...Here are the checks you run before you put your money into a cash-rich company The balance held by a company in its bank account can give the impression of a sound edifice but it could turn out to be a pile of rubble if you take a closer look. Here are a few parameters you can run through before buying that cash-rich company’s shares you have been yearning for. Operating cash flows The companies that have large cash surpluses are mainly those that have been generating cash from operations consistently over the years. But there are some that do not conform to this trend and are best avoided. For instance, Indian Oil Corp, despite generating the second highest cash flow from operations in FY2014, IOC generated negative cash flow in many years over the past decade. Similarly, companies such as Gammon India and DLF display the propensity to declare negative cash flows. This shows that even if these companies have large cash balances towards the end of some years, their operations are not profitable enough to enable them to accumulate large cash reserves over the long term. Looking at the proportion of revenue that is held back by the company after accounting for operational expenses (operating cash flow/revenue) is another measure that can help us gauge the extent of profitability of the company. Companies such as Bharti Airtel, NTPC, Infosys, Coal India, ITC and Idea Cellular are more profitable on this parameter with cash generated from operations of around 20 per cent of...
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...Finance 560 Securities Analysis Course Project: Stock Analysis – Cisco Systems, Inc. (CSCO) Company’s Summary Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. It offers routers that interconnects public and private IP networks for mobile, data, voice, and video applications; switching products, which provide connectivity to end users, workstations, IP phones, access points, and servers; application networking services; and home networking products, such as adapters, gateways, modems, and home network management software. The company also offers security products comprising span firewall, intrusion prevention, remote access, virtual private network, unified client, Web, and email security and network security products; storage area networking products for data center environments that deliver connectivity between servers and storage systems; collaboration products to integrate voice, video, data, and mobile applications on fixed and mobile networks; video connected home products, including digital video distribution systems and digital interactive set-top boxes; and wireless systems. In addition, it provides optical networking products, Cisco TelePresence systems, Cisco Unified Computing Systems, physical security and video surveillances, and digital media systems. Further, the company offers technical support services; and responsive...
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...AND ESTIMATION OF THE FUTURE VALUE OF THE INVESTMENT” Abstract In this paper the Monte Carlo simulation has been used to assess probable future value of an investment in equity portfolios. Three different equity portfolios have been considered in this paper, portfolio from IT industry consisting of equity from Infosys Ltd, Wipro Ltd, MphasiS Ltd, HCL Technologies Ltd and Cyient Ltd; portfolio from FMCG industry consisting of equity from Hindustan Unilever Ltd, Procter and Gamble Ltd, Marico Ltd, Nestle India Ltd and ITC and the Last portfolio from automobile sector consisting of equity from Maruti Suzuki India Ltd, Hero MotoCorp Ltd, Bajaj Auto India Ltd, Mahindra and Mahindra Ltd and Tata Motors Ltd. Keywords: Monte Carlo Simulation, Future Value, Portfolio I. Introduction Return on an investment is a possibility and not a certainty, the first criteria...
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...SCHOOL OF MANAGEMENT MASTER IN BUSINESS ADMINISTRATION (MBA) SUBMITTED BY; ROHAN DEEPAK NIKAM ROLL NO. 013096 MBA FINANCE 2 2013-2015 SUBJECT: CORPORATE FINANCE AVAILABILITY OF DIVIDEND POLICY IN CORPORATE SUBMITTED TO: PROF. NEETU SHARMA MBA FINANCE-II MEANING OF DIVIDEND POLICY A dividend refers to that portion of a firm's net earnings which are paid to shareholders. Dividends are paid either in cash or stock. Since dividends are distributed out of the profits, the alternative to the payment of dividends is the retention of earnings. The retained earnings constitute an important source of financing the investment requirements of the firm. There is inverse relationship between retained earnings and cash dividends. More dividends result in smaller retentions where as lesser dividend results in larger retentions. Thus, dividends and retained earnings are competitive and conflicting. Dividend decisions refer to the decisions regarding the division of net earnings to the dividend and retained earnings. A firm can distribute all of its earnings to the shareholders as dividends or can retain all of its earnings for reinvestment as retained earnings or can distribute a part of earnings as dividend and retain the balance for re-investment purpose. Dividend decision is a major financial decision in the sense that a firm has to choose between distributing profits to the shareholders and ploughing back them into the business. The selection would be influenced by the effect...
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...services. Its first off-shore client came in 1974 from Burroughs, one of the first business computer manufacturers. In the early 1990s, the Indian IT outsourcing industry grew tremendously due to the Y2K bug and the launch of a unified European currency, Euro. TCS pioneered the factory model for Y2K conversion and developed software tools which automated the conversion process and enabled third-party developers and clients to make use of it. In 1999, TCS saw outsourcing opportunity in E-Commerce and related solutions and set up its E-Business division with ten people. By 2004, E-Business was contributing half a billion dollars (USD) to TCS. On 9 August 2004, TCS became a publicly listed company. The company is listed on National Stock Exchange and Bombay Stock Exchange. During 2005, TCS ventured into a new area for an Indian IT services company...
