Equities and Fixed Income Investments - Assignment Example

Only on StudentShare

Extract of sample
Equities and Fixed Income Investments

While the analysis of the free cash flow will indicate if the company enjoys an unobstructed flow of cash. The analysis of the free cash flow to equity will indicate if the company is in a position to service the equity holders after clearing all the expenses, reinvestment and repayment of debt. The analysis of the EBITDA indicates the cash flow from the operations (Hatten and Ruhland, 2005). The cash flow from the operations will indicate if able to optimize its operational performance. With the increase in the efficiency of the operations the cash flow of the firm will increase. Table 1: Tabulation of different ratios   2013 2012 2011 2010 2009 Gearing ratio 0.95 0.91 0.90 0.90 0.90 EBITDA 492.2 469.8 497.7 507.4 451 FCFE N/A -86.8 -89.9 -376.6 -162.1 FCFF N/A 252,286.60 239,185.37 220,906.19 2,284,070.11 Source: (Severn Trent Annual Report, 2013) Fig 1: Gearing ratio Source: (Severn Trent Annual Report, 2013) The gearing ratio increased considerably in the last 5 years. This indicates that Severn Trent increasingly resorted to debt financing. ...Show more

Summary

Equities and Fixed Income Investments Table of Contents Part 1 3 a 3 b 8 c. 11 d. 12 e 13 Part 2 15 Reference List 18 Part 1 a Whether the company in a position to issue debt securities or should it consider issuing equity instead? In order to find out if Severn Trent is in a position to issue debt securities or should it consider issuing equity is found out by the analysis of gearing ratio, FCFF, FCFE and EBITDA…
Author : westmortimer
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Equities and Fixed Income Investments"
with a personal 20% discount.
Grab the best paper

Related Essays

Fixed Tangible.
Fixed Tangible assets forms an important line item in the Balance Sheet of any company especially in the case of a manufacturing concern. As per the International Accounting Standard (IAS) 16 Property, Plant and Equipment, items pertaining to various classes of property, plant and equipment shall be classified as assts when the following two conditions are fulfilled It is probable that the future economic benefits, associated with the assets will flow to the entity and; The cost of the asset can be measured reliably [1] The important thing to consider at the time of recognition of fixed asset is the identification of the relevant cost based on which the asset should be capitalized in the bala
8 pages (2000 words) Dissertation
Planning for Long Term Wealth Creation
They have $125,000 in funds that they can borrow. They tell you that they have a car loan of $16,500 at 15.5% interest, credit cards totalling $11,000 (average interest rate of 17%) and a personal loan of $4,500 at 16%. a) What should they do first before they consider borrowing to invest?
4 pages (1000 words) Essay
Inventory and Fixed Assest
Adjusting lower cost or market inventory on valuation The lower cost or market is an inventory valuation method used by accountants in order to comply with the conservatism principle. The conservatism principle states that when in doubt accountants must choose the method that is least likely to overstate assets and income.
4 pages (1000 words) Essay
Institutional Investments
Later on, the pricing of the shares or units issued by the investment trusts are discussed especially focusing on the concept of Net Asset Value (NAV). After that, the major emphasis of this article would be on finding out the causes that drive those investment trust shares to trade at a discount.
8 pages (2000 words) Essay
Investing in Equities Case of Morrison Supermarkets Plc
The following is an analysis of investment within Morrison Supermarket Plc. The investment involves ?10,000 in shares between 2008 November and 2012 December. Morrison Supermarket Plc is a retail chain business enterprise that details in the distribution and marketing of food products.
3 pages (750 words) Essay
Jpmorgan income&growth PLC
In addition, the company has a long-term responsibility to ensure all Income shareholders get regular quarterly income. As part of its Capital investment objectives, JPMorgan Income & Growth Investment Trust plc provides Capital shareholders with prompt feedback on the capital growth (Dadrian 2006 p.
6 pages (1500 words) Essay
MAF307 EQUITIES AND INVESTMENT ANALYSIS
The biggest customers of the MMS mainly includes a list of federal and state government agencies, charities, hospitals, and also some private sector organisations across Australia. Since 2010, the Group has continuously focused on obtaining new business deals and also strengthening relationship with existing key clients.
4 pages (1000 words) Essay
MANAGEMENT ACCOUNTING AND FINANCIAL MANAGEMENT
This is especially critical in entrepreneurial firms that start their businesses depending on competitive advantages of intellectual capital of the employees. This requires establishment of the right team, though this may be challenging. On the other hand, an incentive system comprises of structured motivation system that promotes specific-sought-after behaviours.
9 pages (2250 words) Essay
Critical Review
case, the web is hub of many articles, ranging from Wall Street Journal, Barons, New York Times and The Economist, with the writer presenting insight on the same. Intuitively, the following is critical reviews of three articles focusing on factors that may affect business
3 pages (750 words) Book Report/Review
Find out how much would it cost
to 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