Abstract This paper analysed the relationship between Stock Returns and three ratio variables that include the Price Earnings ratio, Dividend Price ratio, and the Payout ratio. In this case, Stock Return is the dependent variable while Price Earnings ratio, Dividend price ratio, and Payout ratio are the independent variables. The...
The Codification is a specially developed research system that is created by the Financial Accounting Standards Board (FASB) to organize accounting standards, authoritative accounting information, and multiple reports in one system (Financial Accounting Standards Board 3). The FASB Codification consists of a variety of standards, accounting items, different topics, and...
Introduction Bonds refer to a form of arrears where private and public systems seek financial aid from institutions or individuals to sponsor various projects. The debt is payable at a variable or a predetermined interest rate within a specified timeframe. In nonprofessional terms, a bond is a form of an...
The organization The Clayton County Library System (CCLS) is a large firm that is dedicated to offering excellent services to its clients. It has six branches that have about 400,000 resource materials, which are in the forms of books, magazines and journal materials. In addition, the organization has about seven...
Globalization of Financial Markets and Economic Stability in the UAE Introduction In the recent past, there has been a steady rise in financial flow across borders worldwide. The main reason behind this is that institutional investors and other financial agencies, such as banks, have expanded their operations geographically (Bucur 75)....
Introduction There exist many ways, which people use to spend their money. One of the common ways of spending money is to meet individual and family expenses. Individual and family expenses compete. Therefore, it is relevant that an individual is armed with ways of prioritizing and keeping in check that...
Businesses are always striving to implement projects that are meant to increase profitability and the wealth of the shareholders. However, in the process, a number of factors need to be taken into consideration by the management and business owners. They include, among others, the mode of funding for the project....
The role of financial institutions in the intermediation process is indispensable in the economic performance of an economy. Through the process, those with surplus funds get the opportunity to have their surplus resources lent to those in need for investment purposes thereby stimulating the economic growth of a country. Failure...
The various forms of financial ratios that are calculated by businesses help to determine their financial strengths and weaknesses. The four major classifications of ratios are profitability ratios, leverage ratios, liquidity ratios and market valuation ratios. In this analysis, a systematic analysis of the ratios has been done and their...
Introduction David Green is a 47-year-old financial manager at Mayorâs Jewelers, Inc. Mr. Green has worked at the retail store for twelve years, and he has gathered enough experience in the financial field to help the company make the best decisions on merchandise management. He is also an indispensable human...
Capital budgeting is a decision-making tool used by analysts in the financial field in assessing whether or not a capital investment should be carried out in a particular project; from a financial point of view. An excellent financial analyst is supposed to have the recognition that the greater capital budgeting...
Introduction The global economic recovery in the aftermath of the global credit crunch has been slow. In developed economies such as the United States, Japan, and European Union, new government policy measures have by far helped to stabilize the financial markets. However, weaknesses in these economies pose a risk to...
âFinancial Stability in the UAEâ The global financial crisis of 2008/09 led to a slump in the UAE economy in 2009. Since then, the economy has recovered and has recorded near zero inflation rates as highlighted in the recent Central Bank of the UAE financial stability review, which has also...
Notes to financial statement Notes to consolidated financial statements give a detailed explanation of the values reported in the income statement, cash flow statement, statement of changes in equity, and balance sheet statement. Further, the notes give details or explanations of the information that were not included in the financial...
Introduction With increased white-collar theft, there has been an increased demand for authentic auditing services beyond the mere substantiation of responsibility in companies. Fraud is a serious financial crime, hence understanding its detection, prevention and legal implication is very paramount to business ethical behavior. Several major accounting scandals instill fear,...
This analysis shows how a firm efficiently employs its assets in the production process. These ratios are called efficiency or asset utilization ratios (Walton, 2000). In this presentation, two ratios regularly used include inventory and receivables turnover. The receivables turnover shows how a firm manages its accounts receivables. In simpler...
Introduction All firms that prepare financial statements are required to prepare and present a statement of cash flow in conformity with IFRs. The statement of cash flow is prepared based on two years’ published financial statements. It is used as a management tool in decision-making. Firms could prepare a report...
