Investment Essays (Examples)
Study Document
Is Netflix A Good Investment
...Investment Principles of Finance
Netflix’s income statement showcases a company with rapidly growing revenues. In FY17, the company earned revenues of $11.7 billion, and this grew to $15.8 billion in 2018 and $20.1 billion in FY19. The company was only marginally profitable in 2016, but its profits have grown to nearly $1.9 billion in FY19. Again, this is strong growth, and would be viewed quite positively by investors. Indeed, the company’s earnings per share have grown from $1.25 to $4.13 over the past three years, a strongly positive trend.
In some cases, rapid growth comes on the back of steep increases in infrastructure costs, but Netflix has also seen a sharp increase in profits, and this is reflected on the company’s balance sheet. Netflix has seen its cash position more than double in the past couple of years, and its stockholder equity has doubled, as a result of the sharp increase……
References
References
Netflix 2019 Annual Report: http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_NFLX_2019.pdf
Netflix 2018 Annual Report: https://s22.q4cdn.com/959853165/files/doc_financials/annual_reports/2018/Form-10K_Q418_Filed.pdf
Study Document
Investing Overseas Market Entry Decision Making
...Investment International Acquisition
EU or not EU?
On the question of whether to expand into the European Union or not, there are a few different considerations for an American firm. While the EU has a fairly complex regulatory environment that could prove challenging, the decision as to where to expand internationally still has to be more of a market-based decision. That means looking at an ROI or net present value type of calculation, weighing the cost of entering the market against the size of the market opportunity. That calculation might show that the EU is the best choice for international expansion, or it might not.
There is a lot of information available about expanding into Europe, so at least the decision to enter the EU market or not can be made with a fairly robust set of information guiding it. Each of the 28 member nations publishes material for exporters, and……
References
References
CE Intelligence. (2019) EU – market entry strategies. CE Intelligence.com. Retrieved December 5, 2019 from http://www.ceintelligence.com/content_manager/contentPages/view/eu-market-entry-strategies
Chapman, K. & Edmond, H. (2010) Mergers/acquisitions and restructuring in the EU chemical industry: Patterns and implications. Regional Studies. Vol. 34 (8) 753-767
Conyon, M., Girma, S., Thompson, S. & Wright, P. (2003) The productivity and wage effects of foreign acquisitions in the United Kingdom. The Journal of Industrial Economics. Vol. 50 (1) 85-102.
EF.com (2019) English proficiency index. EF.com. Retrieved December 5, 2019 from https://www.ef.com/wwen/epi/
Export.gov (2019) European Union – market entry strategy. Export.gov. Retrieved December 5, 2019 from https://www.export.gov/article?id=European-union-Market-Entry-Strategy
Girma, S. (2002) The process of European integration and the determinants of entry by non-EU multinationals in UK manufacturing. DOI:10.1111/1467-9957.00305
Girma, S. (2005) Technology transfer from acquisition FDI and the absorptive capacity of domestic firms: An empirical investigation. Open Economies Review. Vol. 16 (2) 175-187.
Lamson, M. (2016) 5 things you need to know before doing business in Europe. Inc. Magazine. Retrieved December 5, 2019 from https://www.inc.com/melissa-lamson/5-things-you-need-to-know-before-doing-business-in-europe.html
Study Document
Financial Planning
… Set Financial Goals: 6 Simple Steps. InCharge Debt Solution.]
Moreover, these saved up funds from paying off the liabilities can be used for investment purposes where Howe’s can get the returns, helping them with increasing their cash on hand for education, expenditures and so many other options, ……
References
References
Doyle, A. (2019, May 14). How much is the average wage in America. The Balance Careers. Retrieved from https://www.thebalancecareers.com/how-much-is-the-average-raise-in-america-4582795
Solution, I. D. (n.d.). How To Set Financial Goals: 6 Simple Steps. InCharge Debt Solution.
Study Document
Bolman Deals Human Resource Frame And Disney
… 80,000 of them have access to company equity and many more have opportunities for training and education (Walt Disney.com, 2020). This level of investment not only creates loyalty, but it shows that the company invests in its people, leading the employees to invest back into the company.
… including veterans, people without high school diplomas, new immigrants and more (Walt Disney, 2020). Investing in people who otherwise might not receive such investment gives the company the ability to get the most out of people – they are motivated by having the opportunity to be their … by having the opportunity to be their best, and achieve their dreams, something that might not otherwise be available.
