Finance & Accounting Essays

However, if they are mutually exclusive, franchise S would be selected, because it has the higher IRR If the investment is mutually exclusive of each franchise, then it is

Macro political risk is negative impact of the adverse decisions by the host country on all foreign firms in the country while micro political risks involve the negative impact of a host country’s

Return on investment metrics measures the profitability of the project by comparing the cost and benefits of an investment while discounted cash flow metrics involve Net Present value, Pay back and internal rate of return. The discounted

Secondly, it is important that the balance scorecard makes selection of only a small number of growth items from the organization to monitor. Last but not

Profits are fundamental to any bank setting. Therefore, when a bank is evaluating whether to grant a loan or not, it assesses the risk associated with granting that loan. According to Stein (2004), banks frequently ask for a

The writer concluded since the company decided to adopt a mixed age policy in employing their staff mentoring has been effective in making sure that the junior employees can learn from the senior employees who are more experienced. This has saved the company the time that would have been spent in waiting for the junior employees to gain experience.

The direct versus indirect cash flows are only dealt with by the operations section. One can be able to identify, through the comparison between the operations section and the income statement, the variation in timing between cash collections and the income. It also identifies the differences in timing between cash payments and expenses.  

The corporate social responsibility (CSR) definition has been evolving daily. Today CSR is defined as the concept of a business considering the interests of the society by being considerate of its impact on the society, customers, shareholders, suppliers, employees, communities, and the environment in which the business operates from.

This paper will begin with the statement that the globalization of firms is a common occurrence in the business world. Firms that operate in one nation-state only are much more the exclusion of the internationalization rule. Multinational companies are global organizations that dominate different industries in the world’s developed economies.

Second, when the company’s actual performance is above the expected due to supernormal profits and very high dividend payout ratio. (c): since sustainable growth is the highest achievable rate of growth, for

Proper control of a company must be instituted by both internal and external auditors. Internal controls act as barriers to crime activity and help

Michael Kors is an American national. He is aged 55. He began his fashion design career at a very early age. He was born in New York at a place called Long Island. He is a fashion designer based in the United States of America.  He is the chairman and the chief creative officer for his farm called Michael Kors Holding Limited. 

The analysis involves two companies featuring in the Qatar stock exchange market. It compares the calculated financial ratios of Mazaya Qatar Real Estate and Ahli Bank Q.S.C. based on various economic data dated 2013. Specifically, the analysis touches on the leverage ratios, liquidity ratios, profitability ratios, efficiency ratios, and market value ratios.

The average share value during this period was seen to be 39.38142. As compared to the industry statistics, BP’s share values can be considered to be adequately low. The market capitalization of other firms such as Royal Dutch and Gazprom are comparatively higher than BP. Their shared values are also adequately high. In the case of BP, the share values are seen to remain adequately stable.

Financial systems include financial markets, channel funds, financial intermediaries and others. Financial systems facilitate risk-sharing through reducing the information and transaction costs. Financial systems reduce the

The paper "Capital asset pricing model (CAPM)" gives the detailed information about Developments in the Capital Asset Pricing Model. The foundation of Capital asset pricing model was established in an article of a finance journal in the year 1963 named, Capital Asset Prices: A theory of market equilibrium under conditions of risk.

Generally speaking, a look at the PepsiCo’s 2004 to 2008 balance sheets shows stable changes in the common-size percentages during that period. For instance, PepsiCo witnessed a significant increase in the number of assets involving cash and a sharp decline in short-term investments in the year 2008.

According to the report the maintenance auditing programme of the H-Acid plant has identified strengths in the areas of communication, employment involvement and maintenance regime. It was below average in the areas of strategy and policy, organisation and workload management. The company exhibited poor performance in the areas of materials management.

I would argue that smart legislation concerning exports would boost foreign demand for goods and services originating in the United States. This increased foreign demand will cause firms such as my own to add jobs

The report revealed that the performance of the company would improve in the years to come as the forecasted financial statements state the company would be able to increase its assets as well as improve its profitability in the years to come. Also, the expected returns of the company’s stock are estimated to be higher than the average market return.

The author of the paper states that the efficient market hypothesis proposes that assets in financial markets are priced after taking all the public information available into account. This means that people might not be able to earn abnormal profit consistently for a long period of time.

An accountant normally encounters ethical concerns despite the industry and should remain persistently vigilant to decrease the likelihood of outside forces influencing financial records, which could lead to both criminal and ethical violations. The trouble for public organizations and companies to be successful at high levels may place unwarranted pressure.

Where one company carries out favorable business transactions with another company (O’Bryan 129). Such transactions may include purchase and sale of goods dealt with at prices lower the market

This present essay has two sections. The first section focuses on Japan as a foreign market that plays host to numerous American MNEs. Under this section, the essay will use General Electric, which is an American MNE operating in Japan as the case study to investigate why the company decided to venture into the Japanese market.

The two major accounting standards setting bodies such as Financial Accounting Standard Board (FASB) and International Accounting Standard Board

A pension is amount of money in which one pays or is deducted in order for them to have an income after reaching the age of retirement where they do not have to work. There various ways of calculating the

You should very carefully go over your financial statements such as bank statements and credit cards bills and do so frequently. The faster you find out that your credit or your identity has been tampered with, the faster and

The major aim of the investment is to maximize returns through increased growth of capital. The performance will be based on the historical prices of the stocks. The report will also try to identify and measure the risk likely to be faced in the portfolio. This is the risk that may hinder the funds from fully achieving the objectives. This will involve identifying the stock-specific risk.

