Finance & Accounting Essays

Calculate the annualised mean return, standard deviation and correlation of the stocks. (5 marks) d.) Calculate the expected return and standard deviation of this minimum variance portfolio (MVP). Plot the

Different data from different departments are used in determining the well-being of the firm. For example, if the receipt and cash department are held by the same person, the highest probability is that the receipt and cash will be manipulated and forced to tally at a lower figure such that the cashier who is the clerk benefit.

Although some experts have argued that auditing firms may still be able to legitimize their status by appealing to and incorporating professionalism in their practice, this is often difficult as they are often motivated to increase their profits and market niches just like other capitalist enterprises.

The author states that accounting standards are the means by which the investing public is assured of a fair and comparable representation of financial information. In the absence of accounting standards, an analyst would be hard put to compare the financial statements of two different companies and arrive at meaningful conclusions.

Considering in-depth review of the case of fair trade coffee, it has been observed that the biggest challenge being faced by the fair trade movement is when it does not allow the grower co-operatives to negotiate prices for coffee with the importers from foreign countries when at the same time, the world prices are at high level.

Investment bankers perform the function of arranging and negotiating huge financial transactions. The work of the investment banker is diverse and it is dictated by the clients’ financial needs. For example, when a new

The BOA made a second-quarter loss to the tune of $8.8 billion in the current year. BOA holds $ 408 billion of mortgages and home equity. Ever since the subprime crisis surfaced in 2008 and after the acquisition of Countrywide Financial Corp, BOA has lost more than $15 billion. Such huge mortgage holdings do not augur well for the company.

and the golden rule is that whenever an individual reaches the age of 60 and beyond, then they must buy a whole life policy (Brown, Chambers & Currie, 2001). This means that the earlier she signs for a whole life policy, the better for her given that she does not yet have a

Genesis, decided to take up both options but only to a certain degree. They were wary of using debt financing wholly, as it meant, some of the

Examples of this liability encompass short-term debts, accounts payable, and accumulated liabilities. Long-term liabilities are the total amount of debts that are due after one fiscal year. They are also recorded in the balance after current liabilities. Examples of such liability include the mortgage payable, postponed income taxes, and the notes billed.

These ratios identify how well the company is performing financially and gives an idea about its future financial outlook by presenting the historical trend. Profitability ratios focus mainly on net profit and gross profit and what are the ratios of these profits in comparison with the sales level. 

Deliverables may also consist of multiple deliverables that are utilized in the general scheme of the project. Further, deliverables consist of an aspect or function of the overall project (Barker, 1990). In the contract between EXTRACT CO and HEMO-TECH plc, HEMO is

From the analysis of external and internal environment, it can be suggested that the overall conditions of UK are supportive for Home Retail Group. The Government of UK is consistently making it easier for businesses to keep their financial position strong by developing regulations and offering financial support to the businesses.

The analysis utilizes historical market information and volume data in making predictions of the anticipated market trends in the future. The analysis is based on the assumption that market trends commonly repeat themselves over a period of time, making historical information become increasingly significant in the analysis.

Besides, it has been also observed that during economic downfall IFIs do not lose their stability rather they have grown rapidly as can be evidenced from the global financial crisis. Moreover, IFIs have also maintained the risk factors efficiently.

A performance management system (PMS) is a management practice, which includes a set of processes, metrics, tools, methods, and software applications, that help to gather data on organizational performance. It provides the means to analyse the performance, against predefined benchmarks (Leonard, et al, 2007).

The last decade or so has witnessed the supremacy and prime importance of monetary policy; thus reflecting their importance in the economic structure. The trend over the past decade and a half shows that macroeconomic factors have fluctuated a great deal; thus the importance of this tool for policymakers and economists in order to control inflation and ensure stability is clearly manifest (Rigobon & Sack, 2001).

There were all the warning signs but these were ignored by the top people of the giant firms because all they want are the profits. Banking and finance are both based on trust and confidence but some people are

In this regard, few exemptions of the registration requirements have been provided hereunder. The Securities Exchange Act of 1934 generally includes the authority to regulate,

These countries are faced with an economic crisis because of this reluctance and have been experiencing unstable budgets and inflation in their countries. The increased awareness concerning the growing developments in these countries has made the government receive pressure from the public and politicians.

There has been an increase in financial reporting that has seen automated financial statements across corporate and government entities. The emphasis comes in the wake of an increased call for accountability and responsibility in the management of finances within organizations and government departments. There are different types of financial statements.

High Speed 2 (HS2) is a new ultra-high-speed rail line proposed by the UK Government and stretches between London and regions of West Midlands (Therivel 2004). According to the Government, the project that is expected to for completed in 2033, is estimated to cost about £42.6 billion in building the rail a further £7.5 billion for stocking the trains.

In this report, an evaluative presentation of the performance of equities in Energy and Services industry is presented. In an asset worth $50,000

The “best” portfolio should have the highest return. My “best” portfolio was “Supermarket”. I had picked this stock with the help of “Finviz Stock Screener”. The portfolio includes one stock that had a good performance during three months of reflection. This stock belongs to the non-alcoholic drink industry. In this case, we will use the Pepsi Company.

International Financial Reporting Standards (IFRS) are defined as a collection of accounting standards instituted by the International Accounting Standard Board (IASB) which is the international benchmark for the arrangement of financial statements of public companies. By adopting International Financial Reporting Standards, companies can present their financial reports on a similar basis.

