Financial Industry
There appears to be a disjointed understanding concerning the functioning of a capitalistic economy and its use of money. Financializaition is a mostly new model of the use of money as a valuable resource in and of itself. Money is essentially fetishized as the most prominent capitalists strive to gain more and more money. Money makes the world go around in many ways, but there lies a question in to how humanity uses the precious inventions of trade and commerce in more reasonable and just manner that excludes the negative aspects that financial institutions and their machinations attempt to dominate the economic progress of a people.

The purpose of this essay is to argue that financializaition and its offspring intermediaries have set the capitalistic world balance off a productive trajectory. The greed of those who seek value in material wealth without any real or substantial backing is at the heart…...

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References

Afsar, M., Afsar, A., & Mecik, O. (2014). Financializaition Process and the Outcomes in Developed Countries. International Journal of Economics and Finance, 6(12), p192.

Cobb, Joel. "How firms shape income inequality: Stakeholder power, executive decision- making, and the structuring of employment relationships." Academy of Management Review (2015): amr-2013.

Crotty, J. (2009). Structural causes of the global financial crisis: a critical assessment of the 'new financial architecture'. Cambridge Journal of Economics, 33(4), 563-580.

Cushen, Jean. "Financializaition in the workplace: Hegemonic narratives, performative interventions and the angry knowledge worker." Accounting, Organizations and Society 38, no. 4 (2013): 314-331.

Apprenticeship Proposal An apprenticeship at Fidelity Investments would be a great way to start off your career in finance. The finance industry is always on the lookout for up and coming talent that has both know-how and experience in the field. An apprenticeship offers people the opportunity to immerse themselves in the world of investments by shadowing professional traders, portfolio managers and financial advisors as they interact with clients, plan investment strategies, offer tips and guidance to investors, and focus on achieving positive returns for clients. As the U.S. Department of Labor (2017) points out in ApprenticeshipUSA, “the financial industry, including the banking and insurance sectors, is critical to our country’s economic competitiveness” (p. 1). As such, it is highly important that Fidelity do its part in helping people become talented and trained in this field. The apprenticeship is one great way to ensure that this happens.
At Fidelity Investments, an apprentice…...

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References

Pratt, D. and Johnson, J. (1998) The Apprenticeship Perspective: Modelling Ways of

Being in Pratt, D. (ed.) Five Perspectives on Teaching in Adult and Higher Education Malabar FL: Krieger Publishing Company

U.S. Department of Labor. (2017). ApprenticeshipUSA. Retrieved from

 https://www.dol.gov/apprenticeship/pdf/FinancialSector.pdf 

Finance
Financial Analysis of Morrison's PLC

Morrison's, the UK supermarket may be assessed as a potential investment. The firm may be considered by looking at the way that the share price is performing, comparing it to its past performance as well as benchmarking the performance against the industry

The share price will reflect the market expectations, so as well as looking a past performance it is also necessary to look to the potential future; this is often achieved by looking at the financial ratios of the firm considering the performance both vertically and horizontally.

Morrison's appears to have had a relativity mixed year; the share price stands at 277.60, closing price on the 24th August, 2012 (FT, 2012). The share price has been volatile, increasing and decreasing, over the last 52 weeks the high has been 340.00 and the low has been 261.00 (Yahoo Finance, 2012). Over the year the share price has decreased…...

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References

Baye Michael, (2007), Managerial Economics and Business Strategy, McGraw-Hill/Irwin

Elliott B, Elliott J, (2011), Financial Accounting and Reporting, London, Prentice Hall.

Financial Times, (FT), (2012), WM Morrison Supermarket PLC, retrieved 25th August 2012 from  http://markets.ft.com/Research/Markets/Tearsheets/Summary?s=MRW:LSE 

Financial Times, (FT), (2012), Tesco PLC, retrieved 25th August 2012 from  http://markets.ft.com/Research/Markets/Tearsheets/Financials?s=TSCO:LSE

Finance
Any Asset Pricing Theory forms the basic foundation of finance theory, in that it deals with the value of any asset under unknown or uncertain circumstances. The relationship between an asset and its price is the mainstay of the asset pricing theory: the lower the price, the poorer the expected performance. The Arbitrage Pricing Theory derives from this theory. The basic idea in the APT theory is that any sort of risk in asset returns must not affect the pricing of the asset in any way; it must depend on the covariance of assets with the risk factors. (Bayesian Approach of the Arbitrage Pricing Theory) The APT originated from Stephen oss, 1976-1978. oss had used a statistical procedure for assets returns, with the belief that there are in existence no arbitrage probabilities. The APT must of necessity involve a lot of risk taking processes, (Definition of Arbitrage Pricing Theory.)

