Abstract This project examined the optimal allocation of stocks based on the Markowitz Mean Variance Optimization Model. It is mainly based on the comparison between two samples of stock returns. The first sample is referred to as the full data set, and contains the returns of the stocks GE, Baxter, Dow, Caterpillar, Apple, and Procter […]
According to Mun(2006), Real Options(RO) is a ” systematic and comprehensive method” used to value real tangible assets. The term “Real Options,” first used by Myers(1977), refers to the application of financial options theory to investment decisions made by firms (Krychowski and QueA´lin, 2010). RO has been of growing interest to the academic community as […]
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Get help with your assignmentAgricultural income is exempt under the Income Tax Act, which means that income earned from agricultural operations is not taxed. Agricultural income has been defined under section 2 clause 1A of the Income Tax Act. As per Section 2 (1A), ‘Agricultural Income’ means [1] : Any rent or revenue derived from land which is situated in […]
The key purpose of bringing specific change in monetary policy is maintaining the Gross domestic product (GDP) strong by maintaining the inflation low and controlling the interest rate alterations. It is known that the interest rates and quantities of money can be affected by the tools available to central banks, that has direct effects on […]
A value is a belief, a mission, or a philosophy that is really meaningful to the company. Every company has one or more values, whether they are consciously aware of it or not. Another way of saying it is that a value is a statement of the company’s intention and commitment to achieve a high […]
In this project I try find out the object of UAE stock market and how they react to various economical situation. Economical activity in UAE is very diverse most of the thing round around the stock market of UAE, so I will study deeply into stock market to give out my suggestion and recommendation by […]
On July 17, 1997, Chrysler CEO Bob Eaton walked into the auditorium at company headquarters in Auburn Hills, Michigan, and gave the speech of his life. Instead of reveling in four years of rapid growth, he warned of trouble brewing on the horizon. His urgent oratory, adapted from the nonfiction bestseller The Perfect Storm, a […]
Introduction Background of study 1.1.1 Online banking payment : definition Most of the people are so busy in their daily time. People who already married are busying sending their children go to school or try to earn a lot of caution money for future when need to use them urgently. Pinch pennies are so common […]
1 INTRODUCTION Both mergers and acquisitions are attempts from companies just in order to combine their strengths so to achieve synergistic benefits. Two companies combine to form a new company in a merger. In an acquisition, one company takes over the other in terms of ownership or management. Mergers and acquisitions can create economies of […]
Sapir 2008 analysed that there were a combination of three things that were related to the financial crisis; a crisis of capitalism, a financial crisis and a liquidity crisis. This unusual combination explains how serious the impacts of the crisis were. Each element had different repercussions and at the same time was tightly linked. Allais […]
Over the recent past, the motor industry has faced a lot of mergers between companies in the bid to get more clients and internationalize their horizons. The well planned mergers have arguably led to relative success while those that might have omitted some vital factor have had to contend with the pain of getting into […]
Research Methodology A formal and well-defined research methodology is very much crucial to the success of a research study. Most researchers understand that the quality of sampling and subsequent responses plays an integral role in determining the accuracy of the conclusions formed. The study undertaken will require a great deal of information to be extracted […]
Contrary to Modigliani and Miller (1958, MM hereafter), Capital Structure is not irrelevant when we consider a firm with a dividend payout policy. This article extends the MM capital structure theorem by relaxing the full payout assumption and introducing retention policy. The theoretical contribution shows that it is possible to verify the theorem when we […]
The purpose of this chapter is to give an introduction to this study and an explanation why the research was being done. First it reviews literature on Small and Medium Sized Enterprises. Thereafter, it also discusses the nature and importance of working capital as well as strategies used in management of working capital. Finally, it […]
The Modigliani Miller Theorem is a linchpin of modern corporate finance. At its core, the theorem is an irrelevance proposition: The Modigliani Miller Theorem provides circumstances under which an enterprise’s financial decisions are independent on its value. Modigliani (1980, pxiii) explains the Theorem as follows: with well-functioning markets (and neutral taxes) and rational investors, who […]
