...Assignment 1 – Sources of Finance 1. What are the gearing implications of (i) equity and (ii) loan financing for the current and future shareholders? Raven Construction PLC has Share Capital of £400,000 and total long-term debts of £800,000 giving it a debt to equity ratio of 2:1. Therefore, Raven Construction PLC is said to be Highly Geared as it currently has £2 of debt for every £1 of equity. This is calculated from the following equation: Long-term DebtCurrent Equity =Gearing Ratio i. Equity Financing – This is the process of raising capital through the sales of shares and refers to an ownership in Raven PLC. The purchase of shares is a simple way of introducing permanent capital into the company. The introduction of new shares will reduce the gearing ratio in Raven PLC and will give the company a greater amount of equity available to cover its long-term debts. ii. Loan Financing – This is a process of raising capital through the borrowing of equity from a third party that does not benefit from ownership of the company. The third party will loan an amount of cash over an agreed period and require payments, with interest, to be repaid over the life of the loan. This will give Raven PLC even more debt than equity. An increase in the amount of long-term debt will increase the gearing ratio further 2. Make clear recommendations to the company on how to finance their expansion? Raven Construction PLC now requires £1.2m for its current planned expansion...
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...Managing Financial Principles and Techniques - Financial and Investment analysis Contents 1. Be able to apply cost concepts to the decision-making process 2 2. Be able to apply forecasting techniques to obtain information for decision making 4 3. Be able to participate in the budgetary process of an organization 5 4. Be able to recommend cost reduction and management processes for an organization 7 5. Be able to use financial appraisal techniques to make strategic investment decisions for an organization 8 6. Be able to interpret financial statements for planning and decision making 10 References 12 1. Be able to apply cost concepts to the decision-making process 1.1 explain the importance of costs in the pricing strategy of an organisation The pricing strategy becomes the major element in marketing mix of Dell Computers as it is related to product positioning. When there is a planning for new product launch pricing strategy is important and it requires general sequence of stages involved during pricing the new product. The different steps are as follows: (Daft, 2011) * Developing marketing strategy – helps the company to develop marketing strategy based on market analysis, market segmentation and positioning * Marketing Mix decisions – Defining a product, distribution and its promotional tactics * Estimation of demand curve – Estimating the demand and understand how it varies from quantity wit price * Cost Calculation – Calculation of fixed...
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...CORPORATE GOVERNANCE STATEMENT – FINANCIAL YEAR ENDED 30 JUNE 2015 Introduction The Board of Djerriwarrh Investments Limited (the Company) is committed to the highest standards of ethical behaviour and to having an effective system of corporate governance commensurate with the size of the Company and the scope of its business operations. In accordance with ASX Listing Rule 4.10.3, set out below are the applicable ASX Corporate Governance Council’s eight principles of corporate governance (ASX Governance Principles) and outlined accordingly is how the Board has applied each principle and the recommendations set out within them during the course of the financial year ended 30 June 2015. A copy of the ASX Governance Principles can be found on ASX’s website, www.asx.com.au The Company is fully supportive of the ‘if not, why not’ disclosure‐based approach to governance adopted by the ASX Governance Principles and the recognition within them that there is no single model of corporate governance and that good corporate governance practice is not restricted to adopting the recommendations contained in the ASX Governance Principles. Principle 1: Laying solid foundations for management and oversight This Principle requires the Company to establish and disclose the respective roles and responsibilities of both the Board and management and how their performance is monitored and evaluated. Role of the Board The Company’s Corporate Objective...
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...OLDTOWN BERHAD (797771-M) OLDTOWN BERHAD (797771-M) (Incorporated in Malaysia) (Incorporated in Malaysia) The Board of Directors (“the Board”) of Oldtown Berhad (“the Company”) recognises the value of good governance and believes that a high standard of corporate governance will deliver long-term sustainable shareholder value. The Board is committed to ensure good corporate governance practices are applied throughout the Company and its subsidiaries (“the Group”). This Statement sets out the key aspects of how the Company has applied the Principles and Recommendations of the Malaysian Code on Corporate Governance 2012 (“MCCG 2012”) during the financial year ended 31 March 2014 and any non-observation of the Recommendations of MCCG 2012, including the reasons thereof, has been included in this Statement. Principle 1 – Establish Clear Roles and Responsibilities 1.1 Clear Functions of The Board and Management The Board leads the Group and plays a strategic role in overseeing the Group’s corporate objectives, directions and long term goals of the business. The Board is responsible for oversight and overall management of the Group. The Board Committees are established to assist the Board in discharging its responsibilities. The Board delegates specific responsibilities to three (3) principal Committees, namely the Audit Committee, the Nomination Committee and the Remuneration Committee. All committees have written terms of references and operating...
