Long-Term Investment
Google operates in the online advertising business. However, when the company had its moment with regulators it was in the "search engine" business. This effort was undertaken by both U.S. And EU regulators (Crawford, 2012). The issue at hand was not whether Google had legitimately come to dominate Internet searches -- it built its dominance on technological superiority rather than through acquisitions -- but whether or not the company was using this dominance to promote its other ventures. This is still an odd question, given that these other features are still not where Google or any other company earns money. However, the case is similar to that which Microsoft faced for bundling Internet Explorer in with Windows. While many companies offer browsers, nobody can make any money on them anymore.
Crawford (2012) notes, however, that Google is moving towards using personalized technology, vertically-integrated ecosystems (using the Android operating system and…...
mlaReferences
CBS. (2013). FTC: Google does not violate antitrust laws. CBS News. Retrieved December 12, 2013 from http://www.cbsnews.com/news/ftc-google-does-not-violate-antitrust-laws/
Crawford, S. (2012) Is Google a monopoly? Wrong question. Bloomberg. Retrieved December 12, 2013 from http://www.bloomberg.com/news/2012-07-08/is-google-a-monopoly-wrong-question.html
DOJ. (2013). Horizontal merger guidelines. U.S. Department of Justice and the Federal Trade Commission. Retrieved December 12, 2013 from http://www.justice.gov/atr/public/guidelines/hmg-2010.html#5c
eMarketer. (2013) Google, Facebook solidify hold of U.S. mobile ad market. eMarketer.com. Retrieved December 12, 2013 from http://www.emarketer.com/Article/Google-Facebook-Solidify-Hold-of-U.S.-Mobile-Ad-Market/1010172
Long-Term Investment Decisions
Government egulations
Government regulation borders within the mandated needs in the economy to strike a balance between the market activities and social welfare of the people. The role of government in the market has been seen as one that is indispensable in an economy where this balance is needful. Contrary to this argument, it has also been observed that government involvement in the market economy can to a large extent lead to sub-optimal results. It is agreeable however, that government intervention guarantee the social welfare and production of public goods. These are aspects that are not possible to achieve through the market system (Smith, 2012).
The main reasons for government regulation are to provide public goods such as security and public health and lighting. The production of certain necessary goods in the economy cannot be achieved through the market system owing to lack of a proper measure for payment. Some…...
mlaReferences
Aghion, P., Algan, Y., Cahuc, P., & Shleifer, A. (2010). Regulation And Distrust. The Quarterly Journal of Economics, 125(3), 1015-1049.
Eidenmuller, H. (2011). The Transnational Law Market, Regulatory Competition, and Transnational Corporations. Indiana Journal of Global Legal Studies, 18(2), 707-749.
Jensen, M., Michael, C., & Ruback, R. (2001). The Market for Corporate Control: The Scientific Evidence. Journal of Financial Economics 11(1), 5-50.
Smith, R.M. (2012). "Our Republican Example": The Significance of the American Experiments in Government in the Twenty-First Century. American Political Thought, 1(1), 101-128. doi: 10.1086/664593
Both short-term investments and long-term investments have advantages and disadvantages. One of the main advantages that short-term investments have is their potential for quick growth as they are only expected to last a couple of weeks to a few months. These types of investments allow a company to have more control over their money. On the downside, short-term investments carry a higher risk and have demonstrated a higher rate of fluctuation as compared to long-term investments (Mussi, 2007).
An advantage of long-term investments is that they have the ability to "gain small amounts of money over a long period of time. The slow-but-steady pace of long-term investments allow for a much greater degree of stability and a much lower risk than short-term investments (Mussi, 2007). Long-term investments that benefit from this growth and stability include savings and retirement funds as these investments mature over the years. Because these types of investments…...
