Got a tricky question? Receive an answer from students like you! Try us!

Finance (Corporate) - Essay Example

Undergraduate
Author : oleta81
Essay
Finance & Accounting
Pages 6 (1506 words)
Download 1

Summary

Name: Institution: Topic: Date: Introduction New Heritage Doll Company main business specialization is in toys and game industries. It’s total revenue in U.S. game and toy industry was $42 billion in 2008 and this was projected to increase to $52.5billion by 2014, this implied an average 4.6% increase annually…

Extract of sample
Finance (Corporate)

This meant to give each proposal a chance to convince the capital budgeting committee for approval. The initial project concerned expanding an existing Match My Doll Clothing line, which had a demonstrated record of accomplishment in the earlier period. The subsequent project initiated a fresh initiative referred to as New Doll Film/DVD, which applied an online software permitting users to tailor a doll’s characteristic to the customers’ specifications. This required calculation of the Net Present Value (NPV) of both ventures to discover which project is more lucrative. Simulation Process Finance Simulation process involve accessing simulation platform. Click prepare tab to access simulation summary, which gives New Heritage Doll Company assignment summary and how to play tab for procedure. Simulation process involves comparison of the following parameters between chosen projects. Theses include NPV, payback period, IRR, profitability index and project milestones and risks.   Compare revenue by division, operation profit by division and total assets by division. Compare I/S and B/S in regards to Company consolidated, production consolidated, retail consolidated and licensing consolidated. Further, compare cashflow statement, financial analysis, project details and financial history. ...
Download paper

Related Essays

Corporate Finance
At the time of stock market boom, mergers were more appealing. On the other hand, falling share prices can lead to a company being undervalued, and make it an attractive for acquisition. Mergers and acquisitions can either be value destroyers or value creators that depend on factors like company’s cost of capital, its strategies and decisions and cash flows generated from the business operations The performance is not related to the nature of an industry, instead it was driven by the quality and strategy of management. Good strategy by management can produce good results, on the other hand,…
8 pages (2008 words)
Corporate finance: Expand Ltd Case
The paper tells that firms seek to expand and grow their business after being in operation for some time. This is done for a number of reasons such as increasing profits, satisfying the unique needs of the customers, attracting and retaining more customers and remaining highly competitive. Expansion and growth of businesses can be done through various means. Mergers and acquisitions are ways through which this can be achieved. Mergers and acquisitions simply refer to the aspect of corporate finance, management and corporate strategy that deals with the combining, dividing, selling and buying…
13 pages (3263 words)
Finance - Corporate Governance
How do the investors of a company ensure that the managers of a company are not involved in stealing their money or making bad investments in some projects? How do the investors exercise their control over the managers of the company? This study discusses all relevant issues related to answering all these three questions mentioned above. The discretionary powers and regulatory controls of primary investors of an organisation like the shareholders and creditors of the company have all been discussed in this study. 1. Corporate Governance – Definition One particular formal definition cannot be…
10 pages (2510 words)
Corporate finance
Market efficiency is a crucial factor in deciding the investment strategies of an investor. If the securities market is efficient, the best estimate and returns will be reflected in the price of the shares and there will be no undervalued securities that would offer higher return than expected. However, opposite could be the case in the weak efficient markets. (WOOD, DASGUPTA & POSHAKWALE, 1995) THREE FORMS OF MARKET EFFICIENCY BY FAMA (1970): In this aspect the most contributing work was presented by Fama in 1970. He formulated a market efficiency hypothesis (EMH) which discussed the three…
6 pages (1506 words)
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…
8 pages (2008 words)
Corporate Finance
However, the application of the IRR technique revealed that the project has an IRR of 20.2% which is less than the rates FCL uses to discount their investments. In consideration of the rate of inflation and the fact that there seem to be no basis for using a 21 per cent and a 26 per cent rate of inflation as suggested in a meeting, the recommendation was made to invest in the project. The basis for this suggestion was that the investment would facilitate an increase in the company’s efficiency. Furthermore, it would help to improve FCL’s image and so allow the company to obtain more…
8 pages (2008 words)
Corporate Finance
I agree to this because diversification spreads the risk over the different types of assets. Given the fact that the two assets are uncorrelated to each other, it would be rational to invest in both assets. The higher risk of asset S will be compensated with the less risky return of asset B. 2. I totally disagree to the statement; it is quite opposite of the fact that there is a direct relationship between correlation of the portfolio assets and its risk. The higher the correlation between the portfolio assets, the more chances will be that the downside movement of one asset will accompany the…
4 pages (1004 words)