Introduction Financial reporting entails the preparation of financial statements, which are communication documents to companiesâ stakeholders. The financial statements are mainly the income statement, the balance sheet, and the statement of cash flows. However, in their current form, the financial statements do not provide sufficient information for decision-making purposes. Analysis...
Purpose of an audit of a limited company Auditing procedures of a limited company entail a detailed and independent examination of the financial statements, policies, procedures, and records of the company to find out if it is running by the laid down standards. The audit report is of great importance...
Introduction The general impression made by annual reports in one of past financial information that is presented in the form of income statements balance sheets and cash flow statements. However, this is not enough since equity capital unlike debt capital has no feasible repayment dates and cannot, therefore, be restrictively...
Introduction A cash flow statement is an important report prepared by companies at the end of the financial year. The report gives information on cash transactions undertaken by a company during a given financial year. The paper seeks to carry out an evaluation of statement of cash flow. The paper...
Introduction The world of business has been changing drastically over the years. The change has prompted key developments in the accounting field to ensure responsiveness to the various accounting activities such as bookkeeping. Major changes have been experienced because of globalization where more organizations are operating in different international markets....
The uses and purposes of the Statement of cash flow Different parties use the statement of cash flow for different purposes. The parties interested in the usage of cash flow statements are accountants, creditors, investors, contractors, employees, and shareholders. Financial analysts require cash flow statements to know if the corporation...
Introduction The purpose of this financial research report is to evaluate financial records of a given company for investment purposes. Credit analysts and investors must evaluate financial statements and general sentiments about the company to determine its financial health. Consequently, the decision to invest or lend can therefore be made...
Any business that engages in international transactions is faced with the accounting challenge of whether to prepare a consolidated or a separated financial statement. However, IAS 27 mandates the subsidiary firms to prepare their financial statement by either using the foreign currency or the parent companyâs reporting currency. The assets,...
Real estate business is one of the most successful investments all over the world nowadays. However, its success depends on several factors such as location. The real estate business in the United Arab Emirates has been booming for a while now (Aladdin & Elbadawi, 2012). This follows two years of...
Underwriting is the process of determining the eligibility of an individual to get a loan from a financial institution or benefit from an insurance plan (Catlin, Peter and Walker 11). Financial and insurance companies take this process more seriously than any other process in their operations because they know that...
Harry Markowitz Markowitz while reading the book The Theory of Investment Value written by John Burr Williams noted that the author proposed that the value of a stock should be the present value of its dividends. Markowitz argued that the problem with this novel theory was that the future dividends...
Introduction In organizations with clear-cut structures, comprehending the roles and relationships between the human resources department and the finance department is critical for the success and attainment of the desired outcomes (Shleifer & Vishny, 2007). The current roles of the human resources department have become sophisticated and need more collaboration...
The recent global economic financial crisis is responsible for a new era of cutbacks that have a significant effect on public spending. In the last few years, public manager sectors have been forced to innovate and find new means of survival as governments intensify financial cutbacks on various sectors of...
Present value Present value is the present of future cash flow. The present value assumes that the dollar today is not equal to the dollar tomorrow therefore it must be adjusted for time and inflation. It is calculated as shown in the case below; Mr. Peky has been given an...
Introduction A money market refers to a financial market that allows trading of short-term securities. This market provides for availability of liquid funds, which matures over a short period. In Bahrain, some of instruments that are traded include treasury bills, commercial papers, repurchase agreements (repos), negotiable certificate of deposits (CDs),...
Introduction Many years have gone by since the Capital Asset Pricing Model was declared dead but it is still widely used to value assets as well as determine the cost of capital of a company. However, no method has come up as a good substitute. Many researchers and authors have...
Introduction The market analysis aims at studying the dynamics and attractiveness of a given market within an identified industry. It primarily takes two separate forms. In the first form, investors use market analysis to oversee and analyze its growth curve to come up with investment decisions. In the second form,...
