...Singaravelu Sheetal Sehgal Girish Swaminathan Ashish Khandelwal Arpan Goyal PGP-14-239 PGP-14-222 PGP-14-219 PGP-14-243 PGP-14-177 PGP-14-175 Through their financial statements…Let me show you how… FINANCIAL HEALTH OF THE COMPANIES Increasing PAT & Sales Revenue for both the companies. Retirement of secured loan by both the companies. ₹ 90,926 Million (2014) Sales Revenue 8% ₹ 84576 Million (2013) ₹ 73780 Million (2014) Total Cost 7% ₹ 68783 Million (2013) ₹ 15008 Million (2014) PAT 3% ₹ 14598 Million (2013) Financial Highlights of B/S Sales 133% Investments Revenue ₹ 63548 Million (2014) 12% ₹ 56811 Million (2013) ₹ 58066 Million (2014) Highlights of B/S 33% Investments 216% Cash Total Cost 9% ₹ 53111 Million (2013) ₹ 3654 Million (2014) 30% Receivables Secured Loan -15% PAT Secured Loan 53% ₹ 2393 Million (2013) -100% CASH FLOW ANALYSIS Britannia is concentrating more on investment than Nestle. ₹ 17964 Million (2014) Operating Activities 6% ₹ 16933 Million (2013) ₹ (9408) Million (2013) Decrease in cash outflow from Investing activities company is investing less Less expansion plans ₹ 6145 Million (2014) Operating Activities 126% ₹ 2720 Million (2013) ₹ -2273 Million (2014) Investing 522% Activities ₹ 539 Million (2013) ₹ (3591) Million (2013) Increase in cash outflow from Investing activities company is investing more More expansion plans High future growth Increase in profits Increase in cash flow from operating ...
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...C2922 Economics Utility Functions T.C. Johnson October 30, 2007 1 Introduction “Utility” refers to the perceived value of a good and utility theory spans mathematics, economics and psychology. For example, if you prefer vanilla ice-cream to chocolate, you would assign greater utility to vanilla ice-cream than to the same quantity of chocolate ice-cream. The fact that different agents have different utilities for goods is the basis of all markets. In the context of actuarial science, the focus is on the utility of money, the study of the utility of money started in the early 1700’s with the St Petersburg Paradox. 1.0.1 The St Petersburg Paradox A player pays some fee to a casino in order to play a game where a fair coin will be tossed repeatedly until a ”tail” first appears, ending the game. The payoff of the game is 2N −1 where N is the number of times until the first tail appears. How much should the casino charge to play this game, how much should a player expect to play the game? This game was played in 18th century St Petersburg and numerous mathematicians, including Bernoulli were interested in it, since the expected payoff of the game is infinite ∞ E[X] = k=1 2 k−1 1 = 2k ∞ k=1 1 2 1 Utility functions In 1728, a Swiss mathematician, Gabriel Cramer, observed that “the mathematicians estimate money in proportion to its quantity, and men of good sense in proportion to the usage that they may make of it”. 2 Modern psychology explains utility...
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...* Findings and Analysis: Liquidity Ratio 1. Current Ratio: A company’s current assets divided by its current liabilities is known as the Current Ratio. This ratio is regarded as a measure of short-term debt paying ability. It measures the capability to obsolete the current liability with comparing to current asset by how many times. The equation is- Current Ratio = Current AssetCurrent Liability * The general rule of thumb calls for a current ratio of at least 2:1. If it is greater than 2 then it creates income problem and if it is less than 2 then it creates liquidity problem. For Northern Insurance Company Years | 2007 | 2008 | 2009 | 2010 | 2011 | Ratios | 1.59 | 1.66 | 1.89 | 1.72 | 1.91 | Interpretation: From the above table and graph we can see that the ratios and the curve were consistently increasing during the calculated year except 2010. From Balance sheet we can see that Current Asset in the calculated year is significantly increase than the Current Liability. So Current Ratio is increasing in a consistant basis and the ratio which indicates that NORTHERN INSURANCE CO. has few problem with liquidity but they are generating profit efficiently. Underwriting Ratios 2. Loss Ratio: A company’s loss ratio is calculated by dividing loss adjustments expenses by premiums earned. And los adjustment measured by dividing claim payment by net premium. Now this los ratio shows what percentage of payouts are being settled with recipients. It means lower the ratio...
