Net present value and other investment

Net present value and other investment Question 1 List the methods that a firm can use to evaluate a potential investment. The methods used to evaluate a potential investment of the firm are as follows Net present value(NPV) Internal rate of return(IRR) Profitability index(PI) Cash discounted flow Pay back period Accounting rate of return(ARR) Question 2 Why is the NPV a preferred method when evaluating a potential investment opportunity? Npv can be explained as the difference between the initial cost outlay and the present value of the future cash flows. The total present value of the yearly net cash flow is the Net present value. Net present value may be used to find the value or reliability of any investment and also to decide if it is far better than the other investments in the market. It is considered to be a potential investment if the NPV is positive a bad investment decision if the NPV turns out to be negative. Whereas, if the NPV is equal to â€Å"0† the decision is indifferent, it can be either accepted or rejected based on other alternates/factors. Question 3 What is the IRR? How is it related to the NPV? Is the IRR always an effective method when evaluating a potential investment opportunity, and why? IRR is the internal rate of return. It is very closely related to NPV, except for a fact that IRR uses only single discount rate, which serves as an advantage also a major limitation. It equally proportionates the discount rate of the present value of the future cash flows with the initial investment. However, IRR is not very effective when it comes to multiple cash flows (particularly with both positives negatives) IRR equates in between initial investment and the present value of future cash flows whereas NPV gives the difference between the initial cost outlay and the present value of the future cash flows. IRR illustrates the advantages of the project, and NPV decides the best investment opportunity than the other investments. Despite all cons, IRR is still a very popular approach to investment decision amongst managers for its simplicity also the fund managers prefer to see a percentage rather than a dollar value. Question 4 Using the article from the Sydney Morning Herald, discuss why John Whiteman, the senior portfolio manager at AMP Henderson, can be considered skilled in respect of his stock pickings. Why would it benefit fund managers to use discounted cash flows when picking stocks? As per the article on Sydney Morning Herald, John Whiteman his team were considered to be â€Å"skilled† for the following reasons- The DCF approach to picking stocks has always proved to be a successful option to John Whiteman. He claims that the DCF approach to working out todays share price, given the future cash flows of the business is the most efficient effective way to estimate the time value of money. Since the discount rate addresses the two main criteria involved in any investment (time value of money risk), the fund managers consider it to be very useful effective, despite all its complexities. Also the long term forecast(10 yrs ahead) coupled with the DCF approach has enabled the AMP Henderson team to make wise investment decision over the last few years. Discounting the future cash flows to todays dollar helps in knowing the stock worth/business value of the firm as on date. As we all know, a dollar today is worth more than a dollar tomorrow. The DCF approach once again proves the current value of the business is the most important aspect when it comes to investment decisions. Question 5 A firm that pays out 65% of its earnings as dividends has an accounting rate of return of 20%. Its P/E ratio is 10 and its earnings per share is 108 cents. What is the price per share? What is the dividend yield? If shares were bought, what would be the payback period? Assume the only return is the dividend. What is the net book value per share of the asset investment of the company? If the risk-adjusted required rate of return is 6%, what would be the NPV per share for buying shares? Would you buy shares using AROR or NPV? Chapter 11-Return, Risk and the Security Market Line Question 1 Discuss how risk is associated with the variances on an assets expected return. What are some of the factors that come into play with respect to changes in the price of a particular security in the market? Investment, risk return are closely related to each other. The higher the investment the risk the greater will be the return. All investment decision involves risk. The deviation is the difference between the actual the expected return and is directly proportional to the risk taken. Variance is the average squared deviation between the actual return and the average return In short; standard deviation is the square root of the variance. Question 2 What is risk with respect to investment? Identify the two types of risk and discuss each one. Which is the most important type of risk? Why can only one type of risk be mitigated or eliminated? Risk and investments are proportional, that it depends on the market strategic values, like the high risk you take the high returns you expect. Risks associated with individual assets, are of two types: Systematic risks Non-systematic risks Systematic risks are the risks which influence large number of assets may be to a greater or smaller extent. These risks influence market wide effects, so these are called market risks. Non-systematic risks are that affects a single asset or a small group of assets, as these risks are unique to individual companies or assets these are called as unique or asset-specific risks. Only one type of risk can be mitigated or eliminated, which is non-systematic risk, because these type of risks can be reduced or primarily avoided as it causes to a single asset or small group of them, but when you consider with systematic risk, it causes affect to the wide-range of assets or to an larger extent which couldnt be reduced or completely avoided. Question 3 What is beta? How does beta relate to systematic risk? Beta is a key component for the capital asset pricing model and is used to calculate the cost of equity or the risk involved. It is the covariance of the return of an individual stock with the market proxy portfolio return divided by the variance of the markets proxy return. A beta of 1 implies the asset has the same systematic risk as the overall market less/more than1 implies lesser/greater risk respectively. Question 4 What is the SML? What is the CAPM, and how does the SML relate to the beta coefficient? SML(Security Market Line) is the pictorial representation of the market equilibrium. The slope of the SML is based on the reward to risk ratio at SML the beta is always considered to be 1. A more risky stock will have a higher beta and will be discounted at a higher rate as opposed to the less sensitive stocks which will have lower betas and be discounted at a lower rate. CAPM is â€Å"Capital aaset pricing model† which is an equilibrium model of relationship between risk and return, the equation of the SML showing the relationship between the expected return and beta. Beta coefficient is the amount of systematic risk present in a particular risky asset relative to an average risky asset.we need the measuring level of systematic risk for different investments.The specific measurements that we use is called bets coefficient. Given below is the graphical representation of how SML relates to the beta coefficient. Question 5 Using the article from The Sydney Morning Herald, discuss how diversification is used to bring about a positive outcome for retail investors. Why do investment portfolios with different asset classes need to be continually monitored? What are some alternative asset classes that investors can diversify into? Diversification is that which reduces the risk,when into investing some assets will do very well,some will do very badly and most will perform upto expectations.Those which do very well will equivalate the very bad done assests minimising the risk with little variation to get the positive outcomes. Diversification reduces unsystematic risk,according to the Sydney Morning Herald diversification gives mostly with possible positive outcomes for the investment made which enhances the minimisal of the risks taken by the retail investors.However ,the risk of holding common stock cannot be completely eliminated by diversification. Asset classes is a group of investments that display similar characteristics viz., shares, bonds, property or cash rather than the same basket,which mitigates the risk involved in the investments. Question 6 Assume that you have the betas of all the companies listed on the ASX. Now you select 20 shares based on their betas and, by investing an equal amount in each share, you create a portfolio with a beta of 1.1. You make sure you select shares with betas ranging in value from 0.4 to 2.4. Is this likely to be an efficient portfolio? Is the portfolio likely to be well diversified? Is the portfolio likely to have much non-systematic risk? Question 7 Now your selection is based upon putting the company names into a hat and withdrawing 20. Revisit Question 6 with relation to this portfolio.