The second reason such investments are valuable for Disney is that they make the company an employer of choice for many. Disney has found itself on the Forbes ……
References
References
BLS (2020). The employment situation – January 2020. Bureau of Labor Statistics. Retrieved March 2, 2020 from https://www.bls.gov/news.release/pdf/empsit.pdf
Bricker, J. (2020) Disney World investing millions on cast morale. Disney Tourist Blog Retrieved March 2, 2020 from https://www.disneytouristblog.com/disney-world-investing-millions-cast-morale/
Business Balls (2020) Four frame model – Bolman and Deal. Business Balls. Retrieved March 2, 2020 from https://www.businessballs.com/leadership-models/four-frame-model-bolman-and-deal/
Forbes (2018) World’s best employers. Forbes. Retrieved March 2, 2020 from https://www.forbes.com/companies/walt-disney/?list=world-best-employers/#394d24715730
Jones, B. (2018) How Disney empowers its employees to deliver exceptional customer service. Harvard Business Review. Retrieved March 2, 2020 from https://hbr.org/sponsored/2018/02/how-disney-empowers-its-employees-to-deliver-exceptional-customer-service
McLeod, S. (2011) Bolman & Deal frameworks. Big Think. Retrieved March 2, 2020 from https://bigthink.com/bolman-deal-frameworks
Sammer, J. (2019) 5 takeaways from Disney’s tuition benefits. SRHM.org. Retrieved March 2, 2020 from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/5-takeaways-from-disney-tuition-benefits-approach.aspx
Walt Disney Company (2020) website, various pages. Retrieved March 2, 2020 from https://thewaltdisneycompany.com/forbes-ranks-disney-among-worlds-best-employers-for-2018/
Study Document
Integrated Waveguide Technologies Preparing For A Public Offering
… information signaling effect. Therefore, a dividend distribution is informing the management of the earnings to allocate as dividends and contribute to sharing purchase investment decisions. Dividend distribution policy is informed by multiple factors such as financial flexibility, investment opportunities for the company, tax consideration, contractual and legal restrictions, the volatility of expected future earnings, and flotation costs (Baker & Weigand, 2015).
… ensure investor confidence. Therefore, management faces the tradeoff of adopting a capital budgeting decision to lower dividends and use the resources for new investment, which potentially decreases the stock prices or the undertake borrowing to pay dividends that result in a stock price increase (Travlos et al., … & 11: $50 Priori Distribution value of equity and Per Stock Price
· Intrinsic Value of Equity = (Value of Operations Short Term Investment – Debt)/Number of shares: ($1937.5Million $50 Million - $387.5 Million) = $1600 Million
· Intrinsic……
References
References
Al-Malkawi, H.-A. N., Rafferty, M., & Pillai, R. (2010). Dividend Policy?: A Review of Literatures and Empirical Evidence. International Bulletin of Business Administration, 5(9), 38–45. https://doi.org/10.12816/0037572
Baker, H. K., & Weigand, R. (2015). Corporate dividend policy revisited. In Managerial Finance (Vol. 41, Issue 2, pp. 126–144). https://doi.org/10.1108/MF-03-2014-0077
Black, F., & Scholes, M. (2010). The effects of dividend yield and dividend policy on common stock prices and returns. In Journal of Financial Economics (Vol. 1, Issue 1, pp. 1–22). https://doi.org/10.1016/0304-405X(74)90006-3
Farre-Mensa, J., Michaely, R., & Schmalz, M. (2014). Payout Policy. Annual Review of Financial Economics, 6, 75–134.
Mohanasundari, M., & Vidhya, P. (2016). Dividend Policy and Its Impact on Firm Value: A Review of Theories and Empirical Evidence. Journal of Management Sciences and Technology, 3(3), 59–69.
Travlos, Trigeorgis, & Vafeas. (2001). No Title. Multinational Finance Journal, 5(2), 87–112.
Study Document
Enterprise Risk Management In Wells Fargo During The Pandemic
… the banking sector and Wells Fargo specifically because of its role in managing loan products, using interest rates to attract savers, and offering investment advice. “No single risk associated with the COVID-19 pandemic crisis can be managed in isolation,” as Beasley (2020) points out (p.2). This means … his hedge fund netted billions by speculating with derivatives a stock market crash.
Wells Fargo could hedge risk by buying derivatives on its investments, using a call/put (i.e., long/short) strategy with options. The company could buy or sell long-dated puts or calls depending on the investment it has in the underlying. The point would be to protect against an opposite move in the price of the underlying. Thus, if … expected alpha should also be identified and factored into planned trading strategies. Wells Fargo currently uses derivatives effectively in hedging risk against portfolio investments in MBS. Derivatives do come with counterparty……
References
References
Beasley, M. (2020). How to Leverage ERM Principles to Better Respond to COVID-19-Related Risks. ERM Professional Insights.