This chapter reviews the theoretical and empirical studies, regarding the sensitivity of stock returns of banks to interest rates and foreign exchange rates. In the course of review, the studies focussing on the interest rate are evaluated first, followed by an exploration of the studies focusing on foreign exchange rates. Finally, the empirical research that […]
Monetary Policy is the best available tool for the countries to averse the effect of any thing worse happen like financial crisis. Mr. Ben Bernanke, who is the President of the United States Federal Reserves, also announced a monetary policy to stabilize the biggest economy of the world. In order to write about the applicability […]
The financial market is a system that allows investors to buy and sell financial securities such as bonds, stocks, currencies, and different forms of derivatives. Also traded in this market are commodities such as diamonds, precious metals and agricultural products. Due to the rapid growth in cross border trade, capital flows and technological advancements over […]
Monsoon season has a direct impact on agricultural sector, which has an impact on industrial sector as well, particularly for FMCG companies which depends on agricultural and rural market. It also causes shortage of water supply for production of power and electricity. Electricity shortage has a strong effect on almost all sectors, which also causes […]
When a man assumes the responsibility of running a business, he automatically takes the responsibility for attempting to forecast the future and to a very large extent his success or failure would depend upon the ability to forecast successfully the future course of events. Forecasting aims at reducing the areas of uncertainty that surround management […]
It is often argued that the main benefit of international diversification is the reduction in portfolio risk rather than the increase in returns. The idea behind this concept lies in the fact that if investors randomly select stocks from a large market such as the NYSE the risk, measured by the standard deviation of portfolio […]
To start with , bank can be defined as an establishment authorized by the government for the safekeeping of money. In other words, it is an institution to receive deposits, make loans, act as an intermediary in financial transactions and provide other services to its customer. The bank have the duty of controlling liquidity , […]
Financial system is a mechanism where economic exchange activities can be done. The economic activities can be done through the interaction between financial institutions and the financial market. The purposes of this interaction are to mobilize fund and providing payment facilities for the financing of commercial activities. With the emergence of Islamic finance, the dual […]
The word bank is derived from an Italian word ‘Banque’ which means beanch. The view has the basis that early bankers conduct their business while sitting on benches in Italy. Bank is a financial institution which accepts deposits of money from the public for the purpose of lending or investing and these deposits are repayable […]
There was a time when money did not exist. Long ago, people at a stage called “subsistence economy” produced only what they needed. Their needs were few but their methods of production were such that they spent most of their living hours in an unceasing battle for personal survival. They had no need for money. […]
Management may be defined as ‘the act of managing something; “he was given overall management of the program”; “is the direction of the economy a function of government?” those in charge of running a business (wordnetweb.princeton.edu/perl/webwn) In the nineteenth century, Robert Owen and Charles Babbage seriously took a decision to deal with the search for […]
Sources of Finance Js and Co. must be very aware of the importance to use the appropriate sources of financing meeting the needs of your company. Sources of finance to business There are different sources of finance,namely : Short term finance- Trade credit Commercial banks -overdraft Fixed deposits for a period of 1 year or […]
ICICI (The Industrial Credit And Investment Corporation in India) bank is the 4th largest bank in India incorporated in 1994 which went public in 1997. Earlier in 1955,ICICI came in existence due to World Bank initiative and the government.After that,ICICI announced their Banking subsidiary ICICI bank to overcome their banking operations like deposits,car loans,credit cards.Today […]
The choice of stocks to invest in during a period of recession has gained importance once again since the global meltdown in 2008. Ideally individuals and fund managers should be able to predict a forthcoming recession and there should be some method of identifying stocks that do better in such periods. In USA, inverted yield […]
INTRODUCTION: The given case deals with the Britannia Company; the report is divided into four parts, the first part deals with the investment decisions of the company, which I should take by calculating the Net Present Value (NPV). The next part of the report deals with the calculation of the future cash flows of the […]