Mathematics as Paideia in Proclus :: Philosophy Philosophical Essays

Mathematics as Paideia in Proclus ABSTRACT: I examine one aspect of the central role which mathematics plays in Proclus's ontology and epistemology, with particular reference to his Elements of Theology. I focus on his peculiar views about the ontological status of mathematical objects and the special faculties of the soul that are involved in understanding them. If they are merely abstract objects that are "stripped away" from sensible things, then they are unlikely to reorient the mind towards the intelligible realm, as envisioned by Plato in the Republic. Thus, in order to defend the function of mathematics as a prodaideutic to dialectic, Proclus rejects Aristotelian abstractionism in favor of an elaborate account in terms of Nous projecting images of its Forms through the medium of the imagination. In metaphorical terms, he replaces the Aristotelian image of the soul as a blank tablet with that of a tablet that has always been inscribed and is always writing itself, while also being written on by Nous. The mediat ing function of mathematics for understanding the higher realities is grounded in the fact that its central principles of Limit and Unlimited have a universal provenance in Proclus's whole system of reality. Introduction Alexander of Aphrodisias established abstractionism as an Aristotelian dogma about mathematical objects, but for later Neoplatonists this proved difficult to reconcile with the educational function of mathematics in Plato's philosophical curriculum. Thus Proclus, for example, rejected abstractionism as a basis for the ascent to the realm of Forms, and proposed an alternative view based on the typical Neoplatonic hierarchy of Nous, Soul, and Nature. At the highest noetic level, geometrical Forms are unextended and indivisible, so that only at the level of Soul can they become available for study by the geometer when they are embodied in the intelligible matter supplied by the imagination. Proclus also accepted that geometrical forms can be embodied in sensible matter, though they never have the exactitude necessary for science, nor could they ever acquire it through abstraction. Thus the diagrams used by the geometer are products of the imagination, which are really projections by the higher intellect onto a lower level so as to facilitate the study of geometrical objects. Proclus seems to accept that the human intellect can never attain the Platonic goal of studying geometrical Forms in their pure and unextended form as paradigms. Although such a goal can be achieved only by divine Nous, yet it becomes for Proclus the guiding rationale for his whole system.

