Asset

Adding the risk-free government securities would result in a lower beta for the new portfolio. The new portfolio beta will be a weighted average of the individual security betas in the portfolio; the presence of the risk-free securities would lower that weighted average. q. The comment is not correct. Although the respective standard deviations and expected returns for the two securities under consideration are equal, the covariances between each security and the original portfolio…

PROFITABILITY Profitability is the dexterity of a business yield profit. Profitability is responsible for the business to stay in the market or not. Profit itself is what left of the turnover a business beget after it pays all expenditures which contributed in the generation of the turnover (like product production, overheads, wages and other expenditures) related to the management of business operation. If the business is generating the turnover equal to its expenditure, making neither a profit…

The noninterest income and intermediation cost are positively correlated to joining the Facebook by the bank. Across the model I to V, nonperforming assets (NPA) is significantly and negatively associated with joining Facebook by the banks. In the present macroeconomic environment, generally, public sector banks are having higher NPAs and that might forcing them to not to invest in new technological…

Capital The capital position of the Licensee appears sufficient. As of December 31, 2014, the Licensee reported $30,562,375 in capital in relation to total assets of $48,700,055. This reflects a capital ratio of 62.76% of total assets. The capital to assets ratio has declined slightly from 61.35% as of December 31, 2013. The reported Partner’s Equity increased from $28,556,701 as of December 31, 2013 to $30,562,375. The Licensee’s currently has 123 wholesale and retail offices in 23 states in…

Staples vs. Office Depot Staples and Office Depot compete against one another by selling similar products such as office and school supplies. The difference between these two companies may not be very noticeable when looking at them through a broad lens. However, after comparing the financial statements of these two companies, I found that the profitability, liquidity, and solvency of each is what distinguishes Staples from Office Depot. When comparing the profitability of these two…

addition, it is expected for real estate industry to have low current ratio for they are investing on non-current assets like real property which is the nature of their…

The key ratios include the return on assets, the return on equity, and the operating and gross margins. When referencing the return on assets, the higher the better. This number shows the percentage of profit compared to the company’s resources. For Netflix, this number comes to 4.28% after dividing the assets by the net income. Considering that 5% is the standard for an ROA, this number is fairly average. A return on equity…

Dear sir with reference to the above mentioned subject the information regarding existing business is as follows: While reviewing sales of company it is observed that our sales increases by 22% each year but that lead to increase in our expenses by the same percentage which leads us to be on loss side each year. Further the increase in sales is not consistent with increase in market, as market is expanding relatively more than our growth that results decrease in our market share year by year. On…

Lee’s Model vs. Lawson’s Model There are some basic differences in the Lee and Lawson proposal for formulation of Cash Flow Model. Firstly, Lee conceived the structure of cash flow accounting as an inter-locking series of statements for a variety of users. Lawson, on the other hand, is mainly concerned with the provision of cash flow data to improve the information base of investors and financial managers. Secondly, Lee’s system is enterprise oriented, intended for a variety of user group, and…

ratio is a liquidity ratio that shows a company’s ability to repay its immediate debts using its short-term assets, such as cash. It also reflects the company’s ability to generate cash from sales and inventory. The desired current ratio is above one (1.0), under (1.0) does not…