International financial services Essay Example | Topics and Well Written Essays - 1250 words

International financial services - Essay Example Intex is a third-party cash-flow projection technique that can provide accurate data on existing collateral investments and compute cash flow projection faster and easily. This enables the stock exchange to get the information they need faster and accurately for better decision making. Second reason is high frequency transactions in secondary market. This is because of two reasons. As the transaction frequency increases, the stock exchange has less time and fewer resources devoted to the primary markets. Secondly, high frequency transactions generate higher income to stock exchanges. Therefore, they will naturally put resources in areas that give them more money. Impact to the United Kingdom companies The first impact to the UK companies is reduction in their capital base. As the stock exchange concentrates in the secondary market, the primary markets experience shortage of skilled personnel who advises them on best ways of raising maximum capital for their companies. As a result, mo st companies may opt for other sources of capital because it is extremely hard to raise capital where there is no adequate help. Secondly, most companies take longer time to raise their capital from primary markets. This is because as the stock exchange gets busy with the secondary markets, they will be long queues of companies seeking help. As a result, there will be delays in getting assistance. 2. A company has the following capital structure, and all securities issued have the same nominal price of ?4.00. 400,000 5% Debenture Stock @ ?4.00 600,000 2? Preference Stock @ ?4.00 1,000,000 Ordinary Shares @ ?4.00 (a) the value of the gearing ratio and the significance of this ratio to potential investors Stock Quantity Price /unit in ? Amount capital in ? Debenture 400,000 4 1600000 Preference 600,000 4 2400000 Ordinary Shares 1,000,000 4 4000000 Total Fixed Capital 8000000 Gearing ratio indicates the proportion of debts used to finance assets in the company. The higher the gearing r atio, the riskier is the company. This is because most of the money used is borrowed from other sources other than ordinary shares. (b) When Directors decided to distribute only forty percent of the profit (?800,000), the dividend declared on ordinary shares is given below. =?320,000  The return on investment   (c) a. The price/earnings ratio  (c) b. The concept of price/earnings ratio and the significance to future Price/earning ratio measure the value of the stock. This is because it establishes the relationship between the stock price and the company’s earnings. When price/earning ratio is high in a given stock, the forecast earning growth is also high. It is a valuable ratio because investors can use to compare values of stock of different companies. Investors normally prefer stocks with higher price/earning ratio because it indicates higher returns. 3. The concept of Right Issues as well as advantages and disadvantages to the stockholders Rights issue refers to a n alternative means of raising capital whereby, a company issues additional shares or stocks to already existing shareholders in proportion to their shareholding in exchange for cash (Banerjee, 1990). For example, a company may offer rights issue on the basis of one rights issue for every six held by the shareholders. A company does this via seasoned equity offering or primary offering market at a premium or discount. The procedure for rights issue is easy. Once the issues

RESEARCH METHODS - Preparing an effective questionnaire that elicits Assignment

RESEARCH METHODS - Preparing an effective questionnaire that elicits the maximum rate of responses - Assignment Example Please go through the questionnaire, and answer the questions. We will collect it from you within 3 days. The questionnaire should not take you more than 20 minutes. The results of this research project will benefit you only, since it will enlighten Etisalat about where it is going strong and where it is lacking, when it comes to its reputation as an employer. We aim to use the results of the survey for future decision making, with respect to policies regarding many work related and employees-affecting issues. The results might not be shared with you, but their after effects will be quite visible to you, in the decisions that are then taken place. You are not exposed to any kind of risks while filling the form and we promise complete confidentiality when it comes to your responses. Your responses will not be shared with anyone and will stay within the research group that is conducting this research. If you do not personally wish to hand over the survey to us, we have alternatives for you. You can leave it in the postbox of Etisalat and address it to us. Your participation is completely your choice and voluntary, but we would love it if you participate. If you have any queries or comments regarding this questionnaire, contact us at 034-5678908. This study has been approved by an external research organization to ensure that it fulfills the ethics of any research. 12. Divide 100 points among the following characteristics of an organization according to how important each characteristic is to you when choosing an employer? For instance, if you think salary is the most important, then assign 50 points to salary, and then divide the remaining points among the other characteristics. The more points you give to a characteristic, the more important it is to you. Remember: the total should come to 100