth in their retail portfolios. The policy changes of increased provisioning for NPAs, improvement in asset account quality, revised guidelines for Net Stable Funding Ratio, restructuring of large accounts and many more have ...

Carry Trade refers to the strategy of involving investors in selling a particular currency with a relatively low-interest rate. Then, the funds obtained in such transactions are utilized in purchasing a different currency that yields a higher rate of interest. In such a case, the investor is in no doubt aligned to make a profit. Ideally, the profit is as a result of the rate difference calculations between the values of the two currencies (Anzuini & Fornari 470). Japan gives a perfect example when it comes to learning about Carry Trade. The country has long been operating in deficits that ...

Expectations is a critical topic on macroeconomics and defines the pivotal elements of every market economy and controlling all the economic transactions and decisions. The activities within an economy are usually defined by the expectations of the people.

In normal situations, when the supply of goods like oil falls, its price rises pushing for higher production by producers while consumers conserve on its use to get substitutes and get prepared for more. The price controls are significant in controlling the expectations and eliminating the poorly executed economic plans or activities. The government intervenes in the economic expectations or plans ...

Different Aspects of Globalization

Globalization represents the integration of societies and economies through migration, capital flows, foreign direct investment and global trade activities. One positive aspect of globalization is that it brings countries and their people closer by connecting them with each other. This is largely supported by the rise of the internet. The second aspect of globalization concerns the capital inflow and foreign investment into the developing countries. Because of such inflows, developing economies are able to prosper economically, get more employment opportunities, and the living standard of the local people increases. The third aspect of globalization is that countries are able ...

Q. 1. A. To calculate nominal, real, and GDP deflator, the following equations were used. Nominal (NGDP = Quantity (year) X Price (year), while real GDP) can be expressed as (RGDP = Nominal / Deflator), and GDP deflator can be expressed as (GDPD = Nominal / Real GDP X 100%). Therefore; (See Table 1.) B. For multiple items, calculating CPI requires a weighed average of the commodity price. In this sense, the prices of listed items were calculated as (Average = Bread price +TV Sets + etc. / 5) for each year. After which, the CPI was calculated using the equation (CPI of Multi ...

The Impact of the Theory of the Consumer Choice on Demand Curves, Higher Wages and Higher Interest Rates

The theory of consumer behavior shows how the choice is affected by the price of goods, income and preferences, and the way buyers maximize their net gains from the purchase of goods and services. The price change of a good affects the consumer demand structure in two ways. Any change in the price results in the appearance of the income and substitution effects, as it changes the amount of available goods and their relative prices. The above effects are consumer reaction to changes in relative prices and real income (Mankiw, 2014). The substitution effect is the change in the ...

(Tutor’s Name) (Assignment)

Introduction US has been the center of the global economy for the past several decades, and hence decisions taken by the U.S government can have significant impact on the rest of the world. In the same manner, the monetary policies formed by the Federal Reserve (FED) – the central bank of the United States –influence the economic policies of other countries worldwide. Therefore, central banks worldwide are closely monitoring the moves of the FED so as to make timely adjustments to their economic and monetary policies. The U.S economy was severely hit by the global financial ...

The Federal government has limited options to address economic issues. These are generally described as “Fiscal policy” and “Monetary Policy.” In the most general terms, fiscal policy involves government tax and spend programs. The underlying theory is that tax cuts increase consumers spending ability by leaving consumers with more money and government spending provides a more direct stimulus by injecting money into the economy. Fiscal policy is generally identified under the popular “Keynesian Economics” label. Monetary policy, on the other hand, involves the central bank (the Federal Reserve Bank system, or “the Fed”) “adjusting” the money supply through interest ...

Japanese Economy in the Recent Years

Introduction During the advent of economic downturns particularly in terms of financial crises or bubbles, the usual resort of the government is to rely primarily on its monetary tools alongside expansionary fiscal policies to stimulate the economy. Monetary policies are tools used to deal with inflation, budget deficits, unemployment, incomes, international economic relationships among others. Monetary policies have profound effects on our jobs, incomes, livelihood, and career choices. One of the considerations and is always on the watch in an economy is the behavior of prices of the goods and services. As the law of demand states that with ...

(a)Discuss the conceptual merit(s) of each of the date-of-issue balance sheet presentations shown above for these bonds. (b)Explain why investors would pay $1,085,800 for bonds that have a maturity value of only $1,000,000. The difference between the present value and the maturity value of the bond depends on the interest rate and the coupon rate. If the coupon rate of a bond is greater than the yield to maturity rate, then it will trade at a premium to its face value. Therefore, it is clear that the bonds of Nicholas company are ...