The success story of Apple is attributable to its innovative business model. This is similar to the case of other leading companies such as Walmart and Amazon. In fact, statistics for the period between 1998 and 2007 indicate that approximately 40% of new entering Fortune 500 firms attribute their success to innovative business models.

ICS also aim at ensuring that a company conforms to all government regulations and policies and that workers comply with the organization’s rules (AAT, 2012). This objective of internal control guarantees an organization’s continuity of operations; because it protects businesses from severe consequences.

Finally, the data gathered by the ABC method could be misinterpreted. Such a problem would be prevented only if the input of the data and figures is being done in a more precise manner with utmost care. The data is the one that usually serves as the decision basis when the managers are coming up with decisions regarding the firm (Debarshi, 2011).  

Sub-Sahara African countries are aiming to use borrowed capital from external sources. Initially, they were collecting funds from various multiparty organizations as the concessional interest rate. Fixed interest rates are charged for using such funds, which reduces interest rate risk on such investment instruments.

Higher interest rates will be effective in attracting foreign investors; hence it will be beneficial to go for an IPO and to raise long-term capital. In the last few months, the equity market has already gone to a 20 percent high and as per market analysts it is going to perform much better in the coming future; hence the issue of equity can be a cheaper way to raise finance.

In general, the recovery of chaebols from the financial crisis made South Korea first Asian country to convalesce from the financial crisis. South Korea came out from the financial crisis aftermaths by early 2000s and one of the main factors contributing towards this recovery was the restructuring of chaebols.

These bond are perceived to have very little risk; thus, being high-grade bonds (WebFinance, Inc., 2011). Another form of a secured bond is the equipment trust certificates.

In the past three years, it has pursued operational excellence strategies in customer service, increased the speed of delivery, order accuracy and has, in turn, reduced employee turnover. This has resulted in more employee motivation and subsequent improvement in outputs. This in turn has driven Panera to be a leading firm in the restaurant industry and grown in sales and profit pies.

This is right, that physicians falsely estimate the cost of some medical processes to avoid penalties. However this undesirable practice is not helpful, because the

In the analysis case, the use of the net present value method (NPV) should be preferred. The NPV of a project is the discounted value of all the future expected cash flows at the cost

Financial statements or reports provide a vivid picture of transactional flows within such organizations. Financial statements or reports fulfill various reasons that include determining the ability of organizations to generate cash, as well as other resources. Such financial statements determine the possibility of organizations meeting their liabilities and also track financial results.

Watching the company go public and witnessing the financial issues that my father faces on a daily basis have mystified me. Because of this, I was keen to explore into the discipline further and so Ithus applied for a BSc

This would be beneficial to the organization. a) If the new system is implemented at the beginning of the year, there would be higher deficits in general for that financial year. This is because the cost incurred by the organization in contracting outsiders

The reason for such an assumption is that the cost of producing the light-gauge aluminum is $22.50, whereas the sales price is $36. Therefore, so as to sell at a higher price the company incurs the cost of

The project is rejected by both NPV and IRR because they all take into consideration the time value of money. Negative NPV will reflect an IRR lower than the project’s cost of capital. From the available information, project C must be preferred over project A because project C’s NPV is higher than that of A with its IRR more than the capital cost.  

Pfizer is an American global pharmaceutical firm headquartered in New York City, and its research headquarters is based in Groton, Connecticut in America. It is among the world’s biggest pharmaceutical corporations by revenues figured at approximately $ 51.584 billion shillings by 2013.

The gambling and gaming industry grew by 7.7 percent in 2013, which is approximately $15,185.2 million. The performance of the firms operating in the gambling industry collectively has played a major role to shape the global positioning of the United Kingdom’s gambling industry. The present report analyzes the performance of the gambling industry in the United Kingdom.

The constitution, common law doctrines, and previous court case decisions are some of the sources of law for exercising authority over issues and reliability of the sources suggest consistency for predictability of court decisions on an issue. This can be inferred to future court decisions and powers over educational financing.

The author states that the Financial Statement gives an investor vital information on the company’s performance and its position. The analysis of information by investors enables them to compare the past performance of the company, the position of the company with other industry and the whole market at large.

The users of financial statements rely on the information released by the providers of such information for decision-making. There are various users of financial statements with different needs as follows: lenders, suppliers, and other trade creditors, employees, investors, customers, government and their agencies, and the public.

Audit Sampling and Other Selective Testing procedures, audit sampling, can be applied to all audit assignments aimed at examining the account balance items. This is through the application of audit procedures to less than 100% of the items contained in the account balance or transaction classes, granting all sampling units equal selection chances.

Widam uses few assets to generate more sales revenue. Almeera is more profitable than Widam because the value of its ratios is higher than those of Widam. However, Widam Although Widam has more business risk than Almeera, it has infinite cover for its interest expense. Almeera is more liquid than Widam as it has a higher quick ratio and current ratio.

Dollarization did not affect the financial concern of such individuals at all. On the other part of Zimbabweans were of the opinion that as most of the items were available in the denomination of US dollars, such dollarization provided them access to all such items that were difficult to obtain in exchange for Zimbabwean dollars.

According to the official website of HM Revenue and Customs (2008), ‘Research and development (R&D) tax credits are a company tax relief which can either reduce a company’s tax bill or, for small or medium-sized companies, provide a cash sum’. Through a different definition, it is noticed that ‘Research and development tax credits are a company tax relief.'

The author states that all the countries have suffered a recession and are trying to overcome it. The present situation has lead to a state where the government has to take a proper decision to tide over the situation. New policies and different strategies are being implemented to come out of the recession.