Investment Essay Examples - Free Research Paper Topics on StudyDriver.com

The Relationship between Cash Flow and Capital Budgeting

Capital budgeting is an important area in corporate finance. Since long term projects or investments require massive initial outflows, a firm has to determine whether they are worthwhile and not drain the firm’s resources. This is because it is often difficult to reverse a capital investment once it is in progress. There are many investment appraisal techniques that are commonly used by a company, each having its own strengths and weaknesses. The report discusses the capital budgeting decision made my […]

The Motivation Behind International Diversification for Portfolio Risk Reduction

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 returns, can substantially decrease as investors add foreign assets to their domestic portfolio. After a strong period of stock market gains last year, global equity […]

The Inverted Yield Curve and Stock Performance

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 curves have been used to predict downturns and some studies have shown that returns from large capitalization stocks are significantly higher than small stocks, during […]

The Issues of Managing Financial Resources and Decisions

Before studding and researching any business organisation or company first we have to know nature, purpose and role of accounting of the business. We know, there are various types of business in the word such as Sole trader, Partnership, Private limited company and so on. The Trevor Plc. is well known famous wholesale distributors and Private Limited Company. Although it is not too large organisation but now it recently gains rapid economics prospect due to its successful management process and […]

The Keppel Corporation

1. Introduction 1.1 Objective of the assignment 1.2 Structure of assignment 2. Background of the assignment The assignment is based on the research of Keppel Corporation. Keppel Corporation is one of the largest conglomerates in Singapore and one of the world’s largest builders of offshore oilrigs. The Keppel Group of Companies includes Keppel Offshore & Marine, Keppel Infrastructure, Keppel Telecommunications & Transportation (Keppel T&T) and Keppel Land, among others. 3. Concept of Shareholder Value Maximisation 3.1 Concepts: In recent years, […]

THE LEGAL ELEMENTS of FINANCING in BUSINESS

Balance sheet: This financial information sheet is very important as it illustrates the company’s financial status and stability, as it summarises how the company is being operated, as well as listing its liabilities and assets (Alexander and Britton, 2004). The term balance sheet explains its intention of presenting financial data as its two parts are intended to balance and show equality, and would normally include the following information: (International Labour Office, 1991) Current assets Fixed assets Current liabilities Long-term liabilities […]

The Management of Fianancial Resources and Decisions

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 less Advances received from customers Various short-term provisions Operating lease. Medium term finance- Debentures/bonds Public deposits/fixed deposits for duration of three years Commercial banks – […]

The Impact of Inflation on Share Prices of Tobacco Industry

Overview The economies of the world highly depend on the environment and surrounding. These include various economic and social factors as well, which affect the businesses. The share price of any firm is also dependent on such variables beside a company’s own profitability and performances. In past researches, it has been observed that the rate of inflation is inversely proportional to the share prices in developing countries, while this relationship is somewhat neutral in developed countries such as USA and […]

The Importance of Financial Management to an Organisation

“Credit control is the process of control over payments coming into and going out of the firm. It is mainly concerned with the firm’s and the firm’s debtors. Tight credit control is important if a firm wants to avoid cash flow problems” (Garrison, Ray. H., et al : 2009). According to(Kaplan, Robert. S., Bruns. W, 1987) Cash or finance is considered the life blood for any business. In the current competitive era Granting credit in order to win sales is […]

Why Shareholder Wealth Maximization is Important

My opinion is that the shareholder wealth maximization should be a superior objective over stakeholder interest because that is a common trend of firm’s development in a comparative market. However, in the reality companies do not just focus on the shareholders. To understand and make it clearer, we should pay attention to several definitions of shareholder, stakeholder and theories of shareholder and stakeholder and what the differences between them are, and what debates between them? First, what is a shareholder? […]

The Guidelines and Regulations of Dividend Policies

Dividend policies are the guidelines and regulations that companies develop and implement as the means of arranging to make dividend payments to shareholders. Establishing a specific dividend policy is to the advantage of both the company and the shareholder. In order to make sure the policy is workable, a company should develop a viable policy and then run this policy through a number of test scenarios in order to determine what impact the dividend policy would have on the operation […]