mlaReferences
The ASPIRA Association. (n.d.). Short-Term and Long-Term Investment Options: Facilitators
Manual. Retrieved 17 July 2012, from www.aspira.org/files/user/u1/Inv_Fac_M5_V3_FR.pdf
CNN Money. (2012). Investing your money basics. Retrieved 17 July 2012, from http://money.cnn.com/magazines/moneymag/money101/lesson4/index.htm
Long-term investments. (2012). Investopedia. Retrieved 17 July 2012, from http://www.investopedia.com/terms/l/longterminvestments.asp#axzz20vK110dQ
Long-Term Financial Planning
FedEx Corporation
FedEx Corporation was established in 1971 and the company has four distinct business segments that include FedEx Express, FedEx Ground, FedEx Office and FedEx Freight. Over the years, the company has obtained 6-year of CAG (compounded annual growth of 5%). However, the company is likely to obtain similar CAG of 5.9% over the next 8 years based on current economic environment. (FedEx Corporation .2010.
The WACC (weighted average cost of capital) is the average interest rate that a company should pay in order to secure a project. Moreover, WACC is the average rate of return that a company must earn from its current assets to satisfy investors, shareholders and creditors. Since FedEx Corporation is always trying to create value for shareholders, the paper calculates the WACC of the FedEx to evaluate the company ability to generate returns from its assets.
Estimation of WACC of the Company
The WACC of the…...
mlaReference
FedEx Corporation (2010. Annual Report.USA.
Long-Term Capital Management: The Original Enron?
Three years before energy industry giant Enron Corp. sought protection from creditors and came under the harsh light of scrutiny for the complex web of off-balance sheet deals that masked the firm's huge debt, a very similar scenario unraveled among some of Wall Street's most celebrated financial players. ut while Enron unsuccessfully sought eleventh-hour aid from the power brokers it has bankrolled in Washington D.C., a "who's who" of global financial institutions stepped up to bail out hedge fund Long-Term Capital Management (LTCM) in September 1998. Not coincidentally, the bankers arguably had more to lose from the impending collapse of LTCM than they faced in the more recent debacle.
While they are, of course, very different institutions, the mistakes made by LTCM and Enron are strikingly similar. The near collapse of LTCM ultimately taught bankers around the globe to pay closer attention to the hedge funds…...
mlaBibliography
1. Shirreff, David. "Eve of Destruction," Euromoney, Nov. 1999, http://www.euromoney.com/public/markets/risk/em.98.11.1.html
2. Warde, Ibrahim. "Crony Capitalism: LTCM, a Hedge Fund Above Suspicion," LeMonde Diplomatique, Nov. 1998
3, 10. Koller, Joe. "LTCM Speaks," Derivatives Strategy, April 1999. http://www.derivativesstrategy.com/magazine/archive/1999/0499fea1.asp
4. ibid.
Even if LTCM had adequately assessed the volatility of a given asset, there's still no guarantee that it would have been rewarded for doing so. hile there were ready buyers for private option contracts, there were few takers when the value of the asset tanked. Thus, the price of the asset could continue to move downard, exposing LTCM to expensive payouts as the price of the asset continues its downward spiral..
4. Identify at least five reasons why LTCM ultimately failed.
It incorrectly assumed that historical relationships between asset classes would hold when in reality they could be highly volatile. Thus, LTCM had not factored in the Asian meltdown and the Russian bond default.
The company was too highly leveraged and couldn't recover when the market turned against them. The leverage had magnified their returns as desired, but it also magnified its losses, something LTCM did not fully consider.
Its liquidity was too…...
mlaWall Street's traders knew that LTCM was in trouble in 1998 and they also knew many of the positions that LTCM had in the financial markets. They used their knowledge of LTCM's distress to make money for their own clients, making the situation even worse for LTCM.
5. Finally, do you think LTCM should have been rescued and Meriwether given the opportunity to start all over?
Rescuing LTCM was an unfortunate necessity because its collapse would have had disastrous consequences for the banking system of the magnitude of the collapse of Continental Bank in the 1980's. However, LTCM and hedge fund companies like it should not have been allowed to conduct business as usual. From the LTCM collapse, we should have seen improved transparency and regulation of leveraged hedge funds, but we haven't seen the meaningful change that LTCM's failure clearly demonstrates is needed.
