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On June 25, 2002, one of the largest telecommunications company, WorldCom announced that its revenues in first quarter has been overstated by over $3.8 billion. This announcement came as surprise to the investors in financial markets. The company filed bankruptcy on July 21, 2002. Prior to the announcement, the share price of the company soared as high as $64.50/share in mid-90’s which came down to less than $2/share. Similar to case of Enron, the retirement benefits and savings plan of WorldCom heavily suffered as by end of 2000 the company had 32 percent of $642.3 million of retirement funds in form of stock options.
Immediately after the emergence of the scandals, Bush Administration announced that will disqualify WorldCom form all existing Federal Government contracts. Further, the House Committee on Financial Services along with Senate Committee on Housing, Banking, and Urban Affairs investigated the cases related to recent accounting scandals of WorldCom and Enron. In response to these hearing SOX (Sarbanes-Oxley Act) was enacted on July 30, 2002. The act recommended establishment of Public Company Accounting Oversight Board that develops standard accounting for audit and increases corporate social responsibility.
The mortgage meltdown has been believed to actually begin with burst of US housing bubble in 2001 that sharply increased to maximum in 2005. The “bubble” is an economic condition that occurs in local or global real estate markets where the valuation of house properties reaches unrealistic and unsustainable levels.
The research has found that many economists believed that US housing bubble was mainly caused from historically low interest rates. After the burst of “dot-com” bubble in 2000 and then consequently following recession, FED cut short term interest rates to from 6.5 percent to 1 percent.
The US subprime borrowing
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Often referred to as “tax heavens” they offer little to no government interference in legitimate business and financial activities. In my paper I am going to be mainly focusing on offshore banking and how they impact our society. A number of offshore jurisdictions offered banking licenses to institutions with relatively little scrutiny, however this has changed dramatically as international initiatives have largely stopped this practice, and now very few banks will be issued license.
People require one-on-one information (a costly hard service to provide) in health related issues and corresponding data is huge and technical. In case of healthcare a bad choice costs huge. Where propaganda is comparatively easy to lessen, the civil sector may intervene via control or the trapping of information.
The company also specializes in customizing jewelry design services. Blue Nile is the leader as it dominates the market scheme and operates in Canada, Chinese and 40 other nations. Blue Nile continues to be a market leader and is surprisingly debt-free as it continues to expand its horizons internationally as well as domestically.
The managers of the firm aim at maximisation of the firm value. They work towards achieving an optimal debt-equity ratio that maximises the firm value. The capital structure refers to the structure of long term financing of the firm. The assets financed with the money raised from the debt sources represent the firm’s leverage position.
These principles are observable in any given business situation. The company chosen to demonstrate these principles in action is B.P. BP is a public limited company that provides a variety of energy-related goods and services. As an international leader in oil and gas exploration and provision, BP’s business practices offer great insight into successfully utilizing the principles of finance.
This report has been developed as a financial training tutorial for medium enterprises in the local area. Therefore, main objective of this report is to make the participants clear understand about one of the most important areas business finance i.e. source of finance.
foster the development of capital markets through various economic policies, legislations and by establishing suitable regulatory framework for their growth and development in the interest of various stakeholders. Stock markets reflect health of the financial sector and economy
Sainsburys Plc., 2013). The three business segments are operated through different store formats like supermarket and convenience stores, Sainsbury’s Bank joint ventures and The British Land Company Plc. joint venture and
The Federal government has been asking the business community to adhere and comply with all set rules and regulations in the administration of taxes. Tax Solutions Inc. offers revolutionary and professional
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