Introduction Over the span of sixty years, the global economy has experienced remarkable changes. Findlay & OâRourke (2007) states that âIn the early 1950âs, the world economy was essentially divided between developed or industrialized countries in the âNorthâ and developing or non-industrialized countries in the âSouthâ(as cited in Ahearn, 2011,p.1)....
Aim of the paper The paper carries out a financial analysis of four companies. The analysis will entail the application of several theoretical and empirical approaches and tools to evaluate the companies. Some of the ratios that will be used are earnings per share, price/earnings ratios, return on equity, dividend...
Abstract This article analyzes consolidated financial statements and separately prepared financial statements. It brings out the major differences between the two types of financial statements. In the whole article, the holding company is considered to be situated in the U.S while the subsidiaries are located in foreign countries. The article...
Reasons and implications for Kellogg’s WACC change The Weighted Average Cost of Capital is computed by inputting the relevant figures in the formula below. The investor assumes the market value of equity and debt to be the values presented in the 2013 financial statements. The value of debt excludes short-term...
Thesis Statement Although the regulations that allow for preventing, identifying, and eliminating fraud in general and financial fraud, in particular, have become considerably more rigid over the past few years in the United Kingdom (Manacorda, 2011), the availability of information technology tools and their integration into the breach of the...
About the company Ocado is a public limited company based in England. The company was formed by a group of three people who worked earlier as bankers at Goldman Sachs. The company was formed in 2002 and it was listed on the London Stock Exchange in 2010. The three founders...
Financial literacy is influenced by the initiatives taken to spread information about the various financial activities in the country. Saudi Arabia has been having very low financial literacy level despite projecting positive results in its economic trend. According to the Al-Attas (2011), a writer with Saudiâs local daily, the Gross...
Introduction China has recorded significant economic growth over the last quarter of this century. This period has also seen the economy change from a centrally planned one to a more market-oriented one. This change in the way the economy is planned has brought about a transformation from a market that...
Introduction The Saudi Arabian Stock Market was established in 1985. Economic experts formulated the idea when a government unit was formed to manage and control Saudi Arabiaâs securities market. The authorities went further to formulate a regulatory body for Tadawul, the Arabic name for the Saudi Stock Exchange also referred...
Background of the companies Pepsi Company (PepsiCo, Inc.) PepsiCo, Inc. is a multinational company that deals with snacks and soft drinks. PepsiCo, Inc. was established in 1965 when the Pepsi-cola Company merged with the Frito-Lay Company. Since its establishment, PepsiCo, Inc. had expanded through acquisitions and mergers with other companies....
Dividend policy is a framework that regulates financial decisions associated with profit payout. However, the effect of dividend policy is a subject of debate. Price earnings and stock value influence a firmâs dividend policy. However, economic analysts counter the assumption using different dividend theories. Two criteria facilitate the dividend theories...
Business models Business models were first invented in the 1990s when the electronic commerce industries and other internet-based firms were established. In the current world, a business model is used as the concept of management theory and practice. A business model is therefore used to describe the strategy and the...
Definition Money is an essential component in everyone’s life. It is used in every sphere of our lives. We work to earn it, and we use it to save, invest or just spend it. It is imperative for us to make personal financial goals. We make financial goals to enable...
Introduction In the Gulf Cooperation Council (GCC) and MENA countries, changes in interest rates significantly influence changes in the net interest income (NII) and net interest margin (NIM). However, there are also factors that affect changes in the banksâ interest rates, depending on the size of the bank. Changes in...
Introduction An initial public offering of any company stock is the sale of company stock to the public. The company does this mostly to increase its capital. This essay looks in detail at the initial public offerâs process, definition, and the elements in the initial public offer. History of IPO...
Introduction The origin of Islamic finance can be traced back to the seventh century. This implies that it is not a new phenomenon. Nevertheless, the commercial implementation of Islamic finance is comparatively new and regardless of the novelty, some prohibitions prominently feature in the Islamic finance analysis. Particularly, Islamic finance...
