Finance Essay Examples

The selected article, titled ‘Beware Those ‘Beta Traps” by Ben Levisohn, was published in the Wall Street Journal on October 29, 2011. It discusses the risks associated with stocks that exhibit high price volatility. The volatility of a stock’s price movement is quantified by its Beta value. A Beta value of 1 indicates a strong […]

From an industry-based view, how would you characterize competition in this industry? At the beginning of 1990’s the competition in Europe depended on two major factors – regional integration in Europe and globalization. In 1990 the process of European integration speeded up and that’s why small firms were trying to develop their economies of scale […]

Every government is subject to political pressure and finding a consensus between political and financial aims is difficult. In practice, some choices may not further the company’s long-term development. Regarding the main goals of the French government, the privatization of Rhone-Poulenc (RP) is supposed to raise funds (essential to cut budget deficit) and decrease new […]

Where and under what circumstances is the “invest first, analyze later” approach appropriate? Where and when is it inappropriate? Give specific examples of technologies and other circumstances. Invest first is justified if a new technology is the reason for the investment. There may not even be data to base an analysis on. It is inappropriate […]

This article discusses the 1995 Initial Public Offering (IPO) of Netscape, which was successful thanks to their “Give away today and make money tomorrow” strategy. This approach enabled Netscape to dominate the web browser market, acquiring 75% of market share and becoming the most widely used browsing software. The crucial factor for their triumph was […]

What forces drove Mittal Steel to start expanding across national borders? Mittal Steel started expanding across national borders due to government regulations along with tough competition from SAIL and Tata Steel. Mittal Steel believed that it would be more likely to experience growth if the company would transpire outside of India. The company made its […]

In these most recent economic times, it is clear to see that the rift between the extremely rich and the extremely poor is expanding, with those in the middle being stretched to one extreme or the other. There seems to be no reconciliations for this ever-growing disparity, as the corporations that used to comprise solely […]

The investment in CPC appears to be the best option solely based on expected returns, with a 9.70% expected return. In contrast, the investment in MORELY has a lower 5.70% expected return and is more costly. The rate of return is primarily linked to the beta coefficient, meaning that higher returns indicate higher risk for […]

Vivendi entered the market as CGE, a water utility company with some activities in waste management under Guy Dejouany. Under him, the company grew rapidly expanding in a wide variety of businesses such as real estate, transport, healthcare and telecommunications. Dejouany’s management style focused on taking advantage of the 1980s which were a period of […]

1. What did Southport Minerals confront in 1964? Did the Firstburg investment opportunity fit well with Southport’s needs in 1970? Southport confronted a period of tightening supplies and rising sulfur prices which lead to a sharp increase in profitability for the company. Profit after tax had jumped from $12. 8 million in 1963 to $15. […]

General Foods Corporation is a major manufacturer of consumer food products. The corporation is organized into two separate divisions for its product lines in the United States and their foreign operations. Some of their major U. S. product lines include Post, Kool-Aid, Maxwell House, Jell-O, and Birds Eye. General Foods is considering introducing a new […]

Briefly discuss the two momentum strategies of Numeric Investors. First approach – Numeric Investors applies a strategy based on past changes in analysts’ estimates. They cluster the forecasts of company earnings and revise their earnings estimates incrementally, rather than making significant jumps. This approach prompts analysts to update their estimates and causes consensus estimates to […]

Ethical leadership practices are quite instrumental in determining the long-term sustainable economic prosperity of any investment. This is because such type of leadership enhances interpersonal relationships between employees and the management. Such are very important in mitigating employer-employee conflicts in the organization. Another importance of strong ethical leaders in business is that they serve to […]

Joe Ricketts, the Chairman and CEO of Ameritrade, has a goal to improve Ameritrade’s competitiveness in the deep-discount brokerage industry and generate higher returns for shareholders. His strategy involves leveraging emerging economies of scale to establish Ameritrade as the top global brokerage firm in terms of trading volume. He has a strategy to attract more […]

Introduction What is an American Depository Receipt? Mechanism Types of ADRs/GDRs5. Unsponsored ADRs/GDRs:5 Sponsored SDRs: Why ADRs and GDRs? To the Investors6 To the Issuers6 FCCB-Foreign Currency Convertible Bonds Features of FCCB8 Mechanism/ Regulations Criteria for issuing FCCBs Raising of funds through FCCB What happens if FCCBs do not convert? Taxation Pricing norms for FCCBs12 […]

In the “BBBY” EXCEL workbook’s “Historical Performance” worksheet, the numbers indicate the operating and financial condition of Bed, Bath and Beyond (BBBY). Based on the analysis of these numbers, it can be concluded that BBBY’s recent operating and financial condition is supported by the following critical observations: Study BBBY’s historical results in the “Historical Performance” […]

1. Last week we had two cases on economic arbitrage: both TCS and Haier exploited differences in labor costs between their home market and the U. S. How, if at all, does this fit with the idea developed in the context of the CAGE framework that similarities between countries tend to increase flows between them […]

Lewis Enterprises is considering relaxing its credit standards to increase its currently sagging sales. As a result of the proposed relaxation, sales are expected to increase by 10% from 10,000 to 11,000 units during the coming year; the average collection period is expected to increase from 45 to 60 days; and bad debts are expected […]

In 2013, there is strong competition in the shipbuilding industry due to decreasing order volume and low new building prices. In 2002, shipbuilding stocks increased initially because of a rise in orders, but quickly declined due to concerns about weak new building prices, resulting in stagnant earnings. Shipbuilders went into debt at that time. However, […]

The issuance of the currency is controlled by the Reserve Bank of India. The modern rupee is subdivided into 100 paisa (singular paisa), although this division is now theoretical; as of 30 June 2011, coin denominations of less than 50 paise ceased to be legal tender. Banknotes are available in nominal values of 5, 10, […]

Abstract Products can be classified into tangible or intangible, physical or logical. In marketing, insurance services are regarded as intangible products. These services have become commonplace in our daily lives and are offered by different insurance companies with various coverage options. Insurance coverage is mandatory in Western countries, and its popularity is also increasing in […]

Born into a poor, lower-class family, Milton S. Hershey dropped out of school before reaching the fourth grade. He developed an interest in becoming a confectioner. He believed there would be great demand for affordable, mass-produced chocolate, and thus he built the Hershey Chocolate Company. Hershey’s is now the largest producer of quality chocolates in […]