A concrete management decision is based on reliable information which is explicit and generated from mechanisms that are rational. Management accounting information is one such information. By virtue of being in-depth and forward looking, this information is used by managers to make strategic decisions.

In effect a weighted average of sub period internal rates of return between cash flows is generated. But this method has a drawback of having to capture all the data at the point of each cash flow and in

ey market in Australia is typically a liquid and deep market in which participants are allowed to borrow as well as invest large amounts of money cost effectively and efficiently (Felmingham 1995, p. 23). There has been a discussion on whether RBAs method of trading in the

Operative expenses that comprise of general, selling and administrative expenses along with depreciation charges and amortization cost are deducted from gross profit

The great performance and dominance of the company have been attributed to its cluster categorisation, which provides customers with a wide range of banking services. Barclays Bank was established in 1690 by James Barclay and has grown to be a major force in the industry through partnerships, collaborations, mergers and acquisitions

For PNC limited, the credit risk grows higher and higher for the past 5 years (Exhibit 2). This is an indicator that the company would be less able to repay the loan acquired or meet other contractual obligations it has. Interest rate risk

According to the IMA guidelines that are used for the resolution of an ethical conflict, Lisa is supposed to discuss the conflict with her immediate supervisor who is Jeffrey Anderson. She was more concerned to know if the acquired company had used inappropriate accounting practices to inflate its earnings or sales.

UK citizens, in the market economic scenario, are literally forced towards paying high rates of taxes whereas the lower-income groups are made to pay marginal amounts. Based on the findings generated thereupon, appropriate conclusions will be made constructed as to whether the UK government should bring down its present income tax levels to 50%.

High net worth investors keep a track of individual hedge fund managers, which helps them in choosing the right manager for taking care of their capital investment. The prime objective of any hedge fund is to earn maximum profits with minimum risks. Therefore, hedge fund managers must be emotionally detached from the daily fluctuation.

This refers to the theory of accounting that is prepared by standard-setting against which practical problems can be tested objectively. Ordinarily; it will deal with financial reporting issues such as the objectives and the general users of financial statements. The concept of recognizing and measuring the elements of financial statements, the characteristics that make the accounting information and the basic element of financial statements.

One of the major reasons for this failure is the improper integration of the two merging companies. It therefore creates the need for proper management

As a US-based company, Goldman Sachs has its operations spread out in various parts of the world, particularly in the major international financial centers such as Dubai, Hong Kong, Nairobi, London, Johannesburg, Moscow, and China, among others. The financial services offered by the company cover a wide range of services detailing investment banking and financial support services.

A financial statement restatement arises when a company, either willingly or impelled by auditors or regulators, modifies public “financial information” which was formerly an account. An irregularity of accounting is an occurrence in which a company replicates its financial statements as they were not moderately presented in harmony with GAAP.  

The presented manufacturer XYZ deals in electronic consumer products. Due to cash-flow difficulties,    XYZ decided to implement simple activity-based costing (ABC) system. Problems that bring about the shaky state of XYZ are poor inventory management, insufficient business processes, and lack of control of overhead costs.

An important tool used by financial managers to decide the optimal capital structure is the use the WACC (Weighted average cost of capital). With the help of the WACC, the company can decide on a suitable capital structure. WACC varies with the mix of the different securities in the capital structure. 

F.D.I acronym for Foreign Direct Investment is a key indicator and element of the economy of a given country. It directly impacts the overall health of the country in various ways. It however does bring upon a number of considerations, constraints, and requirements with regard to its impact on the overall economy. The impact of F.D.I vary with regard to the outlook of a given country.

The aftermath of the financial crisis created an interesting opportunity for studying the impact of financing and capital structure decisions on project and firm value. The choice of capital structure has gained considerable attention in the literature, given its impact on firms, investment, and policymaking (Harrison & Widjaja, 2013).

Gabriel Trigo is a team financial advisor with Merrill Lynch that advises the Smith Group. Gabriel Trigo helps the affluent clients to create customized wealth solutions by identifying their goals and dedicating skills and efforts to manage the excellent strategies that suit their personal circumstances in the pursuit of financial success.

The current analysis incorporates the evaluation of activity-based, standard, and relevant costing techniques. It incorporates analyzing such costing techniques by associating the same in the context of JetBlue. The different circumstances under which JetBlue might undertake such costing techniques and their long-run implications have been discussed upon.

A strong internal control mechanism enables the company to be in charge of its finances and understand the specifics of the utilization of its resources. Southwest airline has a strong internal control mechanism including an internal audit department that audits the company’s financial books of account.

The radical and at times careless investigation methods employed by the bank raised a myriad of serious legal issues, not the least of which were data protection and privacy concerns. Although Deutsche Bank's snooping was deemed sporadic, the affair struck at the heart of a country still struggling with its past identity where spying on citizens in the Communist East was a matter of course.

Another form of credit available to them is asset finance loan. The asset finance loan will enable them to purchase the car that they need. The asset finance loan can also cater for the purchase of television and camera, which they