Finance
One difference between industries with high leverage and low leverage is a split between the need for fixed assets (high leverage) and a reliance on intellectual capital (low leverage). Airlines need planes, construction companies need equipment, and communications and hotel companies need infrastructure capacity. This compares with computers, drugs, biological products, educational services and electronics, all of which rely heavily on intellectual property to derive value. The conclusion that one can draw from this is that firms with a need for more fixed assets are more likely to borrow to acquire those assets. The borrowing can be long-term, to match the useful life of the fixed assets. Moreover, the interest and depreciation expenses can offset some of the costs of paying down that debt. Companies that are IP-intensive expense their research & development costs, making equity a more natural form of financing, as it tends to match up better in…...

Finance
Income Statement

Income

$36,000.00

COGS

Gross Income

$36,000.00

Expenses

Rent

$9,600.00

Car

$5,062.00

Food

$4,784.00

Clothing

$1,481.00

Communications

Other Expenses

$1,675.00

Operating Income

$12,438.00

Interest Exp

$1,800.00

Income before taxes

$10,638.00

Income tax

$10,800.00

Net Income

Balance Sheet

Assets

Cash

Car

$14,600.00

Supplies

Total Assets

$15,365.40

Liabilities

Car Loan

$14,600.00

Credit Card

$5,000.00

Total Liabilities

$19,600.00

Equity

-$4,234.60

a) Bauman Company's current and quick ratios for the past four years are as follows:

Item

2009

2010

2011

2012

Current Ratio

Quick Ratio

b) The firm's liquidity during the 2009-2010 period was generally good. Both the current ratio and the quick ratio during this period were relatively high, to the point where a creditor would be comfortable lending this company money in the short run. There was, however, a decline in both ratios over this period. The current ratio slipped slightly, and there was an equally slight slip in the quick ratio. Neither decline was strong, and both were partially reversed the next year. The decline was because the current liabilities grew at a faster rate than the current assets.

c) This information would neither support nor conflict with my evaluation. Inventory played a less significant role in my evaluation than the current liabilities…...

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Works Cited:

Investopedia. (2013). Definition of DuPont analysis. Investopedia. Retrieved March 7, 2013 from  http://www.investopedia.com/terms/d/dupontanalysis.asp#axzz2MnoRW6v9

Functional Perspective

Though financial systems change over time, their functional perspectives do not. Operational financial systems are expected to be similar in all economies, hence, its necessitated reliability in the system. A functional perspective is mainly used in doing financial analysis in a financial system. It provides a foundation for referring to a country's financial system. The financial perspective also assists in evaluating the system actions. Using a financial perspective in activity levels leads to risk management and transfer of resources inter-temporally.

Financial Innovation and Market ates

A financial innovation system is an integral part in analyzing financial systems. It is a scheme implicit in the state innovation systems. It mainly addresses the issues in business finance that are used in initializing the financing of technological and innovative developments. Financing policies and programs need to dig into dynamics of this system. The financial innovation systems strengthen capabilities of achieving developments (Wonglimpiyarat, 2011, pg…...

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References

Burton, M & Brown, B. (2009). The Financial System and the Economy: Principles of Money and Banking. New York: M.E Sharpe.

Deaves, R & Ackert, L. (2009). Behavioral Finance: Psychology, Decision-Making, and Markets. New York: Cengage Learning.

Houston, J. F & Brigham, E.F. (2009). Fundamentals of Financial Management. New York: Cengage Learning.

Rieger, M. O & Hens, T. (2010). Financial Economics. New York: Springer.

Furthermore, the assumed 'cooperation' of these assets when put in portfolio maybe perceived differently by the manager than the reality will be which can lead to losses.
On the difficulties side, first of all, the opportunity cost of capital is the hardest assumption to be drawn. Opportunity cost of capital is the expected rated of return which could be achieved from investing in a business endeavor with the same risk. It can be looked upon as the 'depreciation rate' of the future earnings for the investor. The opportunity cost of capital thus reflects the inflation rate and the risk of the project. For example, one can invest $1,000 today in project a and generate $1,100 in a year. This will give the expected rate of return of 10%. Also, another business idea with the same risk level exists, which will yield $1,200. As the risk for the project B. is…...

