Contemporary international finance and East Asian economic integration
Essay - 16 pages - Finance
The “Current Account crisis” is a particular type of external debt crisis that affects mostly low-income developing countries. It is characterized by a huge deficit in the current account balance which provokes a Balance of payments deficit and a currency crisis. A current account...
Bretton Woods Institutions (IMF and World Bank): history and Modern situation
Essay - 13 pages - Finance
To overcome the chaos and the devastations caused by the Second World War, Countries had to set up new institutions liable to restore a stable international order. This reconstruction was led by the United States of America and its allies. From 1941, in the Atlantic chart, the allies wanted to...
It is clear that there is a relationship between risk and return, but we are not yet clear exactly what that relationship is
Essay - 3 pages - Finance
Incertitude about expected returns is one of the criteria which influence the largest number of strategic investment decisions. Thus the relationship between risk and return is a fundamentally financial relationship, because it affects expected rates of return on investment. This relationship...
There is no such thing as a perfect capital structure
Essay - 6 pages - Finance
The relevance of a company capital structure has been the subject of several theories and debate. The capital structure of a company is a mix of different securities. Capital structure refers to the way a corporation finances itself through a combination of equity sales, equity option, bonds and...
Banking: KMV model
Essay - 7 pages - Finance
Risk management is a very important issue in financial markets. Moody's KMV Model is a structural model inspired from Merton's model. It is equivalent to an option model that evaluates the implied volatility of the company's assets. It relies on Black & Scholes valuation model (1973)....
Advanced corporate finance part Final assignment Investment management
Essay - 16 pages - Finance
Investment management is the professional management of various securities like shares and bonds and other assets such as real estate to meet specified goals of investment for the benefit of the investors. In an attempt to understand the world of investment management, it is useful to be aware of...
Advanced corporate finance - publié le 02/05/2008
Essay - 12 pages - Finance
X = $100 kRF = 8% 50% P1 = $120 P0 = $80 50% P1' = $60 En utilisant l?approche par portefeuille de réplication, déterminez la valeur de l'option. Quel est le ratio de couverture? Que signifie le ratio de couverture? HR = options / actions HR = (120 ? 100) / (120 ? 60) HR = 1/3 Le ratio de...
American Grain Corporation - publié le 30/04/2008
Essay - 14 pages - Finance
American Grain Corporation: When shareholders are about to invest in project, they need to know what the financial consequences of it are. They need to plan the expenses and the possibilities of return on investment, regarding how long it will take to start earning a profit. To choose the project...
Options, futures and other derivatives
Essay - 7 pages - Finance
The binomial model is used to describe stock price movements through consecutive periods of time over the life of the option and to determine the actual price of this derivative. Each period is an independent trial. The binomial formula describes a process in which stock return volatility is...
Multifactor Models of Risk and Return
Essay - 8 pages - Finance
The assumptions about the capital market theory expands on to that of the Markowitz portfolio model, and includes consideration of the risk-free rate of return. The correlation and covariance of any asset with a risk-free asset is zero, so that any combination of an asset or portfolio with the...
Hedging a Stock Porfolio with Futures
Essay - 22 pages - Finance
In the following development, basic portfolio management is explained. First, through questions, and in the second part, through a three-shares-composed portfolio. I will use indices futures, and equity futures. Equity futures functioning is the same as other classical futures such as indices...
EEV (European Embedded Value) and MCEV (Market Consistent Embedded Value)
Essay - 13 pages - Finance
In May 2004 the CFO forum published European Embedded Value Principles. The “CFO Forum” is a high-level discussion group composed and attended by the Chief Financial Officers of 19 leading European insurers. These principles are intended to increase the quality, comparability and...
A probabilistic approach to the valuation of general floating rate notes with an application to interest rate swaps
Essay - 5 pages - Finance
The aim of this article is to get an exact formula to price Floating Rate Notes. The authors will go further in order to price Interest Rate Swaps, in a stochastic term structure environment. Main assumptions of the article are the following, the market is complete, and the probability (explained...
International Transactions
Essay - 16 pages - Finance
The most important objective for a financial manager is to maximize the wealth of the shareholders. Hundred of years ago, most of the companies were owned by a small group of shareholders, so making the financial decisions were easy. But nowadays companies are owned by diversified shareholders...
Valuing Common Stock
Essay - 8 pages - Finance
The valuation of common stock has been a subject of broad interest for more than a century. The reason is obvious. If you buy a stock that goes up, you can make profit, and if you can consistently select stocks that go up, you can become rich. There is an obvious approach to choosing stocks. It...
