Identify three nonfinancial segments of total reward and discuss how each could be implemented, especially across cultures or within a local multicultural labour pool.
What challenges might managers face in implementing such segments?
SAMPLE ANSWER
Introduction
Reward remains a significant element in the management of employees. It is therefore essential to determine that a review of the reward objectives should be in line with the objectives of an organization in the same manner as key businesses such as administration, IT, finance, and marketing(Bussin, & van Rooy, pp. 27-35.2014). This paper therefore seeks to identify the three nonfinancial segments of total reward and the manner in which they are implemented including the challenges associated in implementing these segments.
Three Non-financial Segments of Total Reward
Rewards according to sources are positive and are only provided based on the success of an employee as manifested within the levels of performance within or aboard the expectations of an organizations supervisor. Rewards are basically presented as positive reinforcers to encourage employees in continuing in their efforts to perform well within a work environment(Bussin, & Rooy, pp. 27-35.2014).
The employees who receive the rewards get a psychological of economic benefit. The superiors within the organization giving the rewards therefore increase the performance levels that are manifested in terms of higher productivity for better profits within the organization. The nonfinancial segments of total reward are therefore rewards that are non-monetary in nature and include;
Appraisal; In this, the employees are primarily recognized for their deeds and are encouraged to achieve their maximum potential through a process of effective learning and development that translates into an increased performance. This form of reward is simple and costs not a penny (Rumpel, & Medcof, pp. 27-35. 2006). This can be implemented within an organization when the management takes time in acknowledging the performances of its workers with the aim of encouraging them to achieve more.
Promotions; In this instance, employees are promoted to higher positions for their hard work. In as much as this approach may seem to come with some financial benefit, some employees can be promoted to some ranks without any financial gain (Rumpel, & Medcof, pp. 27-35. 2006). However, implementing this reward system may be challenging since many cultures believe that promotions are given on the basis of the length of stay of stay within an organization and not on performance. Organizations can therefore implement this by ensuring that promotions are based on performances.
Vouchers and Gifts; Besides the appraisals, companies can choose to reward by offering their employees vouchers and gifts to attend particular events, or for holidays and shopping for their efforts (Gross, Bundy, & Johnson, pp. 11-17.2011). This can be implemented by initiating an approach where potential employees are sported and the HRM decides on what is awarded.
Challenges in Implementation
It is critical to denote that there are challenges that come in implementing these reward systems. These challenges include;
Developing a Credible Assessment Guideline;
It is critical to note that sometimes instilling fairness in these schemes may be a challenge for organizations (Gross, Bundy, & Johnson, pp. 11-17.2011). This therefore requires that the processes involved in rewarding employees are credible and transparent.
Cultural Fit;
The manner in which some cultures perceive reward systems may at times conflict. This therefore makes the understanding of the reward systems within a cultural fit turn out to be a challenge for organizations.
Defining the Value of the Scheme;
The reward schemes may be considered efficient when they include all the staff. However, such inclusions may turn out challenging for managers since it becomes difficult to watch the employees closely.
Conclusion
It is therefore significant to determine that the most adopted reward system is the use of vouchers and appraisals by companies (Kwon, & Hein, pp. 32-38.2013). The fact that there are no monetary benefits in these reward systems makes it easier to initiate in an organization. However, challenges may accrue in the implementation of these systems especially in different cultural settings.
References
Bussin, M, & van Rooy, D 2014, ‘Total rewards strategy for a multi-generational workforce in a financial institution’, South African Journal Of Human Resource Management, 12, 1, pp. 1-11, Business Source Complete, EBSCOhost, viewed 9 September 2015.
Rumpel, S, & Medcof, J 2006, ‘TOTAL REWARDS: GOOD FIT FOR TECH WORKERS’, Research Technology Management, 49, 5, pp. 27-35, Business Source Complete, EBSCOhost, viewed 9 September 2015.
Gross, S, Bundy, K, & Johnson, R 2011, ‘The ongoing integration of total rewards’, Employment Relations Today (Wiley), 37, 4, pp. 11-17, Business Source Complete, EBSCOhost, viewed 9 September 2015.
Kwon, J, & Hein, P 2013, ‘Employee Benefits in a Total Rewards Framework’, Benefits Quarterly, 29, 1, pp. 32-38, Business Source Complete, EBSCOhost, viewed 9 September 2015.
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Non-financial segments of total reward that managers may face challenges in implementing
Order Instructions:
Identify three nonfinancial segments of total reward and discuss how each could be implemented, especially across cultures or within a local multicultural labour pool.
What challenges might managers face in implementing such segments?
SAMPLE ANSWER
Non-financial segments of total reward
HR.W5.DISC
Introduction
Gaining a competitive edge in the markets requires organizations to have competent employees. Retaining these employees require these organizations to develop appropriate reward systems. Providing intrinsic and extrinsic rewards as part of the total reward motivate employees, and even increase their productivity. Providing nonfinancial rewards has also been proven to motivate employees and improve their level of performance. The paper identifies three non-financial segments, discusses their implementation across cultures or local multicultural labour, and deliberates on potential challenges that managers may face implementing these segments.
Non-financial reward
Apart from financial rewards such as salaries, and bonuses, employees as well require non-financial rewards for them to execute their duties well. Nature of these rewards may vary from one organization to another depending on the size and the organizational culture (Phoenix 2006, p. 3). For instance, form of recognitions that employee appreciates depend on the organizational culture. The three major forms of non-financial segments of total reward include promotion/nomination, gifts/vouchers, and lastly appraisal.
Implementation of these rewards across cultures
It is important to consider cultural backgrounds and orientation of employees when providing them with non-financial rewards. This is because; they have different orientation and socialization that play a critical role in their motivation. Appraisal is one of the non-financial rewards employees require to be motivated to remain committed to the organization (Kristiani, Sumarwan, Yuliati & Saefuddin 2014 p. 113). This form of reward is through simple personal acknowledgement by the management, appreciating and recognizing the exemplary performance of employees. This reward system requires implementation across the organization. The management should remain conscious about the input of their employees by always thanking them and encouraging them whenever they perform well. Employees feel loved and cherished when recognized and appreciated. It is however, important to be aware of conflicts ensuing, especially when a single individual is appraised continuously. This may as well lead to unhealthy internal competition. When implementing this reward system, is import to factor the aspect of culture. Employees come from varied cultures and the meaning ascribed to this form of reward may vary (Michael 2004, p. 2). Some may require closer attention and appreciation when they make a smaller progress while other may not want so.
Organizations can also give employees gifts and vouchers to attend shows, holidays and go shopping as a strategy to appreciate their efforts (Chiang & Birtch 2012, p. 538). Implementing this form of reward requires managers to identify cultures of employees to give gifts that rhyme with their beliefs, and value system. For instance, when employees excel, it is important to give them gifts that resonate with their value and belief system.
Organizations as well use promotions/nominations to motivate their employees apart from appraisal and gifts. Implementation of promotion is also a sensitive issue especially, in an organization with multicultural labour force or in an entity with employees from diverse cultural background. The strategy when implementing this is to ensure fairness by ensuring that employees from various cultures are put into consideration. An approach to promotion will also vary across cultures. For instance in Japanese culture, promotion is based on the length of stay in an organization as opposed to western cultures where an individual is promoted based on their level of performance.
Potential challenges in implementation
Managers when implementing these reward segments experience a number of challenges. One is defining the value of the scheme as it becomes difficult for the manager to include all staffs because they cannot maintain close watch on all these staffs especially, in multinational corporations. Hence, good performing employees maybe ignored. Ensuring fairness, transparency, and credibility in the process of offering these rewards may be a challenge. Another challenge is cultural fit, as it becomes challenging for managers to align rewards with cultures, values or belief systems of employees (Michael, 2004). This causes conflicts and affects performance of employees.
Conclusion
It is evident that indeed non-financial segments such as promotions, gifts, and appraisals can be adopted by organizations to motivate employees. Organizations however, need to remain conscious about cultural diversities of employees when providing these rewards. There are as well challenges that managers must deal with to ensure smooth implementation of these rewards
Reference list
Chiang, F, & Birtch, T 2012, ‘The Performance Implications of Financial and Non-Financial Rewards: An Asian Nordic Comparison’, Journal Of Management Studies, 49, 3, pp. 538- 570, Business Source Complete, EBSCOhost, viewed 9 September 2015.
Kristiani, E, Sumarwan, U, Yuliati, L, & Saefuddin, A 2014, ‘The Role of Relational Reward Benefits for Developing the Non-Financial Value of a Customer to an Organization: Structural Equation Modeling Approach’, Gadjah Mada International Journal Of Business, 16, 2, pp. 111-142, Business Source Complete, EBSCOhost, viewed 9 September 2015.
People Management (2004), ‘Reducing features’, People Management Magazine, 15 july.
Phoenix, T 2006, ‘Rewards Transformation: Understanding the Internal Total Rewards Marketplace. (cover story)’, Benefits & Compensation Digest, 43, 9, pp. 1-14, Business Source Complete, EBSCOhost, viewed 9 September 2015.
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The American Stock Exchange; WidePoint Corporation
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Select an industrial or commercial U.S. based company that is listed on one of the major stock exchanges in the United States. Each student should select a different company. Avoid selecting an insurance company or a bank—the financial ratios for insurance companies and banks are different. Write a seven- to eight-page double-spaced paper about your selected company answering the questions posted under the Week 2 Minicase assignment posted in Doc Sharing. This Minicase paper should be submitted to the Week 2 Minicase Dropbox.