Derysh, I. (2020). Watchdog questions why Wells Fargo reported giving only one large PPP loan to a Black-owned business. Retrieved from https://www.salon.com/2020/07/22/watchdog-questions-why-wells-fargo-reported-giving-only-one-large-ppp-loan-to-a-black-owned-business/
English, C. (2020). Wells Fargo Forced to Cut Its Dividend After Fed Stress Test. Here’s What Other Banks Did. Retrieved from https://www.barrons.com/articles/wells-fargo-forced-to-cut-its-dividend-after-fed-stress-test-51593467664
Hall, J. (2007). Internal Auditing and ERM: Fitting in and Adding Value. Retrieved from https://global.theiia.org/about/about-the-iia/Public Documents/Sawyer_Award_2007.pdf
Kaplan, R. & Mikes, A. (2012). Managing risks: A new framework. Harvard Business Review, 3.
Lewis, M. (2010). The Big Short. NY: W. W. Norton.
Lundqvist, S. (2014). Abandoning Silos for Integration: Implementing Enterprise Risk Management and Risk Governance. Lund University.
Morgenson, G. (2020). More Wells Fargo customers say the bank decided to pause their mortgage payments without asking. Retrieved from https://www.nbcnews.com/business/personal-finance/more-wells-fargo-customers-say-bank-decided-pause-their-mortgage-n1234610
Study Document
Risk Management And Insurance
… The Contingent Deferred Annuity
vii. Survivorship or Reversionary Annuity
Q3
Investors have to account for inflation when projecting the future value of their investments. The Variable Annuity helps investors cope with the effects of inflation on investment portfolios. The underlying theory is that while the value of a dollar will change over time, a diversified investment portfolio will adjust to reflect the prevailing prices of commodities and services in the economy with inflation factored in. Common stocks represent the … the current securities value accumulated by a client by the outstanding number of accumulation units.
Q4
Just like in life insurance, annuities’ earned investment income during the period of accumulation is not taxable. Taxation happens only when the income is disbursed. The disbursed amount is taxed on … only when the income is disbursed. The disbursed amount is taxed on the basis that the payment made is in excess……
References
References
Vaughan, E. J., & Vaughan, T. (2007). Fundamentals of risk and insurance. John Wiley & Sons.
Study Document
The Cost Effectiveness In Cloud Computing Within An Accounting Organization
… Service. In this particular case, the vendor of cloud services partake in the…[break]…is tasked with responsibilities that are related to issues such as investment, application, and implementation decisions linked to cloud computing.
Ethical Considerations
Research ethics is pivotal in promoting the fundamental aims of a research study, ……
References
References
Bauer, E., & Adams, R. (2015). Reliability and availability of cloud computing. Hoboken: John Wiley & Sons.
Chang, W. Y., Abu-Amara, H., & Sanford, J. F. (2018). Transforming enterprise cloud services. New York: Springer Science & Business Media.
Chang, V. (Ed.). (2015). Delivery and adoption of cloud computing Services in Contemporary Organizations. IGI Global.
Hsien, W. F., Yang, C. C., & Hwang, M. S. (2016). A Survey of Public Auditing for Secure Data Storage in Cloud Computing. IJ Network Security, 18(1), 133-142.
Jamsa, K. (2016). Cloud computing. New York: Jones & Bartlett Publishers.
Maguire, M., & Delahunt, B. (2017). Doing a thematic analysis: A practical, step-by-step guide for learning and teaching scholars. AISHE-J: The All Ireland Journal of Teaching and Learning in Higher Education, 9(3).
Mehmood, R., Katib, S. S. I., & Chlamtac, I. (2020). Smart Infrastructure and Applications. New York: Springer International Publishing.
Prabhu, C. S. R. (2015). E-governance: concepts and case studies. New Delhi: PHI Learning Pvt. Ltd.
Study Document
The Time Value Of Money
… perfectly well what happens: it loses value substantially. Thus, to maintain the value of one’s wealth it is important to think about alternative investments that keep track with the rate of inflation—assets such as precious metals or real estate. There are also risk assets, such as equities. … with the rate of inflation—assets such as precious metals or real estate. There are also risk assets, such as equities. Even still no investment is risk free and bubbles blown today in markets can pop tomorrow. This happened in the gold market a few years ago. The … may lose value of time—but other assets can lose value quickly and all at once in market downturns.
For this reason, diversifying one’s investments are necessary. As Northwood and Rhine (2018) point out, “having access to mainstream financial services can help” people learn what their options are … what their options are (p.……
References
References
Cook, L. A., & Sadeghein, R. (2018). Effects of perceived scarcity on financial decision making. Journal of Public Policy & Marketing, 37(1), 68-87.
Northwood, J. M., & Rhine, S. L. (2018). Use of bank and nonbank financial services: Financial decision making by immigrants and native born. Journal of Consumer Affairs, 52(2), 317-348.
Valaskova, K., Bartosova, V., & Kubala, P. (2019). Behavioural Aspects of the Financial Decision-Making. Organizacija, 52(1).
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