Theories of Outward Foreign Direct Investment (OFDI)Foreign direct investment (FDI) is an important part in the strategy of national development. Strategies have been developed but they only focused on inward flows (Anyanwu 2012, pp. 14). But recently, outward foreign direct investment has been put into consideration and was more integrated and considered in development policies of emerging and developing economies. Theories have been develope...
Capital Budgeting of Bathurst Site and Wodonga SiteExecutive Summary The assignment is about two different case studies which deals with two different situations. The first case study deals with Saturn pet care which is engaged in manufacture of products for pets. The company is trying to expand its business by introducing a new product in the market for which the company has option of selection from two different production sites which are B...
The Public Interest TheoryWith the help of financial statements like Income and Expenditure account, balance sheet, cash flow statement the important information can be assessed that might help the investors and stakeholders to make decision for the type of investments and upto the time period the investements can be made. It might so happen, that is really recorded in the financial statements may not be helpful at all, for the individuals a...
Financial AnalysisThe substantive tests are the balances that are used to decrease the threats of the audit risks. The internal control system helps to determine material consideration of account balances. It is considered that Arafira Resources Limited has been taken into consideration to evaluate whether company has been facing high loss in its business. Arafira Resources Limited is the mineral extraction company which has been running its ...
Profitability RatiosTaggart Transpacific Ltd. is a New Zealand based company which is engaged in supply and manufacturing of building materials to the construction companies. Due to the increase competition and to enhance its competitive advantage, the company is looking forward to purchase a controlling interest in the construction company for securing and ensuring its future demand. The companies chosen are Alpine Constructions and Maple Bui...
Challenges Faced by Financial Reporting Practices under IFRSInternational Financial Reporting Standards (IFRS) are designed for the purpose of providing clear understanding of the company accounts all across the international boundaries. In this context, conceptual framework assists the accountants in resolving accounting related issues, which is a framework for the purpose of establishing accounting standards. This framework associates all th...
Organizational Sustainability Framework and Business EthicsAny discussion about sustainability practice is incomplete without understanding business ethics which is set within a framework. At the organizational level sustainability is introduced for one of the reasons. It can be the organizational leaders having a deep commitment to sustainability and this commitment is converted to organizational mission, goals, and objectives. Whereas, it mi...
Weighted Average Cost of Capital CalculationValue of shares = 30,000,000 * $ 42 = $ Determination of weighted average cost of capital for CWC Cost of equity – Ke = Rf + β (Rm – Rf) (Magni 2015) Where, Ke = cost of equity Rf = Risk free rate = 3.5% Β = Beta = 2.639 Rm = Market return = 12.52% Therefore, Ke = 3.5 + 2.639 * (12.52 – 3.5) = 3.5 + 23.8038 = 27.3038% Therefore, Ke or cost of equity...
Recent TrendsCapital budgeting is an investment appraisal technique which is used by the organizations and the investors to analyze the various investment opportunities. This technique is used for evaluate the long term investment such as replacement of old machineries, buy new machineries, new products, new plants and research development etc. For evaluating the best project, various capital budgeting techniques are available. Every capital b...
Proxies for Market FrictionsThis report states the dataset for the cross-sectional analysis. This dataset consists the databases from both the CRSP and the Compustat databases which include all the firms apart from financial firms (SIC codes 6000–6999) and firms which are related to mergers and acquisitions. To correspond with the analysis of in-situational holdings data which is mentioned in the Thompson 13 F database, the selection o...
Questions:With the changes in the economy, each and every company has been expanding their business and financial performance. The financial performance of company could be analysed by using proper financial tools and analytical methods. There are several financial tools such as ratio analysis, capital budgeting, cash flow statement analysis to determine the financial performance of company. In this report, financial performance of Microsoft C...
Chemical Description of 17 Alpha Ethynyl Estradiol17 Alpha ethynyl estradiol (EE) is chemically described as 19-Nor-17α-pregna-1,3,5(10)-trien-20-yne-3,17-diol. It is a derivative of 17β-estradiol. It is first orally bioactive semisynthetic estrogen incorporated in many combined oral contraceptive pills. It is useful in the treatment and management of menopausal symptoms and female hypogonadism (Praveen et al., 2013). However, thi...