The Impact of Financial Crisis on Certificate of Deposit

A certificate of Deposit or CD is a time deposit, a financial product equally offered to consumers by banks, thrift institutions, and credit unions. CDs are similar to savings accounts in that they are insured and thus virtually risk-free; they are money in the bank. They are different from savings accounts in that the CD has a specific, fixed term and, usually, a fixed interest rate. It is intended that the CD be held until maturity, at which time the […]

The Capital-budgeting Decisions

1) Should Reinaldo focus on cash flows or accounting profits in making the Capital-budgeting decisions? Should we be interested in incremental cash flows, incremental profits, total free cash flows, or total profits? Capital budgeting is the process by which the financial manager decides whether to invest in any asset or specific capital projects.It is the planning process used to determine whether a firm’s long terminvestmentssuch as new machinery, replacement machinery, new plants or products, and research development projects are worth […]

The Connection between Macroeconomic Variables and Stock Price

Over the past few decades, the connection between macroeconomic variables and the movement of stock prices has been a subject of interest among academics and researchers. It is often argued that stock prices are determined by some fundamental macroeconomic variables such as interest rate (Base Lending Rate, BRL), exchange rate, inflation (Consumer Price Index, CPI), industrial production index and money supply (M2). In fact, investors generally believe that macroeconomic events have a large influence on the volatility of the stock […]

Assessing the Current State of the Worlds Financial System

The world financial system, has suffered a severe and virtually unprecedented blow leading to the failure of a number of major institutions and forcing government intervention on a massive scale in a number of countries. Adrian Turner, chairman of the FSA in the UK attributes the current financial crisis to: ..an interplay between macroeconomic imbalances which have become particularly prevalent over the last 10-15 years, and financial market developments which have been going on for 30 years but which accelerated […]

The Definitions of Financial Intermediaries in the Economy

Definitions of financial intermediary is financial institutions accept money from the depositor or investor funds and borrowers, and the relationship between the income for those seeking in their capital and those seeking credit. Financial intermediaries including savings and credit unions, architecture and loan association, savings Banks, commercial Banks, life insurance company’s credit departments and investment companies. Besides that financial intermediaries are the institutions which are intermediaries between savers and investors, moving funds between the two. Examples include banks, insurance companies, […]

The Benefits of Profitability Index

The problems most managers face during investment decisions on multiple investment possibilities, is their ability to make the best and profitability choice under capital constraints. However, when resources are limited, directors can employ profitability index (PI) as a tool for selecting among various project combinations and alternatives. Profitability index enable Directors to identify the relationship between the cost and benefits of a project. A good indicator is a profitability index that is greater than one. Proposals should therefore be ranked […]

The Capital and Money Markets in the Economy

There were two group of markets can be found in financial market. They were the capital market and the money market. Although they both come from financial market but they consist of differences. In capital market, we will found the stocks and bond market but in general it is the market for securities where long term funds can be raised by companies or government. To raise the funds, a person needs to purchase a price-set bond in order to borrow […]

The Capital Asset Pricing Model

Introduction The Capital Asset Pricing Model (CAPM) is being used since the 1960s to measure portfolio performance and to calculate the cost of capital. In the 1990s Eugene Fama and Kenneth French tried to improve the performance of the CAPM by adding two factors to the model. The first factor is the book-to-market ratio of stocks in the portfolio and the second factor is the stock’s underlying company size. This model was to be superior to the CAPM. However, Graham […]

Sovereign Wealth Funds

Introduction The surfacing of sovereign wealth funds (SWFs) (since 1953) has affected the financial markets and has also reshaped the world’s major economies. SWFs are working since 1953 when first Kuwait Investment Authority was established. Most of the SWFs are created by oil exporting economies like Qatar, United Arab Emirates and Saudi Arabia. These funds are established for the investment out of budget surplus funds. SWFs have surfaced as a great investor. SWFs are important investors for not only capital […]