Long-Term Debt
1st Student:
According to Cleverley, Song and Cleverley (2011), there are four options for health care organizations for finding long-term debt financing. These four options are tax-exempt revenue bonds, Federal Housing Administration (FHA)-insured mortgages, public taxable bonds and conventional mortgage financing. Tax-exempt revenue bonds are issued against the facility's revenue and these are a low-cost source of debt financing. FHA-insured mortgages need to be approved, which is a tricky process. The approval allows the hospital to have mortgage insurance that lowers the cost of borrowing for hospitals. Public taxable bonds are a typical corporate bond issued with an investment bank as underwriter to the public markets. Conventional mortgage financing often involves placing the mortgage with an investor, but the drawback is these usually cannot cover entire projects.
A health care firm can increase its equity in three ways. The first is through retained earnings, the second from contributions and the third…...
mlaReferences:
Cleverley, W., Song, P. & Cleverley, J. (2011). Essentials of Health Care Finance. Sudbury, MA: Jones & Bartlett Publishing
Essay Topic Examples
1. Impact on National Debt and Economic Growth:
This topic centers on the exploration of how an expansion in government bond issuance might influence a country's long-term economic growth and national debt levels. The essay could examine historical case studies and economic theories to analyze the potential correlation between increased long-term debt financing and economic indicators such as GD growth, investment rates, and the sustainability of public finances.
2. Interest Rate Effects and Monetary olicy Implications:
In this essay, the focus would be on discerning how a rise in the issuance of government bonds might affect interest rates through the supply and demand dynamics in the bond market. It would consider how central banks may respond with monetary policy to counteract any inflationary or deflationary pressures that result, and the long-term implications of such actions on the economy.
3. The Role of Government Bonds in ension and Retirement Security:
This…...
mlaPrimary Sources
U.S. Department of the Treasury. \"Monthly Statement of the Public Debt of the United States.\" TreasuryDirect, U.S. Department of the Treasury, 2023.
European Central Bank. \"The Impact of Government Bond Spreads on Sovereign Debt Dynamics.\" ECB Working Paper Series, no. 2197, European Central Bank, 2018.International Monetary Fund. \"Fiscal Monitor: How to Mitigate Climate Change.\" IMF, September 2019.Congressional Budget Office. \"The Long-Term Budget Outlook.\" CBO, U.S. Congress, June 2020.World Bank. \"World Bank Treasury Brief: The Role of Government Bonds in Sustainable Finance.\" World Bank, February 2019.
long-term success in your specific area of interest. How have your previous experiences prepared you for this professional career? What areas of specialization within the Carroll School of Management do you believe will be most valuable in achieving your goals? What specific short-term career objectives have you set to assist you in achieving your long-term career plans?
I will never feel successful if success means putting up my feet and feeling satisfied. I don't work that way. I will only feel successful for small moments, like when I solve a huge problem in my company or when we avert trouble: when we can turn around a failing operation or stay afloat in spite of falling stock prices. Personally, I could be working in a behind-the-scenes managerial position in a company that I cared about and even if my salary was not great I would be successful because every day I…...
These types of investments are often illiquid, so the investor needs to view them as long-term investments. However, the lack of liquidity also means that for the most part they have low levels of correlation with the broad market.
Derivatives are another possibility, and their potential impact on the portfolio will be discussed in the next question. They can either increase risk or decrease risk, depending on the type of derivative and how it is used.
Overall, the impact of alternative investments is to reduce the degree to which the portfolio is subject to the equity and fixed income markets. Alternative investments are often used as an ancillary component of the portfolio, to reduce the portfolio's overall volatility but with the hopes that returns will not suffer as a result.
