Finance & Accounting Essays

Aguia and Pomba are companies that have the same business operating characteristics. On the financial ground, Aguia comprises of debt and equity but Pomba only equity. The aspect is to derive the equilibrium price of Aguia’s shares through the M&M proposition assuming the rate of cost of capital for all-equity to be 10%.

The exchange rate is a variable of the International Fisher Effect, which states that the value of a currency of a nation whose interest rate is relatively higher is likely to depreciate against the value of the currency of another country whose interest rate is relatively lower. The method adopted during the IFE test is regression analysis.

the concept of ownership, there are different forms of business organizations or units such as a partnership firm, a proprietorship structure or a company. In this article, the different forms of business units will be discussed plus their merits and limitations (Schlickel,

The interaction coefficients between the financial growth and the education level are negative signifying that the city having both a greater education level and higher financial growth/development would have lesser income inequality. Inequality of income would be greater in a city, which has both a greater poverty rate and higher financial growth.

International banking has been shown to have several disadvantages amidst the business opportunities it offers. It is recommended that investors exercise caution in their choice of an international banker. It is imperative to run a background test on a bank’s history and reputation to avoid getting into business with unscrupulous banks.

In this context, it could be stated that there is an inverse relation that persist amid the risk and return profiling. The investment profiling ascertains the fact that the investment that involves lower

The current financial crisis and resulting economic meltdown caused many to question the basic ability of the traditional financial system to cater to the needs of the economies as well as provide desired stability to the system. In this regard, it is therefore contemplated that there must be an alternative system that can be relied on.

There are too the deflationary tendencies. In the 1980s France brought down its inflation rates but with the expense of higher unemployment. There was an unnecessary prolonging of the recessionary period in the 1990 and 1992. This was all done to ‘stabilize’ the system and had its effects, most negative on the member states.

Product price, promotion, packaging and positioning have to be done effectively in order to penetrate and fulfill the market expected demand. They also have to work out their supply chain networks since they are moving their operations to a new country where they might face issues regarding the product distribution.

Further examination into the correlation between loss dummy, the investment opportunity, and cash flow volatility, we were able to find out that a negative correlation exists between loss dummy and the investment opportunity as well as a negative correlation between loss dummy and cash flow volatility.

Assets and liabilities (including any goodwill arising on the acquisition and any fair value adjustment) are translated at the closing spot rate at the date of that balance sheetIncome statements are translated at the spot rate at the date of the transactions. Average rates are allowed if there is no great fluctuation in the exchange rates. All exchange differences are recognized in a separate component of equity.

The report has discussed the impact of the current accounting cases on the financial world. It has been observed from the analysis of the report that there should be certain strict regulations in order to reduce cases related to misleading financial accounts which ultimately affect the global financial world. 

Non-interest-bearing account amount = 5% of the amount borrowed. Interest bearing amount = 100% - 5% = 95% = .95 x $40 = $38 million. Monthly interest rate =.615%. Let’s have the annual interest rate as r, 1 year has 12 months which means that the monthly interest rate of .615% will be equal to r/12. This can be written as .615% = r/12.

"In finance, the risk is best judged in a portfolio context." Is this true? Why? Risk is uncertainty that investors face when making their investment decisions and they face a situation where not every risk can be diversified or mitigated. In other words, it can be said that risk is the uncertainty of returns on the amount that has been invested in the stocks.

This paper seeks to critically appraise the statement that the recent financial crisis has led to a strong debate about the advantages and disadvantages of fair value accounting (FVA), particularly on the argument by critics that fair-value accounting has significantly contributed to the financial crisis or, at least, aggravated its severity.

In the business arena, one of the most demanding challenges that executives encounter is the proper execution of strategy. Difficult situations, such as cutting off the workforce, scaling back plans and ideas, and rescheduling capital investments, make it even more challenging to stay aligned with the course. These initiatives are to be taken without weakening the strategies.

The main objective related to a greater breadth and depth of the study of accounting is to provide learners with the knowledge of how to measure, process and communicate financial information. A wide study of accounting equips the learner with the knowledge of the interdependence between the profession of accounting, organization, and society.

Examples of these are: number of competitors, intensity of competitiveness, and market growth rate. An equity research, on the other hand, is a report written and submitted by a securities firm for its clients. It seeks to aid them in making

However, the experts employ another important technique to determine whether the company performed well or below expectations. This technique is known as the Ratio Analysis. In this method, experts calculate some important ratios from the financial statements of the company the performance of which is to be checked (Bragg, 2012, p. 23).

The portfolio selection is made of six stocks namely Google (GOOG), AT&T, TSL, BAC, and Tesla (TSLA). In addition, a corporate bond of Time Warner Cable Corporation has been selected in the portfolio and five years United States

The Balance Sheet of a business is used to show the “net worth” of a company at a given point in time. It is particularly useful in monitoring the health of the company that is what the business owes and what it is owed. The Assets and Liabilities are the two main sections of a Balance Sheet and are always equal.

Contextually, as per the provided case, an audit has been conducted on behalf of Town of Maywood with regards to determine its financial performance and other activities over a period of time. In accordance with the facts presented, the

Development of ABC has led to a positive change in productivity. This is due to its ability in the identification of inefficient products, allocation of more profits on

On the other hand, profit making organizations are required by the federal government to pay all the above stated taxes to the state and ensure that they file their year-end income timely, or

ℹ️ The 13F is a mandatory, quarterly report that is filed by institutional investment managers with over $100 million in AUM. As expected, BlackRock's top equity holdings include America's most established tech companies: Apple, Microsoft, Amazon, and Google.

