...Finance Finance is can sometimes be broken down into three categories: public finance, corporate finance, and personal finance. Finance describes the management, study of money, banking, credit, investment, assets and liabilities. Efficient Market The efficient market was created in 1970 in which the theory of efficient market hypothesis (EMH) stated that an investor cannot outperform the market. Meaning that, in finance, the EMH asserts that the markets are efficient with information. Primary Market The primary markets are enabled by underwriting companies, consisting of investment banks. These banks set the price for the security and then oversee the sale to the investor. In the primary market, the issuing company receives cash proceeds from sales, and in turn uses those proceeds to operate or expand the business. Secondary Market The secondary market is where investors buy a security from another investor rather than the issuing company. The secondary market is where the majority of the exchange in the market takes place on a daily basis. Risk Risk is how the investor evaluates the investment. For finance, the great the risk of the investment generally means the greater the expected return. Security A security is issued by a business to show proof of their debt or equity. Stock Stock is equity capital that comes from the sale of shares. In finance, part of a corporation’s equity capital is comprised of shares that are fully paid. ...
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...Webster “Finance is the study of how people and businesses evaluate investments and raise capital to fund them” (Mayo, 2012). Finance is the practice of generating, moving and using currency, allowing the flow of money through a business in the same way of the money flow throughout the world. Efficient market is a market that holds all relevant information to contributors under the same roof, and where prices react instantly to accessible information. The best example for an efficient market would be the stock market. “Primary market is a market in which new, as opposed to previously issued, securities are bought and sold for the first time” (Mayo, 2012). By doing this people are able to help finance their new/old businesses. Secondary market a market where previously issued securities i.e. bonds, shares, notes and financial instruments like bills of exchange and certificates of deposit are purchased and sold. Stock exchanges do serve as secondary markets, this helps reduce the risk of investments and maintains liquidity in financial systems. Risk is the foundation for appraising all investments. Risk is one major concept of finance due to the greater the risk the greater the anticipated return. Security is an investment instrument that signifies an ownership position in a publicly traded corporation. A security is any fungible, negotiable financial instrument that represents some type of financial value. Stocks are an important part of finance, more importantly...
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...BANGLADESH FINANCE AND INVESTMENT COMPANY LIMITED Baitul Hossain Building (2nd Floor), 27, Dilkusha C/A, Dhaka‐1000 Balance Sheet As at 31 March 2011 Provisional & Un‐audited Note PROPERTY AND ASSETS Cash Cash in hand Balance with Bangladesh Bank Balance with other Banks and Financial Institutions Inside Bangladesh Outside Bangladesh Money at call and short notice Investment in Securities Government Others Lease, Loans and Advances In Bangladesh Outside Bangladesh Fixed Assets including Premises, Furniture and Fixtures Other Assets Non Banking Assets Total Assets LIABILITIES AND CAPITAL Liabilities Financing (Borrowings) from other Banks financial Institutions and Agents Deposits and other Accounts Term Deposits Other Deposits Bills Payable Other Liabilities Total Liabilities Capital/ Shareholders' Equity Share Capital Statutory Reserve General Reserve Revaluation Surplus on Land & Building Retained earnings Total Shareholders' Equity Total Liabilities & Shareholders' Equity 3 ‐ 582,162,375 582,162,375 4 2,973,703,798 ‐ 2,973,703,798 199,507,329 637,734,997 ‐ 4,577,669,191 2,956,524,869 ‐ 2,956,524,869 200,670,584 116,267,219 ‐ 4,398,727,414 ‐ 489,369,077 489,369,077 31‐Mar‐11 Taka 31‐Dec‐10 Taka 1 40,477...
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...[pic] Master in Business Administration COURSE SYLLABUS Investment Banking And Structured Finance Analytics Course Code: IBSFA Faculty: Prof. E. B. Perez Course Description This is an advanced finance course suited for finance majors. However, the focus is on the practice and business of investment banking. Corporate finance skills are assumed, as well as concepts regarding structured finance. Grading Class Participation 50% Class Presentation 50% Course Outline |Session |Cases, Readings and Exercises | | | | |1 |Case: CML Group, Inc. (A) and (B) | | | | | |Session 1 CML Group, Inc. (A) and (B); the (C) for class distribution. | | |2 Hutchison-Whampoa LTD - Yankee Bond Offering | | |3 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) ...
