Finance

The four basic financial statements that are prepared by for-profit companies are the balance sheet, the income statement, the statement of retained earnings, and the statement of cash flows. These are the financial statements that owners, investors, and auditors will look at primarily to see how the company is doing,...

Currency stability is an important factor in determining the profitability of a company in an economy. Fluctuating exchange rates are likely to affect a business in many ways since the costs of making purchases or sales across borders are severely affected. The exchange rates thus play a vital role to...

The stages of the budget cycle include the following: first, engaging in preparatory activities before preparing the budget. An example is where managers take full commitments in fulfilling their roles and responsibilities. Second, making budget calls. For example, managers contribute to making budget calls in understanding the problems and responsibilities...

People always tell you about the stock market as though it is the magic gateway to another world. That world is full of privilege, wealth, streets made of gold, and house parties that rival Gatsby’s. Images of men walking in tailor made suits, wielding the latest technology towards their ear,...

Certified Financial Planner Eleonore Szymanski states diversification concerns proper management of all investments one owns whether 401(k)s, IRAs, mutual funds, equities, or bonds. Szymanksi argues it is important to achieve the appropriate balance among different investment assets. She reminds the readers readjustments are required from time to time because different...

The two most common payment methods today are the cash and the credit card. This is, especially, true in the western world where it is not uncommon for a person to have many credit cards. Some people have become so used to credit cards that they don’t even both carrying...

Kabajeh, AL Nu’aimat and Dahmash (2012) affirm the importance and necessity for financial analysis in making economic decisions which is generally carried out through various formulas which assess firm profitability, financial leverage, efficiency and liquidity, among others. This paper analyses financial performance of PepsiCo using financial ratios provided in appendix...

French, S., Leyshon, A., & Thrift, N. (2009). A very geographical crisis: the making and breaking of the 2007-2008 financial crisis. Cambridge Journal of Regions, Economy and Society, 2(2), 287-302. The objective of this research paper was to find the geographical origin of the 2007-2008 crisis and the method used...

Abstract Many businesses, such as Walmart, Target, and car dealerships used economy and psychology pricing strategies to gain businesses and ensure that customers are buying the product that they want to keep them satisfied. In economy pricing, marketing and production costs are kept low, so that the customer can buy...

Enhanced organizational productivity is influenced by a wide range of aspects ranging from the organization of the output attributes including labor to the financial feasibility of the actions. The Jen Inc. case involves the weighing of options regarding the best alternative that will ensure that the production goals and objectives...

The company in question for the purpose of this work is engaged in the retail of building accessories and furnishings like tiles, taps, bathtubs, shower heads, wooden flooring and granite worktops. The company sales from showrooms located in three different towns. The goods are collected from the stores which are...

Investing in stocks is perhaps the more practical choice for short-terms investors seeking to maximize their returns in immediately rather than continue to wait until there is more risk involved in the investment and factors such as domestic and international economics, politics, and social challenges arise that turn the investment...

Mr. Edward Witten has chosen to compare stock price variances versus related indexes before delving into the world of day trading. To this end, he has monitored weekly price changes of selected Stocks A and B for forty weeks, juxtaposing results with price movements of market, industry and economic indexes...

Major sources of funding available to companies include bond financing, preferred stock, new common stock, and retained earnings. Following the case scenario provided, the Vestor Corporation has employed bond, common stock and preferred stock financing to cover the funding requirements of the company’s assets. Bond financing represents debt liabilities and...

The rapid rise of the Islamic banking can be interpreted as a sign of frustration to the clients by conventional banks. In the past decade, Islamic banking has witnessed a tremendous growth despite the financial crises happening around the world. The issue has fascinated finance experts attempting to find a...

Illegal immigrants affect the local economies in many ways. An evaluation of the effects reveals that the areas where the illegal immigrants are perceived to have a negative effect on the economies are not true. In fact, the perception of negative effects has been shown to be untrue by research...

The weighted average cost of capital (WACC) is an important measurement for any business. The most important components involve the sources of capital, component costs, flotation cost adjustments, and risk adjustments (Horngren, Harrison Jr., & Oliver, 2011). Most commonly, capital comes from debt and equity. Specifically, capital can be obtained...

Description of “M-Pesa” The majority of the population in East Africa uses mobile payment services called “M-Pesa,” which recently celebrated its tenth anniversary. According to Monks (2017), the M in “Mpesa” stands for mobile while “Pesa” is a Swahili word, which means money. The mobile operator in Kenya, Safaricom, launched...

Sometimes back in 2002, Brazil’s national oil company referred to as Petrobras experienced a period that saw its cost of capital shoot up by 6% more than the average of other companies. When a company operates on a high cost of capital, there are bound to be problems when seeking...

Opportunity cost, the amount of money that is given up in the pursuit of an alternative action, is a cost that does apply to an individual, a business, and a nation. Any time there are choices to be made regarding the finances of an entity, whether that entity is a...