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Graham J., Campbell J.R., the Theory and Practice of Corporate Finance: Evidence from the Field, Journal of Financial Economics, 60, 2001: 187-243.

Russell Thomas, Business Value Analysis: Coping with Unruly Uncertainty, Strategic Leadership, 29/2, 2001, p. 16-23.

David Brookfield, Risk and Capital Budgeting: avoiding the pitfalls in using NPV when risk arises, Management Decision, Vol. 33, No. 8, 1995: 56-59.

The structuring of debt and its implications on cash flows, the structuring of payback periods, the use of fixed vs. adjustable-based loans, the use of accelerated loans, and conversely, the use of annuities, compound saving strategies, asset appreciation and portfolio planning all are based on finance. For the small business owner balancing these many strategies the need to trim down liabilities and aggressively manage debt while maintaining and growing annuity from customers is critical, in fact the lifeblood of their businesses. In many respects this same balance of managing liabilities and assets needs to pervade individual financing decisions. This goes beyond simply staying within budget; it requires the use of insightful tools and analytical techniques for managing to financial goals and objectives.

The pervasive use of financial analysis tools and key measures of risk vs. potential returns for managing personal and professional investments is invaluable. Quantifying risk and its implications on…...

Finance
Assessing a Potential Investment in Facebook

Under the concept of time value, money today is worth more than the same amount in the future (Nellis and Parker, 2006). This is over time, inflation will erode the value of money and in a years time $100 will buy less than it will buy today. If Facebook is offering a $100,000 bond, for one year, the investor, wanting to make a profit and account for the money that could be made elsewhere, will offer less that the face value.

Using the CAPM, shown in question 2, to allow for the time value of money, the interest rates I may get elsewhere and the risk associated with Facebook investments, the price I would pay is $86,333. However, if I were risk adverse I may want to discount this even further to a gain a higher risk premium, as there are other indicators of risk, such…...

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References

Bloomberg (2013) U.S. Generic Government 10-Year Yield, retrieved 16th September 2013 from  http://www.bloomberg.com/quote/USGG10YR:IND 

Nellis JG, Parker D, (2006), Principles of the Business Economics, London, Prentice Hall.

Yahoo Finance, (2013), Facebook Inc., retrieved 16th September 2013 from  http://finance.yahoo.com/q/ks?s=FB+Key+Statistics 

Yahoo Finance, (2013), Google Inc., retrieved 16th September 2013 from  http://finance.yahoo.com/q/ks?s=GOOG+Key+Statistics

In short, the financial institution offered loans to virtually all customers, regardless of their ability to reimburse the loan. As the clients defaulted on their payments, the company found itself in an impossibility to recuperate its investments. Gradually, the value of its share decreased, the investors lost interest and confidence, their assets devalued and they were eventually forced to declare bankruptcy. The same situation was present and Merrill Lynch.
4. Using debt to expand the business

The scenario presented in the article, as well as the entire crisis as a whole, has had the general impact of making economic agents more prudential in terms of financial operations. This could also translate in the desire to use lower levels of debt when financing a business endeavor. ather, one could be inclined to use more equity than debt. A first reason to explain this stand is given by the fact that shareholders are…...

