Suggest a methodology to supplement the traditional methods for evaluating the capital investments of your selected company in the emerging markets to reduce risk. Provide a rationale for your suggested methodology
A recommended methodology to supplement the traditional methods for evaluating the capital investments of General Electric Company in the emerging markets to reduce risk is the discounted payback method. This approach can be very beneficial to the firm, particularly owing to the various business sides. The payback period is one of the simplest methods of evaluating capital investment. In this case, projects or investments with a shorter payback period are more… Continue Reading...
Apple Inc. Investment Analysis and Recommendations
Apple Inc. is an American multinational company specializing in designing and producing mobile telecommunication devices that include iPhone, computer software and hardware, Apple TV, Apple Watch, iPod, and other electronic devices. Apple was incorporated and publicly registered in 1977. Headquartered in California, Apple is one of the most successful American companies in term of revenue with the annual revenue reaching $233.7 billion at the end of 2015 fiscal year. On February 2016, Apple recorded $521.3 billion worth of market capitalization. While Apple designs the bulk of… Continue Reading...
performance (Eccles et al., 2014). Investors aware of the significance of taking nonfinancial data into account in investment decision-making can effectively employ ESG factors for improved risk management and generation of surplus returns.
Traditionally, ESG problems and externalities like air and water pollution, unethical corporate practices, inferior work environments, etc. negatively affected stock prices and business functionality only in extreme scenarios. Consequently, organizations often overlooked them in their normal investment appraisal policies and practices. In the same way, externalities also weakly influenced organizational executives' behavior owing to the lack of a perceptible feedback loop driving organizations to react to their non-financial problems and associated opportunities… Continue Reading...
is political stability. For the most part, economic development in an undeveloped country like South Sudan is dependent on foreign investment. Foreign investment, for its part, is dependent on the ability of foreign corporations or governments to earn a return on their investment. In the normal course of business, earning a return on oil is not difficult. But exploitation of petroleum resources requires long-term investment. For companies that want to make such an investment, it is necessary that there be enough stability that they feel comfortable that they will earn return for taking on the risk of investing in South Sudan. Political stability is one of the key prerequisites for… Continue Reading...
this region, from Afghanistan to Pakistan to Iraq, Egypt and Libya, had used foreign aid and investment to stabilize their governments and build up their economies. In the wake of 9/11 and with the threat of war and revolution, upheavals have occurred, governments have been toppled, and societies have been decimated. As Scott and Carter (2015) point out, “no region in the world has received more US foreign aid than the Middle East” (p. 740). Following 9/11, however, that foreign aid was coupled with invasion and investment became almost impossible. For one country in particular, Iran, which has stood relatively outside the continuing wars (aside from intervening with… Continue Reading...
What sources of information are most useful to an investment decision?
There are various sources of information that are most useful to an investment decision. One of the key sources beneficial to making an investment decision is the firm's financial performance. This encompasses the evaluation and scrutiny of the reported financial statements. Some of the items to be analyzed include the revenue generated, profits attained and the cash flow as well. Financial ratio analysis is also an imperative source of information for investment decision making. For instance, ratios such as return on investment (ROI) and return on investment capital… Continue Reading...
Madoff Securities case occurred because of fraudulent investment schemes due to lack of regulation as well as insufficient oversight of specific financial intermediaries along with dismissal of opportunistic behavior. To understand why such an incident happened in the first place, it is important to identify the kind of scheme led by Madoff. It is called a Ponzi scheme. In a Ponzi scheme, an unsustainably big pool of investors must be maintained to keep it afloat. It begins with a simple promise to a few investors of doubling an amount they decided to invest. Rather than investing that… Continue Reading...
working capital is concerned.
Accounts receivable ($ millions)
Inventory ($ millions)
Cash, cash equivalents, and short-term investments
Total current assets ($ millions)
Accounts payable ($ millions)
Total current liabilities ($ millions)
Working capital (Total current assets -- Total current liabilities) ($ millions)
Working capital ratio (Total current assets / Total current liabilities)
Sources: Costco (2016), Microsoft (2016)
The above table reveals significant differences between the two firms' working capital, though the components are basically the same. First, Costco has a significantly larger component of inventory compared to Microsoft. For Costco,… Continue Reading...
systems is not always without issues and often involves a significant investment of time and money.
First of all, from a staffing point of view, change management is needed to ensure that the transition is effective. One helpful way to view change of any kind within an organization is that of Lewin’s Change Management Model, which suggests that organizations must first have an unfreezing period, where critical actors are convinced of the need for change. Particularly in healthcare, where providers must often balance highly stressful days with learning how to operate a new system, the need for communicating the urgency of… Continue Reading...
most value to the shareholders, not the value with the highest rate of return. A high return on a small investment is worth less in actual wealth terms than a lower return on a higher total investment. This is why NPV is superior to IRR in situations where the firm must choose between two positive but mutually exclusive options.
There are other methods of evaluating capital budgeting projects. Payback period is common. This method does not take into account the discounted value of future cash flows, but rather it assumes that shareholders want to earn a return as quickly as possible, and that managers are highly risk-averse and want the… Continue Reading...
measured by totaling the money spent on 4 categories: Consumption (C), Investment (I), Government (G), and Exports minus Imports (X-M). GDP = C + I + G + (X-M). PCE uses the same data points as GDP but focuses on consumption whereas GDP is said to measure production. If consumption is only moving sideways and production is supposedly going up—what can be determined from this? It is possible that wealth is being distributed among the majority of the populace but rather consolidated, with profits from production rolling into the pockets of the 1%.