SAMPLE ANSWER
Introduction
The American Stock Exchange comes third after NYSE and NASDAQ of all stock exchanges in America. It is estimated to handle around ten percent of all trades in America. It lists companies from all over America. These companies are of different sizes and deal with different goods and services. It is famous for having the least requirements in terms of minimum requirements for the listing companies. As a result, it has listed many small companies who find the other exchanges too harsh. The American Stock Exchange trades in small cap stocks, exchange trades funds, and other options (World Bank, 2010).
WidePoint Corporation is based in McLean, Virginia in the United States of America. The company provides products that are closely linked with technology. It targets both the US government and commercial American markets. WidePoint Corporation has established itself as a top provider of managed cyber security solutions mobility services, and telecom lifecycle management. It offers information technology solutions, which are cloud-based, secure and wide in terms of enterprises targeted. Such solutions are necessary for both government and companies to comply fully with advanced system requirements and the government-mandated regulations on information technology(World Bank, 2010). WidePoint has a high discount due to its position currently. It is in a trend of growing further. The reason behind its bright future is that it is in a position to acquire a growth trend that can be both inorganic and organic. Looking at the revenue figures and the expenses incurred by the company, a price point for the next few months can be estimated (Heisterberg & Verma, 2014). A figure of between two and five is reasonable as a price point for the company is the aforementioned period. Widepoint Corp received a financial boost from Homeland Security as fierce court battle. The financial blanket has helped it cushion it capital debt and is thus less volatile. There are positive estimates for the foreseen revenue to be generated. Most of America’s powerful brands have reached their level of success through long-term campaigns that have great visibility. These campaigns are marked a consistent recital or trumpeting of a simple message for the masses. This move proves a strategy of high economic demands through vigorous promotions. However, some brands that have emerged do not follow the vigorous marketing strategies. They instead focus on quiet behind the scenes approach instead of promoting sales for their products (Mergent, 2009). Widepoint Corp falls in the first category.
The company has endured a rough period being near bankruptcy, but it pulled through. The Widepoint Corp has gone through an amazing graduation and growth in the last couple of decades. These changes have brought forward demand for its products worldwide an objective of many managers. These numerous changes in competition in a highly attractive motorcycle industry and the brands extended reach for much-untapped business have resulted in the brand’s success. The company is now enjoying many sales and gaining lots of profit after reinventing itself as both a brand and a company(Heisterberg & Verma, 2014)..
Widepoint Corp indicates a beta of 1.61. This beta value shows that its volatility is higher than of its market. If the company did not have any long-term debts then it would be less volatile (Mergent, 2009). Within the structure of its capital, the beta would be less than one. This beta value would mean that Widepoint Corp is less volatile while compared to the market.
The company’s financial statements show a marginal tax rate of 34% for statutory federal income and 4.9% of state income tax. These figures lead to a cost of debt of 13,281,134 dollars before interests and tax, 3.6 million dollars of interest expenses and 4.5 million income tax expenses. The results are 141,302, 128 dollars after tax debt. There is a long-term debt to equity ratio of 3.71. The total shareholder’s equity sums up to 34.9 million dollars. The average earning per share is -0.11 down from -0.08. As such, the cash dividend yield went down with an average sale of shares at 0.73 getting an operating profit of -0.6 with a working capital and tangible books values of 0.15 each. The average capital expenditure of Widepoint Corp is 0.1. The price earnings of the shares stand at 5,209,890 up from 3,410,322.
Preferred Stock can be defined as special security for equity. It possesses properties of the debt and the equity. WidePoint Corp’s preferred stock for the last quarter was averaged at €0.00 Million. The market value of common stocks has to be added to that of preferred stocks to get an enterprise value. WidePoint Corp gained an enterprise value for that quarter of €-6.88 Million. WidePoint Corp’s book value per share for the same period was €0.38 with its diluted earnings per share being €-0.02 million (World Bank, 2010).
The calculations are listed below:
The Enterprise Value = Market Cap +Preferred Stock + Long-Term Debt + Short-Term Debt + Minority Interest – Cash and Cash Equivalents
Book Value per Share = (Total Shareholders’ Equity – Preferred Stock) / Total Shares Outstanding
= (31.1004187829 – 0) / 82.48 = 0.38
Earnings per Share (Diluted = (Net Income – Preferred Dividends) /Shares Outstanding (Diluted)
= (-1.2563485699 – 0) / 82.125 = -0.02
It is important to note that all numbers are in millions except for the ratio and the per share data. The numbers are also represented in their representative currencies.
A group of senior managers reacquired the company after it had been acquired by an American organization AMF. While under AMF, The Widepoint Corp suffered huge losses as it tried to cope with competition from similar companies. One chief manager suggested a change of strategy to deal with the collapse of Widepoint Corp market. He suggested going back to the details in the IT solutions. This decision was because the business key was in knowing both the clients and the business environment. The rebuilding of the Widepoint Corp involved considering the already existing corporate culture beliefs in restructuring its brand image. This strategy was based on the basic American main principles of being adventurous free and an individual (Graham et al., 2010). Widepoint Corp’s Management ideology and the plan were aimed to control innovation and its penetration to the international markets. It also aimed to adapt to differences in culture and beliefs while at the same time maintaining the brand image(World Bank, 2010).
A transformational leadership style that was stirred by customers and employees focus on more than themselves was quickly utilized by the company (Heisterberg & Verma, 2014). Widepoint’s management team was actively involved by participating in activities like following their trading online and attending promotional rallies. A policy of not selling transportation but rather a transformation was important to their marketing (Graham et al., 2010).
The company has had an up and down tent in the stock market. The last two years , however, have resulted in a tremendous increase in its shares turnover. The company has thus enjoyed a successful trend over the last couple of years. It is ranked as an aggressive competitor when compared to all the stock exchanges in America (Smith, 2012). By these observations the companies risk structure is tolerant to many risks both financial and operating. Widepoint Corp has a debt to capitalization ratio of 9.28.
Investing in the company would be beneficial, as the company has made plans to remain relevant and competitive in America and globally. In controlling the external business environment, Widepoint Corp has defined a new strategy that focuses on marketing and advertising. This strategy mainly looked at the odds involved in the setup of relations with stock consumers. A big portion of their market today consists of members from the professional sector such as the legal officers, physicians, accountants and teachers(World Bank, 2010). The management team understands they have to shift focus to their efforts of knowing their customers to grow a better customer loyalty foundation. Some key factors were considered by the management team when trying to decide on where to expand. They first had to understand the culture of the new clients they were targeting. They also had to study critically demographics on average client size and annual or monthly income. This data would guide them in segmenting the market (Mergent, 2009).
The company also has a good corporate and clientele handling culture. As thus, it is likely to maintain its market share. Widepoint Corp realized that people needed to have a vision that is shared with the company values. This move was aimed at knowing the customer and the business. It also had an objective to look closely at the details on the products and consumer preferences. This unique and bright management style gave Widepoint Corp the chance to move away from a self-managed style to a more customer-based approach. The strategy was to get the company to braid its customer support base(Koller et al., 2010)and (Wasserman et al., 2009).By employing a theory on acquired needs, its management used the need to achieve a theory focused on motivation with the need to overcome its challenges in a better and more efficient way. Some of these problems were changing the corporate structure, brand and marketing to produce and sustain its offerings and supply of products. Another way was to monitor closely customer needs and detail on products and the market. Widepoint Corp management had learned of the importance of these relationships with workers and clients. Developing these relationships was a major part of the company’s corporate culture. These values and strategies make it an ideal company to invest (Heisterberg & Verma, 2014).
Conclusion
The Widepoint Corp has made tremendous efforts in selling technology solutions in the US and other markets abroad. It has overcome very many problems since it was established. This success can be attributed to the development of serious management strategies by the company’s management team. Some of these strategies like the focus on detail and consumer demands were developed after the company had incurred huge losses. However, these strategies emerged as the turnaround points for the company’s success. The management team that has been in charge over the years have done a great deal of work in raising the company to where it is today. It now has a large shareholder backing making its capital base to be un-marched amongst its competitors.
References
Graham, J. R., Smart, S. B., &Megginson, W. L. (2010). Corporate finance: [linking theory to what companies do]. Mason, OH: South-WesternCengage Learning
Heisterberg, R. J., & Verma, A. (2014).Creating business agility: How convergence of cloud, social, mobile, video, and big data enables competitive advantage.
Koller, T., Goedhart, M. H., Wessels, D., & Copeland, T. E. (2010). Valuation: Measuring and managing the value of companies. Hoboken, N.J: John Wiley & Sons, Inc.
Mergent, Inc. (2009). Mergent OTC unlisted manual.New York: Mergent.
Smith, R. C., Walter, I., & DeLong, G. (2012). Global banking. Oxford: Oxford University Press.
Wasserman, P., McLean, J. W., & Gale Research Company. (2009). Consultants and consulting organizations directory. Detroit, Mich: Gale Research Co.
Objective of General Purpose Financial Reporting……………………………….3
Fundamental Qualitative Characteristics………………………………………….4
Wesfarmers Latest Annual Report in Light of the Disclosure Requirements for PPE………………………………………………………………………………4
The Extent at which Wesfarmers Satisfies the Fundamental Qualitative Characteristics……………………………………………………………………5
References……………………………………………………………………….8
Introduction
Companies engage in business operations with the aim of doing business, generate profits and create shareholders value. Financial reporting is used by management to communicate information to the different stakeholders of the company and the general public. Such information is important for potential investors, creditors, lenders for making important decisions about providing scarce resources to the company.
