Money Essay Examples - Argumentative Topics for Research Papers

The Fundamentals of Working Capital Management

The Fundamentals of Working Capital Management Working Capital refers to the company’s current or short-lived assets. This includes cash, marketable securities, notes receivable, account receivable, inventories and other current assets. Non-current assets are referred to as capital assets. These are long-term assets and are mostly depreciable in nature. In evaluating an investment in capital assets, the future cash flows, the risk of those cash flows as well as the opportunity cost of the funds invested must be taken into consideration. […]

Walt Disney Yen Financing

1. Should Disney hedge its yen royalty cash flow? Why or why not? If so, how much should be hedged and over what time period? Yes, Walt Disney Company should hedge its royalty cash flow to protect against currency fluctuations. The company has revenues in Yen and does not have expenses in Yen. Thus it would be converting the Yen to Dollar and so is exposed to foreign exchange risk. The value of Yen has declined recently and it is […]

Management of Banks and Financial Institutions

Management of Banks and Financial Institutions CIA-2 Asset Liability Management Management of Assets and Liabilities by Banks [pic] Submitted By: Paul George 0921420 Caroline 0921440 Poornima 0921449 Sonal 0921454 Anvin 0921459 Meaning of ALM ALM is an attempt to match Assets and Liabilities, in terms of Maturities and Interest Rate Sensitivities, to minimize Interest Rate Risk and Liquidity Risk. • ALM can be termed as a risk management technique designed to earn an adequate return while maintaining a comfortable surplus […]

How do Multi-national Corporations Raise Funds?

Sources of Finance Multinational corporations have an array of methods they can utilise to raise capital as a means to fund different operational needs. This essay will critically analyse varied sources of finance, looking at their respective advantages and disadvantages. One of the most common methods entails borrowing funds from a bank (Taylor and Thrift, 2012). Whilst this is one source, it consists of three forms, short, medium or long term lending (Gurkaynak et al, 2005). These different forms serve […]

Principals of Corporate Finance – Motorway Access Ltd

Introduction The question of whether or not to proceed with a project requiring significant capital expenditure is one which involves considerations running the gamut of issues facing the firm. Taking a purely financial perspective the firm is required by Fischer’s Separation Theorem to return the maximum amount of wealth to shareholders (Fischer, Reprinted 1977). In the modern firm ownership is separated from control in the form of the capital of the company being held, traditionally at least by shareholders who have […]

To what Extent are the Stock Markets Overvalued?

Introduction Stock markets are considered to be among the most preferred investment platforms by investors, as they generate a high return on investment (Fong, 2014). There are many underlying reasons for this high return, one of which may be the valuation of the financial commodities traded in the stock market (Chang, 2005). Some financial analysts believe that the stock markets are extremely overvalued (Phoenix, 2014), while there are others who consider them as being slightly overvalued (Rosenberg, 2010). Another school […]

Factors Governing Cash Reserves

Each day we are involved in a number of transactions that involve trading, exchanging, buying, selling, receiving and spending, that are centred around money or other forms of currency . Finance is the spine of the present day economy, and the banks act as the branches of the same. The term ‘bank’ finds its roots in Italy and France and has several functions to perform. Apart from the traditional functions of dealing in money by accepting deposits and advancing loans, […]

An Examination of the Laws Guiding Aircraft Financing and Leasing

Chapter 1 Introduction The airline industry became known in the 1920s but its full development started after the Second World War 11. During the 1950s, aircrafts began to be used for leisure trips as well as for business trips. Due to this expansion of global and domestic air transport system, the aviation industry has made the global economics and cultures cross-fertilized and caused markets to proliferate in number and to grow in size and wealth. Recently, the aviation industry is […]

Working Capital, Current Assets, Current Liabilities

Therefore, in an equation form, working capital is: Working capital = current assets – current liabilities The quantity can be positive or negative, depending on the amount of debt the company is carrying. If a company has a lot of working capital, it will be more successful. Companies with negative working capital may be short of the funds necessary for growth. (C) Working capital is important to a business. It can maximize growth, can help minimize future financial shortcomings, and […]

Valuation of GlaxoSmithKline Plc

As of our monthly review, we enclosed in our report based on our analysis of last report of 2009 with more details about our last valuation of our company GSK for making decision for investor purposes. In order to make a clear decision about what stocks to buy or to sell, investors need to know the value of those shares to make sure of the real value of it. In fact, there are many methods which we can use to […]

The World Financial Industry

1.0 Introduction The number of bank mergers in 1990s has increased 215%. (Becher, D.A., 1999) From 1987 to 1997, the value of mergers and acquisitions in the world financial industry has reached nearly 1.4 trillions of US dollars. (Cybo-Ottone, MurgiaSince, 2000) Since bank mergers become popular, there has a controversy about whether bank acquisitions create value for target and bidder shareholders. This paper gives a literature review about this paradox and it is divided by four parts. First part is […]

Today’s Financial Environment

INTRODUCTION Today’s financial environment is highly risk prone. The volatility of economic variables such as interest rates, exchange rates, commodity prices etc has increased because of the increased internationalization of businesses. In order to have a stable business a firm must identify and manage its risk carefully. Risk is defined as the doubtfulness of returns. Any firm faces two types of risks. Business risk Financial risk A business risk includes the risk of competition, risk of a new technology hampering […]