References 6

The Relationship between Interest Rates and Exchange Rates in Australia 1.0 Introduction In macroeconomics, large scale market-wide factors are considered. Commonly, macroeconomic factors are considered in order to support decision-making, particularly for firms seeking to perform international business (Goodwin, Nelson, Harris, Torras & Roach, 2013). Two of the most important rates influencing decisions of international finance are the interest rate and the exchange rate (Terra, 2015). The interest rate is the percent cost to rent money, and the exchange rate is the value of one form of currency against another. Firms examining options with regard to how to invest money ...

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 ...

Deficit or Surplus

Effects of Federal Budget Deficit or Surplus Q4. Explain why a federal budget surplus increases national savings, while a budget deficit decreases national savings. Reply: A government’s budget balance is the difference in government revenue and spending. When the federal expenditure is less than federal revenue, the federal budget is in surplus. National savings is the sum of private and public savings. In the case of the budget surplus, the government sector is a net contributor to national savings. This causes an increase in national savings. When federal budget is in deficit, the federal expenditure is more than ...

Introduction

Cash management is a complex task though it seems to be an easy job. It is a highly complex as well as detail oriented task. It is very necessary to effectively manage the cash that the company have. If the company fails to manage the cash effectively, then there will be problem in meeting the financial obligations. Failing to manage the cash effectively will affect the company’s operating, financing and investing activities. In sum, the whole cash flow system will be affected. To facilitate the cash management, the company prepares the cash budget and implements the proper cash ...

The story of Microsoft started as a small company founded by two high school friends in 1972 and a relatively shorter period, these friends could manage to revolutionary innovations in the history of computer producers. Before them, the computers were using very confusing software for users. Microsoft Company has produced the computer operating system of Windows. The primary strategy Microsoft has followed is to create user-friendly applications and operating system. The software developed by Microsoft has made the use of computer very easy, and that helped the company increase its market share in the global market. Nowadays, Microsoft has ...

Analysis of Costa’s Activity

Business Activity Costa Coffee is the UK’s favorite coffee shop and one of the world’s leading coffee brands, serving premium coffee in .. countries around the globe (Costa official website, n.d.). The company uses Arabica and Robusta beans, originating from 70 countries situated at the Bean Belt region, in the equator, going through a rigid process of cropping and roasting, to assure the top quality coffee served in Costa’s shops (Costa official website, n.d.). Therefore, the scope of Costa’s activities refers to selling premium coffee through dedicated stores. It also includes selling coffee through vending ...

Articles Summary

The main point in the current article is to develop an attitude towards the savings at the early age. The sources of finance at the early age are very limited and it is very important that the individuals must plan their important needs accordingly. According to the article, the important needs such as higher studies, important assets and the good credit history must have a proper financial plan. The planning must cover all risks, including recessions, inflation and the time value of money. The idea of savings from the early life can help anyone in achieving the goals such ...

Abstract

When an organization has cash inflows and outflows of foreign nature, the cash forecast for every currency will help during the identification of the currency exposures. The format of the estimation should allow the users to determine the balance for every currency and whether there is a growing shortage or extra money over time based on reasonable cash flows. The increasing gaps between the cash inflows and outflows may need hedging, and the cash flows that offset over time represents the issue of timing effectively. The management of foreign exchange transaction can be achieved through the offsetting transactions to ...

Abstract

Individuals and business organizations with investment potential or the desire to become investors often find themselves having limited capital to undertake the desired projects. Additionally, most investors are often confused when carrying out analysis to assess the risk of the various portfolio in which they intend to invest their resources. The governments have developmental projects that require more financial resources than their revenue due to budget deficits. Having excess money in the circulation is dangerous to an economy because it results in excess aggregate demand that produces inflationary gaps. As such, the government must regulate money supply to ensure ...

The chapter under consideration is the Chapter 5, Financial Services: Savings Plans and Payment Accounts. The chapter gives to the reader five important aspects that contribute to the understanding of the personal finances. 1. The first aspect is the selection and use of the available financial services in the market and the factors that influence the decision to select a specific financial service. The selection of the financial service depends on of the needs of the client and the convenience of fees and conditions. One of the financial services is the availability of cash. The cash is the most ...