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...concepts of finance. Reviews the basic tools and their use for making financial decisions. Explains how to measure and compare risks across investment opportunities. Analyzes how the firm chooses the set of securities it will issue to raise capital from investors as well as how the firm’s capital structure is formed. Examines how the choice of capital structure affects the value of the firm. Presents valuation and integrate risk, return and the firm’s choice of capital structure. INSTRUCTIONAL MATERIALS Required Resources Brigham, E. F., & Ehrhardt, M. C. (2014). Financial management (14th ed.). Mason, OH: South-Western Cengage Learning. Supplemental Resources MBA Primer Note: The MBA Primer is designed to help students with little or no educational background in business to prepare for the rigors of an MBA program. The MBA Primer is also a useful tool for students who have the business background but might need a refresher. It is a way to help you prepare for the types of activities and concepts that will be covered in the MBA program, so you can feel more comfortable and confident as you progress into higher level courses. Students are emailed an access code for this product when they purchase MBA Primer from the Strayer Bookstore, accessible through iCampus. CNN Money. (2013). General format. Retrieved from http://money.cnn.com/ Criniti, A. (2013). The necessity of finance. Philadelphia, PA: Criniti Publishing Company. Fidelity Investments, Inc. SWOT analysis...
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...875,927,694 331,414,695 37.84 Available-for-sale-investment 840,687,402 816,893,531 23,793,871 2.91 Receivables-Net 113,434,183 158,278,935 (44,844,752) -28.33 financial Assets at fair value through profit or loss - - - - Held-to-maturity investments - - - - real estate held for sale 129,216,942 - 129,216,942 100.00 Other Current Assets 134,567,441 89,025,301 45,542,140 51.16 Total Current Assets 2,425,248,357 1,860,002,690 565,245,667 30.39 Non Current Assets Deferred Tax Assets 11,357,319 5,625,420 5,731,899 101.89 Due from related party - 65,000,000 (65,000,000) -100.00 Available-for-sale in investment - - - - investment in subsidiaries, Associate and joint venture-net - - - - Equity Investments - 88,941,889 (88,941,889) -100.00 Investment property-Net 363,733,216 153,675,589 210,057,627 136.69 Property and Equipment-Net 720,820,379 534,117,133 186,703,246 34.96 investment in an associate 7,105,379 - 7,105,379 100.00 Held-to-Maturity investments 32,071,040 30,468,630 ...
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...International Finance: A Course Overview Mihir A. Desai* Harvard University and NBER ABSTRACT This paper describes the International Finance course at Harvard Business School for instructors considering adopting the associated material. The paper begins by arguing that the forces of globalization have fundamentally changed the scope and activities of firms thereby altering the practice of finance within these firms. As a consequence of an increasing reliance on tightly-integrated foreign operations, a parallel world of finance has been opened within every multinational firm and this world has, heretofore, been overlooked. The course materials are designed to address the many aspects of financial decision making within global firms prompted by these changes that are not addressed in traditional materials. The paper provides an overview of the structure of the course and its seven modules with particular emphasis on the three modules that constitute the core of the course. The paper also describes an analytical framework that has been developed through the creation of the course materials to guide critical financial decisions on financing, investment, risk management and incentive management within a multinational firm. This framework emphasizes the need to reconcile conflicting forces in order for multinational firms to gain competitive advantage from their internal capital markets. The paper concludes with a discussion of the course's pedagogical approach and detailed descriptions...
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...INVESTMENT BANK Definition:- Investment bank is a financial institution that assists individuals, corporations, and governments in raising capital by underwriting and or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions and provide ancillary services such as market making, trading of derivatives and equity securities, and FICC services (fixed income instruments, currencies and commodities). Investment banks do not take deposits. There are two main lines of business in investment banking. Trading securities for cash or for other securities (e.g. facilitating transactions, market-making), or the promotion of securities (e.g. underwriting, research, etc.) is the "sell side", while buy side is a term used to refer to advising institutions concerned with buying investment services. Private equity funds, mutual funds, life insurance companies, unit trusts, and hedge funds are the most common types of buy side entities. An investment bank can also be split into private and public functions with an information barrier which separates the two to prevent information from crossing. The private areas of the bank deal with private insider information that may not be publicly disclosed, while the public areas such as stock analysis deal with public information. List of the bank: 1) CIMB Investment Bank Berhad 2) RHB Investment Bank Berhad 3) Alliance Investment...