Domus Aurea and the Innovations in the Roman Art Essay

It seems reasonable then to assume that where researchers find evidence of striking artistic innovation in the city of architecture, Nero is to some extent responsible, for the radical improvement of aesthetic quality is considerable. Art historians are agreed that the only major innovation found in the Domus Aurea, is the use of vault mosaics. In AD 64 a devastating fire swept through the capital of the Roman Empire, leaving swaths of the city center smoldering and uninhabitable (Gates 362). Emperor Nero took this opportunity to build a vast, luxurious residence and landscaped parkland called the Domus Aurea, or Golden House. Later, Nero’s critics found several features of the place symbolic of his megalomaniacal self-indulgence, including its artificial lake, the 100-foot-tall statue of the emperor, and rooms with revolving mechanisms. As part of his general reconstruction of Rome Nero could have had the idea of embellishing the central area with parks, groves and fountains. Here in his complex of imperial buildings he could hear audiences and do business, while his people would have access to him and to some of the buildings and grounds. Nero’s comitas and popularitas must be remembered: he was not a man to deprive his public. Shortly before the Fire he held a public banquet in which he extended to the people pleasures normally confined to the few. Tacitus sneer on this occasion, He â€Å"used the whole city as his house† (Tacitus 417), reminds one of the squib Rome will become a house. Nero may have felt he was opening his house to the citizens, while his critics felt that he was excluding the citizens from their city. After the Fire researchers find him offering public entertainment in his Vatican circus and adjacent gardens, dressed as a charioteer and mixing with the plebs (Champlin 74). In any case, nothing suggests that Nero meant to shut himself up in the Domus Aurea. One of the problems for the Pisonian conspirators may have been that after the Fire, with his palace damaged and under reconstruction, Nero was spending his time in imperial properties that were more private, such as the Servilian Gardens. Thus the Domus Aurea Park need not have prevented movement through the centre of the city, though doubtless the routes were changed. Even on the Palatine only a cryptoporticus connected the various imperial buildings: there was no need to weld them all into one enclosed complex, and they may have been intended to remain separate. The Golden House was, nonetheless, probably an overambitious project. Observers would have gained the impression that a vast complex was in hand, because the work did not proceed area by area. Though never finished, a vast number of buildings were started all around the central lake. Nero no doubt spoke with enthusiasm of the technical marvels that were in hand. The unsympathetic may well have reacted as one scholar who wrote, ‘The Fire gave a mortally egocentric autocrat the chance to demand a unique monumental expression of what he considered his worth and position to be†( MacDonald 31). The large remains on the Oppian Hill have by now lost most of their decoration. The grand apartments have been plunged in darkness since the foundations were laid for Trajan’s Baths. Even before that, Vitellius and his wife were disappointed by the lack of decoration and the mean equipment of the palace. The Domus Aurea was left unfinished when Nero died, and the alterations made by Otho interfered with the grand architectural conception of its creator (Colin & Shotter 55). Even so, the construction and design still excite the admiration of architects and engineers by reason of the new exploitation of space and the creation of internal vistas. Two features, in particular, impress by their artistic and architectural originality: the five-sided trapezoidal court in the west wing, which was once matched by a similar one in the east wing, and the domed octagonal room in the centre with its five rooms radiating from it symmetrically. As the new excavations show, the palace originally had two floors, each of which displayed east-west symmetry and was interrupted by the two open trapezoidal courts. The two courts framed the central complex of rooms around the octagon which extended through the upper storey and could probably be viewed from the adjacent upper rooms as well as the lower ones. The octagon room thus formed the focus of the whole building. It is usually identified with the main circular dining room described by historian Suetonius (Garwood 81), though there is no agreement on what elements rotated. It is notable, however, that