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...Summary Many companies’ executives are concentrated on short-term financial performances rather than long-term development. As a result, they always miss the opportunities to create values for their companies and their shareholders. In this article, the author, noted professor emeritus Alfred Rappaport, set out ten basic governance principles for companies to realize the potential of creating shareholder value. In the real world, there is only Berkshire Hathaway that is likely to implement all these principles. It is obvious that more and more CFOs and other top executives followed Berkshire Hathaway's legendary CEO, Warren Buffet, management skills by following his footsteps to enhance shareholder value. Based on many research and several decades of consulting experience, the author suggests to executives ten maximizing shareholder value principles. For example: Do not provide earnings guidance or manage earnings Try to make shareholder value-maximizing strategic decisions Grasp any opportunities to create shareholder value Focus on high value-added activities (e.g., marketing, design, research) in order to reduce capital expenditures Return cash to the shareholders when there are no opportunities to create value Reward employees in order to motivate them to maximize the potential for high returns Management ignoring long-term considerations because the average time for holding stocks at professionally managed funds is only one year. Investors are usually...
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...Islamic Financial Planning: More than just managing wealth By Sani Hamid When it comes to Islamic banking and finance, many are familiar with terms such as riba, sukuk and takaful. Somewhat more obscure is the concept of Islamic financial planning which has not had much publicity. Even for those who may have heard of it, Islamic financial planning serves merely as a mirror image of the conventional model of financial planning albeit using syariah-compliant instruments. In reality, the concept of Islamic financial planning extends beyond the mere use of such syariah-compliant products. One could go as far as saying that a Muslim’s wealth could still be managed in a manner consistent with the syariah even without the use of syariah-compliant instruments (for example, where such are not available). However the converse is not necessarily true. Many times, Muslims believe that merely by using syariah-compliant products they have indeed managed their wealth in a manner consistent with what is expected of them as Muslims, when in fact, it is the application of Islamic principles in the managing of one’s wealth which is the foundation of Islamic financial planning. Financial Planning, as defined conventionally, is “a process which helps individuals set and achieve their long-term financial goals, through the proper management of your finances.” Financial planning normally covers the areas of investments, tax planning, asset allocation, risk management, retirement planning, and...
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...with the financial aspects of a company. Finance and accounting are closely related to the because accounting is a factor that places contribution to financial decisions. Accounting gives data to allow the finance department to make knowledgeable decision to maximize profits for the company. Accounting generates information/data relating to operations and activities of the firm.() Accounting supplies valuable information such as balance sheets, and income statements. These statements provide a picture for the finance department assess the company’s past performance guide the directions of the firm. It also will inform the finance department what expenses need to be meet. Finance is defined as the art and science of managing money.() It consist of different areas that provide financial services and financial management for corporations. Finance takes information that it collects from accountants then creates a proposal to establishing a plan that will help maximize profits. Finance are responsible for financial planning, prognosis investment, recognize and understand how monetary affects the cost and the availability of funds. Accounting Accounting is traditionally defined as the bookkeeping for a business.() It collects data and organizes business’s financial data. The accounts use balance sheets, manage account receivables, payables, collections, contracts and invoices, etc() Hospital keep both paper and computerized forma to monitor the financial results...
