1. Please describe the role of an investment advisor? What are the outcomes for a good advisor? In which case the client and the advisor will be in “win-win situation”? Investment advisors provide clients, which are the individual investors advice on financial matters including financial planning and selling securities and make recommendations on the on ways to best utilize their money.
4. Advise the CFO on three primary ways in which capital may be transferred between savers and borrowers in Jagdambay Exports. Explain the advantages and disadvantages of each within the organization. 5. Advise the CFO on securities trading on physical exchanges or over-the-counter market.
How does the stock market influence the finances of individuals, even if they don 't personally invest? Answer: The finances of individuals are influenced by stock markets because items we buy could make go up or down. Especially depending upon the prices of the items we buy. Even if people don’t personally invest because that would make the prices go down. 4.
3. A Financial Analysis of Tesco 3.1. Specification of the Purpose of the Analysis The purpose of this analysis is to assist interested stakeholders to make sound decisions on investments, objectives and overall strategies with regards to the financial analysis. The data presented in this report even though is past may assist stakeholders to distinguish the operational strengths and weaknesses of Tesco as well as its financial soundness. 3.2.
This mean that even though the normative analysis assume that the bond-warrant is more advantageous as compared to convertible bond but this theory is unable to be practice in the real world if the bond-warrant is not demanded by investor. Which mean, even though the firm has a good product but if there is no one to buy it, then what is the point of selling it. For a firm to get a financing, it has to follow the preference of the investor. If not, then the firm unable to pool high amount of money to expand its business. However, it cannot be denied that normative analysis mention of how much does the bond-warrant gives benefit as compared to the convertible bond and this is true but there is one thing that the author and the normative analysis didn’t mention in this paper, which is about the disadvantages of both bond-warrant and convertible.
It can also be expressed a set of estimates of revenue and expenditure for the future period under consideration. iii. In the business environment managers and investors look forward to future revenue, profits and cash flow before making further investments or financial decisions. Without some reasonable estimates of the possible future outcome, business people, financiers and investors would be unable to assess the risks and rewards of their
Furthermore historical cost is more relevant for investor to make a wise decision because they are relying on the factor of “how much has already been earned rather than how much they can earn”. Mostly some of people like to use this approach because it helps to minimize the risk of manipulation of figures by the managers. However there are some disadvantage from applying historical cost approach which is we are unable to guarantee the quality of the information
Naspers Limited Project 1. The three main users of financial statements include: Prospective investors use financial statements to assess whether or not investing in a company. They predict future dividends by looking at disclosed profit in the financial statements and can judge how risky a business is by fluctuating profits. Lenders and Other Creditors (institutions like banks and other lending institutions) use financial statements to decide whether to help the company with working capital or to issue debt security to it. 2.
Value investing is a fundamental analysis approach formulated by Graham and Dodd (1934) that focuses on companies whose share prices do not reflect their intrinsic worth. A value investor buys a stock if its price is low relative to some fundamental benchmarks such as earnings, cash, dividends, or book value (Bartov and Kim, 2004), and expects that the market will properly recognize the company’s value and adjust the stock price accordingly. Typically, value stocks have attributes such as low ratios of price-to-earnings (P/E) and price-to-cash flow (P/C), high book-to-market equity (B/M) or high dividend yields (Lakonishok et al., 1994; Fama and French, 1998). Growth investing, on the other hand, focuses on companies that feature signs of above-average