the inside of the dome shows no traces of decoration, and that the water that rain into the room to the north came in at a steeper gradient than would be necessary for a nymphaeum. Hence the suggestion that some of the water turned a device suspended through the opening in the dome, representing the changes of seasons on the vault. The two grooves on the outer surface of the dome will have served as tracks for the suspended through the opening in the dome, representing the changes of seasons on the vault. The two grooves on the outer surface of the dome will have served as tracks for the suspended device. Whatever the explanation, the study of the Domus Transitoria and the Domus Aurea shows, to an even greater degree than our examination of the coinage, that Nero was an enthusiast who threw himself into grand projects and put at their service the latest Roman technology and the most advanced artistic ideas. Nero’s zeal for the arts, however, did not stop at patronage and planning. If his aim of professional performance was more acceptable to the Greek way of thinking, his desire to achieve that standard in all the arts at once would strike even a Greek as absurd. Finally, the Domus Aurea presents a wealth of architectural innovation including an exploitation of the dome to crate a new conception of internal space. Another dome that employed a similar type of buttressing wall but in a more systematic manner occurs in the octagonal room of the Domus Aurea (Turner 89). The vaults around the octagonal room were combined in a way to create a very clever series of well lit rooms. It was one of the most inventive uses of vaulting yet created by the Romans and one that ushered in a new way of thinking about light and space. It also created new structural issues to be resolved. Like the Mercury dome, the octagonal dome at the Domus Aurea was built within other vaulted structures, the walls of which provided buttressing for the support structure. The most innovative aspect of the design was the way that light was brought in above the haunches of the octagonal vault by means of clerestory windows. As result of the configuration, the dome had to be quite thin if there was to be enough space at its haunches for the clerestory lighting into the adjacent rooms. The structural resolution was a more elegant form of the one employed at Baiae. The octagonal dome was buttressed with a series of eight triangular piers, each constructed above one corner of the vault so that the clerestory windows could fit between them. At the Domus Aurea octagon, the buttressing walls on the extrados of the dome were used to accommodate windows in the haunches, which was possible because of the support from the surrounding structures but also which precluded the use of continuous step-rings. On the other hand, in the Fourth Style or intricate style, a taste for illusionism returned once again. This style became popular around the time of the Pompeian earthquake of 62 CE (Stewart 81), and it was preferred manner of mural decoration when the town was buried in volcanic ash in 79. The earliest examples, such as Room 78 in the emperor Nero’s fabulous Domus Aurea, of Golden House, in Rome. Although the Fourth Style architectural vistas are irrational fantasies. The viewer looks out not on cityscapes or round temples set in peri-styles but at fragments of buildings – columns supporting half-pediments, double stories of columns supporting nothing at all – painted on the same white ground as the rest of the wall. In the Fourth Style, architecture became just another motif in the painter’s ornamental repertoire (Strong, et al. 104). In the latest Fourth Style designs, Pompeian painters rejected the quiet elegance of the Third Style and early Fourth Style in favor of crowded and confused compositions and sometimes garish color combinations. The Ixion Room of the House of the Vettii at Pompeii was decorated in this manner just before the eruption of Mount Vesuvius. The room served as a triclinium in the house the Vettius brother remodeled after the earthquake. It opened onto the peristyle. The decor of the dining room is a kind of resume of all the previous styles, another instance of the eclecticism noted earlier as characteristic of Roman art in general. The lowest zone, for example, is one of the most successful imitations anywhere of costly multicolored imported marbles, despite the fact that the illusion is created without recourse to relief, as in the First Style. The large white panels in the corners of the room, with their delicate floral frames and floating central motifs, would fit naturally into the most elegant Third Style