Wesfarmers Limited is one of the largest corporations in Australia. The company’s headquarters is in Perth, Western Australia. Wesfarmers Limited engages in businesses in departmental stores, a supermarket, coal production and export, chemicals, energy and the provision of home improvement and office supplies and also safety products (Wesfarmers – About Wesfarmers, n.d.). The company is one of the largest private employers and creates satisfactory returns to its shareholders.
Objective of general purpose financial reporting
The primary goal of general purpose financial reporting is to give vital information to users about reporting entity that are useful for making and assess decision regarding the distribution of scarce resources. These users include potential investors, the lenders and other creditors. Financial reporting also provides a means by which the management exhibits their accountability to the different stakeholders. The prerequisite of information with accountability goals is an imperative goal of the general purpose financial reporting, especially in public sector entity. However, it is important to note that, accountability by reporting entities using general purpose reporting is part of the broader objective. That is providing useful information investors, lenders and creditors for making a decision about the allocation of scarce resources.
Qualitative characteristics of useful financial information
Financial information must possess both fundamental and enhancing qualitative characteristics for the financial statements to be useful to the stakeholders.
Fundamental Qualitative characteristics
Relevance: Financial information must be relevant and capable of influencing the decision of the users. Therefore, it is important that the metrics used in presenting financial information should provide all the necessary information needed by the users to enable them make the right decisions (Yao et al., 2015).
Faithfull Representation: The financial information provided must be complete, free from error and that it is not biased in any way. Therefore, it is important that the financial information provided depict the truth about the happenings in the company.
The enhancing qualitative characteristic includes comparability, timeliness, verifiability, and understandability.
Wesfarmers Latest Annual Report in Light of the Disclosure Requirements for PPE
The main purpose of IAS 16 is to lay down the accounting standards for property, plant, and Equipment (PPE). So as to make sure that the users of financial information can understand information regarding the company investment in its Property, plant, and equipment. It also encompasses any changes in the investment as mentioned earlier. Wesfarmers Limited present their property plant and equipment information in a consolidated balance sheet included in the annual report.
According to the 2015 annual report, the Wesfarmers property is worth $2,495 million. Plant and equipment are valued at $ 7730 Million. The company also disclosed the capital expenditure that amounted to $2,243. On the notes to the financial statement, the company’s gain on disposal of property, plant and equipment amounted to $54 million. The depreciation amounted to $934million. The expenses accrued because of impairment of plant, equipment and other assets amounted to $19 million.
From the Wesfarmers annual report, it is evident that the company has complied with the IAS 16 principles. The values of assets are recognized when they are acquired. The notes section gives detailed information about the assets acquired by the company. Therefore, Wesfarmers property, plant, and equipment (PPE) are calculated at its cost. The company uses the “Component” approach to recognition and measurement. The company identifies parts of an asset that may be reinstated or separated from the main asset. Therefore, the company accounts for different parts of its equipment differently.
Wesfarmers uses the revaluation model when determining the carrying value after the initial recognition. The company accounts for an Item of PP&E using its fair value less the accumulated depreciation and accumulated impaired losses (Yao et al., 2015). Wesfarmers always revalue its assets annually to ensure that the carrying value to the next financial year is not materially dissimilar from the final fair value present.
The extent at which Wesfarmers satisfies the fundamental qualitative characteristics
The main fundamental qualitative characteristics of financial information are relevance and faithful representation. Wesfarmers presents its financial information in the form of the annual report every year.
Wesfarmers Limited ensures that the information in the annual report can make a difference in the decision made by the users. The company provides its financial information in the form of four important documents. That is Result Shareholders quick guides, full year announcement, result presentation and supplementary information (Wesfarmers, 2015).
The company ensures that the information published in the annual report is relevant to all the users of financial information. The company provides the key financial metrics relevant for the users when making decisions regarding their investment. To ensure relevance, the company also makes sure that the financial information provided has both predictive and confirmatory value.
Faithfull representation is also an element that is considered by Wesfarmers when providing financial information. The company ensures that their financial information is reliable and that it faithfully represents the economic phenomena fully. The company financial information is complete encompassing all the required financial statement and other key financial ratios as stipulated by the accounting standards (Wesfarmers, 2015). The information is neutral as it represents the true and fair view of the company. The preparations of financial statements are done by qualified and experienced financial managers to ensure that the published financial information is free from any error whatsoever.
As such, Wesfarmers financial information can provide financial information about the reporting entity that is important for potential investors, suppliers and other creditors to enable them make decisions about endowing the company with resources. This implies that the company can meet the objective of general purpose financial reporting of providing important information required for to decide whether or not to provide scarce resources to the company.
Yao, D. F. T., Percy, M., & Hu, F. (2015). Fair value accounting for non-current assets and audit fees: Evidence from Australian companies. Journal of Contemporary Accounting & Economics, 11(1), 31-45.
Yao, D. F. T., Percy, M., & Hu, F. (2015). Journal of Contemporary Accounting & Economics. Journal of Contemporary Accounting & Economics, 11, 31-45.
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Please show working for the calculation question.
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SAMPLE ANSWER
QUESTION 1
An explanation on a stock split is and the reason given by Apple for doing this
Stock split is a decision made by a corporate entity to divide its shares held by shareholders into multiple shares. In a stock split the total value of shares remains unchanged even though the number of shares held by investors’ increases by a multiple number. For example, a given company can decide to split its shares into 2:1 i.e. for every one share held by an investor he would get an additional one share and would hence have two for every one share after the split (Kumar & Halageri, 2011). If an investor held 10 shares worth USD$1000 before the split he would own 20 shares worth USD $ 1000 dollars after the split. The market price of a company’s shares is divided uniformly. This implies that if the price per share was $100 before the split the new price per share after the split would be $50 per share. This is in a case of a stock split of 2 shares for every one share held. Apple Inc. announced a stock split of 7 to 1. This implied that for every one share held by an investor he received six more shares (Zuschlag, 2014). The decision by Apple Inc to execute the stock split was to increase accessibility of its shares in the market. Before the split Apple Inc’s shares traded at $525 per share but after the split, the stock price fell to $75 per share. The intention of the company was to increase the number of shares so as to have more investors taking advantage of increased shares in the market to by the company’s shares. The decision led to increase of the market capitalization as the price increased from$ 75 after the split (Seitz, 2014).
(b) The market’s reaction to Apple’s decision to split its stock
Apple Inc’s share increased after the split as the shares become more affordable and more investors were able to bid for them in the market. It was also said that Apple Inc would commit more of its cash into paying dividends which saw the stock price in the market increase(Zuschlag, 2014). The share price increased to around $130 per share within a short period after the stock split. The stock split also enabled the company to be listed on Dow Jones indices after it replaced electronics giant AT&T. Dow Jones list 30 of the biggest stocks in the market. Apple Inc had previously been excluded from Dow Jones indices because its stock price was too high and it was felt that it would distort the market(Zuschlag, 2014).
(c) An explanation on whether Apple was able to meet its objectives for splitting the stock
After the stock split Apple Inc’s share increased to $92 then they rose to $109.62 and then to $130 per share in subsequent days. The company was therefore able to achieve its objectives of enhancing the availability of its stock to more shareholders as its shares become more affordable. The company also saw its capitalization increase in the market and was able to be listed on Dow Jones indices as it replaced electronics giant AT&T (Zuschlag, 2014). The company was also expected to release a new product, iPhone 6, which also contributed to the increase in its stock price in the market. Apple shares became more attractive and accessible to retail investors after the split which led to an increase in the company’s stock price in the market. The chance to be added to the prestigious Dow Jones Industrial Average also boosted the company’s image and the reputation in the market which led to increase in stock price and a rise in market capitalization (Zuschlag, 2014).
Question 2
See answer in the attached Ms Excel sheet.
An assessment of the performance of JB Hi-Fi against the market as a whole for the past eleven years based on your results in Table 1
JB Hi-Fi is a chain store operation that was founded in 1974 in Australia. The company is headquartered in Melbourne in Australia. The company’s primary business is retail of consumer electronics’ but it also supplies video games, Blu-rays, DVDs and Compact Discs(Stewart, 2011). The company later diversified its business and currently is a leading retailer of a wide variety of consumer electronics which includes gaming consoles and accessories, in-car entertainment, computer/video games, white goods ( fridges and freezers), DVD and Blu-ray movies, Plasma and LCD televisions, CB-Radios, IP and fixed surveillance camera systems, musical instruments such as guitars, electronic keyboards, Ukuleles, microphones, etc. JB Hi Fi is currently the leading retailer of Apple computer hardware in Australia (Pan, 2010). The company is also the sole distributor of Dell computer hardware in all retail stores in Australia. In October 2003, the company was floated on the Australian Stock Exchange and currently trades under the code name JBH. The company has over 174 stores located in Australia and New Zealand. The company operates in the retail industry (Stewart, 2011).
There are various reasons as to why JB HI FI’s historical returns were different to the market returns. One of the main reasons could be performance announcements prior to end of a financial year. For example, in 2011 the company cut its profit guidance due to costs that were associated with its discount electrical retailing brand restructuring. The company forecasted that its profits would fall from budgeted figures of between $134 to 139 million to between $ 108.5 million to $112.45 million (Stewart, 2011). This kind of an announcement could have affected the company’s stock prices. It might have led to a rise in stock prices as investors prepared for better returns from the restructuring in future. Market returns could nevertheless not be affected by the performance of a single entity but if the economy in general is in a recession as it happened in the late 2000s, market returns would have been affected. The company returns could therefore be affected by a positive pronouncement on the company’s fundamentals whereas the market could not (Stewart, 2010). Market returns could not be affected by the good performance of a single company listed on the Australian Stock Exchange. The next reason that could have caused the difference was profit slips due to price wars. The company announced that its profit had slipped due to price wars from its rivals. That announcement could have impacted on its stock prices and hence its returns. The next reason could be the general discontent among employees (Stewart, 2011). For example, the New Zealand workers distributed leaflets to customers complaining about unfair treatment by the company. This action affected the returns of the company, while the market returns were largely unaffected by such an action. Staff changes especially top management personnel might have impacted on the company’s returns as compared to market returns (Stewart, 2011). The company’s stock prices could easily be influenced by positive pronouncements in mainstream media or favorable changes in the external environment. The performance of capital market is influenced by various factors. One of the factors could be the general performance of the economy. During the period, the Australian economy faced a slow down due to the sluggish world economy in recent years. This explains why market returns were not as impressive as those of JB Hi Fi’s returns. Stock market performance is based on the general performance of all listed companies and not on the performance of a single company. Therefore, if a large majority of companies listed on the stock exchange are performing poorly the good performance of one company will not affect the overall performance of the market (Lower, 2012).