The restitution of looted assets
Essay - 15 pages - Finance
A lot of countries have experienced corrupt governance and its consequences on public management. In numerous cases, heads of Government, presidents, dictators and other forms of political leaders have stolen large amounts of public money. Nowadays, the Governments of those countries are...
Financial management final assignment
Essay - 13 pages - Finance
The NPV (Net Present Value) method is a standard formula that calculates the difference between the present value of cash inflows and the present value of cash outflows. This method is used for capital budgeting for a project in order to estimate the financial soundness of the project. In order...
Inflation, interest rates and the Phillips curve
Essay - 13 pages - Finance
One of the major issues facing the Keynesians in the 1950s was the issue of falling money wages. Following Modigliani, they believed the Keynesian model of unemployment equilibrium could only be "closed" by assuming rigid money wages. Otherwise, the Keynes and Pigou effects would drive it back to...
Baoshan Iron & Steel Co Ltd: Crafting a three-way cross-border, cross-shareholding alliance - publié le 29/02/2008
Essay - 3 pages - Finance
Baosteel is the most modern and profitable steel maker in China. The Chinese giant is, however, in a critical situation: From one side, Baosteel is facing a need for capital to achieve its projects. From the other, the Chinese market became more attractive since China's entry to WTO because China...
Investment plan in Japan (2006)
Essay - 32 pages - Finance
Our investment strategy in Japan: We are in charge of a Japanese branch of a foreign investment bank. We need to make an investment strategy for a 100 million US dollars in total. The investment term is 1 year for 50 million dollar and 10 years for the remaining 50 million dollars. Our goal is to...
Financial markets in Emerging Economies: Comparison with developed economies
Essay - 23 pages - Finance
The financial markets of emerging economies have seen a huge growth in the last few years. These markets are attracting large investments from the developed world, especially because of higher expected return. At the same time; investments in emerging markets are considered to be riskier than the...
There is no meaningful role for the International Monetary Fund (IMF) and /or the World Bank in a modern international financial system
Essay - 4 pages - Finance
IMF describes itself as "an organization of 184 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty".(IMF website) The International Monetary Fund has been...
Is "Al-Dar Islamic Fund", created by Pictet, a Geneva based Private Bank, Islamic compliant?
Essay - 10 pages - Finance
Who has created the ?Al-Dar Islamic Fund'? Is it Pictet which is a Geneva based Private Bank which is in compliance with the Islamic culture? The answer to this buzzing mind boggling question is ?No'. As confirmed, the contained shares are not Islamic compliant and secondly the targeted...
Transatlantic trade (Amos Beyan)
Essay - 2 pages - Finance
The author defines racism to be “the ideology of exclusion or separation of people because of the color of their skin.” This separation was very prominent during the transatlantic trade because so many countries, including those of Africa, were involved in racism, by engaging in slave...
Harpoon Brewery
Essay - 2 pages - Finance
The brewing process begins with four ingredients: water, barley, hops and yeast. Harpoon does not put any preservatives or additives in their beer. Each step in the process can process 3,800 gallons at a time. There is one machine for each step except fermentation, which has 22 uni-tanks. A...
The Inner-Workings of Biogen Idec Inc.
Essay - 2 pages - Finance
As noted earlier in this report, Biogen Idec Inc. is an amalgamation of strengths. It has been the merger between IDEC Pharmaceuticals and Biogen. These two pharmaceutical giants have been as one corporation only as of November of 2003; therefore, there have been a very small number of...
Tax Reform
Essay - 2 pages - Finance
Tax reform and the US budget go hand in hand. While many people seek a tax reform, they must understand that the most significant factor in determining the types and amounts of taxes that are to be paid is the US budget. Typically, it would be expected that if a budget is in the red, taxation...
Corporate Corruption: Culture of Enron
Essay - 4 pages - Finance
Shareholder value was being diluted. It was worse than just being dishonest: stock options provided managers with strong incentives to get the value of their stocks up quickly - what mattered was not long-term strength but short-term appearances. Corporate officers responded to the incentives and...
Why I Think Markets are Efficient
Essay - 2 pages - Finance
Market efficiency, discovered by Eugene Fama, is the theory that at any given time, the prices of the market fully reflect all available information on a particular stock or and/or the market. Therefore no individual investor has any advantage over any other as all information is shared by...
Efficiency Overpowers Efforts to Chase Losses
Essay - 2 pages - Finance
The aim of this paper is to discuss Dr. Ryan Garvey's studies “Do Losses Linger? Evidence from proprietary stock trading,” while examining how this works inline with the Efficient Market Hypothesis. Through the research provided by Dr Garvey, it is expressed that professional traders...