Response

Response 5. Explain the effectiveness of monetary policy. Monetary policy is an item that is used by the state or author in an attempt to control instances of inflation and ensure that there is price stability. The central bank has the mandate to monitor the growth and the size of the money supplied. Various strategies are used to control and maintain the monetary policy. For example, selling or buying the government bonds, adjusting interest rates and managing the bank reserves (Galí & Gertler, 2009). Monetary policy is effective. This is based on the expansionary policy. If an increase in the ...

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 ...

1. The Financial Crisis: Avoidable but Inevitable Theoretically, the financial crisis could have been avoided as investigation findings revealed . Under the circumstances however, the crisis was an inevitable consequence of everything that was going. The Federal inquiry concluded that the 2008 financial crisis could have been avoided. The crisis was the result of “widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street”. It was the result of “greed, ineptitude or both” on the part of government and the private sector. Among the persons found responsible for the crisis included Federal Reserve Chairman Alan Greenspan and, ...

Relationship between inflation and interest rates

Introduction Predominantly, most economic agents base their decisions on the current and expected changes in the economic conditions. Variations in interest rates have been used as a major variable by most researchers and policy analysts. Additionally, the behavior of interest rates in the economy has been studied since the interest rate is a significant macroeconomic factor to help in the understanding of how it is related to other macroeconomic variables and its impact on the economy. Primarily, interest rates entail the percentage of the loan that lending institutions charge as interest to borrowers, and it is mostly expressed as ...

The deterioration in political and economic environment in Brazil is a cause of worry as the portfolio holds 10% of Brazilian bonds denominated in USD. If the situation degrades further, it could result in increased credit risk due of two types, either due to downgrade of credit rating by the credit rating agencies or default on the payment. Either of the situations would lead to decline in value of the bonds and affect the whole portfolio. A downgrade in bond rating would lead to increase in the yield, resulting in decline in bond value. On the other hand, there ...

Avoiding or engaging in Strike

Assuming the minimum labor wage stands at $7.25 and each employee works 10 hours a day for 25 days a month. This would mean that at least each employee earns a minimum wage of ($7.25 ×10 ×25) = $1812.5 per month. However, in a negotiated labor minimum wage increase of 80 percent negotiated at 40 percent, but at least 10 percent below competitors, it would mean that the company would arrive at a 30% wage increase; this would be 30% of 1812.5. Therefore the labor wage increase would be $543.75 per month; this means that the company would have saved ...

Money and prices in the long run and open economies dictate the financial market. As such, that is why factors such as domestic variables and foreign monetary policies are over-emphasized. Demand for money is thus affected by the domestic variables, which include interest rates, price expectations, and permanent income, among others. As such, this paper explores the financial market to reveal the viable strategies the US can adapt to secure reliable money and prices in an open economy on a long-term basis.

The state of US Financial Market

Over the years, the economy of the US has been in good shape, especially when compared to ...

Introduction

Brazil is one of the fascinating developing economies, which economic and social progress over the period of 2003-2014 lifted over 29 million people from extreme poverty. Based on the World Bank (2015) statistics, the inequality rate in the country fell by 11% with the income level of the poorest 40% of the population rose by as much as 7.1% over the same period. At the same time, global financial crisis and political instability in the country over the past few years have had its negative impact on the economy as a whole, reflecting stagnation in inequality reduction and deterioration ...

Introduction to Convertible Bonds

Convertible bonds consist of the bonds that are easily converted into the stocks. These convertible bonds are issued by the company and like any other normal bonds it has maturity date and face value. The convertible bondholder has all the rights of converting the bond into the predetermined share numbers of the respective company in an identified period. The factors influencing the bondholder converting or not depend on the stock interest rates and prices.

Contract conditions and Payoffs

The convertible bonds market conditions are not standardized and hence making it differ depending on every contract case. The maturity date being one of the ...

Business Risk

This risk or uncertainty concerns that an organization may witness decline in profitability or might suffer from losses in any financial accounting period. Business risks originate from different uncertainties such as changes in consumer tastes, change in preferences and buying behavior, modifications to government policy as well as increase in intensity of competition etc. business risks also stem from those unforeseen or unexpected events that may cause a business to fail in future . Business risks are not just related to an organization as a whole. Different departments of an entity face numerous business risks that are unique to their ...

