StudentShare solutions
Triangle menu

Financial Modeling With Decision Making - Essay Example

Nobody downloaded yet

Extract of sample
Financial Modeling With Decision Making

The details of shares with above details are given in separate units for each company.
In the spread sheet used in this case the shares purchased are regarding the companies Glaxosmithkline, B.SKY.B, Busuiness Post Group, Abbey PLC, Barclays PLC, Galantas Gold Corp, Halfords Group PLC, and Rolls-Royce Group PLC. The trading has been started on February 1st and the dealings up to march 15th are given. In case of Glaxosmithkline, the trader earned a profit of 900 GBP. The returns from B.Sky.B group shares resulted in negative growth. The selling price of shares is 700 GBP lesser than the buying price. This resulted in 700 GBP of loss in trading the shares of that company. This dented the returns from previous investment also and decreased the net profit to 200 GBP. Apart from this the trader bought and sold the shares of business post on February 1st and February 15th. This resulted in a profit of 800 GBP. With this transaction, the net profit reached the mark of 1000 GBP by February 15th. After that the trader bought the shares of Abbey Plc on February 15th and sold on March 1st. This resulted in a profit of 40 GBP and this increased the gross profit by March 1 to 1040 GBP. After that in a gap of one month between 15th February and 15th march, the Barclay's shares are purchased for Rs. 39805.50 and sold for 34348.50. GBP. This resulted in a loss of 5457 GBP. With this transaction there is loss of 4457 GBP on the whole investment. After this transaction on march 1st the trader invested 7950 on Galantas gold corp. and sold them for 8520 GBP. This resulted in a profit of 300 GBP. This decreased the loss from the transactions to 4157 GBP. The Halfords group shares are purchased on 1st March for 31454.5 GBP and were sold on 15th march for 31433 GBP. This resulted in a loss of 21 GBP and increased the loss to 4178 GBP. The Rolls Royce group shares are bought for 24562.5 GBP on 1st March were sold for 23387 GBP on 15th march. This resulted in a loss of 1175.5 GBP of loss and the total loss increased to 5353 GBP. Apart from the investment in high interest account the loss on trades mentioned in spread sheet incurred a loss of 5353 GBP.
2. Analysis of Trading decisions
The first transaction used by the trader was with the shares of Glaxosmithkline numbering 10,000 and valued at 1,38,700 GBP. This resulted in a profit of 900 GBP. The decision of buying in February and selling in march is a good decision making when the single transaction is considered. This share can be retained and the sale of the shares in March is a short sighted decision as the share value has climbed up in the following months. As the company reported 6 percent increase of profit and closed the books with patent protection, there is every chance to earn more profits and increase the dividend distributed. This can result in increase of share price and the sale of the shares in March can be termed as a deal that has been done early than it should be done. The trader might have sold the shares of the company taking into consideration local market. As the company trades internationally and does business in US and other important countries of world, the share price of the company should be estimated accordingly. The drugs sold in US resulted in more profits for the company ...Show more


The investment out of 2, 50,000 GBP on shares has been recorded on spreadsheet and this enables the user to calculate the returns or losses through the transactions. The amount deposited in high interest account is not displayed in spread sheet to differentiate the money invested on shares and that is deposited in the high interest account…
Author : kcartwright
Financial Modeling With Decision Making essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Financial Modeling With Decision Making"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Finance and Accounting Essay: Financial Modeling
The main intention of the study is to conduct an analysis of the Value at Risk (VaR) of a portfolio of 4 shares using the methods discussed in the above Financial Modeling. The four companies are taken into account for calculation of the shares and the Companies used for the analysis and they are the British Land Company PLC, Marks & Spencer Group PLC, Cairn Energy PLC and the Land Securities Group PLC.A clear analysis and the calculations are made in the study below.
16 pages (4000 words) Essay
Financial Modeling Of Value At Risk Portfolio
The paper uses probability measures to determine how frequent we anticipate various results to take place should we repeat a provided experiment repeatedly. The stakeholders of the four companies choose investment as a probability approach. The following data analysis is to present a standard report on the development of an event study of a statistical model of shares market data.
20 pages (5000 words) Essay
Financial Decision Making Essay
If the investment is a fixed asset, it is more likely to incur huge capital outlay which can only be recouped after some years of operation. If the company is not able to generate sufficient funds to pay up, it can jeopardize Beta's credit worthiness. Long-term liability seems to be more appropriate than short-term ones considering that it will be used for the purchase of a fixed asset.
5 pages (1250 words) Essay
Financial modeling
But this is not to say that financial modeling cannot be performed manually.There are various financial models that a company can use in evaluating its investment projects. The only challenge for the company is to identify the model that will provide the most accurate information that can help the company make the right decision.
7 pages (1750 words) Essay
What does Intel's presentation of their financial information tell you about how they use financial information in decision making
If managers at any company, including Intel, wish to make the best decisions possible, they need to have certain information readily accessible at their fingertips. Financial information can be used for the functions of planning, implementation, and control.
3 pages (750 words) Essay
Strategic and Financial Decision Making
Borrowings include loans from financial institutions; corporate bonds etc. while shareholders funds include equity share capital, preference share capital, accumulated profits. However, the amount of risk involved in both the sources of financing differs.
8 pages (2000 words) Essay
Financial Decision Making
Every enterprise, whether public or private, large or small, profit making or not is a financial concern. Most of its decisions involve finance. Success or failure of the decisions and hence the enterprise depends on the quality of its financial decisions.
6 pages (1500 words) Essay
Financial Decision Making
A benchmark is a standard measurement that forms the basis for comparison. Conclusions on the study provide information wherein Abel Athletics should focus its future plans. The financial statement is a management tool that will allow us to
6 pages (1500 words) Essay
Making financial decision based on financial decision
This report analyses in which of these three projects Hall Hill Farm should invest. Cash Budget shows the inflows and outflows of the company or project (Johnson, & Scholes, 2001). Cash
7 pages (1750 words) Essay
Financial decision making
trategies of its business operations in the foreseeable future, but also provides reasonable estimates regarding the financial prospects of the business. The forecasted financial prospects of the business mainly describe the profitability, cash flow position and net worth of the
3 pages (750 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us