Investment Essays

1. The percentage of change in Property, Plant & Equipment (PP&E) between two balance sheet dates is an example of (Points : 1) vertical analysis. solvency analysis. profitability analysis. horizontal analysis. 2. The percent of Current to Total Liabilities is an example of (Points : 1) vertical analysis. solvency analysis. …

THE CAPITAL BUDGETING DECISIONS OF SMALL BUSINESSES Abstract This paper uses survey data compiled by the National Federation of Independent Business to analyze the capital budgeting practices of small firms. While large firms tend to rely on the discounted cash flow analysis favored by finance texts, many small firms evaluate …

A joint venture is a mechanism for combining complementary assets owned by separate firms. These assets can be tangible, such as machinery and equipment, or intangible, such as technological know-how, production or marketing skills, brand names, and market-specific information. In an equity joint venture the partner firms transfer all or …

Mean-variance portfolio theory is based on the idea that the value of investment opportunities can be meaningfully measured in terms of mean return and variance of return. Markowitz called this approach to portfolio formation mean-variance analysis. Mean-variance analysis is based on the following assumptions: 1. All investors are risk averse; …

Step 1: Estimate your retirement income at: http://www.bankrate.com/calculators/retirement/retirement-plan-income-calculator.aspx You will be asked to answer six questions. If you are unsure of what the fields are, the definitions are below on the same page. There are some assumptions about how much your investments will earn, inflation rates, and tax rate; you …

(A) The payback is 35,000/5,000= 7 years Computation of the NPV : NPV= -35,000 + Σ 5,000 / ( 1 + 12%)^ 15 i=1 NPV = $- 945. 67 Computation of the IRR : 0= -35,000 + Σ 5,000 / ( 1 + IRR)^ 15 i=12 IRR= 11.49% The NPV …

What is the DuPont equation, and how does it capture the nature of expense control, efficiency of asset management, and financial leverage (or debt) of a firm? If you were the CFO of your firm (or a hypothetical firm), what variable would you concentrate your efforts on and why? The …

In order to evaluate the NPV of the first-generation phone (project) ignoring the possibility of investing in the second-generation phone (project), we projected the free cash flows (FCF) of the first-generation phone through 2001 to 2006. The total FCF was calculated as EBIT plus deprecation and subtract any capital expenditures …

When expanding to a foreign country, the company needs to analyze the business environment in the foreign country. One of the best tools, how to recognize differences between domestic and foreign country is the CAGE distance framework. In the report, I firstly define foreign direct investment and briefly describe analyzing …

1. What are the main investment sectors of the commercial real estate market usually considered by institutional investors? Ok, dear student, let start by saying that commercial real state is the property and the Commercial real estate (CRE) is the property, which is used primarily for business purposes. The main …