design. Unmistakably Fourth Style, however, are the fragmentary architectural vistas of the central and upper zones of the Ixion Room walls. They are unrelated to one another, do not constitute a unified cityscape beyond the wall, and are peopled with figures that would tumble into the room if they took a single step forward. Among the varieties of pavement-decoration with which Fourth Style paintings were combined, the commonest remained black and white mosaics or mortar decorated with insect tesserae – simple types suitable to offset the polychromy of walls and ceilings. But this period also sees more examples of opus sectile in coloured marbles, used both for emblemata and in grander houses for whole floors. Such pavements accorded with the more showy side of Fourth Style taste and were clearly prized as status symbols. As in previous periods, so in the Fourth Style decorative ensembles usually show attempts to harmonize the treatment different surfaces within a room (Clarke 166). The most striking gestures in this direction were the increased use of single-color schemes. Already foreshadowed in the late Third Style, these were much favoured in the Fourth Style for the finer rooms of the house, notably dining and reception rooms. The Fourth Style period is especially fruitful for the study of the interaction of the different media. Researchers find painting working in close relationship with both mosaic and stucco-work in order to produce the ornate effects which were currently in favour, and not surprisingly the close relationship resulted in a good deal of murual influence. Perhaps also emanating from the Neronian court (the first datable instance is to be found in the earlier of the two palaces) is what became known as fourth-style Romano-Campanian wall-painting, which combines the architectural illusionism and colour experimentation of earlier styles into a theatrical, even surrealistic design. The fourth Style apparently died of exhaustion about the end of the century. With it the great age of Roman wall-painting came to an end. The future was to produce some interesting and not unattractive work, but the creative thrust of the late Republic and early Empire was dissipated in a series of revivals and counter-revivals which never fully recaptured the enthusiasm of the initial period. Each of the four Pompeian Style had offered something new and stimulating; the First had taken the Hellenistic Masonry Style of interior decoration and turned it into bright patterns of abstract block work; the Second had opened up the wall with grand illusions of painted architecture; the Third had closed the wall once more and put emphasis on a framed picture-panel, complemented by fine, coloristic surface-ornament; and the Fourth had reintroduced architectural illusionism but substituted lightness and fantasy for the solidity and logic of the Second Style. These development had been spearheaded by painters working in Roman Italy, and they had turned wall-painting from the poor relation of panel-painting into the most vigorous and important branch of the pictorial arts. By the second century A. D. , however, the inventiveness of Roman-Italian wall-painting was declining, and the focus of interest switches to other regions and to other media. Roman builders not only developed the arch, vault, and dome but pioneered the creative use of concrete. These innovations proved revolutionary, allowing Romans for the first time to cover immense interior spaces without inner supports. Recent scholarship on the Domus Aurea complex has suggested that the true novelty of this complex was neither in the technical innovations lauded by some architectural historians nor in its luxurious decorations but rather its scale and location. Works Cited Champlin, Edward. â€Å"Nero. † Cambridge, Mass. ; London: Belknap, 2003. Clarke, John. â€Å"The Houses of Roman Italy, 100 B. C. A. D. 250: Ritual, Space, And Decoration. † University of California Press, 1993. Colin, David and Shotter, Arthur. â€Å"Nero. † Routledge, 1997. Donald, Strong, Toynbee, Jocelyn, and Roger Ling. â€Å"Roman Art. †Harmondsworth: Penguin Books, 1988. Garwood, Duncan. â€Å"Lonely Planet Rome. † Footsccray, Vic. ; London: Lonely Planet, 2006. Gates, Charles. â€Å"Ancient Cities. † Routledge, 2003. MacDonald, William Lloyd. â€Å"The Architecture of the Roman Empire† : An Introduction Study. New Haven; London: Yale University Press, 1982. Stewart. Peter. â€Å"Roman Art. † Oxford: Oxford University Press, 2004. Tacitus, Cornelius. â€Å"The Works of Tacitus†: The Oxford Translation, Revised. Harper & Brothers, 1860. Turner, Jane. â€Å"The Dictionary of Art. † Grove’s Dictionary, 1996.