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...Mishkin Chapter 8 An Economic Analysis of Financial Structure (pp. 168-192) Modified & Extended Mishkin Notes Professor Leigh Tesfatsion Department of Economics Iowa State University Ames, IA 50011-1070 Last Revised: 6 April 2011 © 2004 Pearson Addison-Wesley. All rights reserved 8-1 Key In-Class Discussion Questions • What basic “stylized facts” characterize the current U.S. financial system? • Do transactions costs and asymmetric information help to explain these stylized facts? • Enron Case Study (Mishkin p. 177, and asymmetric information problems in securities markets exemplified by the Enron bankruptcy scandal? online html notes “Enron Scandal & Moral Hazard”): In what ways (if any) are © 2004 Pearson Addison-Wesley. All rights reserved 8-2 Financial Structure Manner in which firms finance their activities using external funds. MIX SOURCE Equity Debt Securities Markets FIs 8-3 © 2004 Pearson Addison-Wesley. All rights reserved External Finance Sources 1970-2000 © 2004 Pearson Addison-Wesley. All rights reserved 8-4 The Decline of Banks as a Source of External Finance (Mishkin 12, Fig 2, p. 287) Source: Federal Reserve Flow of Funds Accounts; Federal Reserve Bulletin. © 2004 Pearson Addison-Wesley. All rights reserved 8-5 One reason for the decline…the U.S. savings & loan crisis in the 1980s Mishkin Chapter 11, Figure 1 © 2004 Pearson Addison-Wesley. All rights reserved 8-6 Recent Trends • Decreasing...
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...Statement of Profit and Loss and notes thereto in accordance with the manner prescribed in Schedule VI to the Companies Act, 1956. To harmonise the disclosure requirements with the Accounting Standards and to converge with the new reforms, the Ministry of Corporate Affairs vide Notification No. S.O. 447(E), dated 28th February 2011 replaced the existing Schedule VI of the Companies Act, 1956 with the revised one. Government vide Notification No. F.N. 2/6/2008 – C.L-V dated 30th March 2011 made the revised Schedule VI applicable to all companies for the financial year commencing from 01st April 2011. The requirements of the Revised Schedule VI however, do not apply to companies as referred to in the proviso to Section 211 (1) and Section 211 (2) of the Act, i.e., any insurance or banking company, or any company engaged in the generation or supply of electricity or to any other class of company for which a form of Balance Sheet and Profit and Loss account has been specified in or under any other Act governing such class of company. Key Features of Revised Schedule VI –Balance Sheet • The revised schedule contains General Instructions, Part I – Form of Balance Sheet; General Instructions for Preparation of Balance Sheet, Part II – Form of Statement of Profit and Loss; General Instructions for Preparation of Statement of Profit and Loss. • The Revised Schedule VI has eliminated the concept of ‘schedule’ and such information is now to be furnished in the notes to accounts. • The revised...
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...rate back to the 7.25% for the current loan in 2012, when the Notes Payable to Accounts Receivable ratio falls back below the 70% threshold. One concern not discussed in the case is the relative growth of Flash Memory vs. the SSD category. Based on the information provided, we estimate Flash’s share of the market at 15% in 2007 which rapidly declines to an estimated 2% by 2013. This underscores Flash Memory’s need to accelerate top line growth to remain a significant player in the market. The forecast balance sheet (Exhibit 2) shows the account balances for Flash Memory assuming they do not invest in the new product line. The financing requirements in 2010, 2011 and 2012 are $14,433, $17,120 and $13,228 respectively. This increase in debt levels has changed the capital structure of the firm over time, increasing debt as a percentage of capital from 28% in 2007 to as high as 39% by 2011 (vs. a target of 18%). We calculated WACC for both scenarios - funding by increasing notes payable or by the issuance of stock. For the notes funding, we assumed a 9.25% cost of debt (loan rate of 3.25% prime + 6%) and a forward looking 2010-2012 average forecast debt/value ratio of 41%, resulting in a WACC of 10.11% (Exhibit 3). For the equity funding, we assumed a 7.25% cost of debt (loan rate of 3.25% prime + 4%) and the target debt-to-capital ratio of 18%, resulting in a WACC of 11.67% (Exhibit 4). The proposed investment would require a substantial cash...