While CAPM,…...

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References

An Introduction to Investment Theory" Retrieved at   Accessed on 29 July, 2004http://viking.som.yale.edu/will/finman540/classnotes/class6.html .

Bayesian Approach of the Arbitrage Pricing Theory" Retrieved at   on 29 July, 2004http://64.233.167.104/search?q=cache:Sa6l536IAccessed 

Capital Asset Pricing Model" Retrieved at   Accessed on 29 July, 2004http://www.investorwords.com/698/Capital_Asset_Pricing_Model.html .

Definition of Arbitrage Pricing Theory" Retrieved at   on 29 July, 2004http://economics.about.com/cs/economicsglossary/g/apt.htm?terms=economic+theoryAccessed 

"
3) a. If $1.25 represents a 40% dividend payout ratio, earnings per share are $3.13. A six percent return (the required return) would put future earnings at $3.32. ((3.32-3.13)*100)/3.13 = 6.07%

b. 40% (the dividend payout ratio) of $3.32 (future estimated earnings) is $1.33

c. The price of the stock cannot be calculated accurately with the information given, however if its is assumed that the earnings per share (currently $3.13 with dividends of $1.25 and a dividend payout ratio of 40%) represent the 20% return on equity, then the price is simply five times the earnings per share, or $15.65.

d. assuming the dividend payout ratio and return on equity remain constant at 40% and 20% throughout this period, a and the same relationship for the ROE and stock price, in the first year, a dividend of $2 means EPS increases to $5, translating to a stock price of $25; four percent dividend…...

Finance
Starbucks is engaged in the quick service food industry, primarily focused on coffee and related snacks. The company has come under strong competitive and economic pressures recently, and this has impacted its performance. However, Starbucks has turned around its financial performance in the past year, which has restored investor confidence in the company.

Starbucks is both liquid and solvent. In the past year or so, they have improved their liquidity and solvency ratios. They added long-term debt to their balance sheet in 2007 but have not increased this debt since. The company's margins have slowly eroded over the past five years, mainly due to a decline in customer side pricing power as the result of competition from low price providers. Starbucks has also seen its efficiency erode, likely due to expanding into less-saturated markets around the world in search of growth. Overall, however, the company's financial performance has been strong.

Starbucks stock…...

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Works Cited:

Allison, M. (2010). Starbucks tests new names for stores. Seattle Times. Retrieved October 24, 2010 from  http://seattletimes.nwsource.com/html/localnews/2009479123_starbucks16.html 

Groom, N. (2007). Starbucks shares hit 18-month low -- time to buy? Reuters. Retrieved October 24, 2010 from  http://www.reuters.com/article/idUSN1541189820070515 

MSN Moneycentral: SBUX. (2010). Retrieved October 24, 2010 from  http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=SBUX 

Starbucks 2005 Annual Report. Retrieved October 24, 2010 from http://library.corporate-ir.net/library/99/995/99518/items/178286/Annual_Report_2005_part2.pdf

Finance
Coca-Cola and Pepsi are the world's two largest producers of non-alcoholic beverages. Both companies are global in scope, and market hundreds of different products. Each has multiple billion-dollar brands. Yet, there are significant differences between the two. Coca-Cola has typically focused on its soft drink businesses, while Pepsi has sought to build market size through diversification. Corporate restructuring has allowed Pepsi to divest itself of its restaurant businesses and its bottling business, leaving the company in recent years with a structure similar to that of its rival and a focus on the beverage and snack food industry. The intent of this paper is to analyze the two soft drink giants in the context of their finances. The financial performance of these companies derives from their business practices, so some attention will be paid to strategic issues in this report. The bulk of the report, however, will be focused on the…...

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Works Cited:

MSN Moneycentral: Coca-Cola Company. (2010). Retrieved October 23, 2010 from  http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=KO&lstStatement=CashFlow&stmtView=Ann 

MSN Moneycentral: PepsiCo. (2010). Retrieved October 23, 2010 from  http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=PEP 

PepsiCo 2009 Annual Report. In possession of the author.

Coca-Cola Company 2009 Form 10-K. In possession of the author.