Dividend discount model Dividend discount model = dividend per share/ discount rate – growth rate (Penman, 1997). For example, Microsoftâs preferred stock has an annual dividend of $8. The expected rate of return is 10%. Thus, the values of preferred stock = (5/10×100) = $50. The common stock was overvalued...
Ticker: 2330 Recommendation: Hold. Price: SR 41.40 Price target: SR 54.58 2009A 2010A 2011A 2012A 2013A 2014E 2015E P/E (x) 27.67 11.71 7.88 13.09 12.02 17.50 15.50 EPS 0.78 2.00 3.13 2.00 3.40 2.36 2.67 Source: Al Rajhi Capital (2014) Highlights The company presents a strong financial position in all...
Summary Islamic finance is achieving a household stature in the world of financial management. Although Islamic finance borrows financial principles from conventional systems, there are differences between the two (Afshar, 2013). In this regard, comparing the Islamic bonds referred to as Sukuk and conventional bonds is tantamount. This paper compares...
Abstract Differing rules that apply to different jurisdictions and under different systems apply different approaches to commodity pricing and indexation. This paper presents a discussion of the different approaches by exploring differences in the rules of commodity pricing and indexation between the conventional banking systems and the Islamic banking systems....
Executive Summary This paper demonstrates the use of real financial data in financial analysis in decision-making for potential investors. The objective is to carry out a broad financial analysis for Deltic Timber Corporation. It explores the various techniques and tools used for financial analysis. The study is based on a...
Introduction Joint venture is one of the methods of corporate restructuring. A joint venture is described as one of the business agreements between the parties in which parties agree to create a new business or we can say a new company in which both parties share the assets (Beamish, 1987)....
The selected company for bond analysis and valuation is Accenture Plc (Accenture), which is a leading computer and accessories manufacturing company. The evaluation of a bond offered by the selected company that will pay $100,000 in a yearâs time is carried out on the basis of the inclusion of various...
Hedging Firms in the financial industry do incur various risks such as liquidity and credit risks. In order to offset the risks they face, organizations can be involved in various investment positions referred to as hedges. Thus, hedging is a term applied in financials to indicate investment positions that an...
Introduction The stock market exchange has a critical role in the economic development of any given state. It serves as an effective tool for mobilizing financial resources to aid in economic growth and promote the efficient distribution of resources. The stock exchange market serves various investors, including retail, corporate and...
Introduction A derivative is a contract signed between two parties on an asset whose value is underlying subject to the fluctuations in the market. Derivatives are influenced by the market price and some perfect examples include bonds and stocks which are sold when the prices increases. Other assets include interest...
Introduction The concept of the efficient market hypothesis was developed in 1960 by Eugene Fama. The idea has widely been used across the market. Besides, several research studies on the efficient market hypothesis have been carried out since 1960. The concept of the efficient market hypothesis âholds that the prices...
Introduction Financial statements are reports that are prepared by an entity after every accounting period. Financial statements show an entityâs financial position at the end of the period. It also reflects its comprehensive incomes and respective cash flows. The main purpose of financial statements is to provide information to the...
Financial institutions have used credit based strategies to evaluate credit worthiness of borrowers and counterparties for a long time. Despite their popularity, the strategies present various risks to financial institutions. Jorion and Zhang (2007) aver that banks and financial institutions collapse because of the lax standards in credit assessment. Many...
Abstract Correlation and regression analyses were performed to determine the relationship between car retail price and car mileage in the Dubai market. Research data was obtained through random sampling. A questionnaire was given to randomly selected customers in the Dubai car market. MS Excel was used to perform the analyses....
Investment Goal The goal of this investment plan is to increase the initial capital of AED 400,000 by at least 0.5% within 3 months beginning 08/01/2013 to 11/31/2013. A secondary goal of this investment plan is to invest in international markets within Asia such as the Philippines instead of in...
Introduction In a financial context, the term ethics is assumed to be a subset of general ethics, which accounts for ethical quandaries within the subfield of finance. Unlike in other fields, there are two forms of ethics in finance. These include positive and normative ethics (Aragon, 2011). In the finance...