(c) The decision to invest or not to invest in JB Hi-Fi Ltd
The best decision to make given an investment horizon of five years would be to invest in JB HI-FI stocks. One of the reasons is that the company’s returns are higher than the risk free rate of $2.71. An investor would earn more by investing in the company’s stocks than investing in treasury bills. The investor would make an additional 18.6% higher than investing in government bonds (Fitzsimmons, 2010). The other reason is that the company is growing and has been making profits over the years. There is a big chance that the company will be profitable in the next five years. The company is growing and has over 174 chain stores in its portfolio. This strategy will continue to generate revenues for the company. It would therefore be prudent to invest in the company’s stock (Fullerton, 2011). The next reason is that the company is the leading distributor for some of the largest companies in the world such as Apple Inc and Dell Computers. It is better to invest in stocks with lower returns than the market as that means that the company is operating in a growing economy and there is therefore an opportunity to grow in the future. JB Hi Fi is therefore operating in a growing economy which offers an opportunity for the company’s assets to grow during the duration of the new investment horizon of five years (Stewart, 2011).
Question 3
Refer to the Excel work book which is attached to this report.
(i) Valuation of stocks and the understanding of the tradeoff between risk and return form the basis for maximization of shareholder wealth. Every financial decision presents certain risk and return characteristics. The unique combination of risk and return determines the value of a management fund’s asset portfolio. There is a certain degree of uncertainty between actual returns and expected returns. This uncertainty is what is referred to as risk. Every financial decision could result in a financial loss. The greater the variability of expected return and actual return the greater the risk. The relationship does hold for given asset classes. The return of an asset is the gain or loss experienced over a given period on a class of assets (Isa & Yakob, 2013). Risk in investment denotes the chance that actual returns from an investment portfolio will be different from expected returns. There is a possibility that an investor can lose all of his investment or a large part of it. Asset portfolios associated with high returns have high risk while those with low returns are associated with low risk. The relationship does hold for asset classes in Table 2 in the Excel sheet. Asset classes with high degrees of standard deviation show that they are quite risky (Isa & Yakob, 2013). Risk and return is a useful tool in determining the composition of assets in a given portfolio. An investor using this strategy could choose to hold more of one asset and less of another based on risk and return analysis. The risk of any single asset investment is not viewed independently of the other assets in the portfolio but must be considered in light of risk and return of the portfolio of assets managed by the fund management company. A good fund manager would create an efficient portfolio that minimizes risk to achieve an expected return on a portfolio of assets (Isa & Yakob, 2013).
(ii) Diversification is a risk mitigation strategy that enables a fund manager to organize and combine assets in a manner that reduces risk and maximizes returns. Diversification enables a fund manager to minimize risk. This is because if an individual asset’s returns variability moves in one direction it is offset by variability in the opposite direction of other assets in the same portfolio. Diversification therefore reduces the impact of negative returns on a class of assets as that negative return is offset by positive returns on another class of assets (Hedegaard & Hodrick, 2014). If the securities in a portfolio are not positively correlated, then benefits of diversification in the form of risk reduction can be realized. The only way to reduce risk to a minimum is y combining assets with a negative correlation in returns. The correlation measures the degree to which expected returns move together (Fathi, Zarei & Esfahani, 2012). Assets that have a positive correlation imply that their returns move in the same direction. On the other hand assets that have negative correlation do not have returns that move in the same direction. There are normally two types of risks, namely un-diversifiable risk or systematic risk and diversifiable risk or unsystematic risk. Un-diversifiable risk is an uncertainty that affects the entire stock market segment. This type of risk is denoted by volatility in the market price of company’s stocks listed on a stock exchange. Factors such as interest rate fluctuations, recession or wars are classic sources of systematic risk. Unsystematic risk is a specific risk with a company or industry and can be reduced through diversification (Davidsson, 2011).
References
Davidsson, M. (2011). Expected return and portfolio rebalancing.International Journal of
Economics and Finance, 3(3), 15-25. Retrieved from http://search.proquest.com/docview/880882438?accountid=45049
Fathi, S., Zarei, F., & Esfahani, S. S. (2012). Studying the role of financial risk management on
return on equity.International Journal of Business and Management, 7(9), 215-221. Retrieved from http://search.proquest.com/docview/1017874947?accountid=45049
Fitzsimmons, W. (2010). JB hi-fi posts 29pc profit rise. Ultimo: Australian Broadcasting
Corporation. Retrieved from http://search.proquest.com/docview/189766642?accountid=45049
Fullerton, T. (2011). JB hi-fi records half-year profit. Ultimo: Australian Broadcasting
Hedegaard, E., & Hodrick, R. J. (2014). Measuring the risk-return tradeoff with time-varying
conditional covariances. Cambridge: National Bureau of Economic Research, Inc. doi:http://dx.doi.org/10.3386/w20245
Isa, Z. b., & Yakob, R. b. (2013). Stock return and market risk: A comparison between
conventional insurance and takaful.African Journal of Business Management, 7(8), 591-597. doi:http://dx.doi.org/10.5897/AJBM11.416
Kumar, S. S. H., & Halageri, S. (2011). Impact of stock split announcement on stock price.Review of Management, 1(1), 15-32. Retrieved from http://search.proquest.com/docview/1326435547?accountid=45049
Lower, G. (2012, Aug 13). JB hi-fi profit slips amid price war.Wall Street Journal
Please read the following, then answer the questions at the end:
Call centres in the financial services sector – just putting you on hold . . .
UniBank
UniBank was founded in the West Midlands during the late nineteenth century and by 1990 had become a traditional national high-street bank with branches in most UK towns and cities. Its main business is in personal banking and financial services for individual customers and small businesses. It has subsidiary business units which handle personal insurance, mortgages and share-dealing, but these are managed separately from the high-street banking concern.
The development of UniCall
By the mid 1990s all traditional banks were feeling the pressure of fierce competition in financial services, intensified by the arrival of new entrants such as supermarkets and other well-known brands. With an eye to the growing commercial success of direct line banking organisations, UniBank decided to enter the telephone banking sector, and has recently been able to improve shareholder value by switching a significant proportion of its general account management and enquiry activity to a dedicated call centre, named UniCall. This resulted in the closure of many smaller, unprofitable branches and the consequent need for redundancies. UniBank attempted to redeploy existing employees where possible, but also needed to recruit new staff to work in the national call centre. True to its origins, and mindful of the relatively high unemployment rates in the West Midlands, UniBank decided to locate UniCall just outside Birmingham. However, none of this was achieved easily, since the press and public expressed concern and dismay at the closure of so many small local branches, and there was strong trade union resistance to the job losses. Thus is it true to say that currently staff morale is low, that there is considerable anxiety and discontent with the new arrangements, and that the staff at UniCall itself are beginning to feel somewhat exposed as the debate about branch closures rages in the media.
26 27
The work at UniCall
At present UniCall employs 150 staff and operates 24 hours a day, 7 days a week on a 4-shift system. The majority of staff work on the daytime shifts. Staff work at sets of 4 desks, wear headsets with microphones to take the calls and operate terminals with access to all the required account and product information. Supervisors are responsible for each shift and there are two call centre managers and a deputy manager, one of whom is always either available at the centre or can be contacted by mobile phone. Pay scales are standardised; there is a starting rate of £15 000 which applies to newly recruited staff during their 6 months probationary period, after which they are placed at the bottom of a 4-point scale which rises by increments to £20 000. Employees proceed up the scale by annual increments until they reach the top point, after which further increases are dependent on promotion to supervisory or managerial work. Supervisory grades start at £22 000 and rise similarly to £27 500. There is no performance management system in place, and as yet the idea of an appraisal system has not been developed. UniCall is located in pleasant, airy open-plan offices which are nicely decorated and have good basic facilities including a snack and sandwich service, a rest room, a separate smoking room, and a kitchenette for the preparation of hot drinks and snacks; thus the ‘hygiene’ factors are fairly good.
Problems with UniCall
The history of UniCall has been mixed. After a patchy first 6 months, it seems to be picking up business very rapidly as customers begin to see the advantages of this service. While this is encouraging, it has led to a new range of problems. The existing number of UniCall staff is now clearly inadequate for the growing demands for the telephone banking service. Recruitment is under way but this is likely to place existing induction and initial training programmes under strain. Complaints are beginning to be heard from customers who are being ‘put on hold’ for anything from 30 seconds to 5 minutes during busy periods (especially early in the evenings and at weekends).