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... which leads to a decline in lending, investment, and aggregate economic activity. Discuss by giving real life example(s) from the American, UK or European financial markets with actual figures. Adverse selection takes place before the transaction and it is basically when financial intermediaries are likely to select risky borrowers. * How can banks be certain what a firm will invest on, weather it is safe or risky? And so because of this increased adverse selection, the bank may choose not to lend even to firms that are good risks and want to undertake potentially profitable investments. * Decrease in bank lending decreases the supply of funds available to borrowers which then lead to higher interest rates. * Cash flow drops as a result of an increase in interest rates, and this leads to adverse selection problem becoming more severe, again decreasing lending, investment, and economic activity. Stock market decline: * A decline in the stock market means that the net worth of corporations has fallen, because share prices are the valuation of a corporation s net worth. * The decline in net worth makes lenders less willing to lend because, the net worth of a firm plays a role similar to that of collateral. When the value of collateral declines, it provides less protection to lenders, meaning that losses on loans are likely to be more severe * Because lenders are now less protected against the consequences of adverse selection, they decrease their...
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...types of stock a corporation can consider issuing and the advantages and disadvantages of forming a corporation is valuable information is considering incorporation. Common Business Structures Proprietorship A business entity owned by one person is called a proprietorship. The company is usually small and can be started with a small amount of capital investment. Sometimes referred to as a Sole Proprietorship, the owner usually has full operational duties of the business and legal responsibilities. The owner can receive all profits of the business but also has legal responsibilities in all the debt of the business even though accounting records are kept separate from the personal records of the owner (Weygandt, Kieso & Kimmel, 2006). Partnership A business entity that is owned by two or more is called a partnership. A partnership is organized much like a proprietorship in that partners share the personal liability of the company’s debts and share the profits of the business. A partnership agreement is usually formed between partners to state how the partnership is proportioned based on the initial investment of each partner. “Like a proprietorship, for accounting purposes the partnership affairs must be kept separate from the personal activities of the partners” (Weygandt, Kieso & Kimmel, 2006). Corporation “A business organized as a separate legal entity under state corporation law and having ownership...
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...1. How has the Investment Office selected, compensated, and controlled private equity fund managers? What explains the differences between their strategy in private equity with that in other asset classes (e.g., real estate)? As for private equity asset allocation the Investment Office focused on finding external "value-added investors" with the sterling capability to build better businesses not only financially but mainly operationally. They believed this strategy led to enhancing returns independently of the market downturns. Thus, a limited number of long-standing partnerships were created - exclusively with partners aligned with the generalized investment policies of the Investment Office - with "over 90% of the portfolio invested in highly prestigious funds sponsored by the general partners of the university's group". Yale sought for compensation to be as linked as possible with investment performance rather than based in high fixed fees. With this strategy they intended for private equity funds managers' to be more motivated and to align its objectives with theirs. On the other side equity firms were given a considerable amount of flexibility on their investment decisions. The control was done mainly in the selection stage where Yale guaranteed that its and the firms' objectives were as aligned as possible and so almost no deals were performed with large financial institutions, avoiding "conflicts of interests and lack of incentives". The Investment Office portfolio...
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...Conclusion 20 * Introduction The term baby-boomers refers to everyone who were born during the post-World War II, during the years 1947 to 1968, during which time there was a dramatic increase in the birth rate. It is estimated that 97% of the baby-boomers are still alive, which is about 8.5 million individuals. For a past decades, these baby-boomers have controlled and shaped many aspects of our economy, environment, and culture. But as this aging population is coming close to retirement, it could have serious impact on our society. In the coming years, there will be more retirees than worker, which could pose as a great issue in our economy. This paper will analyze the impact of this phenomenon on Canadian labor market and the level of investment, how this could reshape the government budget, and how it is going to affect the Canadian’s standard of living. 1. Labor Market It is quite clear that the retirement of baby-boomers has a big impact on the labor market. Some describes this as a “ demographic time bomb” for the nation’s labor force. Baby-boomers make up one-third of Canadian population, and a large portion of the workforce as well. And they are all between the ages of 46 – 60 years. Thus, for the past few decades, many firms relied on baby boomers as their human resource, but now they are facing a tightening labor market situation as these individuals move toward the typical retirement ages. The portion of workers, who are within 10 years of retirement, is...