Introduction Capital is considered the inevitable part of any kind of business. Without capital, the running and survival of a business unit are very difficult. It is the cornerstone of a business. Whatever be the nature of the business organization, that is, be it a big or a small organization,...
Introduction The purpose of this report is to evaluate the viability of the new conference by Business Conferences Plc. This has been accomplished by the use of CVP, Break-even, and Financial Analysis. I hope that after reading this report, you can make a more informed decision on whether or not...
Introduction This paper seeks to present a critical discussion of how the floating exchange rate system allows the central bank to control the money supply in a country. The control of money supply is an ability that has a major influence on a countryâs interest and inflation rates. The discussions...
U.S. Economy and its growth rate The U.S. economic growth indicator shows stable growth from 2010 onwards. The economy reported a negative growth rate in 2009. The gross domestic product (GDP) growth rates in 2010, 2011, 2012, and 2013 were 2.5%, 1.8%, 2.8%, and 3.0% respectively (The World Bank, 2014)....
Introduction General Motors Company is an American multinational vehicle manufacturing organization that is listed on the New York Stock Exchange. The organization is a member of the FTSE 100 Index and its stock code is GM: NYSE. General Motors is headquartered in Detroit. It designs, manufactures, distributes, and markets vehicles...
Among the various responsibilities of the manager is to be able to make sure that the business operations are working according to the policies they lay down. It is therefore their responsibility to make sure that there is adequate financing whenever there is that need in their business. The managers...
Outline This integration paper is an overview of the topics discussed in the entire week. In this week two topics related to the financial systems and financial investment are discussed. The importance of the topics in a real-life situation is also discussed for finding its advantages to the individuals in...
Transaction risk is the risk of loss as a result of in adequate personnel in the business or insufficient systems while financial risk is a nutshell of numerous sort of threat connected with financing. Some of the transactions risks affecting Gumpbell manufacturers are the ones listed below: Inability to manage...
Introduction Over the past few decades, credit unions have gained great popularity around the world. A credit union may be defined as a not-for-profit organization established to pursue service delivery to its members rather than maximization of profits (âHow is a Credit Union Different than a Bank?â par. 1). Credit...
Summary The Enron, WorldCom, and Waste Management Inc. scandals are examples of well-known financial scandals. They led to the loss of investorsâ money and assets worth billions of dollars. The executives of these companies accomplished the scandals through falsification of statements, misrepresentation of revenue, and reporting of fake earnings. The...
Introduction PetsMed Express, Inc. is one of the fastest-growing companies of the last decade in the United States. Even in these hard times of crisis and downturn economy, PetsMed continues to report stable growth and revenues. It has become one of the most recognized brands in the States regarding pet...
Introduction To implement financial or monetary policy, the Central Bank can directly use its regulatory authority or utilise its indirectly influence on the money market circumstances as the reserve currency issuer (money in flow and placed balances) with the Central Bank (Alexander, Balino, and Enoch, 1996), where the indirect instruments...
Kelloggâs Profile Kelloggâs Profile Type Public Traded as NYSE: K S&P 500 Component Issue Type Common Stock Listing Date 12/05/1959 Industry Food processing Founded 19/02/1906 Founder(s) Will Keith Kellogg Headquarters Battle Creek, Michigan, United States Area served Worldwide Key people James M. Jenness (Chairman) John A. Bryant (President and CEO)...
When investing in an economy, a company needs to conduct a cost-benefit risk analysis to determine whether the country is viable for investment; Company A wishes to invest in Djibouti, to determine the riskiness and viability of the intended venture, this paper undertakes the cost benefit-risk analysis of the country...
Sector overview The financial services sector constitutes a fundamental component of the US economy and it is the second largest in the S&P 500 index, thus accounting for 16.72% of the S&P. The sector has undergone notable growth over the past few years. At the end of the 2007/2008 financial...
Introduction The history of managing stocks in the United Arab Emirates (UAE) retreats the to early 1960s when the administration set up some stock entities. The ensuing years witnessed a tolerant stock exchange market being expanded for the trade of stocks through certain agencies that were not specialized and/or licensed....