3. Derivatives can be used for a couple of different purposes in a portfolio. The first is to increase leverage (risk), thereby…...
mlaWorks Cited:
De Santis, R. & Sarno, L. (2008). Assessing the benefits of international portfolio diversification in bonds and stocks. European Central Bank working paper. Retrieved May 6, 2010 from http://www.ecb.int/pub/pdf/scpwps/ecbwp883.pdf
Driessen, J. & Laeven, L. (no date). International portfolio diversification benefits: Cross-country evidence from a local perspective. International Monetary Fund. Retrieved May 6, 2010 from http://www.luclaeven.com/papers_files/Diversification_JBF_final.pdf
Lhabitant, F. (2000). Derivatives in portfolio management: Why beating the market is easy. EDHEC. Retrieved May 6, 2010 from http://www.edhec-risk.com/edhec_publications/RISKReview1055927251987929638/attachments/EDHEC_WhyBeatingTheMarketIsEasy.pdf
Schweizer, D. (2008). Portfolio optimization with alternative investments. European Business School. Retrieved May 6, 2010 from D.pdfYavas, B. (2007). Findings indicate that co-movements among the U.S., Germany and Japan markets are significant. Pepperdine University. Retrieved May 6, 2010 from http://gbr.pepperdine.edu/072/diversification.htmlhttp://www.wbiconpro.com/339-Schweizer,
The purpose of the take-or-pay clause is to allocate the respective risks of the production and sales of natural gas between buyers and sellers.
According to Gaille, "The seller bears the risk of production. To compensate seller for that risk, buyer agrees to take, or pay for if not taken, a minimum quantity of gas. The buyer bears the risk of market demand. The take-or-pay clause ensures that if the demand for gas goes down, seller will still receive the price for the contract quantity delivered each year."
Although there are other salient risks involved, the two main risks hedged against are the two described above.
2.2.2.1 Transfer of volume risk. According to Meyer, Myers, Kolbe, Leonard and Baker, "Take-or-pay contracts are often signed in transportation industries precisely to shift risk of revenue variances away from the suppliers who have sunk costs in the right-of-way to the suppliers of the operating services…...
investment management in the financial sector. The paper highlights the world's present macroeconomic situation. It further details the macro economic situation and the way it affects investment decisions in several investors. In addition, the paper describes a sample investment programme and provides critical decisions to investors as well as investment vehicles used by the investment moguls. The paper summarises practical exercises in compound investment management growth and the use of capital investment.
Investment management is an important part of the global financial sector, which is key in financing vast business empires. Investment management is incorporated under state laws employing several individuals and creating revenue to key players in the financial market. It is the management of several securities and assets to meet specific objectives for the benefit of the investors. The products used known as investment vehicles can be of minimal risks such as government bonds; carry high risks such…...
mlaReferences
Development Policies and Anaysis Division. (2012). World Economic Situation and Prospects. Retrieved May Friday, 2012, from www.un.org: http://www.un.org/en/development/desa/policy/wesp/index.shtml
B.P.Eregha. (2010). Interest Rate Variation and Investment Determination in Nigeria. International Business Management Journal, 41-46.
Blume, M. (1978). Inflation and Capital Markets. Cambridge: Ballinger.
Contrarian Investor's Journal. (2008, July 6). Effects of inflation on value of investment. Retrieved May Friday, 2012, from www.cij.com: http://cij.inspiriting.com/?p=482#
Determining the ranking of mutually exclusive projects is another step used by firms in the decision making process. Investments are determined on an annual basis by a business's board in agreement with and limited by the company's spending budget for the year. Once the capital budgeting and sensitivity analysis reports are complete on all projects, the projects are then reviewed on additional factors such as overall purpose within the company, and are ranked from best to worst (Bacon, 1977). Those projects that fail to meet certain numerical hurdles are simply eliminated from the list and not considered by an investment board. Some decisions may be close to certain numerical hurdles but also have other overarching reasons for acceptance. Some examples may include investments for improvements in compliance with legislation. These investments must be done regardless of their overall worth, and typically are more beneficial to a company if done sooner…...
mlaReferences
Bacon, Peter (1977). The Evaluation of Mutually Exclusive Investments. Financial Management. Vol 6.2, 55-58.
Barney, Dwayne; Danielson, Morris (2004). Ranking Mutally Exclusive Projects: The Role of Duration. The Engineering Economist. Vol 49.1, 43-61.