Finance/Management Accounting
The topic of finance and managerial accounting inclusively, are broad and incorporate a critical skill set in the modern day business student. Finance involves corporate and investment finance and managerial accounting is complimentary as it involves cost accounting and essentially stresses cost management. Together, these topics provide a comprehensive financial analysis skill set yielding capability in solving the day's most critical business financial quandaries. The literature review will seek to narrow down the literature and funnel the topic into the main financial analysis area.

According to Musvoto, (2011), "Studies in accounting measurement indicate the absence of empirical relational structures that should form the basis for accounting measurement. This suggests the lack of objectivity of accounting information. Landmarks in the development of finance theory indicate the use of accounting measurement information as a basis for their development. This indicates that subjective accounting information is incorporated in finance theory. Landmarks in finance…...

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References

Allen, D. (1992). Financial management: The leading edge of management accountancy. Strategic Finance, 73(12), 53. Retrieved from  http://search.proquest.com/docview/229748882?accountid=13044 

Black, T., & Gallagher, L. (1999). Are physical capacity constraints relevant?: Applying finance-economics theory to a management accounting misconception. Australian Journal of Management, 24(2), 143. Retrieved from  http://search.proquest.com/docview/200627217?accountid=13044 

Brewer, P.C. (2008). Redefining management accounting. Strategic Finance, 89(9), 26. Retrieved from  http://search.proquest.com/docview/229763529?accountid=13044 

Coakley, J.R., & Brown, C.E. (2000). Artificial neural networks in accounting and finance: Modeling issues. Intelligent Systems in Accounting, Finance and Management, 9(2), 119. Retrieved from  http://search.proquest.com/docview/214368060?accountid=13044

Finance & Management
Skyline Corporation

The acid test, or quick, ratio adjusts current assets by removing less liquid assets, primarily inventories. It is expressed as coverage of so many times and is used to calculate working capital as the excess of current assets over current liabilities. By subtracting the inventories, or less liquid assets, it adjusts the assets to calculate for a truer working capital picture.

The current ratio measures short-term solvency, the extent current assets are sufficient to cover current liabilities. This ratio relates total current liabilities to cash, marketable securities, and receivables. If the current ratio is less than 1 and a competitor in the same industry is higher than 1, it shows that the company is carrying less inventory than its industry counterparts.

The inventory turnover ratio measures the liquidity of the inventory by calculating the number of times on average a company sells the inventory during a period. Analysts compute…...

Finance
Wal-Mart would probably not bother merging with another retailer unless it was overseas, but would instead look to acquire a strategic partner with some of its other success factors, like logistics or information systems. A good example of such a company is Magellan Technology, a company specializing if FID technology, something that has been an important part of Wal-Mart's logistics strategy in recent years (Traub, 2012).

Wal-Mart has basically three options for such an acquisition -- equity, cash or a combination thereof. When purchasing a private company, Wal-Mart is more likely to use cash I would suspect, as that company's owners might not want to own stock in Wal-Mart. One of the big reasons is that Wal-Mart is so much larger than Magellan, and Magellan's former owners would probably not benefit much from ownership of Wal-Mart shares since their involvement with Magellan is not going to be a major factor on…...

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References

Berfield, S. (2013). Where Wal-Mart isn't: Four countries the retailer can't conquer. Business Week. Retrieved January 20, 2014 from  http://www.businessweek.com/articles/2013-10-10/where-walmart-isnt-four-countries-the-retailer-cant-conquer 

Traub, T. (2012). Wal-Mart used technology to become supply chain leader. Arkansas Business. Retrieved January 20, 2014 from  http://www.arkansasbusiness.com/article/85508/wal-mart-used-technology-to-become-supply-chain-leader?page=all

It was also very interesting to note that many large suppliers may actually step in to help their troubled client. Again, this makes sense, especially if the client is a long-term business partner doing a major amount of business with the company. Saving a company actually makes sound financial sense in these cases, and uniting with a group of company creditors is also a good idea. It seems that for the most part, when a company runs into financial difficulties, if they are a viable and respectable company, there are resources available to help them regain their footing and continue business. This shows how important it is to always have excellent relationships with customers, no matter what business you engage in.

eferences

Brownstein, Howard and Edward Gavin. "When Bad Things Happen to Good Customers." Business Credit, June 2003, retrieved from ProQuest…...