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Reference:

Cheng, A., 2009, Urban Outfitters Upgraded by Barclays Capital, Market Watch,   last accessed on November 23, 2009http://www.marketwatch.com/story/urban-outfitters-upgraded-by-barclays-capital-2009-08-07 

Morgenson, G., September 27, 2008, Behind Insurer's Crisis, Blind Eye to a Web of Risk, The New York Times

Schwartz, DH, 2009, Debt vs. Equity -- Advantages and Disadvantages, Small Business,   last accessed on November 23, 2009http://smallbusiness.findlaw.com/banking_financing/be1_5debtvsequity.html 

2009, Urban Outfitters, Inc. Financials, Google Finance,   last accessed on November 23, 2009http://www.google.com/finance?q=NASDAQ:URBN&fstype=ii 

58 (YHOO), 13.38 (NKE) and 8.15 (BA). There are many explanations for the differences between the P/E ratios of these companies. One is the expected rate of growth. Each of these companies is operates mainly in one market, and is either the dominant player or in an industry with only one other major competitor. Some of the factors that contribute to the growth rate will contribute to differences in the P/E. For example, the stage of the industry life cycle is important. Nike and Yahoo are in industries that are entering maturity in western markets, but still have significant overseas growth potential. FedEx and Boeing, however, are in fuel-dependent transportation businesses that may be approaching a declining stage.
Another key potential factor is the company's earnings. Nike, for example, as high earnings, which since earnings are the denominator will lower their P/E. FedEx, on the other hand, has struggled in the…...

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Works Cited

McClure, Ben. (2008). Understanding Rights Issues. Investopedia. Retrieved October 24, 2008 at  http://www.investopedia.com/articles/stocks/05/062905.asp

S. Legal, 2008). This is primarily due to the fact that unlike equity issues, they do not dilute shareholder's equity or suppress share price. Debt issues are typically conducted with financial institutions only, rather than the markets. However, debt issues have several disadvantages. Debt is an obligation that must be paid. The obligation is both short-term (interest payments) and long-term (principle repayment). However, the payment of this obligation is tax-deductible, as it is in classified as an operating expense. This means that debt has an inherent tax advantage (Richards, no date), one of the main reasons why the cost of debt is typically lower than the cost of equity. There are other disadvantages to debt as well. Debt issues typically require collateral and/or restrictive covenants. For a greenfield investment, the firm would have to post existing fixed assets as collateral, not the new factory. Any restrictive covenants can impact management's…...

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Works Cited:

Hillstrom, Laurie Collier. (2009) Debt Vs. Equity Financing. eNotes. Retrieved July 9, 2009 from  http://www.enotes.com/management-encyclopedia/debt-vs.-equity-financing 

No author. (2008). Equity Financing Law & Legal Definition. U.S. Legal. Retrieved July 9, 2009 from  http://definitions.uslegal.com/e/equity-financing/ 

Richards, Daniel. (no date). Debt Financing -- Pros and Cons. About.com. Retrieved July 9, 2009 from  http://entrepreneurs.about.com/od/financing/a/debtfinancing.htm

They have relatively high unemployment, giving us access to some of those highly-skilled workers. There are several distinct cultural features of the Finns that conflict with American culture, but none so significant that they cannot be overcome with some training.
The Japanese have much higher cultural barriers. Japanese culture is insular and difficult to penetrate for outsiders. Many Japanese do not speak English. Japanese corporate culture is also vastly different from our own, and American firms have difficulty establishing American corporate values in Japanese subsidiaries. However, Japanese corporate culture is moving more towards our own, with cornerstones such as the keiretsu and lifetime employment replaced by western concepts. Moreover, the Japanese are hard-working, loyal, highly-educated and have high technological literacy.

It is recommended that we set up greenfield in Finland. The cultural similarities will allow us to translate many of our operational competencies easily to the new facility. Setting up in…...

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Works Cited

Eiteman, K.D., Stonehill, I.A., & Moffett, H.M. (2007). Multinational Business Finance (7th ed.). Boston, MA: Pearson Education, Inc.

