The Importance of Company Valuation to Investor, the Shortcoming of Literature review

The Importance of Company Valuation to Investor, the Shortcoming of DCF Mode - Literature review Example An example of an investor who hugely benefits from company valuation is one who reinvests dividends. By this kind of re-investment, such an investor could build wealth for myriad uses such as retirement benefits. However, the core importance of company valuation to investors is that it allows them to know the value of a company and its assets before investing (Copeland et al., 2000). Familiarity with the value of a company and its assets is quite important for investors’ intelligent decision making, more so for deciding the most appropriate prices to pay or receive during a takeover (Pratt, 1998). Additionally, valuation helps investors to choose the right investment portfolio and sound financing and dividend choices when running a business. Valuation also helps investors make reasonable estimates of the values of real and financial assets. Company valuation also ensures that an investor does not pay more for an asset than its real worth. Therefore, valuation plays several cri tical roles in acquisition analysis, corporate finance, and portfolio management (Pratt, 1998). Efficient Market Hypotheses Is Not Trustable Many researchers, scholars and investors have theoretically and empirically criticized and disputed the efficient-market hypothesis. At the forefront in criticizing the efficient-market hypothesis are behavioral economists who assert that combinations of cognitive biases are responsible for the deficient nature of Efficient Market Hypothesis (EMH) (Gaughan, 2004). These cognitive biases include overreaction, information bias and representative bias, predictable human errors of reasoning, information processing errors and overconfidence. The alleged reasoning errors have been observed to drive many an investor to buy excessively expensive growth stock while avoiding value stock (Hitchnera, 2006). On the other hand, those reasoning correctly buy and profit from the neglected value stock and the overreacted selling of growth stocks. In a similar m anner to theoretical evidence, practical evidence fault the efficient-market hypothesis, For example, while some behavioral economists assert that low P/E stocks have greater returns, others tend to differ, attributing these higher returns to higher beta (?) (Gaughan, 2004). In fact, the latter group’s researches have been accepted by efficient market theorists as adequately explaining the irregularities according to the modern portfolio theory. That stock buyers often operate on and are driven by irrational excitement implies that a lot of speculative economic bubble anomalies are encountered in the markets since such buyers do not detect the underlying values of stocks (Gaughan, 2004). After these economic bubbles, there is always an overreaction and frantic effort to sell stocks to unscrupulous investors who then buy these stocks at bargain prices. Further, since markets may remain irrational for a longer duration than expected, even rational investors could encounter diff iculties to operate profitably since they may be forced to shorting irrational bubbles since they are no longer able to remain solvent over the period (Gaughan, 2004). The Limitations of Net Asset Valuation Model Once a company gets solvent, it may decide to pay its creditors, sell its assets

Globalisation and Employment Essay Example | Topics and Well Written Essays - 3000 words

Globalisation and Employment - Essay Example With the advent of globalisation this phenomenon has expanded and has impacted the contemporary cultural and social lives of the individuals who are involved (International Monetary Fund, 2002, p. 1). The international migration has both beneficial and detrimental effect on the people as well as the countries. The movement across the inter-country border has forced the government of the respective countries to formulate international policies. The United Kingdom has also experienced the phenomenon of migration since a long time. However, the pattern of this migration has widely varied in different phases of time. In the present day the diversity in the migration patterns and the mobility of the immigrants is greater. The number of immigrants has also has also been increasing. The people have been coming from the various other continents and their duration of stay in the UK is for much shorter periods. The main reason for the migration in the present day is for business needs of the d ifferent multinational corporations. In order to execute the projects in the UK people are coming to different business locations of UK. There have been radical changes in the immigration policies of UK. The common population of the United States is against this continuous influx of the immigrants and this public opinion has forced the government to manage this illegal and uncontrolled migration of foreign population to the UK. At the same time the country has benefitted from the migration of some individuals who have contributed to the GDP of the countries and have acted as economic agents. This essay makes an attempt to look into the various immigration patterns witnessed by the UK and try to make an analysis of the challenges and opportunities that would arise for the countries, their citizens and the immigrants. Discussion of the issue The challenges that the face the UK policy makers include the issue of immigration. The native people are of the opinion that there is an extreme ly overspill of the number of migrants in the United Kingdom. Almost 80% of the original population of the United Kingdom prefer that the number of migrants in the countries get reduced. Thus the trends of the increasing number of immigrants in the country are not welcome by the native people of these places. The people of UK are concerned about the various issues relating to the cultural background and the competition existing in the UK. This is mainly because of the Public perception of the immigration policy as a flawed one. Patterns of UK migration The migration pattern in the United Kingdom has changed drastically over the last one decade. The advent of extensive migration took place in the country in the post Second World War period mostly from South East Asia and the Caribbean Islands. Along with that the influx of people took place from the African countries. As in 2008, the number of immigrants of UK was about 6.6 million which constituted more than 10% of the total populat ion of the UK. The people who were not born in the UK were considered as the immigrants. Along with that UK population also consisted of 4.2 million of people from the foreign nations. There in a decade’s time the population of UK had been increasing by 2.2 million with people who were of non-British origin

