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Islamic finance has become a centre of attention in the global financial market with its practice mainly focused on being ethical which is based on the teachings of Prophet Mohammad (P.B.U.H) and the Holy Scripture of the Muslims with the principle consistent with Shariah (Islamic law), The Holy Qur’an.
The Shell oil company employs about 22,000 employees in the USA1. Its head office in the USA is based in Houston. The company is a major player in gasoline market, natural gas, and petrochemical manufacturers. Shell is the major share holder in the oil as it owns about 25,000 stations which have been branded as Shell.
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A sound banking method forms the base for every winning financial system. It assists in strengthening the financial system of the country. The stronger the economy the stronger the country is. There are two kinds of banking systems and they are Islamic banking and Conventional banking. Islamic banking is significantly different from conventional banking, and some of the differences are discussed in this essay.
The features of Ijarah contracts have also been studied in detail. Although Ijarah contracts are similar to leasing contracts, still some differences exist. Accounting and Auditing Organisation for Islamic Financial Institutions, (AAOIFI), sets out standards for accounting of Ijarah contracts. The impact of IFRS on Ijarah contract accounting has also been discussed in this study.
Executive Summary
The assignment mainly highlights the various characteristic features of Valero Energy Corporation. Moreover, it also focuses on the global business strategy attempted by Valero Energy Corporation to expand its operations in foreign markets.
Corporate governance has a great influence on the efficiency of stock prices. Stability in the stock is achieved if and only if good corporate governance is incorporated into the management of the organization. Investors tend to be attracted to transparent institutions, with a high degree of financial accountability, and are well governed.
The company is getting enough contracts to remain in the market but is still running operations at a loss. The business has been unable to generate enough capital to increase the ultimate profitability of the firm. The fundamental problem highlighted in this case is that of an inadequate costing system and an internal environment characterized by friction.
The Government of Australia has proposed a new resource rent tax known as Mineral Resource Rent Tax (MRRT) that will be effective from the beginning of July in 2012. It replaces the earlier proposed Resource Super Profits Tax or RSPT. Australia is quite rich in its natural resources in the form of minerals, oil, natural gas, etc.
Another key observation made from the assessment of Ms. Waterson’s present position is that she lacks an emergency cash reserve. It is wise to maintain an urgent situation reserve that would cover the basic living expenses of around 5 to 6 months. In the case of Joan Waterson, this balance should be in between $25,000 to $30,000.
The two countries that are focused on in the author’s arguments are India and China. According to the article 200 million people from these two countries were helped out of poverty due to the impact of globalization during the 1990s. India and China are the two most populous countries in the world with a combined population of 2.5 billion which accounts for approximately 36% of the world’s population (Exner, 2011).
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A central bank or a reserve bank is a public/government-owned institution that mainly issues currency, regulates the supply of money and also controls the country’s interest rate is also known as a monetary authority. Its other duty includes overseeing the commercial banking system of their respected countries.
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Harmonisation can be explained as the process of enhancing the comparability of financial reports furnished by business entities by setting up limits as to how much it can differ. Globalisation has affected business entities all around the world. A company might be operating in different parts of the world.
This bond allows the investors to lend money to the government directly, which is administered directly by the treasury department. They earn a fixed rate of return which implies that they do not fluctuate in value in comparison to other types of bonds. This means that they can be sold back for the full value in addition to any interest the investor has.
There have been several attempts of trying to come up with ways through which inflation can be measured. In the present day, it is quite fascinating to report that indeed inflation can be calculated and accurately predicted. It is also worth noting that there are various ways and formulas that are used to calculate this phenomenon.
Net Present Value is the discounted net value of a project within a specified period of time. Net present value is present cash inflows less present cash out flows. Positive net present value promises an increase in value, which indicates greater return than the of rate of return and should be accepted. Zero net present value indicates that the return is equal to the rate of return; therefore the project may be acceptable.
By analyzing the log returns, the key data that stood out was that the max value was generated by FTSE MID 250 (0.580766) and the minimum return generated was by MILAN COMIT GENERAL (-0.006832. The lowest mean value was generated by BRUSSELS ALL SHARE (-.00319). For Skewness, ideally, it should be zero indicating symmetry and normality.