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...energy, fracking has its advantages and disadvantages. As discussed in the class it has a negative consequence on the population, also the waste fracking fluids or chemicals can cause more pollution because they go into water table. Another environmental issue is air contamination. Bouble in the 90s The shale boom is on par with the dot-com boom. The strong players will remain, the weak ones will vanish As the internet was a huge investment opportunity for every lame brained idea related to the internet now the shale industry is replaying the same scenario. The oil and gas boom in the United States was made possible by the extensive credit afforded to the shale firms. These drillers relying on debt to finance their investment they earn less then what they spend… Why the oil price decreases? The price decreased because oil and gas production is evolving so rapidly and demand is dropping so quickly, an other reason could also be the growing switch to other fuels alternatives (like gas) or energy sources (solar, wind,.. etc). Also the hybrid and electric cars contribute in loss for the oil producers… Saudi Arabia OPEC leader SA is not being cooperative in the plight of oil falling prices. Instead of cutting its production and helping to restore the prices it is keeping its output constant and offering the lowest price in the world. Meanwhile, the fact of decreasing the Saudian supplly on the market would be profitable for other producers that would sell their oil...
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...precisely it scores 90, which is the 7th position regarding the most power distance societies in the world as for instance Latin American countries and countries of South-eastern Asia and Eastern Europe. This is underlined by the fact that the country is extremely centralized: 2/3 of all foreign investments go into the capital city Bucharest where also 80% of all financial potential is concentrated. There are a lot of backgrounds to the high PDI in Romania. The main reason is that the Romanian culture with its emphasis on authority figures, subjugation to the Communist Party elite has bred a legacy of high power distance in the populace and in Romanian managers and workers. Big PDI means that Romania has a big power separation between the rich and poor which are also known as high power distance between people. Basically if you are born into a family with power you will have a high possibility to keep that power but if you’re born into a family who is poor, it is really hard to move up and you will continue to be poor. Even if nowadays we can observe a decreasing trend in the power distance of Romania, I think it’s still very high. Current situation leads to the numerous negative consequences. For example, the majority of salary-earning workers have open-ended working days or injurious conditions of work. The huge discrepancy between the less and the more powerful people leads to a great importance of status symbols. Behavior has to reflect and represent the status roles in all...
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...When using the financial plan, it specifies a guide in support of the financial managers for the business as well as operating expenses. Old outcomes in conjunction with the consequences regarding up-to-date proceeds and rate developments offer concerning foundation along with any financial statement that could support or foresee the forthcoming for monetary, physical condition of their corporation. The aforementioned may even offer a point of reference on behalf of recording upcoming fiscal effects. Every month evaluations of authentic financial domino effect associated with making financial arrangements totals should offer the data essential in order to respond rapidly to changes regarding their business strategy. Go through Buying Techniques Buying techniques must or need to be studied representing potential fields for decreasing the price. Throughout this appraisal, they should make sure and confirm the approval procedures, and where it must or should be held to make certain individuals are devoted to consent restrictions. This study business must even check for sufficient constraints on expenses boundaries also the total of individual who approved to create buys. Reexamine Contractors A breakdown for current foundation of merchants could even make known chances that decreasing prices via combining merchandises for extra retail influence. Merging of contractors may also manufacture somewhat decrease and their organizational fixed cost worthy of handling...
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...Urban Issue: School Dropout Rate Michael Neeley National University Urban Issue: School Dropout Rate The issue of quitting school and leaving a high school diploma to the wayside is an issue that has long term consequences for both the individual and society. Common media reports state that every nine seconds a student drops out of school. Various reasons for dropping out of school are cited and vary from personal to social problems. While the dropout rate for high school has steadily fallen since the 1980’s where it was 14.1, the rate in 2008 was reported at 8.0 according to US Department of Education, the issue still at the forefront of urban affairs. The reason for the alarm is due to the correlation of dropping out of school and criminology as well as unemployment, both of which are urban problems of themselves. The problem with dropping out of school is best summed up as an individual and as a societal view. The individual consequences of a 16-24 year old quitting school include they are less likely to be part of the labor force and more likely to be unemployed. High School dropouts reportedly had worse single and family income, measures of assets, and self-reported depression than their Diploma and GED accredited counterparts. (Caputo, 2005) Education and dropout rates have significant effects on criminal incarceration, specifically fifty percent of all United States inmates are dropouts. Additionally...