There are also problems associated with the use of the computer system itself; these centre on the apparent inability of some staff to extract accurate information about relatively simple enquiries, or the length of time that such interrogations take. Monitoring systems which measure the number and duration of different types of call add weight to these complaints, with enquiries relating to standing orders and direct debit arrangements appearing to take up to 50 per cent longer than they should according to the authors of the software. There have been customer complaints about rudeness, staff’s apparent inflexibility when dealing with complex account problems and the fact that different operators seem to give different answers to the same questions. There are additional knock-on effects for customers who prefer to visit their local branch. Here the problem seems to be that branch staff themselves have to telephone the call centre in order to deal with certain very simple transactions such as opening new accounts, and that they too are often kept ‘on hold’ to the annoyance of clients and their own considerable frustration.
The call centre staff are also beginning to complain about aspects of the work. UniBank carried out a staff survey 6 months after the start of the operation and again after a further 3 months and the findings of the second survey reflect the increased pressures by revealing a higher degree of discontent than that noted in the first survey. Workers say that they often feel very isolated from their colleagues, which leads to a certain unhealthy rivalry both within and between shifts. Many feel that they are ‘like battery hens’, working in an intensive manner, with little control over the number and type of calls which they receive 2728and limited opportunity to recover from one call before receiving the next. They are also under constant surveillance, with calls being monitored both to determine the productivity of the operators, and to check the accuracy of the information given and general quality of their work. This causes some resentment, and it appears that the operators often find informal ways to control the number of calls they receive and the time between calls. Some groups have worked out a method by which calls can be redirected to one of their number, thus allowing them all to appear busy while only one is actively taking calls. This way they take it in turns to give themselves an informal break from calls while still giving the appearance of working. On occasion this technique has been used to ‘soak’ new or unpopular members of staff, who find themselves the victims of such redirection, not realising that they are the only person on their team who is actually busy and appears to have a backlog. Supervisors are aware that this is happening, but find it very difficult to detect.
Some of the redeployed staff remain unhappy with the type of service they are being asked to give and find it too impersonal. On the other hand, some of the new recruits, especially in the younger age groups, believe that they work better and more effectively than other staff, and are beginning to feel that the standardised pay structure does not recognise or reward their individual skills and efficiency. Some are concerned about their employability and want formal recognition for their skills which would be transferable to other similar employers, of which there is an increasing number in the region. Indeed, UniCall has already lost a number of its staff to other local call centres which have a more varied clientele and better career prospects.
UniCall and UniLine, the future strategy
UniBank remains aware of the way in which the banking and personal finance sector is likely to develop and management recently decided to expand the service at UniCall to include the provision of mortgages and insurance, thus providing more of an integrated ‘one-stop shop’ service. Furthermore, work has already started on the development of an online banking system, ‘UniLine’, in parallel with the telephone service. UniBank has been somewhat late in its realisation of the importance of online banking, and thus finds itself at something of a disadvantage here. The new operation, UniLine, is located in the same set of buildings as UniCall, and urgently needs both programming staff and others with knowledge of banking and financial services who can help both to develop and run the initial trials of UniLine. It is also clear that if the local labour market is unable to supply this type of expertise at a competitive rate, then UniBank will have to consider alternative approaches.
UniBank and unions
UniBank recognises the UNIFI trade union. Membership increased at the start of the branch closure programme, but has been affected by redundancies and is starting to decline. Membership was always low at UniCall, where the workforce is relatively transitory and predominantly female (10–12 members on average). In addition, workers at UniCall felt that the union was concentrating too hard on resisting the branch closure programme to take an interest in the call centre, particularly since the call centre was partly responsible for job losses at the branches. However, there have been rumours about the possibility of 2829further job losses, this time at UniCall. This is because competitors in the banking and financial services industry continue to outsource work abroad, and because UniLine is likely to take over more of UniCall’s business and this is causing UNIFI to start recruiting more steadily at UniCall.
1.Identify and assess the key HRM issues at UniCall.
2.Recommend and justify HRM interventions that would improve business performance.
Also,
1) The answer must raise appropriate critical questions.
2) Do include all your references, as per the Harvard Referencing System,
3) Please don’t use Wikipedia web site.
4) I need examples from peer reviewed articles or researches.
5) Turnitin.com copy percentage must be 10% or less.
Appreciate each single moment you spend in writing my paper
Best regards
SAMPLE ANSWER
HRM issues at UniCall
The rapidly changing business landscape implies that there are presently a lot of many human resource management (HRM) issues that would continue evolving for several years to come. HR practitioners who face various challenges utilize their leadership skills as well as expertise in averting issues which may stem from those challenges (Stone & Deadrick 2015). In this paper, the main human resource management issues at UniCall are identified and assessed exhaustively. Moreover, a number of human resource management interventions that would improve business performance at this company are recommended and justified.
HRM issues at UniCall
Inadequate number of staffs: at the moment, the number of employees at UniCall is clearly insufficient for the increasing demands for the telephone banking service. Even though recruitment is underway, it may place existing induction as well as training programmes under strain. Thanks to insufficient staffs, complaints are starting to be heard from clients who are being put on hold for even up to 5 minutes in busy times particularly at weekends and early in the evenings.
Rude employees and employees giving inconsistent responses to customers: it is worth mentioning that there have been complaints coming from customers with regard to rudeness of UniCall staffs. In addition, another HRM issue is employees’ clear inflexibility whenever they deal with complicated account problems and the fact that dissimilar operators appear to give dissimilar responses to the same questions. Branch staffs not conversant with simple transactions: in local UniCall branches, the staffs there have to telephone the call centre so as to deal with some very simple transactions for instance opening new accounts. They are also kept on hold to the annoyance of customers as well as their own frustration.
Employees at UniCall discontented with work: a staff survey revealed that UniCall employees have increased pressures and there is an increased degree of displeasure. Workers at UniCall reported that they usually feel isolated from their co-workers, which results in a certain unhealthy rivalry both between and within shifts. A lot of them feel as though they are battery hens since they work intensively with little control over the number as well as type of calls that they receive. They also usually have limited opportunity of recovering from one call prior to receiving the next call. Furthermore, employees at UniCall are under continuous surveillance and this causes some resentment amongst UniCall staffs.
UniCall’s employees uncertain about their employment: there have rumours at UniCall with regard to the likelihood of further job losses. This is because UniCall’s rivals in the financial and banking services industry continue outsourcing work overseas and because UniLine may take over more of UniCall’s business. Lack of performance appraisal system: at the moment, UniCall has not implemented any performance management system. As yet the idea of an employee appraisal performance system has not been developed. Pay begins at £15,000 and rises by increments to £20,000. The pay for supervisors begins from £22,000 and rises by increments to £27,500.
HRM interventions that would improve business performance
Recruit more employees: a major HRM issue at UniCall is certainly inadequate number of workers since the company is understaffed. This problem could be effectively resolved through hiring more staffs to reduce pressures on the existing staffs. The goal of human resource management is basically to develop and maintain a sufficient supply of skilled personnel who are adequately motivated to work effectively and offer outstanding service (Armstrong 2010). By hiring more workers, the existing ones would be less strained.
Increase employee morale and motivation: many employees at UniCall are discontented with work and their morale is low. Managing employees is a challenging and crucial task for any manager. Workers are often motivated by a range of factors which could be affected by management. Perceiving they are fairly treated, receiving effective supervision, feeling appreciated and valued, getting feedback, having opportunities for professional development, and understanding their job priorities can all help employees at UniCall to perform better (Maugans 2015). In addition, developing and maintaining an effective, equitable and fair human resource management system can help in motivating employees and increase their level of job satisfaction as well as efficiency, which could lead to improved service quality. According to Marler (2012), a vital part of a long-term strategy is to create a management and organizational structure for human resource management that is executed by employees and managers at all levels. A HR partnership between individual employees, HR professionals, supervisors, and senior managers is what really makes a human resource management system work (Allen, Ericksen & Collins 2013).
Properly train new hires and re-train existing staffs who are incompetent: training is usually carried out in order to upgrade the skill of a person or to add a new skill, which could consequently bring the change desired by the company (Maugans 2015). At UniCall, some employees cannot even deal with some very easy transactions for instance opening new accounts. This problem could be resolved by re-training employees at local branches so that they are conversant with such simple transactions and would not need to call UniCall. Training staffs at UniCall will help in fostering growth and development, will build self-confidence and commitment of staffs, and would produce a measurable change in employee performance.
References
Allen, M, Ericksen, J, & Collins, C 2013, ‘Human Resource Management, Employee Exchange Relationships, and Performance in Small Businesses’, Human Resource Management, 52, 2, pp. 153-173, Business Source Complete, EBSCOhost, viewed 14 August 2015.
Armstrong, M 2010, Armstrong’s Handbook Of Human Resource Management Practice, London: Kogan Page, eBook Collection (EBSCOhost), EBSCOhost, viewed 14 August 2015.
Marler, JH 2012, Strategic Human Resource Management in Context: A Historical and Global Perspective. Academy Of Management Perspectives, 26(2), 6-11.
Maugans, C 2015, ’21st Century Human Resources: Employee Advocate, Business Partner, or Both?’, Cornell HR Review, pp. 1-4, Business Source Complete, EBSCOhost, viewed 14 August 2015.
Stone, D, & Deadrick, D 2015, ‘Challenges and opportunities affecting the future of human resource management’, Human Resource Management Review, 25, 2, pp. 139-145, Business Source Complete, EBSCOhost, viewed 14 August 2015.
We can write this or a similar paper for you! Simply fill the order form!
You are a financial consultant and your company has been asked to help with the following queries from a client who is considering investing in MDM plc, a medium sized quoted company.
a) Which ratios should the client use if he wanted to assess the profitability of the company? (Guide approx. 500 words)
b) Which ratios should the client use if he wanted to assess the riskiness of the company? (Guide approx. 500 words)
c) Your client knows that MDM are considering a project which will cost €200 million. Advise the client on the different possible ways of financing this project, clearly explaining the benefits or otherwise of each method.
