Financial regulation

The study will be anchored on the following theories: 2.2.1 Cash Conversion Cycle Theory Cash conversion theory was propounded by Blinder and Maccini (2001), cash conversion cycle theory is the time it takes a company to convert its resource inputs into cash. It evaluates how effectively a firm is managing its working capital. In most cases, a company acquires inventory on credit, which results in accounts payable. A firm can also sell products on credit, which results in accounts receivable.…

i. Introduction Wilkerson Company is facing an issue where the company is facing lower pre-tax operating margin. Their pre-tax operating margin being that of 3%, and when that is compared to other pre-tax operating margins, it was found that other companies are about 10% pre-tax operating margin (Kaplan, 2001) . Therefore, Wilkinson is 7% lower. Fortunately for Wilkerson, they have increased their prices by 10% and it has not affected the buyers, so they have not lost any business in doing so…

What are agency problems? What are the cost of agency problems? Why may stock-based compensation alleviate the problems? What concerns have been arisen? Agency is when the stockholders (principals) hire managers (agents) to run the company. Agency problems is the conflict between the goals of firm`s owners and its managers. The problem is when the managers who is supposed to make the decision that would best serve the principals is naturally motivated by self-interest benefits (Investopedia,…

man to start his own company, but guides him along the process to make sure that his business doesn’t fall. Availing NZX’s NXT would mean sure and reliable measures to earn money. D) A money market is defined as “a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year”. This means that it lends…

There are multiple ways to value a stock and one such way is the Earnings Per Share (EPS) approach. The EPS of a given firm is the amount of annual earnings available to shareholders (common share) provided on a per share basis (Smart, Gitman, & Joehnk, 2014). The EPS for DUK is 4.09 (see appendix 2). Using this EPS and the stock price as of March 22, 2016, the P/E ratio for DUK is 19.28. This means that for every dollar invested, one would expect $19.28 in return. However, looking…

established to ensure future investors that the accounting industry can operate and produce quality and reliable results. The SEC requires all publically traded companies to submit annual report internal accounting controls. SOX is also known for its financial disclosures and corporate governance. Provisions of SOX details the criminal and civil penalties for not being compliant. Being SOX compliant includes, Control for Information and Related Technology,…

is to analyse Japheth Enterprises finances and provide information obtained through the analysis regarding the liquidity, short-term debt-paying ability and management of inventory for the year end 31 March 2016. This was done by calculating the financial ratios and analysing the income statement and balance sheet. All calculations can be found in the appendix. The report will pay particular attention to the liquidity, short-term debt-paying ability and three issues in relation to management of…

The audit process, which can be considered the systems and methods an auditor uses in order to gather sufficient audit evidence, this can vary from firm to firm as well as auditor to auditor (Manita & Elommal, 2010). The main factors that will influence the audit process will be how compliant the audit teams are regarding the auditing standards, laws and control procedures, the level of interaction between the audit team and relevant parties, and finally the amount of appropriate audit…

meaning of the concept of auditor independence. However, it may be difficult for auditors to effectively evaluate their independence in practice if their own interpretations (perceptions) of the concept differ from those of financial report users and other parties to the financial reporting communication…

Sustainability Report 1.1 Introduction According to the Global Reporting Initiative (GRI), the organization should initiate the sustainability report to integrate the sustainability strategy into the business’s planning . HSBC is one of the biggest banks and financial services providers listed on London stock exchange and market capitalization as of to date is US$207 billion. Sustainability reporting is acts as part of their core business value and integrates the sustainability with the…