In production, when the price of capital changes due to the relative change in labor than capital becomes cheaper and labor dearer. The capitalist then substitute the cheaper one for the costlier one. Figure 11.4, 11.5,11.6 In the figure 11.4 shows the VMPL curve, which is MPL multiplied by price of the output. The curve is diminishing which shows that the amount capitalist will add to increase his revenue by hiring one more labor at different levels of employment. The figure 11.5(a) shows that in the labor market the part of the labor that will be employed ...

Both the concepts of tax reduction and tax credit benefits an individual in a way that the taxes will have a less significant impact on the reduction of the financial resources. Tax reduction directly decreases the amount of tax included in some forms of expenses, while the tax credit decreases the expenses on taxes by accessing credit values which can be obtained by meeting specific requirements, and will take care of some portion of the taxes (Mercadante, n.d). Both are helpful to the taxpayers, but which one is more beneficial? Considering another concept called the Adjusted Gross Income, or ...

Uiversity

Economic Outlook Economic Outlook provides detailed conjecture on progress, swelling, and equalization of finances, instalment parities, corporate revenue and a vast cluster of sectored markers. It provides expository viewpoint through clarification of the made forecast. This forecast helps companies like Apple in planning their goals as per economic megatrends. This economic outlook is apparently sponsored by vast crypt of confirmable and constantly overhauled prices of information. The accessibility of this database is to all administrative endorsers. The Government provides huge data on organizations and the associated diagrams. Additionally, there is provision of varied individual report pictures.

GDP changes and variations

The guardian of ...

Long-term influence of monetary policy

Monetary policy can either be contractionary or expansionary, and both policies impact nominal variables differently in the long-run. Price levels A contractionary policy results in a decrease in equity prices because the income stream is discounted at a relatively higher rate. Also, the price levels of equity can drop since high-interest rates and low supply of money lead to reduced demand for equity. In this case, bonds can be an attractive investment since they pay high interests (Meltzer, 1995). Nevertheless, an increase in interest rates does not always result in fall of share prices. People may interpret the high-interest ...

The journey towards the European Union (EU) integration has experienced several turnings. This section of the essay will detail some of the core turning points in the EU integration. Establishment of a Common Agricultural Policy (CAP) was a major turning point in EU integration. The Treaty of Rome defined the specific objectives of the CAP. The CAP was introduced in 1962 (Folmern.p). The establishment of the CAP was enshrined to the state of food shortages after World War II. The aim of the CAP was to build a common European Community market and to cut off tariffs on agricultural ...

Even though we may or may not notice, but the concept of time value of money surrounds us all the time in the form of compounding. The concept of time value of money asserts that the present value of a dollar received today is more than the one to be received in the future. In other words, money has the power of compounding and no rational person will forego his consumption without being compensated for it in the form of interest. For instance, if a person invest his funds in bonds, he is rewarded with fixed coupon payments on ...

Introduction

The decision on whether to invest money or deposit it in a savings account is influenced by many factors. However, the most significant factor would be the economic gain from depositing money in a savings account compared to investing. Various indicators can be used to determine the economic gain to be made in terms of purchasing power. One vivid indicator is the real interest rate. Real interest rate as an economic indicator describes the rate at which an individual’s purchasing power grows from investing activities. The real interest rate is derived from adjusting the nominal interest rates in ...

Based on the above discussion, recommend and justify the risk exposures that should be reported as part of an Enterprise Risk Management System for the Toyota Motor Company? (10 Marks) The first risk that Toyota is faced with is the investment in commodities. Commodities such as non-ferrous metals, precious metals, ferrous alloys, energy, and plastic resin from outside sources may be subjected to price changes. Changes in prices can have a negative impact on the productivity for Toyota because inflated prices may result in delayed projects and the inability to complete planned products based on a lack of resources. ...

Eclectic Forecasting Research Paper

1. The year 2007 is the third year of a series of three consecutive years of broad-based growth in the world. Although developed economies and underdeveloped economies had a world average growth of 3.4 % in 2007 with a previous growth of 4.9 in 2006, the perspective for that year was to an increase in the world growth in 2008 with a value of 3.6% (QUOTE). In the year 2006, 96 of 159 economies of the world increased their gross domestic product with a value higher than 3%, and only nine countries had a negative growth in 2006. The challenge ...

Abstract

The US economy thrives on the proper functioning of the monetary policy of the government of the day. Interest rates, inflation and recession are all related and happen to influence proper functions of the government warranting their clear understanding. As a victim of a recent economic recession, a consideration of the role of interest rates on the overall functioning of the economy becomes particularly important. This paper shall seek to understand the concept of interest rates and how they affect the economy of the United States of America. The paper, in doing this, shall consider the causes of the ...