(Guide approx. 1000 words)
State the word count at the end
The balance of the grade will come from the presentation and the use of proper referencing both in the text and bibliography.
Important note:
The coursework should be in essay format and must be structured, with separate sections and, preferably, headings.
Your essay should be 1600 – 2000 of your own words
Much of your source material may be more recent but you still must reference the newspaper, journal or website.
Any material that you quote or refer to in your work must be referenced fully giving details of its source, author etc. It is not sufficient merely to include a source in your bibliography, neither is it permissible to just use the name of a website on its own.
It is not acceptable to include large sections from such sources: the vast majority of the essay should be in your own words
SAMPLE ANSWER
Financial accounting
Introduction
The sources of financing a business or an enterprise are all those avenues that funding for a business can be obtained from to finance a new project. Companies use the budgets to weigh the cost implications of all the different sources of funds and their sole benefit to the business. Some sources of financing are very suitable for short term financial periods while others are best for long term periods. Large capital investments require longer financial periods while short term financing are suitable for short term investments and in acquisition of revenue expenditure and which are mostly repayable within the same financial year (Securities and Exchange Commission, n, d).
The following are the sources of finance;
Before deciding on any suitable source of funds, the business manager must consider the cost and the period of time that the funding is required. The cost of funding plays a critical role in determining the kind of funding. The total funding required and the amount of risk involved in the business or investment to be undertaken can also influence the source of funding that the business would go for.
Short Term Internal Source Financing
Bank Overdrafts
Bank overdrafts are short term loans that business men with current accounts qualify for. These loans are advanced when requested for but their interest rates depend on the type of bank and the amount required.
Retained Earnings
Retained earnings can be used as a source of funds depending on the amount of financing required. Retained earnings are reserves that a business sets aside from the profits for future use. These reserves can be used as a source of revenue. Retained earnings are retained in bank accounts as reserves and they mostly influence the payment of dividend in a company. Retained earnings are often utilized to finance new investments in most companies as they provide flexible sources of funding with no conditions attached (FAO, Corporate Document Repository, n, d). The major problem is that it reduces the reserves available to the business and it may also affect the company’s policy on dividend payment.
External Sources of Funds
Loan Stock
This is a long-term debt capital that is raised by a company and it attracts the payment of interests. Loan stock holders are mostly long-term company creditors (Gitman, 2000).
Ordinary (equity) Shares
These shares are normally issued to the shareholders of the company. The nominal value of the shares is mostly $1 or even $0.5.The market value of the shares are not related to the nominal value of the shares. The only exception occurs when the shares are handed out for cash, then the price at which they were issued must be equal to the nominal value of the shares nominal value (FAO Corporate Document Repository, n, d). The company can offer new ordinary shares to the existing share holders or to new prospective investors. The following are ways of raising financing through the issue of shares;
Deferred ordinary shares
These shares are issued to any investor who may be interested but they carry limited voting rights and they are mostly limited to dividends only (FAO Corporate Document Repository, n, d).
Rights issue
Rights issue is a process where a company sells its shares to the existing shareholders in proportion to their holdings. For example, an offer maybe for one share for two held for all the shareholders. However a company may decide to issue shares directly to the public to raise financing plus also to float its shares on the stock exchange.
New Shares Issues
The issue of new shares to the public can provide a better way of raising financing for the company. The amount the company requires to fund its projects is very large and raising it through the public would be the best option. The company can apply to be listed at the stock exchange in order for it to float its shares for the public to buy.
Preference Shares
Preference shares can be issued to raise money for the company. These shares have no voting rights and they do not participant on the profits of the company but there interest rates are fixed. There interest must be paid notwithstanding whether the company makes losses or profits. Their profits are cumulative and all their interests must be paid first before the ordinary share holders are paid.
Since all preference share holders do not participating in voting exercises they mostly do not dilute the shareholders control rights in the company. If the company’s preference shares are redeemable, the frequent issue of the shares lowers the gearing ratio for the company as they are considered as debts for the business.
Loan Stock
Loan stock capital is a long term financing option for a business and it attracts interest payments. Loan stock holders are mostly long-term business creditors. The interest is mostly paid at a particular Coupon yield on the said amount.
For instance a business can issue 10% loan stock and where the coupon rate is 10% nominal value hence some $1000 worth of stock would earn a total interest of $100 per annum and without any taxes.
Debentures
It’s a type of loan stock that involves a written acknowledgement of debt that a company has incurred and it also involves provisions of interest payments and eventually the repayment of the initial capital. Debentures may be fixed or floating. Fixed charged debentures relate to specific charge that has been secured on a particular asset. The company is restricted from selling the asset until when the charge is removed after complete payment of the debt.
Floating charge applies to an overall or floating charge on some assets and the lenders charge is on whatever asset that is appropriate and which the company owns. The company can dispose of any asset even those which the floating charge is secured on but a restriction is placed upon payment default on payment by the company.
2). Profitability Ratios
These are ratios that indicate how profitable a business unit is. Profitability is a relative term and it’s mostly equated or compared to the company’s competitors or to industry’s average ratio rates. Profitability ratios indicate the rate of profit that a company is making compared to the industry’s average. The ratios also indicate whether the company’s market share is on the rise or if it’s falling
The following ratios are used to indicate the profitability of a business.
a). The Net Profit Margin = Profit after taxes/sales.
A higher ratio indicates how profitable a company’s position is while a lower ratio shows a weak company. However, some company’s prefer to invest their funds in investments hence retain low levels of profit margins.
b). Return on Assets (ROA) = Profit after taxes/Total Assets
The returns on asset also reveal the rate of profitability of the company. The higher the ratio the more profitable the company is.
c). Return on Equity (ROE) = Profit after taxes/shareholders equity
The returns on equity also reveal the rate of profitability of the company. The higher the ratio the more profitable the company is. This ratio is more frequently used to reflect a company’s financial position.
d). Earnings per common share (EPS) = profits after –Preferred dividend/(the number of common shares outstanding.
This ratio is very critical to investors as it indicates the company’s ability to earn income for the investor. A Company with higher rates of earnings per share have greater demand and their shares are more expensive.
5). Payout Ratio = cash dividends/Net income
The payout ratio is also critical for the investor as it reveals the rate of dividend payments compared to the net income. The higher the rate the better it is for investors. However, a company may be paying most of earnings as cash dividends at the expense of other investments or the company maybe making less profit hence the ratio should be used in comparison to the rate of profits the company is making.
3). Ratios that assesses how risky a business are;
Liquidity Ratios
Liquid assets are those assets that can be quickly converted to cash. Short term liquidity ratios indicate a company’s ability to honor its short term commitments. A higher ratio indicates greater financial liquidity and consequently lower risk susceptibility for the short term borrower or lender. Most standard ratios are 2:1 for current ratios and 1:1 for quick ratios.
Higher liquidity reflects a financially sound company that cannot literally default on all its short term commitments. However, maintaining large assets as cash collaterals may tied capital on unproductive assets when investment on valuable projects would have generated far much more income for the company. Cash generates no return if not invested but one can benefit in future if the money is invested wisely. The following are the ratios for liquidity ratios.
The current and quick ratios are commonly used to assess the liquidity and riskiness of a business. Current ratio is obtained by dividing the current assets with current liabilities while the quick ratio is obtained by dividing the current asset less the closing stock and dividing the balance by the current liabilities.
Leverage Ratios
Leverage ratios reveal the rate at which a company relies on debt to finance its projects and investments. If a company cannot pay its debts then it would mean that it would be declared bankrupt. Such positions are very risky for any kind of business hence when the leverage ratios reflect a negative trend for the business it indicates the nature of risk that the business is exposed to. The following are the ratios that indicate the rate of leverage that a company posses.
a). Debt to Equity Ratio = Total Debt/Total Equity
This ratio indicates the company’s degree of leverage or the rate at which the business is relying on external debts in its operations. The higher the ratio the more risky is the business. When the debts of a company exceed its total equity, the company’s financial position would be threatened as lack of funds to repay back the debts would mean the closure of business.
b). Debt to Asset Ratio = Total Debts/ Total Assets
This ratio also indicates the company’s degree of leverage. The higher the ratio the more risky is the business. When the debts of a company exceeds the businesses total asset then the company would not be in a position to repay back the debt as the total value of the assets are less than the total debts owed. The risk of insolvency would be very high.
Most industry average indicates that the total debt of a company should not exceed 50% of either its total assets value or its equity.
Interest Coverage Ratio = Earnings before Interest & Taxes (EBIT)/Annual Interest Expense.
This ratio indicates the company’s ability to pay its fixed interest rates using its current earnings. A company with a very high margin would reflect a company that is more risky as it would mean the ratio of interest payable are higher than the earnings of the company.
Conclusion
Finally, the business can opt for a long term bank loan because of the large financing required. Long term financing have favorable payment terms and the interest rate are affordable than for short term lending. The interest rates depend on the purpose of the loan, the duration, the amount involved and whether there is security (Garber, C. (1997)
Gitman, L.J., 2000, Principles of managerial finance (9th ed.). Menlo Park, Calif.: Addison Wesley.
Garber, C. (1997) Private Investment as a Financing Source for Microcredit. The North-South Center, University of Miami retrieved In July 2015 from http://www.gdrc.org/icm/ppp/private-funds.html
Please read the attached file be email then answer the following question. Below are questions/issues that you may again like to further reflect upon:
•What links have you now identified between accounting and finance and effective strategic decision making?
•Further discuss those areas of financial and management accounting, plus financial management, that have most resonated with you.
