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Financial Analysis Marks & Spencer Plc. Abstract The company has performed well in the underlying area however its performance has been impacted by a series of non-underlying items. The trading profitability is consistent with prior years. While sales have been higher than last year for the Food business, the Clothing and Home segment has[…]
Hedging by non-financial means or internal hedging is simple to use and cost effective. This type of hedging could minimise exposure to foreign exchange risks and can be applied irrespective of changes in the market. Internal hedging techniques may include leading and lagging the exchange transactions, local currency invoicing, a natural hedge, currency diversification, currency[…]
Introduction This essay begins with an introduction to agency theory and agency costs as compiled from various literature sources. The author then delves into why agency costs exist and explains the components of agency costs by analysing a sole-proprietorship firm that brings in outside equity-holders and/or debt financing. The analysis of the agency costs is[…]
1. Literature review example (This is a section of a larger body of work) A strong assumption behind the efficient market hypothesis and the CAPM is that financial markets are perfect. In other words, trading in financial securities is costless, untaxed and investors can effortlessly, as well as instantly, obtain and process information. These assumptions[…]
Abbreviations used: MPC – Monetary Policy Committee BoE– Bank of England QE – Quantitative Easing _______________________________________________________________________ Introduction QE refers to an unconventional monetary policy undertaken by the central government or the monetary authority of a country to revive consumer spending and promote economic growth. This is done by purchasing government or other securities from the[…]
INTRODUCTION Since the 1970s stochastic interest rate models have played a central role in finance, both in research and in practical applications. These models were immediately implemented by practitioners to accurately price financial securities, like interest rate derivatives. Their pricing, however, was mathematically far more demanding than equity pricing, due to the fact that the[…]
Introduction When a country like the UK engages in international trade, it will obtain receipts from and make payments for current transactions in goods and services abroad. A current account balance can be defined as the disparity between a country’s receipts from and payments for current transactions with other countries (OECD Factbook, 2009 pp. 86).[…]
Set-up As a portfolio manager at Goldman Sachs Fixed Income, Currencies and Commodities (FICC) division, I was given 10 million USD to invest in a mix of high grade corporate bonds and Treasury securities. The following bonds have been chosen with careful analysis of markets and past performance of these particular securities. The choice also[…]
Q-1 Critically evaluate the Dividend Valuation Model (DVM) and the Capital Asset Pricing Model (CAPM) and using the models estimate the values of your chosen company. Critically compare the estimated price with the current market price and comment on what may be a fair offer for the shares of your chosen company and state your[…]
Introduction This essay will firstly introduce the aim and structure of the portfolio. This will be followed by assessing each investment of the portfolio, discussing the rationale behind each investment and analysing and evaluating each one on its performance over a two month period. Finally, improvements will be considered that would make the portfolio an[…]
Financial statement analysis coursework ‘A Valuation of Thornton’s Plc’ Thornton’s Plc is a company incorporated- and operating in the UK. Its shares are listed on the London Stock Exchange with a current market value of about ₤53.16 million. It is a manufacturer, retailer and distributor of high-quality chocolate confectionery and other sweet foods. The company[…]
1.Introduction The efficient market hypothesis introduced by Fama (1970) suggests that at any given time share prices fully and fairly reflect all historical and newly available information. The theory is associated with the random walk model which implies that the future share price movements represent random deviations from past share prices. Therefore, the theory asserts[…]
Introduction Manufacturing in industrialised countries has been dominated for a significant part of the twentieth century by what are now known as Fordist and Taylorist production systems. In a response to economic and market changes there was an increase in the use of alternative Japanese production methods accompanied by a fall in manufacturing in the[…]
Introduction Tomkins plc is a global engineering and manufacturing group with market and technical leadership across its three businesses; Industrial & Automotive, Air Systems Components and Engineered & Construction Products (Hemscott Database, 2006). Tomkins is executing a focused growth strategy, targeting three key growth areas: Power Transmission; Aftermarket; and Building Products. The group is geographically[…]
The purpose of the following report is to analyse the dividend policy of Logica PLC and BP PLC over the last five years. Firstly, the dividend policy of BP PLC as well as Logica PLC over the last five years will be analysed. Secondly, based on that analysis, the dividend policies of both companies will[…]
Executive summary This paper analyses the strategic business units (SBUs) of BP Solar and Shell Renewables within the alternative energy industry, which are part of British Petroleum (BP) and Royal/Dutch Shell Group (Shell), the world’s second and third largest energy companies. Environmental analysis highlights the increasing volatility of the global energy market, which is driven[…]
ABSTRACT Consumer buying behaviour is a complex phenomenon, which is comprised of a bundle of decision-making processes, economic determinants and market stimuli. Consumer purchasing behaviour has been attracting the interest of a great number of academic and commercial parties for many years. The complexity of the processes with which consumer purchasing can be associated has[…]
Summary This analysis of Carpetright plc and Topps Tiles plc has been undertaken in order to choose which one to invest in for the medium or long term, taking on a medium amount of risk. Ratio and financial statements analysis demonstrate that the major problem of Topps Tiles is the great amount of debt and[…]
Introduction In this paper the impact of dividend policy of the companies on the firm’s share prices is analysed and different views in the context of the semi-strong form of the efficient market hypothesis are contrasted. The overview of the traditional and most recent empirical investigations of the stock market reaction to the dividend announcements[…]