StudentShare solutions
Triangle menu

Corporate finance - Research Paper Example

Not dowloaded yet

Extract of sample
Corporate finance

Even though the CLNE is at its early stages of development, the company already owns and operates many natural gas fueling stations and is a global leader in developing the natural gas vehicle market. The company deals with many areas of natural gas business including “compressed natural gas (CNG) and liquefied natural gas (LNG) fueling; construction and operation of natural gas fueling stations; compressor equipment and technology; biomethane production; and vehicle conversion” (qtd in Investorideas.com). The company fuels over 530 fleet customers and 25,000 vehicles every day at over 273 stations across the United States and Canada. In addition, the organization has a strong customer base in transit, trucking, shuttle, taxi, airport, solid waste, and municipal fleet markets (Investorideas.com). Similarly, Apache Corporation is a multinational gas and oil corporation headquartered at Texas in the United States. In addition to US, the company has regional subsidiaries and operations in Canada, UK North Sea, Australia, Argentina, and Egypt. As of 2012, the firm’s market capitalization is estimated at nearly $35 billion. The Apache was founded in 1954 and the organization expanded its business horizons mainly through acquisitions. This paper will critically analyze the investment opportunities in both the firms and suggest which firm offers the best long term value for the investor. Natural gas industry analysis Porter’s five forces model is used here to analyze the natural gas industry in the United States. The five forces in the industry are described below. Degree of rivalry While analyzing the US’ natural gas industry, the degree of competitive rivalry is less as a result of unpopularity of natural gas resources. Currently, there are a few natural gas providers in each states of the US. This favorable business situation increases the scope of investments in the natural gas industry. Threat of new entrants A study conducted by the Navigant Consulting reveals that North America has enough reserves of natural gas to supply for at least 120 years (U.S Department of Energy). Hence, the United States has abundance of natural gas resources and this strength makes the country an attractive place for business investments. As a result, new players are more likely to enter the natural gas market and therefore the threat of new entrants is high. Threat of substitutes There are many substitutes to natural gas including liquefied petroleum gas (LPG) and biogas. Today, LPG is widely used in US for transportation proposes due to its easier availability and highly effective performance. In addition, the development of hybrid electric vehicles also appears to be a growth impediment to vehicle fueling natural gas. Hence, the threat of substitutes can be moderate to high in the natural gas industry. Buyer power Since the level of competition intensity is low in the natural gas industry, buyers have limited options to choose the provider. Hence, there are not much alternative to buyers but to choose any of the limited available providers. From other perspective, vehicle fueling natural gas has a number of potential substitutes and hence buyers may switch their demand to those products. In short, buyer power is low in the ...Show more

Summary

Corporate Finance Introduction The significance of natural gas is growing everyday as energy needs in industrial, transportation, and technological sectors are on the rise. Although other renewable energies like solar power and wind power have been in use, individuals and business organizations still depend more on natural gas due to its easy availability and increased efficiency…
Author : jamirryan
Corporate finance essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Corporate finance"
with a personal 20% discount.
Grab the best paper

Related Essays

Finance and Accounting Research Paper: Corporate Financial Scandals
The company was formed in 1985 by Kenneth Lay, after the merger of Houston natural gas and inter-north. It was a natural gas, energy trading, and electrical utilities company which was based in Houston Texas. Before its bankruptcy, Enron employed roughly 21,000 people.
11 pages (2750 words) Research Paper
Corporate Finance Nautilus
Equity has shown negative growth during most of the years, and only a small positive growth in the last year. Both operating and free cash flows have been good, but this has come mainly through liquidation of current assets, and hence is not sustainable. The company seems to be highly risky on almost every count.
10 pages (2500 words) Research Paper
Finance
This however, has led to utilizing the stock exchange indicators of the three distinctive countries i.e. Abu Dhabi, Qatar and Saudi Arabia. We ascertain that all the preceding three markets eliminates aught assumption that the returns adopt a convention statistical distribution.
10 pages (2500 words) Research Paper
Corporate Finance Research Paper
The market is largely fragmented with many small to medium players serving different niches of their target market. Essentially, the market is distributed into three distinct categories based on product classification. Carlton falls under the category of Chemical suppliers supplying chemicals to independent distributors who then sell to the end users.
5 pages (1250 words) Research Paper
Strategic Corporate Finance Workshop
Even though a company may be successful in maximising its profits, it does not necessarily follow that the company would be successful in maximising its Earning Per Share. So the benefit would not automatically flow to the shareholder. Also, though the company may earn higher profits, the same may not flow to the shareholder immediately.
6 pages (1500 words) Research Paper
Introduction to Finance - coursework
this is because the investor may get higher return for their value of money if they invest elswhere other than your bond. So they will try to sell your bond to invest somewhere else. Similary if the interest rate in the market goes down to 5 % the investor will try more n more to get a hold on organization's bond since your bond is paying higher interest rates than that prevailing in the market.
4 pages (1000 words) Research Paper
Corporate Finances Case study
When the situation arises, some businesses will resort to loans and equity financing as a way of mitigating the crisis of the business. With view of the Mason Corporation, a prognosis can be done to see into it that the business
3 pages (750 words) Research Paper
Finance valuation
This can be calculated by finding the percentage of the equity debt in relation to the total capital base of the company. The financial statements of the company show that the company has a decreasing
6 pages (1500 words) Research Paper
Corporate finance
The hypothesis also tells that buying and selling of securities is all about of chances and there is no scope of skills. Recently the global economy has gone through a very critical phase. Currently the global economy is in the recovery mode and going towards right
6 pages (1500 words) Research Paper
Managing Finance
Management of finance is very significant for any company as it is connected to the resources of the company. By effectual management of finances, the managers can protect their company from unstable mismanagement of funds. Zain Telecom is a leading operator of mobile with a viable footprint in the eight African and Middle Eastern countries.
14 pages (3500 words) Research Paper
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation