Finance Sample


Behavioural Finance

Behavioural finance is a scaffold which augments some various sections of standard finance also known as the modern portfolio theory, and it ultimately replaces other parts. Behavioural finance best describes the behavior of managers and investors; it also describes various interaction outcomes between managers and investors in the capital markets and the financial markets. It also effectively prescribes best behavior for managers and investors (Baker & Nofsinger, 2010, p. 174). Read More

Corporate Finance

The main reason for investing in the financial markets is for capital gains. This is the return on investment which arises due to the price differences of the securities in the financial market. The investors buy and sell shares in the stock exchange market hoping to make a gain. They will buy the securities when the security price are low and sell them when the prices increase. The gain due to the differences in price is known as the capital gain. However, investors require having full information regarding the company operations before buying the company securities.There is a positive correlation between the worth of the securities and the performance of a company. In 1970, Eugene Fama argued that the security prices in the capital market should reflect the available information in the market. His argument was known as an efficient market analysis(Carlos Correia, 2012, pp. 4-27). Read More

Financial Accounting

Machine A:

Treat the delivery expenses as costs. They constitute the cost of the machine.
Assumption: a machine is charged but none is provided when the machine is disposed off (100000-0)/10= 100000 per annum
And if pro rata basis is used, then depreciation will be 50000 (100000/2), representing the 6 months of its service from July to December 2012. Read More

Financial performance analysis for Next plc

Next plc is UK retail company that was launched in 1982. The company has more than 500 stores in UK and operates in more than 30 countries. it also has online stores where it sells clothes for women, shoes and related accessories. Online stores helped the company to reach more customers that make orders anywhere and goods are delivered at their convenient locations. NEXT has other brands such as Lipsy that are sold to all of their clients. Read More

Forecast of US Interest rate policy and Housing market

AbstractU.S. economy is different from the economy of Japan. As the U.S. economy is facing the time of recession, The Fed?s interest rates have huge impact on the economic growth. Also The Fed?s decision for hiking or lowering the interest rates will affect the housing market. The economy is going through the situation of negativity which is going to be corrected with the longer period of time and not in the short run. But the economy will start getting out of debt after 2017.Forecast of U.S. Interest rate policy and Housing market U.S. economy is the market based economy as well... Read More