Investment Essay Examples

Server Virtualization: A Method to Maximize Return on Investment Definition of Server Virtualization Server virtualization is an environment in which there is one physical server and there is software running, called a hypervisor, which allows several independent instances of operating systems (i. e. virtual machines) to run simultaneously. Ou (2006) states the server virtualization is […]

The Boston Consultancy Group Matrix, also referred to as the BCG Matrix, is utilized for categorizing product lines into four groups in order to suggest maintaining a balanced range of products. The model suggests that products with low market shares and growth rates be classified as Dogs. While some companies may consider phasing out these […]

Parties involved in the case are the Ponticas Couple who resided in an apartment complex owned by KMS Investments. Stephanie Ponticas requested the help of Dennis Graffice, the apartment resident manager, on September 8th, 1978, to fix a problem with an appliance. Graffice observed that Ms. Ponticas was alone and learned that her husband was […]

The Philippine Stock Exchange, Inc. (“PSE” or the “Exchange”) is a private organization that provides and ensures a fair, efficient, transparent and orderly market for the buying and selling of securities. PSE traces its roots from the country’s two former bourses: the Manila Stock Exchange (“MSE”) and the Makati Stock Exchange (“MkSE”). Founded in March […]

Current Ratio It is a liquidity ratio that measures a company’s ability to pay short-term obligations. Also known as “liquidity ratio”, “cash asset ratio” and “cash ratio”. By putting to test a company’s financial strength, deduces company’s ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The […]

Laura Martin: Real Options and the Cable Industry Introduction Laura Martin, an equity research analyst for cable stocks, believes that the best way to value cable stocks is through creative methods such as real options and not through more traditional or typical valuation methods such as EBITDA multiples, ROIC analysis and DCF analysis. In 1999 […]

The Signal Cable Company, located in Tarrytown NY, is a cable manufacturer for analog and digital interconnects, speaker, video and home theater cables. The company is well known for “highest standard in quality and customer service” and their “superior design” and “No-Hype approach resulted in one of the best price/performance ratio in the industry” (www.signalcable. […]

Ever since its introduction by Sharpe-Lintner-Black, the Capital Asset Pricing Model (CAPM) has been the subject of criticism, appraisal, and continuous efforts for improvement. These efforts include the Reward Beta approach (Bornholt, 2007), conditional CAPM, and the consumption CAPM. Professor Liang Zou at the Universiteit van Amsterdam introduced the Dichotomous Asset Pricing Model (DAPM), which […]

When calculating beta for publicly traded companies on financial websites, the methods used can vary. Beta is a measure of an asset’s risk compared to the market, but different websites have different assumptions and therefore calculate beta with different values. This can result in a variance in beta as high as 0. 50. In order […]

Company analysis Comparative analysis Financial Ratio Analysis Gearing/Financial Risk Evaluation of Financial Analysis Introduction The objective of financial reporting/statements is to provide information about the reporting entity’s financial performance and financial position that is useful to a wide range of users for assessing the stewardship of the entity’s management and for making economic decisions. This […]

During January-August of this year, foreign investments in the Azerbaijani economy decreased by 7.3% compared to last year’s investment. Foreign investors contributed a total of 1 billion 572.2 million manat. According to the State Statistic Committee, Great Britain continues to hold the top position in terms of investment share in Azerbaijan, as observed in previous […]

There has been a flurry of articles about the relative merits of using the arithmetic mean (AM) versus the geometric mean (GM). The Ibbotson SBBI Yearbook took the first position that the arithmetic mean is the correct mean to use in valuation. Allyn Joyce’s June 1995 BVR article initiated arguments for the GM as the […]

Topic: Analysis of Annual reports for personal investment Executive Summary Assignment Background: In this assignment, I take the role of an investor looking to invest an amount of USD 50,000 in the capital of a public limited company. To wisely invest, one needs to do a thorough comparative study of the annual reports, stock market […]

Executive Summary This report tries to analyze and value the share of Qantas Airways limited from the perspective of a potential investor. The report has used share valuation techniques to put a value on the share of the company and recommends whether a potential investor should invest in the company at the prevailing market price […]

Current Situation Corporate Overview and Financial Performance: PepsiCo, Inc. is one of the most successful consumer products companies in the world, with 2000 revenues of over $20 billion and 125,000 employees. The company consists of: Frito-Lay Company, the largest manufacturer and distributor of snack chips; Pepsi-Cola Company, the second largest soft drink business and Tropicana […]

Executive Summary The report aims to evaluate two portfolios: an index tracking portfolio and a speculative capital growth portfolio. Both portfolios were active from April 21, 2008, to May 20, 2008. The index tracking portfolio seeks to replicate the returns of the ASX/S&P 500 New All Ordinaries price index, while the speculative capital growth portfolio […]

Discuss the various theories regarding the importance of dividend policy in Question 1. Under what circumstances would management opt to increase dividends? The Dividend Irrelevance Theory, analogous to their findings about capital-structure irrelevance, posits that dividend policy is irrelevant in situations where there are no bankruptcy costs or taxes. This theory, called the dividend-irrelevance theory, […]

The reason for the emergence of trans-national corporations (TNCs) can be traced back to the continuous process of globalization that began after World War II. Gillies’ 2005 report shows that there has been a considerable rise in multinational direct investment, which expanded from 4.4% of worldwide production in 1960 to 23% in 2003. UNCTAD (2007) […]

The WD Company’s Financing The decision of whether or not to hedge the exchange rate exposure ultimately depends on Walt Disney (WD) manager’s attitude about risk and philosophy concerning the proper role of the treasury functions in the overall management of the firm. Arguments can be made for both sides of this issue. On one […]

Summary There are several external and internal factors that contributed to the changes in overall financial health for Wolcott Department Stores and Designers, Inc, two credit risks to Premier Furniture. Both companies’ credit situations suffered from a downward turn in the market and a national rise in interest rates. To combat this, they were forced […]

1. Why should a firm have a capital structure policy, i. e. a target debt ratio? A capital structure policy aims to balance the trade-off between the benefits of debt financing (interest tax shield) and the costs of debt financing (financial distress and agency costs). Every firm should set its target capital structure such that […]

Problems In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity […]