Where E(Ri) is expected return on asset i, Rf is the risk-free rate of return, E(Rm) is expected return on market proxy and (i; is a measure of risk specific to asset i. This relationship between expected return on asset i and expected return on market portfolio is also called the security market line. If CAPM is valid, all securities will lie in a straight line called the security market line in the E(R), (i frontier. The security market line implies that return is a linearly increasing function
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deliver multiple-interface software along with a range of accounting applications - all at record-setting speeds. An incentive-driven sales force was established in order to market to large corporations that would benefit the most from its software. In return, Oracle saw growth rates as sales increased by nearly 700 million dollars from 1988 to 1990. Oracle’s key successes and risk factors can both be traced to their marketing and R&D costs, as well as expanding licensing agreements with hardware
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specialist)2. Overall, after calculating a few of Ocean Manufacturing ratios and comparing them with the industry, the company’s figures are not performing up to others in the industry. ROE = NI/Stockholder Equity (2011,2010)= 8.9% and 7.1%ROA = NI/Assets= 4.5% . 3.8%Both return on equity and assets are lower than industry ratios but are improving.Accounts Rec Turnover—could not calculate without % of credit sales from cash sales. Profit Margin = Operating income/ Sales(rev) = 5.5%, 6.0%PM are
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a. Explanation on corporate integrity pledge programme Corporate integrity must be defined not only by consistency and alignment between what one does and what one says, but also by relational awareness.( Marvin Brown, March 22, 2006, Corporate Integrity and Organizational Design , www.ssm.my) Corporate integrity is important in creating a strong foundation for Malaysia’s existing and future economic prosperity. The government has put in effort to emphasize the importance of integrity and to reduce
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discounted future value of corporation (where future value is determined using expected cash flows or other estimate of value). McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved 6- 5 6- 6 Expected Return Expected Return - The percentage yield that an investor forecasts from a specific investment
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other means of financing including sale of new equity sales. This argument relies on a number of assumptions. For instance, investors do not care whether the kind of dividends they receive is from capital gains income or dividend income. There is also the assumption of no issuance costs. In respect to these, if organizations do not have to pay the cost of issuance when they are issued with new securities, they may be able to obtain the required equity capital on the similar cost. This is irrespective
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plenty of free cash flow and has a strong, cash-loaded balance sheet (Harry, 2012). It is important to highlight that since 2008 and year over year, Garmin Ltd. has seen Return on Assets declined 13.70% to 11.30% from 25% in 2009 and Return on Equity (REO) declined 17.5% to 15.40% from 32.90% (See Appendix A and B). Return on Equity encompasses Garmin’s ability to leverage the three pillars of corporate management—profitability, asset management and financial leverage (Montley Fool Staff, 2008).
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Current Ratio A liquidity ratio that measures a company's ability to pay short-term obligations. The Current Ratio formula is: [pic] The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if
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performance was stable with consistent growth and profitability. In the year 1981, the firm was able to increase sales, earnings, and dividends for 29 years. However, this growth has been steady between 10% and 15% annually. Moreover, AHP had 25% return on equity in the 1960's, but it has risen tremendously to 30% in the 1980's. AHP had been able to finance this growth internally while paying out almost 60% of its annual earnings as dividends. Unfortunately, AHP's price- earnings ratio has fallen by
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income statement items and ratio analysis are used to understand the financial position and financial effectiveness of the company. The report studied the 2013 - 2014 period. 1. The Common-Size Analysis of the Assets, Liabilities and Shareholders' Equity Table 1. Assets Trend Analysis, in million USD Indicators | 2013 | 2014 | Absolute change, +/- | Percentage change, % | Cash, cash equivalents | 14259 | 13844 | -415 | -2.91 | Marketable securities (short-term investments)
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