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...variety of services, including software development, system maintenance, packaged software integration, and engineering design services. Whereas, BPO segment provides services related to Human resource, finance and accounting, and transaction processing. Lastly, Software Products segment provides involves product development, and creation of software. http://www.mahindrasatyam.com/about-mahindra-satyam/ICT-company.asp Mahindra Satyam has four subsidiaries that operate in India. One of those, Satyam Infoways, operates in E-commerce, and EDI, Electronic Data Interchange. Satyam Infoways is second largest Internet service provider in India, and the fourth largest outsourcing firm in India after Infosys, Tata Consulting Services (TATA), and Wipro. ( The Economic Times,...
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...Analysis of Selected Stocks with reference to Kotak Securities” Ltd, Mysore. By, SHARATH KUMAR M 4GW13MBA45 Submitted to VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under the Guidance of INTERNAL GUIDE EXTERNAL GUIDE Ms. USHA B Assistant Professor GSSS Centre for PG Studies & Research Mysore Mr. Anil Kumar Branch manager Kotak Securites ltd, Mysore GSSS CENTRE FOR PG STUDIES & RESEARCH Department of Management KRS ROAD, MYSORE - 570016 2013-2015 ACKNOWLEDGEMENTS A Project study of this nature calls for professional help and guidance from all quarters....
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...INDUSTRY PROFILE Journey of Indian stock market Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60.In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is...
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...AMITY INTERNATIONAL BUSINESS SCHOOL ANALYSIS AND VALUATION OF EQUITY SECURITIES OF TATA CONSULTANCY SERVICES , INFOSYS AND WIPRO LTD. SUBMITTED TO: SUBMITTED BY : Ms.Vibha Singh Atreya Vyas A1802011445 Section C MBA IB TABLE OF CONTENTS S.No | Topic | Page Number | 1 | Introduction | 3 | 2 | Research Methodolgy | 4 | 2.1 | Research Objectives | 5 | 2.2 | Proposed Literature Review and Tentative Hypothesis | 5 | 3 | Data Collection | 7 | 4 | About Companies and Research | 8 | 5 | Limitation of Study | 11 | 6 | References | 12 | 1) INTRODUCTION In today’s era every company needs cash or cash equivalents to run its day to day activities smoothly. The major sources through which companies can borrow money are: * Bank Loans * Debenture * Preference Share * Equity Share. Bank Loan is the amount which companies receive after fulfilling all the required information which is mandate according to the rules of banks. Companies need to mortgage its assets as guarantee for the future repayment of its loan amt. on the loan bank charge interest which company has to pay irrespective of the fact that company is in profit or loss. Debentures are the instruments which are used to acknowledge the receipt of the debt form the debenture holders. Debenture Holders are sought lenders for the company. They...
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...Define the issues Infosys is facing. 1. Productivity Infosys’ productivity seems to be competitive compared to U.S. companies on a productivity measurement based on operating profit. Nevertheless, the company performs far behind when looking at revenue per employee. This phenomenon occurs to the whole country, causing the wage differential between India and the United States to be quite significant. [pic] [pic] The solution for Infosys’ performance improvement is to move up the “value chain” of software development in order to remain competitive on a global basis. Refer to Exhibit 6, the company plans to move up from software development to project management with higher margin. To implement this strategy successfully, Infosys had to accomplish the following objectives. a) Increase customer penetration b) Increase brand equity c) Increase the amount of fixed price contracts 2. Globalization As a result of different productivity from Indian and American employees, growth of Infosys is not as favorable as of U.S. companies. Infosys is one of those aiming to be more global and is facing constraint causing by productivity of its employees. 3. Hiring and retaining employees Infosys is planning to grow in rapid pace which demands more responsibility from existing employees. The company is facing a challenge to maintain the spirit of its employees while being able to offer and implant the same spirit...
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...direct investm ent and t hrough foreign institutional investors. Consequently, the international capital inflows have been increased tremendously during last two decades. The capital is being invested by f oreign investor through mutual funs, investment trusts, banks, port folio mangers, charitable t rusts etc. and it has been boosting the growth of Indian economy since then. Moreover, t he growth rates in GDP i.e. around 7 to 8 percent per year as compared to 2 to 4 percent in most of the developed economies and higher interest rate attracted the foreign capital the most. This paper is an attempt to analyze t he relationship of FII investment with economic growth of India, in addition to comparative analysis of preferred investment stock of FII. * Assistant professor, Department of Commerce, D.A.V. College, Sadhoura , YNR, Haryana. **Assistant professor, Department of Management, Haryana Engineering College, Jagadhri, Haryana. International Journal of Research in F inance & Marketing http://www.mairec.org 611 IJRFM Volume 2, Issue 2 (February 2012) ISSN: 2231 -5985 FII is defined as an institution organized outside India for the purpose of making inve stments into the Indian securities market under the regulations prescribed by SEBI. The term „FII‟ may be defined as overseas pension funds, mutual funds, investment trust, asset management company, nominee company, bank, institutional portfolio manager, u niversity funds, endowments, foundations,...
