According to the BARRA risk analysis model, BUD`s value at risk (VaR) number is 1% for a monthly and 5% for a daily analysis. This number explains how risky a stock is comparing to the market index. Since both numbers are relatively small on a scale of 100, investing in BUD has a pretty low risk; however, it is riskier than investing in the market itself. As it was discussed before, the company`s beta of 1.14 is also a sign that it is more volatile than the market; yet, it is a pretty small difference. Moreover, Anheuser-Busch InBev is a large cap company with a 206 billion market cap.
The cash ratio is the number of times that the company could meet its current obligations to its current cash balances. The higher the reserve ratio, the more likely a company will be able to pay its short-term debt. Shortly before failure, companies often have very low cash reserve ratio, low levels of inventories, receivables and relatively low current high ratios. Therefore, analyze that Bayou is lays on which position (Henderson et al.,
In conclusion, income inequality is a global issue that cause by many factor. Income inequality must to reduce in order to improve economic growth. Economic growth happen when many people spend money. When income inequality is large that means only small part of people are able to consume. It brings little effect to the economic growth as compare to the total spending of whole population.
The Trans Mountain pipeline has characteristics or properties of Natural Monopoly, so it falls into the products of natural monopoly. When there is an economic of scale, that is, average cost decreases as quantity increases, the natual monopoly occurs. As a result, one firm is able to supply total amount of the products at a lower cost in the market than two or more firms. If the govenment does not regulate the Natural Monopoly, it may not benefit the social welfare and the optimal outcomes. In other words, they will produce much less and charge a higher price than social optiaml lead to a high price,low average costs and high profits.
The debt to equity ratio is lower than one which means that the debt is less than the owner’s equity. The business is geared in the positive direction. The risk factor of the external lenders and investors of the company is less. Dollarama has a strong financial interest in the business than other external lenders. Dollarama operates by using less of the exteral lenders money and more of its own to run the
This is because society has much less of an impact on the individual than before. According to Durkheim’s model, capitalism tends to exhibit a far lower level of integration—due to the fact that the individual is set against all others in and through market competition —while a higher level of regulation is simultaneously required by the state. As a reaction on, and a means of testing of Durkheim’s theories, some empirical data on domestic integration and the rate of suicide has been done. In a comparative study, S. Stack (1980) found that higher birth rates were associated with higher family integration. This higher family integration was associated with a lower rate of suicide.
Organizational Strategy and Objectives The foundation of Wells Fargo’s strategy is its focus on customers. The company’s strategy tends to drive the choices they make and also enable them to prioritize its efforts, differential from peers, and build a lasting value for customers, employees, communities, and shareholders. The diversified business model tends to provide the company with the stability and the strength as it assures communities and customers that it exists to serve them and also the future generations. The objectives of the company are to be the leader in financial services in areas of team member engagement, customer services and advice, shareholder value, innovation, corporate citizenship, and risk management (Wells Fargo n.d). Through the use of innovative technology, Wells Fargo aims at creating new kinds of lasting value for businesses and customers and also increase efficiency for the internal
The main features of this methodology are using both financial and non - financial indicators, and that the strategic objectives are organized into four areas or perspectives: financial, customer, internal and learning / growth. * The financial perspective incorporates the vision of the shareholders and measures the value creation of the company. Answer the question: What indicators have to go well for the efforts of the company really be transformed into value? This perspective appreciates one of the most important objectives for-profit organizations, which is precisely create value for
Therefore, debt investors demand a lower rate of return than equity investors. If external debt or equity is to be used, where should it be raised from and in which form? When it comes to equity finance, for some companies, the new shares must be offered to the existing shareholders in proportion to their existing holdings. With debt finance, short-term loans are cheaper than long-term borrowings. (Jay, 2003,
This would mean transforming from their present position where they simply operate in the money market into a deeper involvement in the country’s overall financial infrastructure. The discount houses would be transformed into an unquestionable pathway through which monetary policy actions can be carried out and also contribute to the overall growth of the financial sector. The viability of discount houses on the long run would depend on their capability to obtain plausible money market based products that would exceed what banks can provide. This kind of venture would be profitable with the involvement of treasury securities-based products and the liquidity profile of discount houses. Having High Net worth Individuals (HNI’s) and corporate organizations invest in treasury securities backed instruments could dictate impending survival of discount houses.