•How do you see the concepts that you have studied applying to your professional experience, plus your personal finances?
•What steps might you now take to aid you in the transition of applying the coursework to your workplace?
•How can you link what you have studied in Managing Financial Resources with what you took away from your previous modules?
•What ethical and cultural issues have you considered important in this module and how have they impacted upon your views of global business?
•Do you feel that you have improved your ‘key skills’ (report writing, time management, etc.) as a result of your experiences with this module?
Also,
1) The answer must raise appropriate critical questions.
2) Do include all your references, as per the Harvard Referencing System,
3) Please don’t use Wikipedia web site.
4) I need examples from peer reviewed articles or researches.
5) Turnitin.com copy percentage must be 10% or less.
Note: To prepare for this essay please read the required articles that is attached or sent by email.
Appreciate each single moment you spend in writing my paper
Best regards
SAMPLE ANSWER
Managing Financial Resources
Introduction
Accounting is a dynamic discipline that keeps evolving, especially as business becomes global. According to Ozturk (2015), accounting applies to the private and public sector, as well as in the manufacturing sector. Furthermore, accounting is still relevant to a non-profit organization because it is also a commercial entity. Accounting applies to all functions of an organization, as each function will be affected by finance-related decisions. Therefore, the following discussion will indulge in discussing the link between accounting and finance and efficient strategic decision-making. In addition, the paper will look into those areas in management accounting, and financial management that are critical. Furthermore, the discussion will give an insight to how concepts of accounting can apply to a professional experience. Finally, the study will look into some of the ethical and cultural issues in accounting that can affect the professional in managing human resources.
Discussion
Links between accounting and finance and efficient strategic decision-making
The decision-making process in an organization cannot be useful if financial management, financial accounting, and management accounting lacks. Tanase & Stefanescu (2015, p.116) states that financial accounting is an accounting system that is concerned with outside parties such as creditors, investors, shareholders, lenders, and customers. Ozturk (2015, p.399) call financial accounting the purest form of accounting, as it entails proper record keeping and reporting financial data. This record keeping and reporting is significant in decision making as a manager, or a financial accountant can retrieve data necessary for making decisions.
On the other hand, managerial accounting is important in decision-making, as it enables the management of an organization to formulate policies, planning, controlling, and forecasting, not forgetting managing the day-to-day operations of an organization. The exceptional feature of management accounting is that it can capture qualitative information, which financial accounting cannot capture (Shrman, Weston, Willey & Mansfield (2014, p.165). Therefore, there is a link between financial accounting and management accounting to provide both qualitative and quantitative data paramount for a strategic decision-making process.
Financial management is another field dealing with how an organization can best finance a project. Financial management deals with the question of how to choose a project, how to evaluate the risks, and how to raise funds. Mathews & Marzec (2012, p.7094) dictate that all this information is derived from financial accounting and management accounting. In other words, these three concepts are interrelated to ensure that the financial decision of management is effective.
Indispensable areas of financial and management accounting, and financial management
Shrman, Weston, Willey & Mansfield (2014) argues that the functional area of management accounting is not only constrained to providing financial or cost data, but it also extracts significant and material information from financial and cost accounting to aid the management in budgeting, setting goals, and executing control functions. This functional area is made effective with such components as cost accounting, benchmarking, and life cycle costing. For instance, unit costs are used for product’s pricing and product discontinuance decisions.
On the other hand, benchmarking is used to identify the best practice and to compare the firm’s productivity to those methods with the aim of improvement. Lifelong costing involves calculating the total cost of a product throughout its life cycle through such aspects as introduction, growth, and maturity. Financial management has areas that are important in capital budgeting. Mathews & Marzec (2012, p. 7098) argues that this concept involves determining relevant costs and cash flows, as far as product decision-making is concerned. This process also entails calculating the cost of capital, which can be calculated using financial accounting methodologies. This wholesomely involves capital management, which requires controlling a project when installed to prevent loss. Sanyal & Sett (2011) adds that capital management requires the use of lean operations and just-in-time (JIT) philosophy. The lean supply chain requires the process of planning to minimize wastage, mostly in terms of holding crucial inventory. Financial management also involves cash management to sustain sufficient compensating balances at banks to facilitate the banking services that a firm benefits from.
Financial accounting has been known to assess business’ success from an external standpoint. To perfect in this assessment, an accounting manager uses the financial statements in financial accounting. The statement of the financial statement, also known as a balance sheet, is used to reflect how much business is worth a particular point in time. A balance sheet is equated with a picture of the market on a given day. Karadag (2015, p.36)argues that the income statement commonly referred to as profit or loss account, is under financial accounting, and has a significant role in not only comparing the cash a business gets over given time, but also matching it against what it owed. Financial accounting also uses the statements of cash flows, which is important to determine the profitability and liquidity of an organization.
Reflection
As a finance accountant assistant in the tourism industry, I have realized that all concepts of accounting comprising financial management, financial accounting, and management accounting are critical for a firm to succeed (Shrman, Weston, Willey & Mansfield, 2014). The concepts relate to my personal finances, as I have to determine what will be an implication of starting a project, which is if the project will bring profit or not. The concepts also apply to my professional experience that without carrying a proper financial accounting, a company may think it is making a profit, while it is not (Sanyal & Sett 2011, p.1922). My professional experience also indicates that a constituted project needs to be managed. This is through capital management that aims at reducing wastage. I have also realized that I utilize so many of the concepts I have learned in this module every day as I carry out my work. For instance, the decision relating to starting a new project involves bringing external and internal parties to come up with a strategic decision (Karadag, 2015). The use of financial accounting and ignoring management accounting produces a situation of having an infective decision, as qualitative data is not used to make the final determination. I did not realize that using the balance sheet, loss and profit account, and the statement of cash flows is essential in making strategic decisions to avert an impending worse financial situation. This is because it enables forecasting of the future.
Steps in the transition of applying the concepts to the workplace
When the concepts of accounting are integrated, it constitutes a strategic decision-making process that entails (Dennis & Walcott, 2014, p.23):
Analyzing the shared values and experiences of staff and board in the financial accounting department
Review and update the Mission Statement of the organization
Identifying and articulating a firm’s mission and purposes
Analyze the firm’s external settings through PEST (political, economic, social, and technological factors) as well as internal environments (performance and resources)
Undertaking a position examination, using methods such as SWOT analysis to evaluate the firm’s internal strengths, weaknesses, external opportunities, and threats
Creating smaller groups for more thoroughly planning in important areas
Identifying different existing strategies to enable the organization to attain its future strategic goals, and also short- and longer-term plans to execute them
Sketch a vision of where the firm will be for the next four years
Choosing between such strategies
Developing work plans illustrating particular activities, persons responsible, and capital wanted.
Calculating actual performance against that designed and bending strategies and goals as needed
Reflection on Managing Financial Resources
Managing financial resources is a critical role to any business. This management cannot be effective if the three concepts of accounting are unutilized. Pudlowski (2009) argues that failure to use accounting concepts guarantees a redundant decision-making process. The decision made will not only risk a business to incur risks, but it also prone the business to closure. For example, balance sheet enables a firm to identify if the company is making a profit or not. Budgeting in management accounting allows a firm to minimize potential financial risk. What this module has added is that all the concepts of accounting are interrelated such that the information of one concept is used in another concept to enable an efficient management of financial resources (Dennis & Walcott, 2014, p.17). I have also learned that managing financial resources is not relevant only for the current times, but also for the future. This is reinforced by the statement of Ozturk (2015, 400) who attests that the saved data will be retrieved when needed most to address any factor adversely influencing an organization. For instance, financial management can enable an organization to discover investment opportunities. By cost-analysis, an organization can effectively and efficiently find the chances, and get the capacity to pay for the desired acquisitions.
Ethical and cultural issues
One of the ethical questions in accounting is goal congruence. Atrill & McLaney (2013) argues that many employees in the most organization within accounting departments do not aim at fulfilling the set objectives (goal non-congruency). In addition, Dennis & Walcott (2014, p.20) give that individual accountants find themselves omitting financial figures from the balance sheet, which they think may taint the picture of an organization. One of the cultural issues in accounting is that the minority employees do not make accounting decisions. For instance, the Americans working in the U.K. cannot vote a director off a board in an organization in Britain (Pudlowski, 2009). These cultural and ethical issues have influenced my views of global business, which entails equity in decision-making in an organization. Therefore, there should be emphasized corporate social responsibility to deal with these matters.
Summary
In conclusion, accounting concepts are paramount for an efficient management and total excellence of a business. These ideas ensure that there is a productive managing financial resources process that at the end, guarantees maximization of resource utilization. However, several ethical and cultural issues are prevalent in accounting, and thus, there is a need to emphasize corporate social responsibly, and the installation of strong moral standards in organizations.
References
Atrill, P. & McLaney, E. (2013) Accounting and finance for non-specialists. 8th Ed. Harlow, UK: Pearson Publishing.
Dennis, V., & Walcott, J. (2014). Federal Financial Management Shared Sciences: The Move Is On. Journal Of Governmental Financial Management, 63(3), 18-24.
Karadag, H. (2015). Fincial Management Challenges In Small And Medium-Sized Enterprises: A Strategic Management Approach. EMAJ: Emerging Markets Journal, 591), 26-40.
Mathews, R., & Marzec, P. (2012). Social Capital, A Theory For Operations Management: A Systematic Review Of The Evidence. International Journal Of Production Research, 50(24), 7081-7099.
Ozturk, C. (2015). Some Issues Related To Cash Flow Statement In Accounting Education. The Case Of Turkey. Accounting & Management Information Systems/ Contabilitate Si Informatica De Gestiune, 14(2), 398-431.