Mills, Geofrey (1996). The Impact of Inflation on Capital Budgeting and Working Capital. Journal of Financial and Strategic Decisions. Vol 9.1, 79-87.
Pannell, D.J. (1997). Sensitivity analysis of normative economic models: Theoretical framework and practical strategies. Agricultural Economics. 16, 139-152.
LTE (Long-Term Evolution)
Long-Term Evolution (LTE)
A Summary of LTE
Implications for Stakeholders
Application of Theories
Structured Cabling Issues
Technical Specifications
Operations Plan
Feasibility Study
Features of LTE
Past Technologies
The Best Choice?
Long-Term Evolution (LTE)
A Summary of LTE
Long-term evolution (LTE) is an emerging technology. It is a standard in wireless communication, and relates to the effective and efficient transfer of high-speed data for both data terminals and mobile phones (Sesia, Toufik, & Baker, 2011). Based on GSM/EDGE as well as UMTS/HSPA technologies, LTE increases both the speed and capacity of a network by utilizing modulation techniques that are new. The 3rd Generation Partnership Project (3GPP) has developed the standard by which other companies must work if they are interested in getting involved with LTE (Agilent, 2009; Khan, 2009; Sesia, Toufik, & Baker, 2011). It was not until December of 2009 that LTE became publicly available. At that time, it was launched in Stockholm and Oslo by TeliaSonera (Dahlman, Ekstrom, & Furuskar,…...
mlaReferences
Agilent Technologies. (2009). LTE and the Evolution to 4G Wireless: Design and Measurement Challenges. New York: John Wiley & Sons
Dahlman, E., Parkvall, S., & Skold, J. (2011). 4G -- LTE/LTE-Advanced for Mobile Broadband. New York: Academic Press
Dahlman, E., Parkvall, S., Skold, J, & Beming, P. (2008). 3G Evolution -- HSPA and LTE for Mobile Broadband, 2nd edition. New York: Academic Press
Dahlman, E., Ekstrom, H., & Furuskar, A., et al. (2006). The 3G Long-Term Evolution -- Radio Interface Concepts and Performance Evaluation. IEEE Vehicular Technology Conference (VTC), Melbourne, Australia
S. is regulated by both state and federal regulations. Both the Securities Act of 1933 and the Securities and Exchange Commission Act of 1934 are federal laws that govern security issuing. he Security Act of 1933 requires that companies fully disclose information regarding their company as well as the security being issued to all potential investors (Megginson & Smart, 2009). he Security Act of 1993 called for the creation of the U.S. Securities and Exchange Commission (SEC) as well as defining what procedures are necessary for the public sale of securities and for the oversight of public companies. his includes the requirement of companies to file a disclosure form, which is referred to as a registration statement, with the SEC prior to beginning to solicit potential investors. Further, this form must be distributed to all potential investors. he SEC must approve the final registration statement before companies can execute sales…...
mlaThe issuing of securities to the public in the U.S. is regulated by both state and federal regulations. Both the Securities Act of 1933 and the Securities and Exchange Commission Act of 1934 are federal laws that govern security issuing. The Security Act of 1933 requires that companies fully disclose information regarding their company as well as the security being issued to all potential investors (Megginson & Smart, 2009). The Security Act of 1993 called for the creation of the U.S. Securities and Exchange Commission (SEC) as well as defining what procedures are necessary for the public sale of securities and for the oversight of public companies. This includes the requirement of companies to file a disclosure form, which is referred to as a registration statement, with the SEC prior to beginning to solicit potential investors. Further, this form must be distributed to all potential investors. The SEC must approve the final registration statement before companies can execute sales to the public.
4. What are the benefits to the corporation of going public?
There are several advantages to making the choice to go public including the amount of equity capital that would become available to the company therefore creating a more secure financial situation. The company may also utilize this increase in capital to explore additional investment options and will increase their borrowing capacity for future endeavors. The company would also have other added benefits such as the ability to utilize stock as a part of compensation packages for employees, therefore potentially increasing the caliber of employee that they are able to recruit and retain. Another benefit is the potential attention that the company may receive
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