The purpose of this discussion is to provide the reader with a more informed understanding of case studies, questionnaires, and interviews and their types. The author of this paper will make an attempt to explore the advantages and disadvantages of case studies, questionnaires, and interviews in Academic Accounting and Finance.

Absorption costing is however considered to be more appropriate than variable costing as it is recognized by GAAP. The absorption costing technique is more favorable as the profits estimated under this system are more accurate. Variable costing is seen to inflate expenses and reduce the level of profits. Both the methods are usually adopted to analyze the organizational efficiency.

utility is not appropriate owing to the fact that it may not indicate individual performance of all the plants; thus reducing the capacity of the management to determine individual efficacy and efficiency of each plant. Owing to the fact that the root issue facing the company

The last and most important test of the kind of information is supposed to be provided in a particular set of financial statements. To increase the importance of the financial information, the test should ascertain if what is contained in the resulting information is significant so as to be included in the financial statements. This essay will discuss materiality and its relevance in auditing.

Financial statement can be utilised by the managers as a roadmap in order to steer them in the correct direction (Sba, 2014). Sandell Plc is one of the building merchant which

The stock market has enormous return abilities. It also has huge risks that may lead to losses. The development of the market and the application of different means of analysis provide an investor with options on the market and ideas on the market effects of different actions of the stakeholders of the stock especially the management to provide a picture of the results the stock posts.

While the falling oil prices are seen as positive for the consumers, with a lesser tax burden, the impact of such changes on the stock market behavior has been varied, for the GCC member countries. However, Global stock exchanges have not witnessed any major volatility due to falling oil prices, during the last year. 

The annual profit of the company has increased in recent years. The net asset value of the company and the return on the company's share price have outperformed the company. The company has an investment trust, and it is listed on the London Stock exchange. The liquidity position of the company is 1.92; therefore, the company has a strong liquidity position.

The tools are most useful as part of the integrated system. Therefore, there is the application of a comprehensive plan for the coordination and the evaluation of all the organizational activities by value chain

Some customers have social status and affiliations in family and society, so they can affect other choices and preferences by acting as an opinion leader. Thus it is suggested that HSBC should treat household customers as a whole, targeting and segmenting by household entity instead of by one single customer.  

One has to note that ethics and feelings are different and in no way can be treated as a science. It is not even a religion. Furthermore, it is also noticed that an efficient and effective system of law may contain several ethical standards but ‘law’ itself can deviate from something that is ethical. Ethics do not follow any cultural norms.

The transaction would be entered in their respective ledger account with one entry being posted on the debit side of an account ledger whilst the other being

The five Porter forces provide a large industrial analysis and a framework through which business strategic development is formed and evaluated. The forces ensure and maintain a balance of power within a business context as well as provide measures for competition among corporations, markets, and industries.

High-risk investments such as mortgage-backed securities had a significant impact on the valuation of investments held with Lehman Brothers, yet many financial institutions continue to use these investments today. The paper will assess the sufficiency of risk management techniques used by financial institutions today.

The net income of the company increased due to the fact that the sales of the company increased or the cost structure of the firm decreased. Three ways to reduce the cost structure of the company is by lowering labor expenses,

This is because for any country to have a successful economy, it needs to ensure that the economy can be able to support public investments (Dickerson, 1994). This is by ensuring that the financing method of an investment does not affect the economy negatively.

The profitability ratios of Tesco Plc are better than that of ASDA Ltd and the company has a good profit margin as compared to ASDA Ltd. ASDA Ltd has been performing well when the solvency of the company is concerned. However, the overall performance of Tesco Plc. is better with regard to overall profitability.

it is financially and economically strong to compete with other leading organizations and to makes sure whether it is making the right progress to attain a sustainable position as compared to other companies. Management accounting has to make note of various objects that are

Highly automated procure to pay process is very complex and requires the use of digital and electronic evidence in order for the auditors to carry out the auditing process in an effective and efficient way (Borthick, 2012). Implementation

This is not only because it is interesting but also because it combines the interesting part of it with lots and lots of descriptive charm. Nonetheless, all

Kozlowski was the CEO of Tyco International. During his reign as CEO, he encountered a lot of agency conflict between him and the shareholders of Tyco international. This was due to the following reasons. He stole $244 million from the company by misappropriation of funds to himself without board approval, giving unauthorized loans and bonuses, and taking personal credit for charitable donations.

The 12.5% of $ 77,236,000 gives $ 9,654,500. Therefore, if Lee prevails in the lawsuit, the number of her damages would be $ 9,654,500. Ms Lee’s lawsuit claimed $ 9 million that represented 12.5% of the profits Disney made from the sales of video cassette of Lady and the Tramp. This is based on Ms Lee’s undoubted contractual right.

This means that portfolio standard deviation = a weighted average of the parts. On the contrary, perfect negative correlation: Zero-risk portfolio possible / Beta - relative measure of an asset’s sensitivity to the

The framing of effective monetary as well as fiscal policies will be one of the prime aspects to be taken into concern while designing the structure of the GCC Central Bank. From the conduct of various studies, it can be found that the objectives and the functions hold by GCC Central Bank will significantly lead the economies of the respective Gulf nations to attain immense growth.                 

Besides the basic methods of costing, there are a number of different forms of costing techniques that can be used by management with each producing a different cost for the product. These differences in costs of a particular product when using the different forms of costing techniques are as a result of the exclusion and inclusion of certain components in product costs.