Exam 2 Essay Example | Topics and Well Written Essays - 1000 words - 5

Exam 2 - Essay Example Through criticism, scientists are able to conduct more research on the evolution of and this will lead to more elaborate and clear understanding of the collect evolution. This can be clearly be seen from the research that lead to the understanding evolution of prokaryotic and eukaryotic as Marguli always needed to prove the reality behind the growth of Flagella as opposed by most of the scientists at the start. The piecemeal acceptance of the new theories was because of unclear defined evidences to the growth of the cell evolution. But the piece to piece acceptance also was contributed by criticizing scientists .For instance ,Marguli’s first book in 1970 on endosymbiosis although new to most of the scientist those who knew of it dismissed it making her to carefully again distinguish her ideas clearly from others like Ivan Wallin who first wrote of it. The only way to resolve a problem between two parties is by producing clear and substantial evidence that is used to oversee the evidence of the other. Controversial theories on the evolution between Marguli and other scientists for instance, her presenting a wide would only solve the close competitive theory by F.J.R Taylor and well explained with touchable evidence on the evolution of the cells like Prokaryotic and eukaryotic, mitochondria, chloroplast and flagella. Due to the criticism and dismissal of her scientific theory. Margulis was encouraged to clearly do research in order to fully gain acceptance on the cell evolution theory. Thus, she based her cell evolution on the past study of Ivan Walliam .As a result, by the end of a decade after his first book on 1970 she came up with analogies that were greatly accepted worldwide. She ended up gaining popularity on the Set theory than the autogency theory that emphasized on the end symbiosis. For instance Margulis in her Set theory she confirmed that few intermediates between prokaryotic and

Work Now trends (complete part one) Essay Example | Topics and Well Written Essays - 250 words

Work Now trends (complete part one) - Essay Example On the other hand, this gives the temporary employees a chance to determine their level of interest in that company. Working as a temporary employee gives the employees an advantage over the external applicants in times of a vacancy announcement. In the recent research, about 58% of the employers will prefer to pick the temporary workers in the next five or so years to external applicants (Jim, 2006). People working as temporary employers have a chance to associate with employees who may help them gain the permanent position or at times provide them with leads, and end up getting better positions elsewhere. Other than the above-mentioned impacts of temp-to-fulltime to the employer, the costs associated with hiring permanent workers is higher compared to that of the temporary employees. As the main aim of any business is maximization of profits, this strategy saves on costs; hence, more profit. People go for temporary jobs for experience, extra cash or if they have no other source of income. However, temp-to-fulltime strategy has its own shortcomings. With this kind of employment, nothing is guaranteed. Sometimes a company genuinely needs a temporary employee for just a specified time for various reasons. It gets frustrating for a person who took up that job with expectations of ever having that position permanently. One has to try to be perfect in everything, as the slightest mistake would mean immediate dismissal. This is not fair for everyone makes mistakes. These employees enjoy lesser benefits and lower income compared to their counterpart. This is despite the fact that they often do most of the work. The best secret to make any temporary job a permanent one is to perform excellently and assimilate into the company and its culture in the shortest time possible. Coming in early, offering to stay late in the office, complete the given assignment, and presenting it in time and having the right mindset are

Google PowerPoint Presentation Example | Topics and Well Written Essays - 1750 words

Google - PowerPoint Presentation Example Google generates revenue primarily by delivering online advertising. The company primarily operates in the US. It is headquartered in Mountain View, California and employs 24,400 people. (Datamonitor 2011) Industry Analysis Macro-environment Analysis Political issues Different policies of countries concerning the freedom of communication and information There are different policies given the different political regimes worldwide. Even in liberal countries, the threat of terrorism and international fraud have created regulations that tend to require web service providers to monitor and identify high risk content in their throughput. Social advocacy groups also urge censorship of pornographic and similar material over the web. Censorship issues in countries with centralized political systems Countries such as China and other politically restrictive countries impose censorship controls which tends to discourage parties from engaging in internet exchange, even for non-political purposes. Economic issues Internet ad spending increasing, with affordable costs providing advantages to small firms Even small business are benefitted by the far reach of internet advertising. Compared to print, broadcast and other advertising, internet advertising is relatively cheap, and results are strong Growing viability of e-commerce among markets With the advent of reliable and secure e-payment services such as paypal, e-commerce is becoming more acceptable to most business and customers, and provides greater viability to Google. Increasing recourse to online transactions More companies are establishing e-stores over regionwide operations from which shoppers may make orders or transact sales. Industry Analysis Macro-environment Analysis Social issues In some parts of the world, cultural and language barriers create preferences for local info providers Growing connectedness due to social networking opens doors to more people of all walks of life Technological issues New technology ena bles tracking and targetting of individual customers, improving customer relations R&D provides more powerful, less costly alternatives Industry Analysis Macro-environment Analysis Legal issues Infringements of intellectual property rights Concern for firm’s liability in providing access for internet fraud, terrorism, and other unlawful uses Privacy concerns in relation to content material Environmental issues Greenhouse gas emission has been associated with the electrical power, including the carbon footprint of digital information devices Sustainable disposal of such devices still a problem Industry Analysis Porter’s Five Forces Model Internal Rivalry High due to continuing impetus for innovation Strongest players are Yahoo, Google, AOL and MSN of Microsoft Threat from Substitutes High since substitutes include social networks, vertical search engines and dedicated e-commerce websites, standalone websites, and other forms of advertising since companies advertise in m ultiple media. Industry Analysis Threat from New Entrants Low due to slowing growth and consolidation among present players Low due to strong brand loyalties among present players Bargaining Power of Suppliers Low due to high number of information sources, blog