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...history of the capital market in India dates back to the eighteenth century, one of the oldest in Asia; When East India Company securities were traded in the country. Until the end of the nineteenth century securities trading was unorganized and the main trading centres were Mumbai and Calcutta. Of the two, Bombay was the chief trading centre wherein bank shares were the major trading stock During the American Civil War (1860-61). Bombay was an important source of supply for cotton. Hence, trading activities flourished during the period, resulting in a boom in share prices. This boom, the first in the history of the Indian capital market lasted for a half a decade. The bubble burst on July 1, 1865 when there was tremendous slump in share prices. Trading was at that time limited to a dozen brokers; their trading place was under a banyan tree in front of the Town hall in Mumbai. These stock brokers organized informal association in 1897 – Native Shares and Stock Brokers Association, Bombay. The Stock exchanges in Calcutta ad Ahmedabad also industrial and trading centers, came up later. The Bombay Stock Exchange was recognized in May 1927 under the Bombay Securities Contracts Control Act, 1925. The capital market was not well organized and developed during the British rule because the British government was not interested in the economic growth of the country. As a result many foreign companies depended on the London capital market for funds rather than in the Indian capital market...
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...Indian economy is gearing up to meet the challenges of being an open economy, it assumes of greater significance. Up to 1991, Indian companies were not allowed to raise capital from overseas capital market. For their foreign exchange requirements, they had to depend on government financial institutions, foreign banks, international development agencies etc. By the middle of 1991, the process of liberalization of Indian economy was set in motion by the government and now the Indian Corporate is allowed to issue equity or bonds in overseas capital market. The term ‘Euro Issue’ denotes that the issue is made abroad through foreign currency denominated securities and the securities are listed on any overseas stock exchange. The Indian companies get their issues listed on LUXEMBOURG stock exchange. Subscription for such securities can come from any part of world, except India. Companies making Euro Issue can issue depositary receipts, foreign currency convertible bonds or pure debt bonds. Pure debt is not preferred by the investors for two reasons: (i) No Capital appreciation, and (ii) low credit rating of India by various international agencies. Depository receipts and foreign currency convertible bonds are more popular among the investors. Depository receipts are of two types: (i) Global depository receipt and (ii) American depository receipt. 2 Q. No.1 : Write a note on Global Depository receipts. (May 1996, May, 2003, 2008) May 2004 Nov. 2008) Answer A GDR is negotiable certificate...
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...-the relationship of the leader to the board has a tremendous impact on the organization’s ability to fulfill its mission. -they work with to create the most effective, strong, and healthy boards possible to serve the organizations that they lead. -The chapters provide a brief overview of the best practice and its relationship to board development. -Join this journey of exploring the best practices of strong and effective boards. guiding the reader from a solid starting point of development by establishing role, purpose and function of the board to knowing and communicating the organization’s mission, vision and values. -Board members intentionally and routinely engage in mutual accountability, communication, evaluations and board development while taking the necessary time to process decisions eliminating unnecessary surprises. Boards unite and resolve to work together through change and transitions for the good of the Kingdom, the advance of the Gospel, and the prosperity of the organization. -to exhibit generosity as board members and to be outstanding examples of giving regularly and sacrificially to the church, college or organizations they serve in order to establishment a culture of board development that embraces the principle of “passing it on,” by developing new board participants that will lead to a strong and healthy future for the organization. - as a board member or as leader of an organization can take your present board environment and develop it into...
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...Chapter 5 Questions – January 31 1. Which of the following bonds has the greatest interest rate price risk? |a. |A 10-year $100 annuity. | |b. |A 10-year, $1,000 face value, zero coupon bond. | |c. |A 10-year, $1,000 face value, 10% coupon bond with annual interest payments. | |d. |All 10-year bonds have the same price risk since they have the same maturity. | |e. |A 10-year, $1,000 face value, 10% coupon bond with semiannual interest payments. | 2. Amram Inc. can issue a 20-year bond with a 6% annual coupon. This bond is not convertible, is not callable, and has no sinking fund. Alternatively, Amram could issue a 20-year bond that is convertible into common equity, may be called, and has a sinking fund. Which of the following most accurately describes the coupon rate that Amram would have to pay on the convertible, callable bond? |a. |Exactly equal to 6%. | |b. |It could be less than, equal to, or greater than 6%. | |c. |Greater than 6%. ...
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