Finance Essays

Finance Q & A Essay
1. Explain why market prices are useful to the financial manager. The financial manager is
responsible for giving financial advice and support to clients and colleagues that will enable them to
make good business decisions. Particular work environments differ considerable and involve both
public and private sector organizations such as retailers, corporations, financial institutions, charities,
and even small manufacturing companies and schools (Financial Manager, 2011). Primarily,
financial managers look at the market price in maximizing the value of the firm. The market value
is the present value of the net cash flow divided buy the risk. Investors consider the firm's future and
present earnings, disadvantages or risks and other...show more content...
This gives the researcher or planner a set of values that is useful enough in determining the
feasibility of a project from an economic point of view. Generally, it is simple and the results are
easy to comprehend. Costs are associated with the company that is commonly much easier to
measure and defined compared to benefits. This involves the operating and investment costs.
Operating costs involves the materials needed to maintain an operation whilst the investment costs
are incurred in planning and design such as the materials, labor, and construction costs. Benefits are,
on the other hand, difficult to measure specifically for transport projects. These are diffused and
extensive (Slack and Rodrigue, 2011). The relationship of net present value does not reside
particularly on the cost–benefit per se rather it is viewed as part of the valuation principle. Net
Present Value (NPV) is the difference concerning the present value of the project or the benefits of
the investment compared to the present cost values. When the NPV positive for a project or
investment opportunity, this means that the project can be implemented. It only means that the
firm's value and the wealth of the investors are increased. In contrast, negative NPV of the
investments and projects would mean losing the money of the company if ever the project was
implemented. This is in accordance with the NPV decision rule. In investment alternatives, the
highest NPV investment alternative should be
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Finance Essay
5558 Nath
Why would not your financial problems end with even more income? 7 reasons! Sandeep works in a
multinational company and earns one lac a month, but still he remains upset about his finances. It
often comes to his mind that when I was earning 50 thousand rupees in the beginning of the career, I
would have been hardly satiate the needs of month anyway, and today, when I earn twice even than
the money is falling short.
Friends, are you able to relate to this situation of Sandeep?
Is this happening to you – your income is increasing but still your financial problems could not
ending.
Yes, it is a bitter truth that just increasing of income doesn't end financial problems!
But do not panic, you are not the only person to face this...show more content...
3. You give today's happiness more importance than tomorrow's need:
Instead of saving 5000 rupees, you believe in taking new mobile of 15 thousand, even when your
old mobile is absolutely right! The philosophy of "Living in the moment" is seems well only when
"financials for the future" are intact. But you believe in the first part and forget the other!
Do not do this, it is very important to make balance between these two things. Doing this can saves
you from many financial stresses.
Always remember this one quote of Warren Buffett, world's most successful investors–
"Do not save what is left after spending, but spend what is left after saving."
4. You do not separate 'wants' from 'needs':
Need: Something without which it will not go.
Want: Something that you want you to have, but you can work without it too.
People worry about finances also makes their desire their needs. For example: Genuinely you need
a car, but instead of an affordable hatchback you make an SUV your need and then pay loan for it
years.
Never take anything for just show off, doing so may give you some happiness for a few days, but
in the long term, it will make problems to you.
5. You are spend–o–holic:
You used to be disturbed financially because you enjoy spending... There is something in every
corner of your house that is the result of buying impulse. Your wardrobes are full of clothes that
you barely wore once or twice. In your drawer, there are

Financial Services Essays
Financial Services
Introduction to Financial Services
1.0Financial Services is a growing industry, which provides for the financial needs of individual
consumers and businesses. This unit explores the needs of and products available for both the
consumers and businesses. The term financial service covers a wide range of products including
accounts for depositing money, loans, savings and investments, pension and financial advice.
Financial Services for individual consumers are available from banks, building societies and also
from organizations such as supermarkets and insurance companies, over the counter, by telephone or
over the
Internet.
Businesses have financial needs when they start up, expand and carry
on...show more content...
This report is due back on the
10 th December 2004.
1.2Financial service providers
Below are some of the financial providers
– Investment companies
– Insurance companies
– Government
I will talk briefly about each one and explain the benefits and the disadvantages of each.
Investment companies
Investment companies provide people with wide range of product types, to meet their certain needs.
People that have money to invest should know clearly what they want to do, achieve for example:
– Capital growth
– Income
– Or both
The investment company they prefer should help them meet this objective, baring in mind a number

of other factors such as the persons risk profile, the amount that can be invested and how long for.
Insurance companies
Insurance companies provide policies, designed to pay out if some particular event happens. They
offer products aimed at satisfying our needs for protection.
People may want to ensure against:
– Damage to your house through fire
– Breakage or loss of your possessions
– Death of the main family earner
Insurers charge a premium for the policies their customers take out, which is effectively the price the
customer pays for the protection he has obtained.
Some