Perspectives of Ageing Essay Example | Topics and Well Written Essays - 2750 words

Perspectives of Ageing - Essay Example Racism, on the other hand, is related to class of people who feel discriminated in certain nation and society based on their ethnic origin and skin color or upbringing. Every nation evolves certain policies to support the senior citizens or aging population within their region .They also help support the minority to help them integrate with mainstream population. Thus many theories and policies have been formulated to enhance the life of aging population and to control the negative impacts of racism within community. The report examines the issues of aging and racism, which exists in a small suburban town in India, and the two interviews were conducted with informed consent .To balance the nature of participation one female and one male member was chosen. This gender bias is very apparent and so is class bias reflected from the interviews. The issues elated to racism and ageing can take many forms of social issue which changes its flavor based on the country of origin. The issues are there, and it needs to be addressed in the light of the national policies and theories, and constitutional rights of the citizens. This issue needs to be approached from wider perspective, from local level, national level and international level. The issues are that health and economics needs should be addressed along with the social issues, which are apparent in the aging population. The interviews conducted reveal that the issues of aging and racism are mainly connected to health, economic and social interactivity. These are the issue which impact everyday life events. These are global issues which are prevalent in every country. The increasing life expectancy has led to increasing number of aged population over 60 years of age. This aging population is growing number is impacting the reconsideration on the national level and constitutional level, with new policy implementation, and the need for new set of rights which can guarantee them support and protection in unusual circumstance. The exploding need for new consideration has been the strongly recognized by the health policies, socioeconomic development plans and economic policies which can provide maximum provision to this group with regard to health and functional capacity. This has been done in consideration for the betterment of their social participation and economic security. These are some of the new challenges of the emerging society. Ageing: Since my interview is related to people from developing countries, who are residing in UK , but originally from India, it would be interesting to examine the nature of policy change and social changes which has been witnessed worldwide. The theories which have evolved over time on ageing, plays a key role in understanding my selected audience. In the context of my interview, ageing is more relevant than racism. Therefore I am going to focus more on the theories and policies related to ageing which applies more in the context of my interviews. It is interesting how we can trace the impacts of these theories in real life in two very different cases taken from two gender specimen. An understanding of this phenomenon from scientific and social perspective is important to understand the significant role in the growing number of ageing population throughout the world. Human beings are unique and complex

342 paper 1 Essay Example | Topics and Well Written Essays - 750 words

342 paper 1 - Essay Example At these moments, America has carried on not simply because of the skill or vision of those in high office, but because we the People have remained faithful to the ideals of our forebears, and true to our founding documents. So it has been. So it must be with this generation of Americans. That we are in the midst of crisis is now well understood. Our nation is at war against a far-reaching network of violence and hatred. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some but also our collective failure to make hard choices and prepare the nation for a new age.’ The given exigencies captured in the speech accurately give an impression of a refined invention of President Obamas speech thereby making it effective .The first exigency expressed by President Obama talks about war which has caused the country both hatred and violence. (Poggi pg23)War is a menace that the country has faced with other countries such as Iraq and Afghanistan. (Mingolelli pg45) The president acknowledges the fact that war in America with other countries must come to a halt. The audience feels represented. The second exigency talks about a weakened economy that has resulted because of war. The president recognizes that economic growth plays a pivotal role in the development of a country. The American people agree with the presidency that economic growth would empower living standards in the country. (Nuhringpg67) This aspect arouses the audience. The third exigency talks about preparing the nation for a new age which would encompass all the individuals in America. In a nutshell President Obama states to the country that his leadership would be inclusive, participatory and consultative. The challenge lies in both the president and the people of America. President Obama was making references to segregation and slavery that Americans felt attached to emotionally .Such statements easily reach every American thereby building