Planned retirement age

I plan to retire at the age of 60 years. It is my hope that I shall have accumulated adequate resources to finance my post-retirement expenses. I also believe that I shall have done everything I have wished for in my career.

Retirement money

I will need about $641,000 for my retirement. This determination is based on my current and the expected salary as well as salary increases. The retirement fund requirement is also based on my current and expected expenditure. It also takes into consideration annual savings for retirement. I anticipate that my annual retirement expenditure will be about $ ...

Most of the services offered by a bank are largely financial in nature. However, the terms Assets and Liabilities have a different meaning when it comes to banks. For instance, assets in banking terminology would indicate fund usage, while liabilities in case of banks would, in fact, be a source of funds for banks. This essay will consider five different services or function that a bank offers and would explain with reasons if the said service is an asset or a liability, while also evaluating the services and providing an overall impression of the same. This essay considers the ...

Report for McDonalds

Italy and Russia

Figure 1: GDP per Capita at Constant Prices Figure 2: GDP Growth (Annual %) Figure 3: Inflation Rate CPI Figure 4: Unemployment Rates Figure 5: Policy Interest Rate (%) Figure 6: Russia Interest Rate (%) Figure 7: Current Account Balance in Italy (% of GDP) Figure 8: Current Account Balance in Russia (% of GDP) Figure 9: Russia Interest Rate

List of Tables

BUSINESS OVERVIEW McDonald’s Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 36,538 outlets. Founded in 1955 by Ray Kroc in Des Plaines, Illinois, 80% of the ...

Inflation entails the persistent rise in the general prices of goods and services in a country. This phenomenon has various consequences that touch on individuals and the economy as a whole. Inflation results in reduced real incomes. Rising inflation levels in an economy tend to reduce individuals’ incomes as well as the real GDP of the economy as people spend more on few commodities due increased prices. The cost of obtaining loans and mortgages increases during high inflation regime as people strive to finance increased living costs (Mankiw 53). The demand for loans increases during inflation, resulting in high ...

Risk exposures: The Financial Transaction Risks Table

Features of the method used to measure the interest rate identified Before determining the best method to be used in the measurement of the interest risk, it is essential to assess the source of the risk. The most common sources of interest rate risk are security mismatching for various items in the balance sheet depending on whether the interest rate is fixed or variable. The value assets lead to interest rate risk when there are valuation problems as well as in situations where interest rates are not aligned with the liabilities and assets (Kaufman, 1984). Various methods are applicable ...

The Finance Department of firms provides correct and appropriate sources of equity capital for any new venture or start-up business to begin their operations. Any entrepreneur interested in new venture stocks up the equity capital provided by the finance department of strong firms or individuals and begins the operations. Equity capital is defined as capital cash that is free of debt provided by the business or investor to start the operation of any company. Equity capital investment done by the firms is in the form of issuing shares of the company to the firm who invested in it. Firms ...

Summary of these key indicators for the U.S. economy One of the key indicators of the US economy is current inflation. As at May 2016, the inflation rate stood at 1.02% (The World Bank, 2016). However, between January and May, the average inflation rate has been 1.01 percent. The second indicator is the unemployment rate recorded at 5.5 percent as at the end of May (The World Bank, 2016). The average for the year thus far has been 4.9 percent. The real GDP growth is also a critical indicator. In the first quarter of the year 2016, which ended ...

Introduction

A discussion among the classical economists and the Keynesian economists continues on the government intervention in the free markets. According to the classical economists, the free market mechanism can develop solutions for the crisis in the market if there is no external influence on the markets. The Keynesian economy merely expresses that the free market economy carries the risk of generating crises and undesired deficit or surplus in the economy when the demand cannot clear the supply (Posner 234-252). The discussion on the government intervention is changing direction each time the world economy suffers from a global crisis becomes ...

Financial management is effective management of monetary resources of the organization. It helps the organization to plan, organize, direct, monitor, and control the financial activities efficiently and run the operations smoothly. I have learned different concepts of financial management in the class. I have learned that financial ratios play are useful in accessing the business performance and provide information about the company’s financial situation. The application of financial ratios allows examining the financial structure of the organization and comparing it with other competitors. I have understood that it helps the financial analyst to implement different strategies and improve ...