Marketing Campaign Strategy ProposalThe report provides an analysis of the suggestion given by the marketing department of SoCal Limited, which includes introducing an aggressive marketing campaign and also increasing the credit period allowed to the wholesale customers from 20 to 40 days. In order to cater to the increased demand of products, the company would have to purchase a machinery, with a useful life of 6 years and a zero salvage val...
Performance measurement techniquesIn this report, various measurement techniques have been analyzed which makes it easier for every organization to evaluate the various micro and macro factors which could make an impact over the functions and the performance of the company (Damodaran, 2011). Performance measurement is a procedure to collect, analyze, report the information related to the financial performance of an organization. Performance...
Factors affecting the difference in total interest and payment period of two individualsAccording to the given case, Jane and Carla are two people who are willing to buy a house. Both the citizen has bought the house of same worth but there are huge difference among the total interest and payment period. In this case, it has been analyzed that which factors have affected the similarity of both the cases: Question 2 ...
What is Efficient Market Hypothesis (EMH)?Warren Buffet does not believe in efficient market hypothesis. He is one of the greatest investors in current scenario. Warren Buffet believes that the share price of a particular company could be controlled by the inventors by selling bulk shares or buying bulk shares at any time. Due to the information and insider knowledge about the security market, Warren Buffet managed to outperform in the market an...
Financial AnalysisThe main objective of the report is to analyze Nike Inc. through using the data from the annual report of the company. The report will analyze the weaknesses and strengths of the company and recommending for investing in the stock of the company. Further, for analyzing the company various financial ratios like liquidity ratio, profitability ratios, activity ratios and gearing ratios will be used. Nike Inc is the leader in dis...
The Net Present Value MethodThe net present value (NPV) method for calculating the capital budget of a particular project is the ideal procedure. The business owners should use this process while evaluating whether to invest or not in a particular business or not. It gives the most accurate form of mathematical point of view and time value for money point of view solution (Roise et al., 2016). The NVP method gives more correct than the profita...
Financial Performance EvaluationThis report reflects the key understanding on the financial analysis of Wellard Ltd. It is evaluated that financial analysis tools have been used in this report to evaluate the financial performance of Wellard Ltd. This report has focused on how investors could analyse the financial performance of Wellard Ltd in order to make investment in Wellard Company. This report is focused on the financial performan...
Deposit computation Particulars Amount University expenses p.a. A $40,000.00 Nos. of Years in University B 4 Total Fund Required C=AxB $1,60,000.00 Annual Interest Rate D 4% Nos. of Annual Deposits E 17 Annual Deposit Amount F=(CxD)/[(1+D)^E-1] $6,751.76 For the purpose of deposit of money by grandfathe...
Analyzing the financial performance and current issues faced by Broadcom Limited CompanyIn this report, financial analysis of company has been taken into consideration. In this report, Broadcom Limited Company has been selected in this report to reveal the financial performance and current issue of the company. This report is divided into three specific parts. The first part starts with the analyzing the financial performance and current issue...
The Effect of Basel II Requirement on Kenyan Commercial Banks' LendingThe report is about a detailed analysis of JP Morgan Chase. It comprises of a critical discussion of the key roles this banks plays in contributing to the nation’s financial system. In addition, it presents some of the problems associated with relying on debt financing provided by financial institution that is financially surplus compared to the one that is financially...
Profitability AnalysisThe report is deemed to provide with an opportunity to develop written communication skills along with working with global finance and accounting issues. Petrochina has established its business as a joint stock organization along with less liability within the Company law of the People’s Republic of China as an aspect of restructuring “China National Petroleum Corporation” (Unda, 2015). The objective of ...
Gross Profit MarginThe current study is based on assessing the performance of Esso Ltd that is the UK company that is engaged in the exploration, production and sale of oil, crude natural gas. The report will be providing ratio analysis to evaluate the financial performance of Esso Ltd and provide an understanding on the financial position of the organization from the year 2013 to 2017. Alongside a comparative analysis will be performed for ...
Policy development is one of the important facts and includes several steps to implement a policy. Steps are as below: Issue identification: Issue identification is essential to make the policy, and the organization must need to understand which issue needs to be resolved by modification or creation of a policy. Appointing the persons or board: Policy development procedure is the long-term process and to maintain the process systematically...