Spry Plc

1.0 Introduction Spry Plc. as a large listed company, the directors identify that there are some large projects which have great chances for success if the company has enough of funds to take over it. The estimated finance needed for the projects is approximately £200 millions; the company has to search for outside sources in order to reinvested profits in existing undertaking. There are some subjects to be reported on this piece of work is either debt or equity to […]

Stock Exchange

INTRODUCTION: The stock exchange is a kind of capital market which helps to companies to raise funds not to make profit from it. Stock exchange is having its own identity worldwide. It gives a platform for giant companies as well as small enterprises to extend their power in the international market. The exchange also provides a highly active and efficient market for dealing in wide range of securities for e.g. debts, equities, exchange traded funds, contracts for differences, depository receipts. […]

Strategic Analysis and Valuation of De La Rue

DeA LaA Rue Plc dates its origination way back to 1821 when its founder Thomas de la Rue started it as a stationer and printer on a small scale in the UK. Since then the company has diversified geographically and has spread its footprints across 24 countries today employing approximately 4000 people all over the world. De La Rue is rated as the world’s largest commercial security printer and papermaker, which is involved in producing over one hundred and fifty national currencies […]

Strategic Analysis of Financial Statements a Case Study

In current society, fundamental and technical analysis is used in company to analyze financial statements. But there is no identical that which approach is more profitable. In this essay, the comprehension and comparison can be researched in order to identify the advantages and disadvantages of the two approaches and propose suggestions to the company. Introduction Fundamental analysis and technical analysis are two kinds of approaches to analyze company financial statements. Some traders use them alone and some others associate them […]

Security Valuation of APN News and Media Ltd

This report discusses the security valuation of a media and publishing company called APN News and Media ltd. The research follows the three step valuation process and top down approach which starts by analysis of the economy and moves further for analyzing the industry and filters down to the company analysis and valuation of the stock. The First part of the report presents an in depth analysis of financial ratios for APN News and Media ltd and its two competitors […]

Shareholder Value Analysis of Carphone Warehouse

The chosen company for our shareholder value analysis is Carphone Warehouse Group Plc. The company has outstanding growth and has a dominant market position. It is the largest independent mobile retailer in Europe. After reviewing the latest Annual reports between 2000 – 2009, the model is used to calculate the shareholder value minus the estimate of total corporation value. Here are the 10 steps used to calculate the Shareholder value analysis for Carphone Warehouse Group Plc. Weighted Average cost of […]

Risk Management for State Street Financial Centers Services

In today’s global environment, it is necessary for every organization to manage risk in an effective manner. Effective risk management provides various benefits to an organization such as increase in firm’s value, increase in profitability etc. Risk can be defined as uncertainty and result of uncertainty. It can be classified into systematic and unsystematic risk. Systematic risk is associated with risk of market or overall economy, while unsystematic risk is related with the specific assets and firm (Al-Tamimi & Al-Mazrooei […]

Risk Premiums and Efficient Market Hypothesis

1. Introduction An attempt to elaborate the relationship between the bad model problem and the Efficient Market Hypothesis or the Equity Risk Premium needs to necessarily commence with a short overview of the hypothesis. The Efficient Market Hypothesis, (EMH) was first developed by Eugene Fama of the University of Chicago, in the 1960s, to explain the behaviour of prices in equity markets. It has now been generalised to determine price behaviour patterns in other asset markets and has become one […]

Financial Institutions in India

Financial sector plays an indispensable role in the overall development of a country. The most important constituent of this sector is the financial institutions, which act as a conduit for the transfer of resources from net savers to net borrowers, that is, from those who spend less than their earnings to those who spend more than their earnings. Ok, now before continuing to explain the role of financial institutions in the development of industries, let’s take a little bit brief […]

Introduction to Underwriting

INTRODUCTION TO UNDERWRITING Underwriting is an agreement, entered into by a company with a financial agency, in order to ensure that the public will subscribe for the entire issue of shares or debentures made by the company. The financial agency is known as the underwriter and it agrees to buy that part of the company issues which are not subscribed to by the public in consideration of a specified underwriting commission. The underwriting agreement, among others, must provide for the […]

Investment Essays