Mergers and acquisitions are considered to be two of the options that are available to companies and that will allow them to grow. Organic growth is another method; however, this method is not as aggressive as mergers and acquisitions. Some of the reasons given for mergers relate to efficiency, market power, market discipline, expansion of operations, and diversification.
Company analysis is a vital step in the process of determining the performance of the company in order to make an investment decision on whether to invest in the company or not. There are various methods that can be used to carry out a company analysis for investment decision making purposes.
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Depository institutions are subject to a reserve requirement ratio. Some authors contend that depository institutions are one of those institutions that are the most heavily watched and regulated in a different part of the world. And with the passage of time, these financial institutions have not only increased vertically but also horizontally.
Credit risk management contains some key principles that are: a clear structure should be established, accountability and responsibility should be allocated, prioritize the processes, clear communication of assigned responsibilities and answerability assigned thereto.Credit risk management has an overwhelming concern on a bank.
The joining of the GE and the Honeywell corporate would affect the product markets that deal with aerospace and power system industries. One of the activities involved is bundling which according to the commission, can be advantageous to the merged business because of eliminating the competitors.
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Abiomed Inc. is still in its loss-making era, however, there are chances that the company might turn into a profit zone in upcoming years. The performance of the company in other areas has remained better than the industry and the company seems to be quite safe due to less amount of debt included in its capital structure which can actually prevent it from the likelihood of bankruptcy.
Fundamentally, the prediction as to whether or not a particular acquisition would be beneficial depends on a number of factors. Among other things, it should be possible to evaluate the commercial logic of the intended acquisition (Patra, Khatik, & Kolhe, 2003).
Experts in the banking industry blame failure of regulation as one of the main causes of the 2008 global financial crisis. So there is no surprise that post-crisis world wants to see more regulations. Regulation will bring in benefits by way of financial stability, but it also imposes costs. The crisis was developed in the advanced economies.
The continent is a self governing country that is a part of the commonwealth federation. It is currently bounded by the Timor sea, Arafura sea, Torres strait, Coral sea, Tasman sea, Bass strait along with the Indian ocean (Verdier, p.11). It is the smallest continent found on the globe and the sixth largest country in the world.
In fact, Lala’s use of Flash software for wrapping streams which Apple had been averse to use could prove detrimental to its overall strategy (Stone 2009). Apple also exposed itself to the 35% to 45% risk of acquirers not realising any gains for two to three years after the acquisition as documented in a research study by Cartwright and Schoenberg.
Equity valuation can be defined as the process of identifying the current market value of the company which is also regarded as the current market capitalization of the company. There are several steps in the equity valuation process and it requires an adequate understanding of financial management techniques and acumen.
What company achieved, what company lost and what company maintained in financial aspects, all are presented under the financial statements of a company. However, the financial statements of a company provide the absolute figures (amounts in currency units). These amounts of financial statements can be used for comparison in respect of the past performance of the company.
The reason why the two companies were chosen for comparison is that they are the market leaders or giants in their respective home regions, whereby they have a diversified range of products, as well as having an intense global expansion. Both companies have substantially expanded beyond their mother countries’ borders are very big brands worldwide (MacLaurin, 2002, p.72).
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This paper represents a study to show how a reputed international firm addresses the importance of strategic implementation regarding acquisition and use of symbolic capital within the discursive environment. A detailed analysis of the strategic activities of UK based oil and gas firm BP has explored through this paper.
During the 20th and 21st centuries, the economic boom was at its peak. Due to this fact, a substantial number of financial institutions and companies were founded and traded. Therefore, investors, government, businessmen and institutions were to decide and select the best possible combination of companies to invest so that they could increase their wealth by investing in an appropriate portfolio.
This paper is reflective writing of what I have experienced through the professional accounting skills in the decision-making module. There has been a lot of development which I have gone through which includes skill development, communication, transactional analysis development, psychological and physiological development, and personality development (Phillips, 2005).
This Modigliani-Miller theorem is also known as the principle of capital structure irrelevance. Dividend policy is the making of a decision to either pay cash dividends at a later period or present. Dividends are also paid in stock dividends because they do not provide liquidity to stockholders or investors but create capital gains.