Corporate Finance Essay
Corporate Finance Essay
Most corporate financing decisions in practice reduce to a choice between debt and equity. The
finance manager wishing to fund a new project, but reluctant to cut dividends or to make a rights
issue, which leads to the decision of borrowing options. The issue with regards to shareholder
objectives being met by the management in making financing decisions has come to become a major
issue of recent times. This relates to understanding the concept of the agency problem. It deals with
the separation of ownership and control of an organisation within a financial context. The financial
manager can raise long–term funds internally, from the company's cash flow, or externally, via the
capital market, the market for funds...show more content...
Any profits remaining after deducting operating costs, interest payments, taxation, and dividend are
reinvested in the business and regarded as part of the equity capital. The finance manager will
monitor the long–term financial structure by examining the relationship between loan capital, where
interest and loan repayments are contractually obligatory, and ordinary share capital, where
dividend payment is at the discretion of directors. This is known as gearing. There are two basic
types of gearing, they are capital gearing which indicates the proportion of debt capital in the firm's
overall capital structure; and income gearing indicates the extent to which the company's income is
pre–empted by prior interest charges. Both are indicators of financial gearing.
Now, the advantages of debt capital centre on its relative cost. Debt capital is usually cheaper than
equity because, the pre–tax rate of interest is invariably lower than the return required by
shareholders. This is due to the legal position of lenders who have a prior claim on the distribution
of the company's income and who in liquidation precede ordinary shareholders in the queue for the
settlement of claims. Debt is usually secured on the firm's assets, which can be sold to pay off
lenders in the event of default, i.e. failure to pay interest and capital according to the pre–agreed
schedule;

Managing Financial Resources Essay examples
Course:HND BUSINESS
Subject: managing financial resources and decisions.
Student Name: Irshad ul haq
Student No:1124 Assessor Name: mr olumide ologan
Content Page
Section NoPage No 1. Introduction2. Identify the sources of finance available to a business.(P1.1) 3.
Assess the implications of different sources.(P1.2) 4. Select appropriate sources of finance for a
business project. (P1.3) 5. Assess and compare the costs of different sources of finance (P2.1) 6.
Explain the importance of financial planning.(P2.2) 7. Describe the information needs of different
decision making.(P2.3) 8. Describe the impact of finance on the financial...show more content...
With each source of finance listed the report will assess the implications that can arise and along
with this the report will look at the cost to the business to taking a curtain source of finance. All
businesses need short–term finance from the very beginning to start up the business and to cover
day–to–day running costs. This provides the business with working capital. However businesses also
need long–term capital to help them to grow and expand, and this is paid back over a number of
years. Without finance a business would find it difficult to accomplish anything, for example
someone who decided to start up a shop would need finance at first to just buy the shop and the
stock. Even a window cleaner would need finance to buy equipment such as ladders and buckets.
But this can be taken onto a larger scale, as all businesses need finance at some point
Whether you are thinking of starting up your own business or if an existing business is thinking of
expanding, it is likely that money will be needed. The money needed to start a business is called
business finance. Where do businesses get the finance to start a business?
(P1.1) Identify the sources of finance available to a business.
There are a number of ways of raising finance for a business. The type of finance chosen depends
on the nature of the business. Large organizations are able to use a wider variety of finance sources
than are smaller ones.

Essay on personal finance goals
Figuring out where you will be financially years from now is hard to imagine. There are always
what you plan, and then there's things that just happen that you would usually rather not have of.
You can always make goals and things and hope that things go alright and end up close to what you
expected.
I am currently eighteen years old. I am working on setting up all my financial things so that I am
independent and can rely on myself for what I need and not have to worry about having my
parents approving of things and being responsible for what I choose to do. I am going to take out a
small loan soon and work on building up my credit history. I am also planning on transferring all my
things like my car and phone to my name. This summer I...show more content...
I will then purchase my own house and also a car. I will be paying insurance on both of these items. I
will work the rest of my life as a Nurse and will eventually retire at the age of 65.
Although I don't really know how well all of this will work out and I'm sure there are probably
easier ways to do all this, I don't think I will be talking to any professionals. I think I have enough
basic understanding in order to keep myself stable. Granted I will probably fall a couple of times
and make a few mistakes, I've been taught to keep working at it and you'll get it right eventually. I
know that in order to get what you want you have to try and work really hard. I don't believe in
being handed things, whether it be money or advice or anything else. I would rather try and fail then
have someone tell me what to and what not to do.
I myself believe in risks to an extent. I think they are alright as long as they are somewhat logical.
I don't believe in "jumping off a cliff with no ropes hoping to survive". I plan on having two
accounts, one checking and one savings. I will mainly work with my checking account and the
savings will not be touched unless for emergencies. I will keep a minimum of a thousand dollars
in my savings account, which I will be opening at a credit union since they have a slightly higher
interest rate, so I will always have it. I have learned to always keep a "safe" amount of