Another indicator of the condition of… Continue Reading...
desires to attain prudent financial information about its repercussions. Specifically, she is seeking to identify the return on investment that her decision could potentially generate. This involves both qualitative and quantitative factors, the former of which pertains to personal gain derived from aiding people in a much needed professional setting. The latter relates to the finances she can generate from practicing medicine.
This financial data is stratified into a number of different categories corresponding to the market for doctors in terms of supply and demand, elasticity, production costs, pricing, and normal profit. These factors will help her to decide in which state it is beneficial to practice. The… Continue Reading...
Investible is an angel investment platform mentoring entrepreneurial talent to grow and scale their business by connecting angel investors with high potential early stage founders and a global network of likeminded investors. Investible’s mission is to de-risk angel investment on a global scale. Investible has worked with notable companies such as Canva, Booksy, and Invigo.
Also, they have included a strong mix of entrepreneurs, family offices, and corporate executives to all invest $100,000. With more than 50 members and still growing they have created a platform that connects startups with talent, experience, and money.… Continue Reading...
As a Western manufacturing company of English Language products considering a major investment in one of the BRICS countries—preferably China—it is advisable that the company first possess an assessment of the feasibility of achieving the company’s aims in a country like China, which currently is in a trade war with the U.S. that shows no signs of letting up. Moreover, an examination of the overall context of globalized society in the 21st century will help the company to determine whether this investment would be particularly strategic at this time or not. While the general business environment in China (in the widest sense)… Continue Reading...
Dhabi in its oilfields in 1967 (Mustafa, 2013). Given the burgeoning but still relatively weak nature of Japan’s economy at the time, these investments and effort to develop closer political and economic ties with the UAE were especially significant and clearly point to the goals and intents of the futurist views of the Japanese leadership during the 1960s and 1970s.
For instance, as early as the 1950s, Japan implemented a generous Official Development Assistance program which continued throughout…[…… parts of this paper are missing, click here to view the entire document ]…is also important to note that the UAE and Japan are not global neighbors, but are rather located about 5,000 miles apart,… Continue Reading...
not the least of which is the critical, fundamental difference between investment banking and retail or commercial banking. But the protections that Glass-Steagall put into place guarded against issues that were relevant in the 1930s but never stopped being relevant. The financial crisis of 2007-2009 is strong evidence that the need to protect against commercial banking volatility is more important that the need to allow investment banks to \"innovate\". This paper will illustrate the case that repealing Glass-Steagall was a mistake.
It is important to understand the environment in which Glass-Steagall was passed in order to understand the merits… Continue Reading...
growth (AFdB, 2019).
Poor households are overwhelmingly concentrated in rural areas. Approximately, 78 % of the world 736 million poor people live in rural areas while 63% of the world poor work in the rural agriculture sector characterized with poor public and private in infrastructure investment (World Bank, 2015; FAO, 2018b). The rural population in Africa continues to increase constraining the already severely degraded land resources in the continent (Suttie 2017). The population is geographically concentrated in marginal and disaster-prone rural areas characterized by insufficient basic infrastructures (water, electricity, health education), low densities and limited market access. To revert the increasing poverty levels in Africa, most of the impact will emerge from activities in the rural setting.
ii. Historical Analysis
The pace of poverty and hunger reduction in Sub Sahara Africa picked in the 20th… Continue Reading...
Selecting Stocks for Investment Purposes
The selection of stocks for investment purposes requires conducting analysis in order to determine the most profitable stocks. There are two most common schools of thought that are utilized in conducting analysis for investment purposes are fundamental analysis and technical analysis. While some investors utilize fundamental analysis, others prefer to utilize technical analysis and others conduct both fundamental analysis and technical analysis. For instance, Warren Buffet conducts fundamental analysis whereas George Soros utilizes technical analysis for investment decisions (Chauhan, 2013). Each of these renowned investors are successful in… Continue Reading...
the firm, and therefore the owners (Tarraf, 2012). When investors assess a potential investment they will look at the financial performance of a firm, assessing the past performance, with consideration of the way current and expected strategies will impact on the organizations performance, in the context of the expected macro-environmental conditions (Bodie, Kane, & Marcus, 2014). The investors will assess the share price of the firm, being more likely to make a purchase if they believe the value of the share is likely to increase with a significant amount of the assessment based on assessments of past performance (Hens & Rieger, 2016; Nellis… Continue Reading...
$12.4 billion in 2017 and profits of $455 million. It currently owns $75 billion in assets and is one of the premier insurance and investment companies in the U.S (Fortune, 2018). The goal of Guardian in the near future is to sustain its position and “to endeavor to be valued as an industry leader in client satisfaction, sales growth, product performance, financial strength and profitability” (Guardian Life Insurance, 2018).
This paper provides an overview of Guardian Life Insurance. It examines the products and services that the company offers, the types of investment services and products offered, the practices that drive the company and the manner in which the company motivates employees. By discussing the… Continue Reading...