Direct labor hours are used as a basis for volume-based costing throughout all three ranges of bikes. Overheads are allocated to each product on the basis of direct labor hours such that the overhead rate is computed to be £48 per hour. That rate is then multiplied by the number of hours taken by each product to obtain the total overhead cost pertaining to each product.
After the financial crisis that has been experienced by the traditional banking industry, focus of everyone has been shifted towards Islamic banks (Willison, 2009). With the growing success of Islamic banks, number of Islamic countries have been considering to shift their banking sector to Islamic banking sector and the policies and regulations would be governed by Islamic teachings (Johnes, Izzeldin, and Pappas, 2009).
Analysis of the case study -The Ruritanian Project
Ruritania is a perfect example of a transitional economy. Ruritania is currently an economically developing Eastern European country. The annual growth rate has averaged around 6% per annum over the last five years with annual inflation rate of 5.2% (Case Study).
According to Nice (2002), Capital expenditures imply outlays of cash that are mostly needed to upgrade a business asset. Capital expenditure can sometimes be referred to as capital spending or capital expense.
Theories of regulation pertaining to the explanation of the allocation of resources in a market economy. Managers have a general responsibility of regulation and legitimacy towards financial accounting. Market mechanisms determine the resource disbursements and managers only have to report the statements according to the established accounting standards.
In order to assess the financial impact of the proposed strategy upon FDP’s financial performance and position, financial ratio analysis has been used as a tool for that purpose. On the other hand, non-financial indicators have also been analyzed with the help of Balanced Scorecard technique which is a very effective as well as precise tool to judge the performance of the company.
The study has also been based on two broad objectives namely: to identify the effect of misvaluation on mergers and acquisitions as well as to analyze the role of mergers and acquisitions in the competitive business environment. The literature reviewed showed that mergers and acquisitions do not guarantee the success of a business due to several reasons.
Examples of fiscal policies include reduction of taxes, increasing government spending as well improving infrastructure system. Central banks are responsible for enacting monetary policies in order to trigger economic growth and mitigate inflation.
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Sales growth is very poor, and the products are not sufficiently balanced or diversified. Equity investors cannot be pleased with the company’s performance, which offers very low or negative returns. The company is not profitable, as it has been making heavy losses during most of the period under study.
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Financial Analysis – Nautilus Inc
Executive Summary
The financial analysis of Nautilus Inc. over a period five years from 2007 to 2011 has been conducted under this article by utilizing suitable ratios and computations. If the financial results of the company are analyzed in a summarized way, it can be concluded that the company has not performed in a sustainable and healthy manner.
I would wish to state that the investor has tried to really diversify his assets. His assets, for example, would be invested across many regions for China, Britain, Brazil and the USA all of whom experience different kinds of economic conditions and would fall in as security for each other in case of certain risks maturing.
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Since the time of King William of Orange, central banks around the world have become influential and important for functioning of the economy and countrywide security and welfare. As importance of the government for the welfare of all citizens increased, so did the central bank’s importance (Cechetti & Schoenholtz, 2011, Chapter 15).
As a move to cut transport and logistics costs, I have instructed authorities to set their priorities right. Doing so will help facilitate and ensure that the organization of supplies is adequately done. Under logistics, the schedule of shipping should also be adequate to work with a given timeline.
It is noteworthy that Commonwealth Bank has listed its stock in the Australian Securities Exchange. Presently Commonwealth Bank of Australia is one of the major players in the Australian financial markets owing to its large market coverage and asset base.
The dynamic of international exchanges and complex accounting projects requiring extensive knowledge of evaluation and analysis brought to light the need for a profession and comprehensive and credible information work, which would assure the employees that financial and economic indicators reflect with accuracy patrimonial realities. That's how the audit profession appeared.
It requires finding out the present value of each future cash flow discounted at a specific value, which is the cost of capital of the project given in the form of a percentage. It uses the concept of discounted cash flows. This is a technique used to measure the feasibility of projects in terms of the number of years that it takes to pay back an initial investment.