Reflection About Finance
During my junior year of high school football, a coach, fellow player, and I talked about the
subject of finance. It was life changing. My coach went on to say "I used to make almost two
hundred thousand dollars in my thirties, and it wasn't as great as I thought It'd be; I never had
time to spend with my family or myself." Confused and surprised, my friend and I immediately
asked him to explain, so he went on to tell us about his previous job. Approximately ten years ago,
he was working a desk job in Sartell where he had to design new gyms for various facilities;
furthermore, his annual paychecks amounted to about one hundred seventy thousand dollars. I
was astounded. However, the profession required him to sit in a desk for twelve hours a day, and
he usually worked five to six days a week. Due to the fact that he worked so frequently, the
reduction of activity started to increase his weight. After working this job for multiple years, he had
accumulated over one hundred pounds and became unhappy. His time was consumed by work, and
he was never able to do the activities others could. Nevertheless, he decided that his future and
health was worth more than a six figure paycheck. "I was missing out on too much fun stuff, so I
went back to what I enjoy most," he said. That being said, he quit and pursued what he knew made
him happy: teaching and coaching. Since then, he has lost the hundred pounds he accumulated and
is now capable of enjoying time to himself. Whenever I

Business Finance Essay
Multinational Business Finance, 12e (Eiteman, et al)
Chapter 1 Globalization and the Multinational Enterprise
1.1 Globalization and Creating Value in the Multinational Enterprise
Multiple Choice
1) Which of the following are critical to a firm trying to reach the top of the "firm value pyramid"?
A) An open market place.
B) High quality strategic management.
C) Access to capital.
D) all of the above
Answer: A
Diff: 2
Topic: 1.1 Globalization and Creating Value in the Multinational Enterprise
Skill: Conceptual
2) A well–established, large U.S.–based MNE will probably NOT be able to overcome which of the
following obstacles to maximizing firm value?
A) An open market place.
B) High quality strategic management....show more content...
A) Raw materials
B) Financial capital
C) (Non–military) Technology
D) All of the above factors of production flow freely among countries.
Answer: A
Diff: 1
Topic: 1.2 The Theory of Comparative Advantage
Skill: Recognition
4) Which of the following would NOT be a way to implement comparative advantage?
A) IBM exports computers to Egypt.
B) Computer hardware is designed in the United States but manufactured and assembled in Korea.
C) Water of the greatest purity is obtained from wells in Oregon, bottled, and exported worldwide.
D) All of the above are examples of ways to implement comparative advantage.
Answer: D
Diff: 2
Skill: Conceptual

5) Of the following, which would NOT be considered a way that government interferes with
comparative advantage?
A) Tariffs.
B) Managerial skills.
C) Quotas.
D) Other non–tariff restrictions.
Answer: B
Diff: 2
Skill: Recognition
True/False
1) The theory of comparative advantage owes it origins to Ben Bernanke as described in his book
The Wealth of Bankers.
Answer: FALSE
Diff: 1
Skill: Recognition
2) International trade might have approached the comparative advantage model in the 19th century,
and it does so even more today.
Answer: FALSE
Diff: 2