Introduction According to Luenberger (1997), the relationship between risk and return of risky assets in the market can be investigated by determining the effects of different borrowing and lending rates. This analysis is done by first constructing a portfolio that consists of only risky assets, which results in the determination...
Introduction Efficient Market Hypothesis (EMH) in the past four decades was regarded as a fundamental finance proposition; in the mid-1970s, there existed strong empirical and theoretical evidence in support of EMH that gave the impression that it was invincible. Currently, counterarguments have emerged disproving the EMH which entails how prices...
Introduction The stock market is the center of transactions where securities buyers meet sellers at a certain price. It is a tool for economic development. (Source Webster Dictionary) The Saudi Arabian Market is known as the TADAWUL and is the only securities exchange in Saudi Arabia. TADAWUL was formed in...
Within the subprime mortgage crisis, the interest rate has played an important role in causing the mortgage rate decrease and excessive bank credit leading to the price skyrocketing. To take control over the inflation increase, the Federal Funds have decided to lift the interest rates. Currently, the mortgage price has...
The 2012-2013 fiscal year in Canada can be characterized by a high number of important financial events and scandals in the area of funding and financing, including fraud crimes which were effectively resolved with the focus on the activities of the Canadian investigation centers and police. In 2013, the publicâs...
Introduction The major fundamentals of the International Monetary System are the purpose of currency preferences and rate of exchange mechanism; the exchange rate mechanism is the most important among the two elements (Cooper 33). The IMS has rules and principles that oversee the financial relationships between nations and is a...
Securitization refers to the process of consolidating or pooling together debts such as mortgages, bank loans, and other types of debts and then selling these debts to investors as securities or some cases as bonds. The investors that buy out the debts are the one who takes the responsibility of...
Elements of Income Statement An income statement includes the money that was spent and earned by an organization for a certain duration. The profits are derived by subtracting the money spent from the money earned. Without such a statement organizations would not know when they are making losses and profits...
Literature Review For the financing of international business ventures and high-risk large-scale projects, project finance (PF) has gained considerable favor over the last three decades. Defined as non-recourse or limited financing, project financing is done through a vehicle company. The funding that is obtained is strictly used only for the...
Introduction The movement in prices of securities reflects the general state of economic activities in a country. If prices fluctuate so drastically, it means that the level of inflation is likely to be high. In fairly stable economies, prices of securities remain fairly stable over a reasonable period. On the...
Individualâs ontological beliefs have greatly affected their conceptualization of issues concerning accounting on basis of misconception diverting their understanding of the main dimension of the accounting to something that can almost be stated as misguided. This is as a result of misconception interpretation concerning the accounting dimensions which are teaching,...
The best way to use while using this method in a time series model is through generalizing differences between the two sets of data. If the standard deviation if the data is unknown the following equation is used. Yt =ztβ + ut Yt-1 =xt -1β + ut -1 multiply by...
Introduction In order to optimize the situation with the Australian payment systems, the Reserve Bank of Australia introduced the real-time gross settlement in 1998. Since then, the RTGS values have been increased by almost 70 % and the volumes of these wholesales payments have considerably grown as well. The implementation...
Introduction It is apparent that the spiral effect of the current financial crisis is steadily but gradually taking its toll on both developing and developed world. Sooner than later, the effects of the current economic crisis could become devastating. In a sense, the world risks to lose its hard-won gains...
The world of business and finance is a rather complicated phenomenon due to the numerous rules and laws that regulate the relations between private persons and the whole business entities in it. One should be aware of the supply and demand conditions, price fluctuations, etc. to become a successful business...
Introduction A stock market is a public organization where shares of listed companies are traded at given prices. Unlike the ordinary market, the stock market is not a physical place but rather a network. This paper seeks to discuss the Saudi Arabian stock market. The paper will look at the...
Introduction Mishkin (2007) advanced an argument that upside risks refer to the level at which the value of a security or any other specified capital investment rises past the forecasted value of the security. In addition, Myers and Nicholas (1984) proposed that upside risks denote opportunities and potential to gain...