Marcus Antonius was Not a Great Man

Marcus Antonius was Not a Great Man Marcus Antonius, born c. 83 and died in 30 BCE , was one of the better known Roman leaders, likely because of his romance with Cleopatra and Shakespeare's retelling of his tale. As the son of General Marcus Antonius and Julia, he was the second cousin of Julius Caesar and thus became a powerful man. Antony participated in many military campaigns in his lifetime, and upon Caesar's death he became one of two main contesters of the throne. His life came to an end when his rival Octavian defeated him in battle at Actium and he committed suicide with his lover Cleopatra.Marc Antony was an important man, but his relationship with Caesar was what truly led to his coming into power, and his whole life was directed by events out of his control. Marc Antony was a product of his age and family, nothing more.One of the greater factors of Antony's coming into power was his blood relations, particularly that with Caesar.Cleopatra (Elizabeth Taylor) confronts Julius Caes...

Compare and Contrast

Compare and Contrast Introduction Benjamin Franklin and Bill Gates share diverse aspects. They also have notable differences. These similarities and differences emerge from their roles in initiating important innovations and inventions. Indeed, their contribution to scientific advancement, technology and contemporary knowledge cannot be underestimated (McCormick, 2008).Advertising We will write a custom essay sample on Compare and Contrast specifically for you for only $16.05 $11/page Learn More It is critical to examine these disparities and similarities. This is vital because such information would help to understand the innovation and entrepreneurship path. This paper compares and contrasts the life of Benjamin Franklin and Bill Gates. The energy you channel towards reaching your goal is what matters in the society. Your determination, inspiration and hard work really count a lot. Benjamin Franklin and Bill Gates are real proofs of this. Both of their studies did not contribu te much to their inventions and innovations. Benjamin Franklin started to exhibit his talent at an early age having attended school for only one year (Klepper Gunther, 1996). He had not acquired any knowledge to help him further his interests. Bill gates as well started officially to pursue his interest at the eighth grade when he took an interest in programming the general electric computer system in BASIC. His drop out at the university to pursue his interest shows that he did not need any studies to realise his dream. Benjamin’s father intended him to join the clergy (Klepper Gunther, 1996). The only reason he did not join the clergy is that he would not have the required education needed at the clergy because his parent could not afford it. Bill on the other hand has his father thinking of him to be a lawyer. Both of their parents did not realise their interests at an early age and wanted them to be totally opposite of what themselves really wanted. If it was not for th eir determinations with what interested them, then they might have ended up as different people rather than what we know them to have been. These two men spent most of their time in science. They were also charitable; they gave a lot of money to the charity events. Although they both made a lot of money from their inventions, their driving force towards this was not to get wealthy. They had an interest in what they were doing. Many admire Benjamin. He was rich and famous from his printing work and inventions respectively. He even had an early retirement but continued to invent so many things afterwards.Advertising Looking for essay on biography? Let's see if we can help you! Get your first paper with 15% OFF Learn More He had many inspirational quotes (McCormick, 2008). Bill is ranked as one of the richest men in the world. He is famous for his Microsoft invention. As Benjamin, he retired at an early age to continue his dream in managing his company. The two brought incredible changes to their nation and to the world as a whole. Their work has led to very many other works from other people. Many are inspired by their work as well as their life history. It was not easy for Benjamin to achieve his dreams as compared to Bill. Unlike Bill who was from a second-class family who could afford his education, Benjamin had to drop out of school due to inability to afford it and work for his brother in the printing sector. Bill had the freedom to follow his interests and even was excused from math classes at eighth grade to pursue his interests. On the other hand, Benjamin could not even write for his brother’s paper and so had to write letters and sign them as a fictional window. He did not have the same privilege as Bill to follow his dreams at that age (Klepper Gunther, 1996). At the time, Benjamin thought all was well and was keeping his brother’s paper going on as he was in jail only for his ungrateful brother to come out of pr ison to start abusing him. He ran away from home, which was illegal at that time. He realised his dream through a lot of teething troubles. Conclusion These two people have had great impact in the world. They are individuals whose dreams became the world greatest achievement, inventors of the most significant things which we cannot imagine living without. Bill Gates is credited for his Microsoft invention and Benjamin Franklin for electricity among other things. They gather a lot of admiration due to their courage and determination in achieving their dreams and not money; they would get in doing so. The world will be forever grateful to them. Encounter between the Two People Bill gates and Benjamin Franklin are brought together due to their love for science. They both would do anything in order to make their dreams come true. Some people have even thought of bill as another Benjamin. Bill even got an award for best scientist from Franklin Institute in Philadelphia, an institute name d after Benjamin. If only these two people could have lived at the same period, they would be partners. A lot more could have been invented. They are the world’s heroes. References Klepper, M. M. Gunther, R. E. (1996). The wealthy 100: From Benjamin Franklin to Bill Gates a ranking of the richest Americans, past and present. Secaucus, NY: Carol Publ. Group.Advertising We will write a custom essay sample on Compare and Contrast specifically for you for only $16.05 $11/page Learn More McCormick, B. (2008). Ben Franklin: Americas original entrepreneur : Franklins autobiography for business today. Irvine, Calif.: Entrepreneur Press.