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References

Brownstein, Howard and Edward Gavin. "When Bad Things Happen to Good Customers." Business Credit, June 2003, retrieved from ProQuest 27 June 2007.

Finance
Managing exchange rate risk can be a daunting task for many international firms attempting to expand overseas, acquire new companies, or simply manage its cash flows. Globalization has created a dynamic environment in which competition can arise to disrupt entire industries. Aspects such as technology, pharmaceuticals, banking, and automobiles have all experienced rapid change as a result of globalization and the competitive forces that underline it. As a result, companies, particularly smaller firms, have a higher propensity to experience volatile earnings overtime. Aspects that impact one sector of the globe can have a residual impact on other areas of the individual firm or industry. Managing exchange rates is therefore a viable option for firms to reduce volatility in earnings while subsequently managing its cash flows from operations. Below, is a 5 step program which could be implemented by a firm attempting to manage its exchange rate risk after an acquisition.

The…...

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References

1. Jorion, Philippe (2009). Financial Risk Manager Handbook (5 ed.). John Wiley and Sons. p. 287. ISBN 978-0-470-47961-2.

2. Bartram, Sohnke M. (2006). "The Use of Options in Corporate Risk Management." Managerial Finance 32 (2): 160 -- 181

Sorkin, however, posits no argument per se. ather, his book offers insight into how the financial crisis manifested from a far more personal perspective of those involved than anything else. The book is informative in nature, and give insight into some of the thought processes and activities those on the outside may not otherwise be exposed to or privy to. The title of the book sums it up best, and the book outlines how the banks and the primary players and stakeholders have become too big to fail. The book highlights the self-interest of those in charge of some of the biggest financial institutions in the world and their blatant disregard for Main Street.
The book has a place in the larger academic debates raised within public knowledge because it adds to the public's real knowledge of those involved in the nation's financial industry and government offices. Instead of speculating…...

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References

Cassidy, J. (2008). Anatomy of a meltdown, New Yorker, 84(39), 1-756.

Cherry, C. (1998). God's new Israel: Religious interpretations of American destiny.

UNC Press Books.

Cohan, W. (2010, Nov. 27). The power of failure. New York Times. Retrieves from www.thenewyorktimes.com.

Finance
Discuss some of the motivations firms have for setting up production facilities in other countries. Will the effect on the host country differ depending upon the motivation? Explain. Will the effect on the source country differ depending upon the motivation? Explain. What relationship might trade barriers (or the lack of trade barriers) have in determining a company's primary motivation for producing abroad?

The reasons for the foreign investment are high profit returns, and the rate of return is dependent upon the capital invested, the tax reductions and employees' fund. The foreign investment or production company is highly welcomed by the government because the company is expected to bring in foreign exchange. THz enhances the purchasing power of the country in international currency; thereby the nation has to rely minimum on loans and international borrowing.

The major motivation that the international investor has towards foreign investment is that cheap labor that the company…...

5x -- 50,000
200,000 / 7.5 = 26,6667 units

1e) the ROE for the first scenario is 140,000 / (0.85*350,000) = 47%

the ROE for the second scenario is 140,000 / (0.65*350,000) = 61.5%

The difference is 61.5 -- 47 = 14.5%

1f) the dividend payout structure is going to be as follows. The taxable income will be as follows:

($200,000 * .35) = $70,000 of debt. The interest will be (70,000)(.105) = $7,350

So taxable income will be $200,000 -- 7350 = $192,650

Tax at 30% is $57,795

Thus, net income is $192,650 - $57,795 = $134,855

The equity needed for the capital budget is (.65)(150,000) = $97,500

The dividends are therefore calculated as $134,855 - $97,500 = $37,355

The payout is therefore $37,355 / $134,855 = 27.7%

2. a) the company faces some risks if it tightens the credit policy. It will reduce its accounts receivable if it does this, and the result will be that its liquidity ratios will decrease.…...

Islamic finance literature reviews interpret Bay Bithaman Ajil transactions as a form of Islamic financing that involves deferred payments with a pre-agreed profit margin. Bay Bithaman Ajil transactions are commonly used in Islamic banking and finance to provide financial solutions that comply with Islamic principles and Sharia law. This literature review aims to provide an overview of how Bay Bithaman Ajil transactions are perceived and analyzed in Islamic finance literature. One of the key aspects of Bay Bithaman Ajil transactions is the deferred payment structure, where the buyer purchases an asset from the seller at a pre-agreed price payable in....