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...cost increasing in gas, electricity metals and other products. The cost number was almost three times more than its last year. In Enron’s 10-K, FY 2000, the company made investment to purchase gas and electric utilities in a large dollar amount (Note 3). This big purchase largely increased the company’s assets, but it also increased the costs. As the result, Enron has been decreasing in Gross Profit Margin and Net Profit Margin. Enron didn’t do well to use their assets to generate profits. Table 1: | 2000 | 1999 | 1998 | Revenues | 100,789 | 40,112 | 31,260 | Earnings Per Share | 1.22 | 1.36 | 1.07 | (Enron Corp. and Subsidiaries Consolidated Statement of Income Statement) Table 2: | 2000 | 1999 | 1998 | Gross Profit Margin | 6.2% | 13.3% | 15.6% | Net Profit Margin | 1% | 2.2% | 2.2% | (Enron Corp. and Subsidiaries Consolidated Statement of Income Statement) The cost of doing business has been increasing over these three years. As the result, the return on assets has been decreasing in those three years. Table 3: | 2000 | 1999 | 1998 | Return on Assets | 1.2% | 2.1% | 2.3% | Return on Common Equity | -0.2% | 0.1% | 3.4% | (Enron Corp. and Subsidiaries Consolidated Statement of Balance Sheet) “In connection with the 1998 financial restructuring of Enron’s investment in Azurix, Enron committed to cause the sale of Enron convertible preferred stock, if certain debt obligations of the...
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...Assignment: Prepare a short (5-7pp) paper explaining why an investment strategy might be an appropriate response to slow growth and also noting the possible downsides to such an approach. Your audience is a senior decision maker in business or government who is trying to figure out economic policy to support. You may assume that the decision maker has some knowledge of macroeconomics so you may use technical terms to keep your paper relatively brief. One of the greatest consequences of the 2007-2009 recession crisis is the scarcity of investments due to lack of confidence by investors and a decrease in lending by banks. This lessening of investment and lending was followed by a period of slow economic growth and a difficult return to a lower level of unemployment. The economic growth of a country is measured by the increase of gross domestic product (GDP). To accelerate economic growth requires stimulating the factors that make up the GDP. GDP is calculated by adding together the following diverse factors: consumption level, investment level, government purchases and net export. These factors and the interactions that occur among them define the level of the aggregate demand and the supply curves and consequently determines the level of equilibrium point, which in turn determines the price level and the value of the GDP. To encourage economic growth, the government has several tools at its disposition that can impact the aggregate supply and the aggregate demand...
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...schemes in combating the causes and consequences of urban decline. (40 marks) Urban decline is the deterioration of the inner city often caused by lack of investment and maintenance. It is often but not exclusively accompanied by a decline in population numbers, decreasing economic performance and unemployment. There are many reasons for urban decline such as loss of industry through changing market conditions or a lack of withdrawal of government support, Political decisions – governments can favour some cities over others, and encourage the development of some areas over others. Outmigration of wealthier and more skilled people leaves a lesser qualified population behind, which means less skilled workers are taking the jobs, and not doing them right linking back to a loss of industry, really urban decline is one big cycle, and it’s very hard to escape. This is where urban regeneration schemes come into play, urban regeneration schemes are used to improve the appearance of our towns and cities and to regenerate the area by restoring confidence and attracting new investment. In most cases they are used to improve the appearance of public open spaces in the centres of our cities, towns and villages. There are various government led schemes to regenerate cities, I am going to write about three such schemes, in London, Bradford and Southampton, and evaluate the overall effectiveness of whether they have in fact combated the cause or consequences of urban decline. UDCs (Urban...
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...Abstract Multinational hotel companies, often integrated with travel agencies and tourism businesses, play an important role in the tourism industry in developing countries. Introduction of multinational hotel companies is always regarded as an opportunity to benefit host countries through provision capital and market connections. However, the activities of multinationals could also be threats to these countries. This paper reviews the potential costs of multinational hotel companies involvement like decreased economic benefits, foreign domination and negative environmental and cultural consequences. Furthermore, it illustrates some possible solutions for developing countries to reduce the adverse effects which could balance the advantages and disadvantages of multinational involvement and create a brighter future. 1. Introduction A multinational hotel companies, as a type of multinational enterprises, which is identified as an enterprise that owns or controls value-adding activities in the accommodation sector in two or more countries. It is widely accepted that most of developing countries are seeking opportunities to introduce multinational hotel companies because developing countries could obtain several benefits from the presence of multinational hotel companies, such as provision of capital, transfer of technical and managerial expertise, provision market connections,etc. It is true that multinational hotel companies can contribute to the growth of economy in...
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