Finance
Over the last several years, dividend stocks have become an important tool that is helping investors to realize above average returns. According to Paul (2012), these areas have been accounting for 40% of profits on the Dow Jones Industrial Average since 1930. This is because they can provide a number of benefits in assisting investors to realize their long-term objectives with him saying, "Those areas that offer sustainable and growing dividends hedge income streams against inflation, to provide growing income to investors without the need to sell shares and to signify strength to investors. These firms generally exhibit lower stock price volatility, while delivering attractive and even superior returns." This is illustrating how these kinds of securities can provide protection, lower amounts of volatility and higher returns to investors. (Paul, 2012)

In 2012, these returns have been greater for those companies in contrast with growth areas (such as the ussell 2000).…...

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References

Current Rates. (2012). Edward Jones. Retrieved from:  https://www.edwardjones.com/en_US/market/rates/current_rates/index.html 

Dow Jones Industrial Best Dividend Stocks. (2012). Top Yields. Retrieved from:  http://www.topyields.nl/Top-dividend-yields-of-DJIA.php 

Russell. (2012). Russell. Retrieved from: http://www.russell.com/indexes/data/US_Equity/Russell_US_index_returns.asp

Utility Common Stocks. (2012). Dividend Yield Hunter. Retrieved from:  http://www.dividendyieldhunter.com/Utility_Issues_By_Yield.html

Unionization is almost unheard of. China's economy has been built with over 200 million laborers that have moved from the countryside to the booming coastal cities. China is reducing the public payroll, which means the country is faced with the challenge of finding employment for millions of workers. This means that employers have the buying power. The result is that working conditions are often poor. There have been some strides made recently. For example, all workers now have contracts. As a result of new rules enacted earlier this year, costs have gone up along with worker's protections.
I would include all relevant information in my report. My duty as compiler of this data is to present the data. Making decisions based on the data is the role of higher executives. The CEO can determine whether or not it is worth doing business in China. Moreover, this knowledge is key to…...

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Works Cited

No author (2008). "Guide to Doing Business in China (2008 Edition)" Hong Kong Trade & Development Retrieved December 6, 2008 at  http://info.hktdc.com/chinaguide/index.htm 

Chen, Peter P.W. (2007) "China" Executive Planet. Retrieved December 6, 2008 at http://www.executiveplanet.com/index.php?title=China

No author (2008) "China" CIA World Factbook. Retrieved December 6, 2008 from  https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html 

No author (2008) "All-Around Financing" China Merchant Bank Retrieved December 6, 2008 at http://english.cmbchina.com/corporate+business/gofortune/fortune4.htm

Finance Management (Discussion questions)
First student

Accounts receivable (A)

Accounts receivable (A) refers to the means by which companies record sales and send statements and bills to their customers. In simple terms, A keeps track of the customers' unpaid bills and the company's revenues. When sales are recorded, invoices are sent to customers. Apart from the total debt owed by customers, invoices contain information about discounts offered by the company to customers as incentives to pay invoices in a timely manner (Baker & Powell, 2010). When the invoice is posted, the revenue is documented as income. In most cases, when the invoice is posted, the system increases or credits the balance within a revenue account. Since the client has not yet paid the invoice, the invoice amount also increases or debits an asset account referred to as accounts receivables. Most common forms of receivable accounts include customer accounts receivable, employee loans receivable and…...

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References

Berger, S. (2008). Fundamentals of health care financial management: A practical guide to fiscal issues and activities. San Francisco: Jossey-Bass.

Baker, H.K., & Powell, G.E. (2010). Understanding Financial Management: A Practical Guide. Oxford: Blackwell Pub.

Brigham, E.F., & Ehrhardt, M.C. (2011). Financial management: Theory and practice. Mason, OH: South-Western Cengage Learning.

Salek, J.G. (2006). Accounts Receivable Management Best Practices. Hoboken: John Wiley & Sons.

he overall impact of financial management is not only on the finances of the students but also their overall academic performance. he higher the overall expenses of a student, the higher will be his inclination to find work and invest more hours in earning a respectable wage as opposed to studying. Lyons (2003) in his study found that the overall ratio for students who felt that their academic performance was affected by financial mismanagement was 1:3. In contrast to that, Bodvarsson and Walker (2004) in their study asserted that, under controlled conditions, the likelihood of failure was more common amongst students who received some form of help form their parents or committees then those who were earning their finance personally.

here have been numerous studies that have focused on the financial management of college students, with special attention to their use of credit cards. Davies and Lea in their study (1995)…...