Essay on My Personal Financial Plan
My Personal Financial Plan
I. Current
A. Description
Currently I am a full time student, and senior, at majoring in Accounting and Finance. I do not have
a part time job and do not plan to work until I graduate. I currently have taken out student loans to
support myself through the rest of my college education. My parents pay for insurance payments for
my car, cover my phone bill, and provide me with medical insurance. I pay for all the rest of my
expenses, including rent, food, gas, and all other daily expenses. I currently have no investments
and no substantial assets with a value of over $1000. I graduate in May and have signed a contract
with KPMG to start work as an auditor in August after I complete the CPA. I...show more content...
To accomplish my second goal I plan on putting a cap on my level of living expenses that
increases at a smaller multiple then my income each year. I want to give another half percent of my
income each year. I will budget out my salary for discretionary and non–discretionary spending and
stick to the budget by limiting use of credit cards and attempting to pay cash for most items I
purchase. This will help me control my cash outflow.
E. SWOT Analysis
Strengths
Most of my assets at this point are in cash so I have a lot of liquidity to pay off debt or other
expenses. I am a very goal oriented person so when I set goals to follow to financial success I take
them very seriously. My job at KPMG is a strong job with high future potential earnings as well as
learning opportunities. One of the best things about auditing is that I will be able to find a job
making a lot more after I work a few years at KPMG. My knowledge over investments and how to
invest is very good which will help me to continue to make money in the market. When looking at
risk management, my health is very good, which means I should hopefully not have very high
healthcare costs. KPMG provides a good insurance policy that covers any of my insurance needs
and reduces my risk. KPMG also has a very good medical reimbursement policy and a high quality
of other programs for their employees.
Weaknesses I do not have

Finance Director Essay
I am applying for the Finance Director position advertised on your website. With over seven years'
experience in finance and accounting along with a solid academic background in Finance and
pursuing my CPA license, I am confident I possess the skills and qualifications you are seeking.
Being a Controller I deal with a variety of financial budgeting, profit and loss, forecasting, cash flow
analysis, cash management, sec reporting, valuation analysis and running a team of 7 accountants,
while handling numerous administrative duties. Among the most pertinent to the advertised position
would be my financial budgeting, forecasting, cash flow analysis, valuation analysis and business
adequate.
Having my academic preparation in business...show more content...
I helped set up a 35 million dollar bank according that allows us to draw funds when necessary for
capital purchases. Overall I have versatile experience with alternative funding sources and know how
to work with the funds readily available to organizations.
The Colorado tabor amendment limits the amount of revenue our government can collect and spend.
The surplus in taxes collected must also be refunded to Colorado's tax payers and any tax increases
requires voter approval. This limits the ability for governments to raise taxes in order to reestablish
programs and update equipment necessary to help the public. Colorado Gallagher amendment set
forth the guidelines on how the actual value of property is assessed. This amendment simplifies the
method used to determine the actual cost, market value and income based analysis.
I bring a unique variety of experience from the private, public, government and nonprofit financial
sectors that allows me to understand GAAP, FAR, CAS and other accounting standards currently
used. I always look at the whole picture of an organization and how cutting cost affects operations
and the longevity of the projects. Having strong financial budgeting analysis ability allows me to
build budgets that are accurate precise and easy to follow. This allows operations to understand how
much funding they are projected to have within a year and the amount they can expect to have for
capital assets, operational cost and

Essay Corporate Finance
Why is corporate finance important to all managers?
Corporate finance is a specific area of finance dealing with the financial decisions corporations
make and the tools as well as analyses used to make these decisions. The primary goal of corporate
finance is to enhance corporate value, without taking excessive financial risks.
A corporation's management's primary responsibility is to maximize the shareholder's wealth which
translates to stock price maximization.
Corporate finance provides the skills managers need in order to:
пЃ¬Identify and select the corporate strategies and individual projects that add value to their firm–
Capital Budgeting
пЃ¬Forecast the funding requirements of their company, and devise strategies for...show more
content...
In practice business operations are financed by the owners, but sometimes businesses are financed by
venture capital firms.
Venture capital is capital typically provided by outside investors for financing of new, growing or
stagnating businesses. They are characterized as risky investments.
Before developing a final product, venture capitalists do not invest into business.
In the first stage the financing venture has finally launched and achieved initial traction. Sales are
trading upwards. The funding from this stage is used to fuel the sales, reach the breakeven point,
increase productivity, and cut unit costs. At this point the company is two or three years old. This is
the stage when the venture capitalists get into business.
At second stage of financing, sales are starting to grow rapidly. The company is also rapidly
accumulating accounts receivable and inventory. Capital from this stage is used for funding
expansion in all its forms from meeting increasing marketing expenses to entering new markets to
finance rapidly increasing accounts receivable.
At third stage sales are climbing. Customers are happy. The second level of managers is in place.
Money from this financing is used for increasing capacity, marketing, working capital, and product
improvement or expansion.
After this stage company is at "Mezzanine or Bridge financing" point when investment bankers
agreed