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...British American Tobacco Malaysia The Company’s corporate governance structure has been built and enhanced based on the following principles and best practices, Malaysian Code on Corporate Governance (Revised 2007) (Malaysian Code); Main Market Listing Requirements of Bursa Malaysia Securities Berhad (Listing Requirements); Corporate Governance Guide: Toward Boardroom Excellence of Bursa Malaysia Securities Berhad (CG Guide); British American Tobacco Malaysia’s Code of Corporate Governance (BATM Code); Standards of Business Conduct (Standards); Statement of Business Principles (Business Principles); and Statement of Delegated Authorities. These principles are reflected in the Standards of Business Conduct, which have been in place for many years and have recently been updated in order to ensure that they remain at the forefront of best business practice. Every Group company and every employee worldwide is expected to live up to them. In addition, the principles set out within the Statement of Business Principles are designed to help meet the expectations placed on the company by various stakeholders. Both documents are available from the Company Secretary and on batm.com. PRINCIPLE 1 Establish clear roles and responsibilities: Role of chairman and CEO There should be a clear division of the responsibilities at the head of the company between the running of the board and the executive responsibility for the running of the company’s business. No individual should have unfettered...
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...Caltex / 2014 Annual REPORT Corporate Governance Statement The Board is committed to conducting the business and operations of Caltex Australia Limited and its group companies (Caltex) in accordance with high standards of corporate governance, and in the best interests of our shareholders. The Corporate Governance Statement provides information about the Caltex Group’s corporate governance practices for 2014, including compliance with the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations for the year ended 31 December 2014 and as at the date of this Annual Report. A graphical representation of Caltex’s Corporate Governance Framework (CG Framework) is set out below. Delegation MD & CEO Board Independent Advice • Independent legal or other professional advice Audit Committee • Audit Committee Charter OHS & Environmental Risk Committee • OHS & Environmental Risk Charter Oversight through reporting • External auditors External Auditor Policy • Internal Audit • Board Charter • Board Tenure Policy • Board Composition, Appointment, Induction & Election • Charter of Director Independence • Delegation of Authority • Performance Evaluation Process • Policy for Transactions with Chevron • Risk Management Summary • Continuous Disclosure Policy • Securities Trading Policy • Shareholder Communications Policy • Code of Conduct • Diversity and Inclusion Policy Human Resources Committee • Human Resources...
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... | | | |*The same course can be transferred only as 1 course. | |First Level Modules | | |ACC1006 Accounting Information Systems |International Technology Venturing | |BSP1005 Managerial Economics |TU91.2010 Managerial Economics | |MKT1003 Principles of Marketing |23A00210 Introduction to Marketing (6 ECTS)...
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...Accounting Qualification to all of our stakeholders. With seismic shifts occurring in the world’s economy, coupled with accelerating concerns about the sustainability of our planet, never before has there been a greater need for organisations to train and develop their people to manage the impact of these changes. With this revised qualification CIMA remains true to its long and proud history of providing finance professionals with a difference – Chartered Management Accountants – who combine management and finance skills in a unique way and who fully understand the businesses they are working in. While we respect and learn lessons from the past, through this qualification we prepare our future members to be focused on the future: driving value; managing performance; understanding how organisations are best led and inspired; and helping to sustain vibrant business and government. We provide a strong grounding in international accounting and...
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...Administrative and Financial Sciences Level 3 ID Course Name Title Author/Edition Publisher ECON 101 Microeconomics Survey of Economics: Principles, Applications, and Tools O’SULLIVAN / 5TH edition Pearson ACCT 101 Principles of Accounting Financial Accounting Wild / 6th edition MGT 101 Principles of Management Management: A Practical Introduction Kinicki / 6th edition McGrawHill CourseSmart McGrawHill CourseSmart Level 4 ID Course Name Title Author/Edition Publisher FIN 101 Principles of Finance Fundamentals of Corporate Finance Breasley, Myers, & Marcus McGraw-Hill MGT 201 Marketing Management Marketing: Defined, Explained, Applied Levens, 2012, 2nd edition Prentice Hall Human Resources Management DeCenzo, 2012, 11th edition Wiley Saudi Arabia Labor Law Outline Michael O'Kane, 2010 Al-Andalus Publishing E- Commerce: Business, Technology, Society Lauden, 2013, 9th edition Pearson MGT 211 E-COM 101 HR Management E-Commerce Level 5 ID ECON 201 MIS 201 ECOM 201 Course Name Title Author/Edition Publisher Macroeconomics Principles of Macroeconomics, N. Gregory Mankiw, 6th Edition, 2011 Cengage Learning Information Systems Management Management Information Systems, R. Kelly Rainer, Hugh J. Watson, Brad Prince, 2nd Edition, 2013 Wiley Introduction to eManagement Managing without...