Math Assignment

1. Original Condo fees for bigger condos = $500 per year

Reduction by $200 per year. Owners of big Condos share costs by 4.5% = 4.5% of $300 = $13.5 Fee paid by large condo owners = $313.5 which is comparatively greater than small condo owners. Hence, the challenger is telling the truth. 2. Distance travelled by the car = 1.1 miles Time taken = 57.51 sec. = 57.51/3600 hours = 0.015975 hours Speed of the car = Distance travelled/Time taken = 1.1/0.015975 = 68.85758998435055miles per hour.

There are 16 significant digits in determining the speed of the car.

3. Time taken to reach Mom’s house = 22 min. Time stuck in traffic = 3.18 min. Time to be taken to reach Mom’ ...

Impact of dollarization in Ecuador, El Salvador, Panama, and Argentina

Introduction In the middle of the 90’s, different countries faced the financial crises. Some of these crises were severe and of vital importance. These crises majorly include “Tequila crisis”, East Asian crisis, the Brazilian crisis and the Mexican crisis and these hit the whole world leaving a devastating impact on the emerging markets of the world. These crises not only had an adverse effects on the related countries by which these are associated, but they also had affected the growing economy of the other countries. The emerging economies have suffered a serious setback as a result of the ...

INVESTMENT ANALYSIS OF VIETNAM

INVESTMENT ANALYSIS OF VIETNAM

Summary

Vietnam has changed in the last thirty years from an agrarian country to a service and manufacture country leader in the world in growth and economic activity. The country has a communist system legally but, in the practice, the country has a liberal policy in the economy signing the Trans-Pacific Free Trade Agreement but maintaining the political control under the rule of one party. The country offers opportunities and risks for individual and corporation with the intention to invest.

Introduction

Vietnam is known in the world as the country where United States of America lost a ...

Business Plan for a Proposed Three Star Category Hotel in Auckland

Business Plan for a Proposed Three Star Category Hotel in Auckland

Executive Summary

The present paper proposes analyses and presents a business venture in the form of a 3 star category 70 room hotel Business. The business is projected as low cost and high value proposition to the mid to upper scale business and leisure clients. It is found that the business is capable of recovering its 5 year working capital costs within a span of 2 years and 2 months thus an early operational breakeven is likely. Annual revenue of $1,609,650 at 70% occupancy and $90 ADR (Average ...

The American Economy has faced one of the most destructive economic crises in 2008. The crisis started in the sub-mortgage markets has expanded to the financial markets, and the largest financial institutions have declared their bankruptcies. Subsequently, the collapse of the financial markets has spread to all the industries in the country. What the American lost in the global financial crisis and what made the recovery from the crisis tough was the loss of trust for the American Economy among the agents in the economy. Until 2008, the economic development in the US was based on the consumption economy. ...

a. Carson is providing the funds by investing in the treasury securities. A surplus unit is the only unit that can invest in securities. b. As a deficit unit, Carson has actively borrowed the required funds from the financial institutions. c. Providing the required funds for the expansion can facilitate Carson’s expansion. d. As like finance companies, by providing the required funds for the expansion, commercial banks can facilitate Carson’s expansion. e. This limitation could be because of the borrowing of the Carson that reached its maximum limit. Because of this situation, banks and other financial institutions ...

What is a cartel? (5 marks)

The companies in a market might collude to set the prices by making explicit or implicit agreements between them on the market price, sharing the market geographically, or controlling the quantity supplied in the market. The agreement between the companies in a specific market might create an oligopoly behaving like a monopoly. The companies might set the price, and all the agreement partners might obey the agreement. If the companies can create a large market power, they might behave like one monopolist. Cartel is the situation of existence of an explicit or implicit agreement between the companies in a ...

McDonalds has come to create a network in both Italy and Russia. Italy seems to have better balance of payment and government balance indices, interest rate, trade policy instruments and not needing to lose over currency rates while dealing with Eurozone importers, and even unemployment and GDP growth rates. However, unemployment and the lack of growth indicating poor economic performance and social welfare situation may advantage the brand in Russia through better low-cost labor availability and consumer reorientation on less expensive restaurant offerings. Overall, neither of the country is the ideal market for the brand, yet both have their ...

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 national student debts level is 1.2 trillion dollars. This is a staggering amount considering that the student loan program only started around the late 1970’s. The purpose of loaning money to students is to help those with financial difficulty to graduate from college and find a well-paying job in order to pay back the loan. The bill started from a good moral cause, but has resulted in disastrous consequences for the students. The loan program has had serious consequences for students, such rising tuition, delaying home ownership, and slowing the economy. The rise of student loan debt ...