Pudlowski, E. (2009). Managing human resource cost in a declining economic environment. Benefits, 25(4), 37-43.
Schimtz, C. & Ganesan, S. (2014). Managing Customer And Organizational Complexity In Sales Organization. Journal Of Marketing, 78(6), 59-77.
Shrman, M., Weston, H., Willey, S., & Mansfield, N. (2014). Risky Business: Managing Risk In A Complex And Connected World. Revenue Management Et Avenir, (74), 159-173.
Tanase, G., & Stefanescu, A. (2015). Developments Of The Human Resources Budget—A Non-Financial Perceptive. Audit Financier, 13(123), 111-117
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1.first of all, I need an simple plan for this dissertation, which I need hand in to my tutor.
2.the other material will be attached in the following, I hope you could read carefully.
2.Criteria Supervisor comments: areas for improvement
Introduction – does this satisfactorily explain what the journal article is about and does it indicate why the particular topic was chosen?
Yes, in general, research idea is justified, however, a couple of references missing. You could spend a bit more discussion on comparative part of the
research.
Research Questions – are they clear, focused and feasible, do they meet the objectives of the overall issue? Do they demonstrate understanding of the issues?
I think you could make few changes in your research questions. Question one should explore what formal micro finance is available in China, question two
investigate the existence of informal microfinance, then question three could assess other approaches.
Critical Literature Review(3000 words) – is there evidence of appropriate selection and critical evaluation of reading from a suitable range of resources, are the concepts and ideas sufficiently understood? Has an initial conceptual framework been attempted? Have relevant models been included and applied correctly and? Is it referenced appropriately in the Harvard style? Literature review is presented as a laundry list, rather than critical and synthetic way.
Research Design and choice of relevant secondary/primary data – are the approach, methods and choice of data feasible?
This section is not very clear about whether only secondary source or both secondary and primary source of information is used. If only secondary sources are adopted, what they are?
Limitations – has awareness of any limitations to the research and research methods been demonstrated? Is it clear which ethics form will need to be
completed (has it already been correctly completed)?
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The Need for Careful Investment Appraisal of Projects
The Need for Careful Investment Appraisal of Projects
Order Instructions:
Dear Admin,
•Consider the main ideas relating to the need for careful investment appraisal of projects.
•Consider how sensitivity and scenario analysis can be used in capital budgeting decisions.
•Discussing an example related to different capital investment appraisal techniques
•Offering examples of sensitivity analysis within the context of capital budgeting decisions
•Extending the discussion into new but relevant areas regarding financial management.
Also,
1) The answer must raise appropriate critical questions.
2) Do include all your references, as per the Harvard Referencing System,
3) Please don’t use Wikipedia web site.
4) I need examples from peer reviewed articles or researches.
5) Turnitin.com copy percentage must be 10% or less.
Appreciate each single moment you spend in writing my paper
Best regards
SAMPLE ANSWER
Introduction
A principled decision-making process includes the collection of all information that is accurate for any organization seeking for avenues for investment. Investment appraisal, therefore, remains an integral part that requires appropriate decisions. An assessment determines the allocation of the organizations financial resource among the varying market opportunities.
Organizations, therefore, need to employ the functions of project appraisal to disclose an analysis of a project and to determine whether particular projects should be implemented or not (Adler, P. 15, 2000). An appraisal therefore derives avenues through which an organization can determine the alternative approaches geared towards selecting an optimum solution with respect to the size of a project, its location, technology, engineering, organizational set-up, the size of a market, economic and social aspects, and financial cost-benefit. This paper therefore seeks to focus on the elements of a projects appraisal.
The Need for Careful Investment Appraisal of Projects
It is significant to acknowledge that business enterprises make their investments over their long-term assets. In the event that such an entity has limited capital, there is a need for great care while considering the development of a program, a factor that necessitates the incorporation of an investment appraisal.
Investment appraisal therefore requires an organization to make significant decisions on their capital investments through an analysis that is carried out to decide whether such an entity should channel its funds to a particular investment process whose returns are more likely to be realized within a short period of time (Adler, P. 15, 2000). An appraisal drives an organization’s stakeholder into generating, evaluating, and following up on an investment alternative that would suit an organization’s state.
There is consequently a need for a careful investment appraisal on organizations projects to determine decisions that would prove beneficial for the organization before undertaking any project. Such decisions would include evaluations on organizations expenditures and the benefits of returns from such expenditures over a period (Damgaard, & Elkjaer, Pp. 245-260, 2014). These decisions have an impact on the long-term profitability and flexibility of an organization. It is also crucial to mention that the success and failure of an organization would be determined by the quality of an investment appraisal developed for an organization. Capital Budgeting
Capital budgeting mainly concerns an organization’s analysis it’s potential projects and remains one of the most significant decisions that managers need to critically make. The capital budgeting therefore involves a systematic evaluation of the amount of capital an organizations should invest in a project including the specific assets that this organizations can employ to meet an investments goal (Damgaard, & Elkjaer, Pp. 245-260, 2014). According to sources from the financial literature, this process is described as an organization’s long-term investment. The success of a capital budgeting process lies in the evaluation through a forecast and monitoring procedure. The success of a company, therefore, depends on the appropriate choice of a capital budgeting system for investment decisions of an organization.
In the event that an organization faces challenges with limited sources of capital, managers go through a sensitive and scenario analysis to carefully decide whether a particular project can viably meet the organizations economic situation. In a case where the organization has more than one project, the management is required to identify the primary project that will bring returns to the value of the organization (Dragotă, & Dragotă, Pp. 1-7, 2009). Through this, the process of capital budgeting is brought on board. The commonly used technique in evaluating the capital budgeting process of a project includes the payback method that determines the time limits of an organization in recovering its cash outlay.
The different capital investment appraisal techniques
There are four types of investment appraisals that companies can undertake in determining the rewarding projects within its objectives. The four typologies can be classified into two main categories; the ARR and payback period which includes a non-discounting approach while on the other hand the NVP and IRR include the discounting methods. The ARR approach of appraisal mainly measures the accounting profit rate by dividing an organization’s average income with the average investment.
The payback method calculates the time length that an organization can employ in recovering its initial investment from its operating cash flow in a project (Dragotă, & Dragotă, Pp. 1-7, 2009). A shorter payback period may be a preferred method for an organization since it capacitates an organization to generate equal levels of cash for an initial investment over a short duration of time, also viewed as a proxy of risks. It is significant to mention that the payback approach primarily ignored the element of time value of organizations returns.
The NVP approach also calculates the bet value of an organization’s project by discounting its cash flow in a manner that reflects the risks that would be associated with the cash flows. This, therefore, offers an organization the advantage of the NVP method over a discounting approach. The NVP method, on the other hand, assumes the maintenance of the capital a factor that less happens since cash flows change with time (Sangster, Pp. 307-332, 2003). Sensitivity Analysis within the Context of Capital Budgeting Decisions
Sensitivity analysis within an organization determines how critical an output is to change inputs while also keeping the other inputs constant. The sensitivity analysis is important since it enables a user to determine how dependant an output value is on each and every input. A sample example of this can be determined below;
A construction company decides to build a road that is 20 kilometers long within a city. The company bids for a $1 from vehicles that pass through the road for a period of 100 years. The chief engineer resorted to and NPV of $ 1,218 million over the project with an assumption of cash flows at the end of the year (Sangster, Pp. 307-332, 2003). He made an estimate of an average cost of capital at 12.1% of the daily vehicles passing through the road approximated at 1,000,000. His daily operating expanse stood at 3% of the total revenues and a cost of $ 2 billion. In determining the sensitivity in the net value of this project input, the approach below will be essential.
Solution
Net present value of the WACC is assumed to be 12.1%
Daily traffic of vehicles= 1,000,000
Daily operating expenses 3% of an initial cost of $2,000 million
Present value of the project=$925 million
Determining the percentage output would require;
-24.01% ($ 926million× $1,218 million) ÷ $1,218 million) over corresponding input of 10% (12.1%-11%) with an output of 1%.
This calculation therefore shows the relationship between the negative sensitivity and the output and inputs in the project.
Financial Management
The investment appraisal method has some ties with the financial management approaches within an organization. Financial management involves the processes of planning, organizing, directing and controlling organizations financial activities (Tegarden, Pp. 5-14, 2013). It involves the aspects of applying the general managerial principles into the financial resources of an organization.
Conclusion
Out of this, it is therefore relative to summarize that an appraisal derives avenues through which an organization can determine the alternative approaches geared towards selecting an optimum solution with respect to the size of a project, its location, technology, engineering, organizational set-up, the size of a market, economic and social aspects, and financial cost-benefit.
References
Adler, Rw 2000, ‘Strategic Investment Decision Appraisal Techniques: The Old And The New’, Business Horizons, 43, 6, P. 15.
Damgaard, J, & Elkjaer, T 2014, ‘Foreign Direct Investment And The External Wealth Of Nations: How Important Is Valuation?’, Review Of Income & Wealth, 60, 2, Pp. 245-260,
Dragotă, V, & Dragotă, M 2009, ‘Models and Indicators For Risk Valuation Of Direct Investments’, Economic Computation & Economic Cybernetics Studies & Research, 43, 3, Pp. 1-7,
Sangster, A 2003, ‘Capital Investment Appraisal Techniques: A Survey Of Current Usage’, Journal Of Business Finance & Accounting, 20, 3, Pp. 307-332
Tegarden, Tk 2013, ‘Income Approach Techniques In Central Assessment Appraisals’, Journal Of Property Tax Assessment & Administration, 10, 3, Pp. 5-14
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