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... e) Dress Smart as a habit for your career | | f) Grooming for Success | | g) Presentation skills to impress employers | | h) Writing a business proposal | | i) Team workshop | | j) Image building for Self-confidence | | k) Self-financial planning | | l) Optimize learning in First year career | | m) Relations with Employer | | The speaker was Dato Gan Ah Tee who is a managing partner of BDO in Malaysia, | is one of the World's 5th largest professional services network and Also is the | Regional Senior Partner for Asia Pacific Region ‘C’ (ASEAN) of BDO. Dato’s drive | since his early age has seen him rise quickly to the top. Prior to his appointment to the | board of BDO, Dato’ Gan was the Managing Director of the Financial Advisory Services | Department at one of the Big 5 accounting firms. With over 30 years’ experience in, | auditing, accounting and financial advisory, Dato’ Gan specialises in corporate | turnaround and financial restructuring of under- performing companies, and has | extensive experience in the field of corporate finance and advisory assignments. | For his successful in his career life, he own his 8 guiding principles in his life, | The first one, is the adopt a “practical” approach with inherent Common Sense, second, | Always be conscious of a “Nasi sudah Jadi Bubur” situation, third, don’t be too quick | In proposing a “hair cut”...
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...University Unit 1 Individual Project Acct 310- Managerial Accounting February 17, 2013 The importance of a managing accountant to document and understand current spending as well as the cash flow. Reading future money patterns to know where and when to spend while still making money for the company. Using accounting information for managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. The knowledge to look forward and correct predict cash flow. Managing accountants aid companies in direct monitoring as well as measuring the efficiency of their accounting operations. While also focusing on limiting abuse or fraud by employees, managing accountants provide owners and managers with equitable assurance that the company’s financials are in order and there is room for profitable growth in the future. While managers plan the fiscal expenditures for a company, they need to acknowledge current expenses and limit said monies to remunerate back into the company. (Shanker, 2013) Owners and managers can use internal controls to limit the number of individuals who have access to the company’s accounting information. In doing so, they limit the opportunity for abuse of the sensitive information. Although both managerial accounting and financial accounting are crucial to a company’s success, managerial accounting focuses on the ‘forecast’ for accurate and...
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...Module III: Financial Analysis Cost of Project, Means of Finance, Estimates of Sales and Production, Cost of Production, Working Capital Requirements and its Financing, Profitability Projections, Break Even Point, Projected Balance Sheets, Muti Year Projections, Basic Principles for Measuring Project Cash Flows, Components of the Cash Flow Stream, Biases in Cash Flow Estimation Module IV: Project Risk Types and Measures of Project Risk, Sensitivity Analysis, Scenario Analysis, Optimal Timing, Social Cost Benefit Anaysis, Net Benefit in terms of Economic Prices, Measurement of the Impact on Distribution, Savings Impact and its value, Income Distribution Impact, Little-Mirrlees Approach, Shadow Prices Examination Scheme Components CPA TP Q/S A ME EE Weightage (%) 5 5 5 5 10 70 References • Chandra P.(2002), Projects: Planning, Analysis, Financing, Implementation & Review, Tata McGraw-Hill Publishing. • Meredith J.R. & Mantel S.J., Jr.( 2000), Project Management: A Managerial Approach, Ed. John Wiley & Sons. • Machiraju H.R.(2001), Introduction to Project Finance: An Analytical Perspective, Vikas Publishing House Pvt. Ltd. • Patel B.M.(2000),Project Management: Strategic Financial Planning Examination & Control, Vikas Publishing House Pvt. Ltd. • Finnerty J. D.(1996), Project Financing: Asset-Based Financial Engineering, Wiley • Newbold C.R.,(1998), Project Management in the Fast Lane: Applying Theory & Constraints, St. Lucie Press • Anthony R.N. & Govindrajan...
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