Essays on Investment

Does Newell have a parenting advantage? Yes, good handle on cost structure – how to make high volume low-cost products and relate to volume sellers; operational efficiency and profitability – Newellization, solve fundamentals of cost structures to bring operating margins to 15% Also M&As, Centralized support processes, access to large retailers • What does it…

The emergence of Multinational Enterprise and Foreign Direct Investment in Developing countries signifies the welcoming atmosphere of acceptance to change. Coupled with the promise of economic growth and development through technology transfer, knowledge sharing and productivity improvement, undeniably, the opportunity is there. This being the case, Foreign Direct Investment through Multinational Enterprise became an important…

The first fundamental investment decision is Assets Allocation. Since that the assets allocation is the most important determinant of portfolio returns, before investment, I made a primary allocation: 35%-40% equity (including IETF), 30%-35% mutual funds and funds, 10%-15% options and futures, cash. When it comes into reality, I found it is hard to exactly follow…

Bond P is a premium bond with a 12 percent coupon. Bond D is a 6 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 9 percent, and have five years to maturity. The current yield for Bonds P and D is percent and percent, respectively. (Do…

In the past, investors used to prefer diverse portfolios consisting of bonds, cash, stock and other financial instruments, to single assets (Ineichen, 2002). They believed that diversification was the best way to maximise their returns and mitigate risk; however, such a holistic approach had two main drawbacks, namely modest returns and insufficient transparency (Ineichen, 2002)….

Perhaps one of the most prestigious advocates for two- or three-fund portfolios, otherwise known as lazy portfolios, John C. Bogle repeatedly contends that there is no evidence indicating actively managed funds outperform passively managed funds. The above quote makes his conviction clear: the market will always return to the mean. In other words, outliers that…

Cemex is one of the fastest growing cement manufacturers in the world. Starting out more than a decade ago Cemex, “has transformed itself from a primarily Mexican operation into the third-largest cement company in the world” (Hill, 2008). The success of Cemex has been attributed to its skills in customer service, marketing, information technology, and…

Industry group Retail Business risk High HOLD David Jones is a leading upmarket retail department store with 37 stores throughout Australia and specialises in high end brands of clothing, cosmetics and homewares. It’s only major competitor, Myer, has strengthened its position in the retail industry and has kept pressure on David Jones. David Jones’ competitive…

By going public Rosetta Stone would be able to obtain the capital required to expand the business and enter new markets. Another advantage of going public is the ability for Rosetta Stone to increase its brand’s image, awareness, and reputation. An IPO could be a good move because of the increased globalization occurring that has…

To calculate the WACC we need to identify the different factors included in the WACC-method, to be able to measure the opportunity cost for investments. First we need to identify the debt, equity and the firm value, which is equity plus debt. Then we identify the debt cost (rD), which is a pre-tax cost, and…