To what Extent does Financial Engineering have an Important Role

As we are in modern world today, everything around us has been changing continuously. The world that we see today is different from the world in 40 years ago. Technologies are one example, which has been improving dramatically. Letter had been a popular way to communicate and then land line telephone came to help communication more easily and the following is mobile phones, which have more and more convenient until today. The most important technologies are computer and internet. These […]

Understand the Impact of Macroeconomic Factor

The impact of globalization has caused the transfers of funds and investment activities to be no longer limited in one country only. Those activities are now expanded to all over the world. Based on the stock valuation model, macroeconomic forces may have systematic influences on stock prices via their influences on expected discounted future cash flows. Study by Nil Gunsel and Sadik Cukur et al, (2007) the relations between them may be motivated using the arbitrage pricing theory (APT) model […]

Use of Basel III in Banking Laws and Regulations

Basel Accords which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision consists of Basel I, Basel II and Basel III. Basel I was adopted in 1988 and was enforced internationally in 1992. While Basel I is now outdated, Basel II was formed and implemented by a lot of countries. Soon after that Basel III came into place when the world was faced with Global Financial Crisis. Basel I primarily focused on credit risk. […]

The too Big to Fail Problem

“Too big to fail” was a very regular term we all heard during the Great Recession of 2008, but did we truly understand the term? To understand this overused term, we must first define what it means to be a firm that is “Too Big to Fail”. According to Stern and Fieldman, ” ‘too big to fail'(TBTF), a term describes the receipt of discretionary government support by a bank’s uninsured creditors who are not automatically entitled to government support.” (8). […]

The Vast Branch of Corporate Finance Available to a Business

Corporate Finance is a vast branch business management, which deals with the management of funds and capital arrangement. Corporative Finance as an immensely lucrative aspect that deals with helping business organizations manage money for various ventures, managing their assets, acquire other firms and make a robust financial planning for the future (Beaney, S., 2005.). It may have varied aspects though in course of business, depending upon place to place as per the finance faculty of the economy. For instance, Shaun […]

The Results of Factoring in Finance Management

This involves the sale at a discount of accounts receivable or other debt assets on a daily, weekly or monthly basis in exchange for immediate cash. The debt assets are sold by the exporter at a discount to a factoring house, which will assume all commercial and political risks of the account receivable. In the absence of private sector players, governments can facilitate the establishment of a state-owned factor; or a joint venture set-up with several banks and trading enterprises. […]

The Risk of Hedging in the Banking World

Hedging is a risk management tool to offsetting the risk inherent of price in any cash market position by taking an equal but opposite position in the futures market. Hedging activities protect futures contract holder from fluctuations in the underlying asset’s price. Investors are benefit if the price of underlying asset moves in the same direction as what investors’ expected (“Hedge Fund”, 2009). Short hedge is a short selling by borrowing underlying asset such as commodity, security or financial instruments […]

The Sampling and Data Collection Procedures Used in Market Research

This study is based on 60 monthly observations from April 2005 to March 2010 inclusive. The period was chosen to provide enough observations to obtain reliable parameter estimates. The totality of the data was obtained from Yahoo Finance, Bank of England, and Office for National Statistics. Despite that historical Stock data is available on daily, weekly and monthly basis; monthly data was obtained because historical data for some other independent variables like inflation and money supply were only available monthly. […]

The Role that Company Regulators Play

Since the 2008 global financial crisis, there is a great impact and effects on both developed and developing countries by the financial crisis. Australia Governments have taken active measures to tackle the financial crisis. In developed countries, Australia was the first to recover in short time from the global economic recession. In 2009, the economy in Australian would rebound quickly, as the world’s fastest growing economies in the developed countries. First, the Australia government take timely, accurate and effective measures […]

The Pros and Cons of Hedging in Finance

This paper compares a number of strategies for managing foreign exchange exposures. Never hedging, hedging every exposure in our strategies is using a forward exchange contract and hedging on alternative occasions using a forward exchange contract. According to the selective hedging, whether to hedge or not is a very important decision which depends on the future spot exchange rate, which is determined by a number of forecasting techniques. The techniques include the random walk, the large premia model and a […]

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 Quality of Financial Statement

1. Introduction: The purpose of this assignment is investigation how credit crunch issues is widespread in the world and what is the quality of financial statement. This will be shown by analyzing the fraud in financial statement of Enron and WorldCom. 2. Methodology Analysis based on a review of the academic auditing literature, audit reports, together with articles from financial journal. 3. Background: 3.1. The collapse of Enron and WorldCom 3.2. The financial statement Enron Corporate and The methods of […]

The Monetary Policy

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 of monetary policy in US, we must have a very good idea regarding the imposition of such policy. Obviously the current financial constrain is the […]

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 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 Large Movements of Volatility Spreading by the European Monetary Union

Over the last months, European Monetary Union (EMU) countries have experienced large movements in their spreads with an unrecorded degree of volatility. Academic research consensuses agree these movements haven’t been the result of the same causes over time; for instance, at the beginning of the crisis investors required higher premiums, making the market price of risk increase. There were a preference for few riskier assets, making sovereign securities the favorites at the expense of corporate bonds and other riskier assets; […]

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 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 […]

Essays on Money