Finance Research Paper

Masters
Research Paper
Business
Pages 10 (2510 words)
Download 0
The ultimate goal of an enterprise is shareholders value creation and maximization and for this to be realized, receipts and payments or expected stream of cash inflows (Receipts) should be compared with the outflow (payments) (Penman 2003). Berlin & Lexa (2003) argue that most of us and certainly all businesses are constrained by limitations on their capital…

Introduction

Many metrics have been developed to ease this process.
Faced with too much information, Investors at times get confused with no clear indication of what the true prices of stocks should be. (Penman, 2003). Under such circumstances, the investor either make decision based on his or her instinct, such investors according to Penman (2003) are intuitive investors while others who make their decision based on capital market efficiency are referred to as passive investors.
This part of the question addresses the performance of a new venture to be set up to enable us make informed judgment as to a hold a buy or sell decision. Thus, the objective of this question is to analyse the liquidity, the profitability and solvency position of the new set up from information extracted from the projected profit and loss account, the balance sheet and the cash flow statement. The report do not only provide a financial overview of the new venture for the projected three years period. The question also, guide potential investors on where the business is coming from and where it is heading to.
Gross profit margin assumes that in the absence of other expenses what percentage of sales comes to the corporation as profit, while net profit m ...
Download paper
Not exactly what you need?

Related papers

Individual Research Paper
Overall the company is mid-sized and has offices across major urban centers in China including Beijing, Shanghai, Hong Kong and Macau. The business model followed by the company makes it a limited liability company. Other than real estate the company has trading interests and tends to export a few goods aboard such as generators, plastic products, utensils etc. but the mainstay for the company has…
Corporate Finance Research Paper
The fragmentation of the market is also due to low barriers to entry due to low cost of production involved. Since, the market is typically divided into two broader classes of chemical supplies and cleaning machinery therefore the overall cost of producing is low. This is also reflected from the fact that the gross margin of Carlton is 44% suggesting that the cost of producing the finished goods…
Finance Research Proposal
The sources of funds that Miller Plc generated includes the net cash inflow from operating activities for the year 2005 of USD $2,792,000 and for the year 2004 of USD $ 2,292,000. Another source is dividends received from associates amounting to USD $ 47,000 for 2005 and USD $ 25,000 for the year 2004. Additional funds, also, came from interest income received worth USD $ 94,000 for 2005 and USD…
Global Financial Crisis Research Paper
(Avgouleas, 2008). In addition other major investment banks such as Merrill Lynch, Citigroup, UBS, and JPMorgan have all announced negative earnings in their last financial reports as well as plans to lay off a significant number of workers. This paper carries out a comparative review of how the credit crunch affected Northern Rock in the UK and other major United Kingdom based bank. These other…
Behavioural Finance
Human behaviour and personal investment decision making can influence the trading results of a stock market and therefore, it is relevant to discuss the role of behavioural finance in the investment decisions at stock market. With this background, this paper attempts to discuss the influence of behavioural finance on the stock market performance in general and on the market bubbles and crashes in…
Finance Research Paper
Many metrics have been developed to ease this process.…
Business Finance Research Paper
The Financial Review is where business performance is quantified in dollars The Financial Review has two major parts: Discussion and Analysis, and Audited Financial Statements. A third part might include information supplemental to the Financial Statements. In the Discussion and Analysis, management explains changes in operating results from year to year. This explanation is presented mainly in a…