Companies Research Essay Example | Topics and Well Written Essays - 2000 words

Companies Research - Essay Example Total Asset Turnover has been on the high for Kroger and Wall-Mart with 3.487 and 2.335 respectively. Eaton has failed to maintain a high ratio; its turnover ratio stands at 0.795. Eaton Corporation has struggled in this regard as well, which is evident by its last position in the industry with respect to earnings produced with each dollar spent on an asset. Total Debt to equity ratio has been high for all four organizations but Kroger Co. crosses all boundaries with a ratio of 141.81:1. Wall-Mart stands second with 81.39, and Eaton is third with a ratio of 46. Chevron is a relatively low leveraged firm, which is indicated by the minimal interest payments it has to make. Chevron, being the most profitable company, leads the chart in terms of times interest earned with a ratio multiple of 381. For the current year, Chevron had interest payments of only $50,000. Wall-Mart is the second company to make substantially high returns out of the debt it takes with a multiple of 8.43. Kroger C o. is not surprisingly at the bottom of the chart with only 3.49. Return on Sales/Net profit margin has been impressive for Chevron with 9.55%. Eaton Co. also practices a higher return on the sale with 6.77%. The Kroger Co. again is at the bottom of the chart with 1.38% return on Sales. Return on Assets is the earnings made with each dollar spent on an asset. With the highest net income Chevron Co. again tops the list with a return of 10.94%. Wall-Mart takes the second spot with 8.91% and Eaton Co. being the last of the four with 5.46%. Moreover, the return earned on every dollar of equity is the highest for Wall-Mart. This means that Wall-Mart provides the highest return to a shareholder, which is the objective of a corporation. Kroger Co. takes the second spot with 22.87%. In addition to it, Chevron has an equity centric structure hence it takes the third spot out of the four with 21.33% while Eaton creates the lowest return for their shareholders with a return of 15.9% rests at t he bottom. By comparing P/E ratio, one can analyze the market’s stock evaluation for a company. P/E is directly proportional to forecasted earnings hence a rise in P/E is a resultant of increased expectation for earnings (Besley and Brigham, 2000). The Kroger Co. tops the list with a P/E multiple of 12.64. It could be inferred that investors expect higher returns in the future for Kroger Co. Eaton Corporation follows with 12.17 and Chevron being the last with 8.53. Lastly, Market to Book Value ratio is used to compare company’s market worth to its book value. It gives an idea of whether an investor is paying adequate money for his investment or more (Levinson 2006). It is calculated by the company’s market capitalization divided by the value in company’s books. Wall-Mart tops the list with 2.76, followed by Kroger Co. with 2.69 and Chevron taking the last position. 1. Chevron is an oil and gas manufacturing and exploration company, Eaton Co. is a transpor t/truck manufacturer, whereas Kroger Co. and Wall-Mart are in the retail industry. I would rank Chevron as the leader of the

One personal ethical issue and one corporate Research Paper

One personal ethical issue and one corporate - Research Paper Example The company was found to have a lot of unsettled debts, suspicious financial records, failure in giving its financial reports or disclosing it liquidity state. The organization is accused of supporting the political interest of the political bigwigs in the country, at the expense of delivering better services to the country’s people. Oil industry is a great contributor to the Nigerian economy (Ajayi, 2011, p.A8). If well managed, (Ajayi, 2011, p.A8), the revenues generated can boost the infrastructure and social amenities of the country such as education and health to greater heights. The management of the corporation colludes with the political bigwigs in return for selfish gains of appointments to higher offices. Good management and financial transparency is what the organization needs to fulfill its corporate social responsibility. Personal ethical issue on the other hand regards how a person judges an occurrence, event, or a subject based on morality as to whether it is right or wrong. This is shaped by the social settings of the different individuals. While in my opinion the abortion by a Schoolgirl as wrong and immoral, another individual may look at it as beneficial to enable the Schoolgirl, continue with her