Essay about Ethics in Finance
Identify an event or series of events that occurred in the financial marketplace falling within the
realm of Financial Management, Financial Institutions and Markets, or Investments that raise
significant ethical questions. Analyze the events, public policy responses and their impact on the
financial markets and economy at large. Suppose you are the CEO of a well respected,
multi–million dollar energy company. You stand at the forefront of innovation and you are
world–renowned for your pioneering efforts in the energy industry. However, due to a series of poor
financial decisions, your company is on the verge of bankruptcy. You realize that in order to protect
your own interests and investments, desperate measures need to be taken....show more content...
The found out the truth about what was really happening to the tremendously "profitable" company
and what the executives were really doing behind close doors. While stockholders believed that
their stock with Enron was increasing as time went on, in actuality the total opposite was happening
and they were losing money instead. Many stockholders because of the "profitability" of the stock,
had put every cent they had into the company that even included retirement funds, to wake up the
next day and have it depleted. This can all be attributed to the unethical practices that were
performed by the executives at Enron. It was clear that the company was losing money and that the
stockholders should be made aware of these loses but instead they decided to cover up what was
happening. This event mislead people into believing that everything was going smoothly and there
was nothing to worry about. The executives knew of what was to come in the future and began to
sell stocks based on insider information making them richer and not caring that the stockholders
were going to lose everything that they had invested into the company. These unethical practices
would later be discovered and investigated by the federal government bringing up criminal charges
against many of the top executives. In light of recent public scandals involving high–profile
companies such as Enron, the ability of corporations to make ethical decisions has come into

Essay on Finance
Finance Wikipedia's accurate definition of finance is "The activity of finance is the application of a
set of techniques that individuals and organizations (entities) use to manage their financial affairs,
particularly the differences between income and expenditure and the risks of their investments" http:
//en.wikipedia.org/wiki/Finance. I discuss the importance of keeping track and updating financial
reports as well as simple bank statements. These are just some of the essentials that I believe we all
as a people should acknowledge. There are several detrimental problems concerning our finance as a
people and the side that I will be arguing throughout the duration of this paper is that we as African
Americans do not recognize the...show more content...
If we really want to understand our finance and how it works, it is necessary for us to understand
how the use of financial assets leads to the better use of real assets. Do we as a people really
understand how to levitate our finance? A Prominent tribulation involving finance and the Black
culture is establishing the know how of operating and dealing with financial situations.
Understanding how the financial division works and how it is related to the real sector is why
anyone would study finance.
Many important personal decisions are financial. Paying for a home or an automobile are two very
large examples, but even day to day decisions such as planning a budget, opening a checking
account, or making investments call for a knowledge of finance. This is a issue that I believe should
be discussed in any natural home, let alone the home of minorities.
Most of the time racially we take finance frivolously and this has become a vast distress on
growing and raising children in our society. Learning finance and relating to the history of it should
be something that we try to incorporate in our teaching as Black parents. There should be a strong
emphasis set on the ability to receive credit cards from national companies to our Black children,
instead of nonchalantly letting them keep the cards in their possession to set themselves up for
failure.
Debt is also a financial situation that our

Finance
1. A financial analyst is responsible for maintaining and controlling the firm's daily cash balances.
Frequently manages the firm's shortГўв‚¬'term investments and coordinates shortГўв‚¬'term
borrowing and banking relationships. FALSE
2. Finance is concerned with the process institutions, markets, and instruments involved in the
transfer of money among and between individuals, businesses and government. TRUE
3. Financial services are concerned with the duties of the financial manager. FALSE
4. Financial managers actively manage the financial affairs of many types of business–financial and
non–financial, private and public, for–profit and not–for–profit. False??
5. In partnerships, owners have...show more content...
TRUE
28. Liquidity preference theory suggests that for any given issuer, longГўв‚¬'term interest rates tend
to be higher than shortГўв‚¬'term rates due to the lower liquidity and higher responsiveness to
general interest rate movements of longerГўв‚¬'term securities; causes the yield curve to be
upwardГўв‚¬'sloping. TRUE
Chapter 7
29. Holders of equity have claims on both income and assets that are secondary to the claims of
creditors. TRUE
30. The tax deductibility of interest lowers the cost of debt financing, thereby causing the cost of
debt financing to be lower than the cost of equity financing. TRUE
31. Preferred stock is a special form of stock having a fixed periodic dividend that must be paid prior
to payment of any interest to outstanding bonds. FALSE
32. Cumulative preferred stocks are preferred stocks for which all passed (unpaid) dividends in
arrears must be paid in additional shares of preferred stock prior to the payment of dividends to
common stockholders. False???
33. Preferred stock is often considered a quasiГўв‚¬'debt since it yields a fixed periodic payment.
TRUE
34. The amount of the claim of preferred stockholders in liquidation is normally equal to the market
value of the preferred stock. False???

35. Cumulative preferred stocks are

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