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...Kinh Do Corporation Report of the Board of Management and Audited consolidated financial statements 31 December 2009 Kinh Do Corporation CONTENTS Pages REPORT OF THE BOARD OF MANAGEMENT 1-4 AUDITED CONSOLIDATED FINANCIAL STATEMENTS Independent auditors’ report 5-6 Consolidated balance sheet 7-8 Consolidated income statement 9 Consolidated cash flow statement 10 - 11 Notes to the consolidated financial statements 12 - 44 Kinh Do Corporation REPORT OF THE BOARD OF MANAGEMENT The Board of Management of Kinh Do Corporation (“KDC” or the “Company”) is pleased to present its report and the consolidated financial statements of KDC and its subsidiaries (“the Group”) as at and for the year ended 31 December 2009. THE GROUP The Group consisted of KDC and its subsidiaries and associates as follows: KDC is a shareholding company incorporated under the Law on Enterprise of Vietnam pursuant to the Business Registration Certificate (“BRC”) No. 4103001184 issued by the Ho Chi Minh City Department of Planning and Investment on 6 September 2002 and the following Amended BRC: Amended BRC: Date: The first amendment The second amendment The third amendment The fourth amendment The fifth amendment The sixth amendment The seventh amendment The eighth amendment The ninth amendment The tenth amendment The eleventh amendment 26 November 2002 22 September 2003 11 December 2003 3 August 2004 7 October 2004 11 May 2005 ...
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...such as school fees, upbringing costs for the children. The couple is middle aged and as such their appetite to risk is relatively lower than their younger counterparts and relatively higher than their older counterparts. This report shall therefore create an investment plan for the couple which shall include the portfolio that the couple should invest in order to realize their investment goals and also to help them minimize the risk associated with such an investment. The report shall peg the performance of the portfolio created against a benchmark and shall then discuss the rationale behind the benchmark portfolio selected. The report shall discuss the portfolio performance over the last five years and determine the average weekly returns of the portfolio over the same period and compare it with the returns of the benchmark portfolio. The report shall then calculate the standard deviation of the portfolio and discuss the factors that led to the performance of the portfolio and the benchmark portfolio such as the economy, market specific factors, industry specific factors, as well as country specific factors. Finally the report shall consider other factors that might have affected the choice of the portfolio. Investment goals and risk Since the couple is of middle age where the husband is 40 years old and the wife is 38 years of age with good professional careers. They have at least 15 years before they can retire indicating that they can afford to invest in a moderately risky...
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...Running head: DEFINING FINANCIAL TERMS Defining Financial Terms University of Phoenix Defining Financial Terms a. Finance: “Financial management is concerned with the maintenance and creation of economic value or wealth” (Keown, Martin, Petty, & Scott, 2005, p. 4). • Role in finance: Finance within a company is vital since it leads toward creating wealth. It helps make decisions such as when to introduce new products, when to invest in new assets, and when to borrow money. (Keown et al., 2005, p. 4). b. Efficient Market: “A market in which the values of all assets and securities at any instant in time fully reflect all available public information” (Keown et al., 2005, p. 16). • Role in finance: To provide quick information with accurate and right prices. c. Primary Market: “Transactions in securities offered for the first time to potential investors” (Keown et al., 2005, p. 484). • Role in finance: Provide a channel for sale of new securities. In addition, it also provides a variety of opportunities to those who issue securities such as corporations, or government, to raise resources to meet their requirements within their obligations. d. Secondary Market: “The market in which stock previously issued by the firm trades” (Keown et al., 2005, p. 11). • Role in finance: To provide a place for investors/public an efficient place to trade his/her securities. For management of firms, secondary markets serve as control...
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...KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Directors' Report and Audited Financial Statements as at 31 December 2010 Registered Office Level 18, Tower 2, Etiqa Twins, 11 Jalan Pinang, 50450 Kuala Lumpur KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) CONTENTS PERFORMANCE OVERVIEW STATEMENT OF CORPORATE GOVERNANCE DIRECTORS' REPORT STATEMENT BY DIRECTORS STATUTORY DECLARATION REPORT OF SHARIAH COMMITTEE INDEPENDENT AUDITORS' REPORT STATEMENTS OF FINANCIAL POSITION INCOME STATEMENTS STATEMENTS OF COMPREHENSIVE INCOME STATEMENTS OF CHANGES IN EQUITY STATEMENTS OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS PAGE 1 1 - 18 19 - 23 24 25 26 - 27 28 - 29 31 - 32 33 34 35 36 - 37 38 - 139 KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) 1 PERFORMANCE OVERVIEW The Group and the Bank registered a loss after taxation of RM75.6 million and RM97.3 million respectively for the financial year ended 31 December 2010 due to the more challenging operating environment in 2010 as the Group and the Bank embarked on its business realignment and restructuring plans in early 2010. The total assets of the Group has decreased by RM661.5 million to RM10.9 billion as at 31 December 2010. Despite the anticipated full year results, the Group made marked progress in Quarter 1 to Quarter 4 of 2010 profit/(loss) before taxation and the Group stood on a strong capitalised position with a...
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