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The National Council on Economic Education (2005) conducted a study where they focused on the financial management strategies and priorities of different states within America. They found that a total of 38 states had incorporated a thorough and comprehensive finance management structures within their educational institutes, especially colleges so that the students could not only understand the impact of their financial spending but also learn to manage their finances intelligently in the long-term. Furthermore, they also found that out of these 38 states, 21 states were very strict in monitoring the proper application of the financial management principles.

The overall impact of financial management is not only on the finances of the students but also their overall academic performance. The higher the overall expenses of a student, the higher will be his inclination to find work and invest more hours in earning a respectable wage as opposed to studying. Lyons (2003) in his study found that the overall ratio for students who felt that their academic performance was affected by financial mismanagement was 1:3. In contrast to that, Bodvarsson and Walker (2004) in their study asserted that, under controlled conditions, the likelihood of failure was more common amongst students who received some form of help form their parents or committees then those who were earning their finance personally.

There have been numerous studies that have focused on the financial management of college students, with special attention to their use of credit cards. Davies and Lea in their study (1995) explain that the students with an overall high socioeconomic background prefer maintaining their lifestyle in college either through taking debts or merely expecting their self-financed meager wages to just a temporary phase. Some of the common factors that the researchers have discussed in their studies include: the impact of gender on financial management (Armstrong & Craven, 1993; Hayhoe et al., 1999, 2000), mind-sets on the overall usability of credit cards and their impact on financial management (Hayhoe et al., 1999, 2000, 2002; Roberts & Jones, 2001), the impact of marital status on financial management (Hayhoe et al., 2000), income (Hayhoe et al., 2000; Zhou & Su, 2000; U.S. General Accounting Office, 2001), and the impact of parental involvement on financial

According to Shim and Siegel (1999), "The price-earning ratio equals market price of stock divided by earnings per share. It is used by potential investors in deciding whether to invest in the company. A high P/E ratio is desirable because it indicates that investors highly value a company's earning by applying to it a higher multiple" (p. 343). A company's P/E ratio is dependent on a number of factors, including the quality of the company's earnings, the stability of those earnings, risk trends in earnings, cash flow, liquidity position, solvency status, and growth potential; however, financial analysts who believe that the company will generate future profits at higher levels than currently may value the stock higher than its current earnings justify (Shim and Siegel, 1999).

This speculative factor has frequently proven sufficiently compelling to add as much as 4 percentage points annually to the fundamental return, or to reduce it by…...

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References

Black's Law Dictionary. (1990). St. Paul, MN: West Publishing Co.

Bogle, John C. (1999). Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor. New York: Wiley.

Desmet, Driek, Tracy Francis, Alice Hu, Timothy M. Koller and George a. Riedel. (2000). "Valuing Dot-Coms," the McKinsey Quarterly, 148.

Droms, William G. (1997). Finance and Accounting for Nonfinancial Managers: All the Basics You Need to Know. Cambridge, MA: Perseus Books.

There are a couple of ways to approach this. You can focus on research that has already been done, or you can survey elderly people in your community who live alone. That may be difficult, especially if you live in a small town or you don't know many people, but it can provide you with valuable information if you can get enough people to take the survey. You also need to decide what you want to know about those elderly people who live alone. Are you interested in their health? Their safety? How they handle daily life tasks or emergencies?....

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To evaluate the US healthcare system, there are two areas that have to be considered. One of these is patient care, and the other is finances. A healthcare system can only be effective if patients are getting the care they need, and if they\'re getting it in a timely manner. The system also has to be sustainable, and if it is not possible to afford the system, then changes need to be made to it. These changes should not compromise the care given to patients, though, and it can be difficult to provide proper, quality care at a price that....