Investment banking

Key Man Clause What’s Key Man Clause? Key man clause is an important clause for an investment firm. It says if certain numbers of executives are absent, the investment firm won’t be able to make any new investments until these key executives are replaced first. There can be many reasons for which the executives aren’t able to perform their tasks quite well. Since managing investments is a huge task, until the key executives (who are in charge) invest a large chunk of time. When they’re unable to…

A common negative effect of smoking is the financial toll. A smoker can be put in debt because of purchasing cigarettes. Cigarettes are often expensive. According to The New York Times, “The average pack of cigarettes costs about seven dollars and twenty-five cents” (Maheshwari 2). Most smokers will spend thousands of dollars a year on cigarettes. The average smoker smokes a pack of cigarettes a day. They smoke this much because of the tobacco and nicotine contents. Big tobacco companies put it…

Among the main factors proposed as rationale for mergers, from the society’s point of view the most justifiable factor is synergy. Synergy refers to the economic benefit which could be achieved through the merger of companies and is often considered as the major driving force for a merger. With synergy the post merger share price of the company increases and shareholders will benefit. The synergy from the merger could be attributed to a handful of factors, such as increase in revenue,…

These days, the Swedish watch company Daniel Wellington is doing fairly well for itself. Earlier this year, it was named the fastest growing private company in Europe, with a 3-year revenue growth amounting to 4,695%. Impressively, this seemed to happen almost overnight – the company was founded in 2011. What's their secret? According to owner Filip Tysander, it's all about influencer marketing. Completely bypassing traditional marketing strategies, Tysander instead focused on a digital…

an economy develops, market forces first increase and then decrease economic inequality. The hypothesis was first advanced by economist Simon Kuznets in the 1950s and '60s. One explanation of such a progression suggests that early in development, investment opportunities for those who have money multiply, while an influx of cheap rural labour to the cities holds down wages. Whereas in mature economies, human capital accrual (an estimate of cost that has been incurred but not yet paid) takes the…

categories, competitive cost structures and high profitability. Brand Value Creation: to explain the phenomena of brand equity, Keller and Lehmann (2003) developed the brand value chain (BVC) model. It theoretically explains how brand related to investments affect firm financial value by changing customer mindsets and subsequent market performance. Brand…

Introduction The wealth gap phenomenon between the rich and the poor has become evident over the past decade (…). Decade after decade, governments and international organisations have failed to reduce poverty, nor have they been able to help Africa generate growth and basic infrastructure. The gap between the rich and poor generally refers to the cross sectional distribution of income or wealth at any particular time or to the lifetime income and wealth over a longer period of time among…

Berk & DeMarzo (2016), the internal rate of return abbreviated as IRR and also known as the yield on investment refers to the discount rate that equates the NPV (net present value) of the proposed investment to zero (0). That is, the future cash flows of the investment plan equal the initial capital outlay of the project. The technique analyzes an investment plan by comparing the yield on investment to the minimum hurdle rate of a company. Like the NPV method, internal rate of return also puts…

Organization and Rhetoric in “Is the Business World All About Greed?” Nicholas Kristof is a bi-weekly, periodic op-ed columnist for the New York Times. His articles focus on social issues, ranging from women’s rights to health care, and global affairs including those in third world countries. Kristof is a Harvard graduate, and he has studied and lived abroad and speaks multiple languages. Also, he is a recipient of two Pulitzer Prizes. In the article “Is the Business World All About Greed?”…

time value of money. Time Value of Money: As and when the cost/ market value of a product increases the value of money decreases. But through investing money in the investment instruments the value of money of that actual period can be obtained as it raises interest as additional money, adding additional value to the actual investment. And then I realized that when I was in my graduation, I overheard my college dean talking about…