Highlight any five limitations in the use of accounting ratios that you found in your analysis and evaluation of the company over the three-year period.

Financial accounting

Work on the published financial statements of Tesco plc for the last three years 2020 – 2017:

1. Analyse and evaluate the performance, liquidity and financial structure of the three years 2020 – 2017. Use the accounting ratios shown below and any other information relevant to Tesco plc. Information can be obtained from the annual report and accounts and any other source of evidence that you believe helps to explain the company’s performance and position.

2. Highlight any 5 limitations in the use of accounting ratios that you found in your analysis and evaluation of the company over the three-year period.

This may include reference to the movements in the company’s share price.

 

Investigate Finland’s adoption of a negative interest rate policy and the implications for its currency’s value.

Investigate Finland’s adoption of a negative interest rate policy and the implications for its currency’s value.

In recent decades, some major economies and regions, including Japan, the Eurozone, and a few others, have adopted zero and then negative interest rates: a historically unconventional monetary policy response.

This assignment requires that you investigate Finland’s adoption of a negative interest rate policy and the implications for its currency’s value and develop an essay on this topic. In this essay you will need to explain why any noticeable volatility in the currency’s exchange rate against the US dollar occurred, giving adequate reference to knowledge learnt during the course. You need to cite appropriate references from academic journals, government announcements and publications, newspapers, institutional reports, etc., to support your argument.

Compare how each financial market you identified influences the US economy and global economy.

The Stock Market and the Economy Summary

Research how financial markets and institutions influence the US and global economies.

Create a summary to present your research.

Choose 4 financial markets or institutions. Briefly explain what each specializes in (mortgages, stocks, government securities, etc.).

Compare how each financial market you identified influences the US economy and global economy.

Cite references to support your assignment.

Format your citations according to APA guidelines.

Explain the advantages and disadvantages of the sources of cash as the primary source of repayment on a loan.

Importance of identifying the primary source of repayment

Explain the importance of identifying the “primary” source of repayment. Clearly, the primary source of repayment is always “cash.” The analysis question is really one of identifying the source of the cash used to repay the loan.

Explain the advantages and disadvantages of the sources of cash as the primary source of repayment on a loan

What are some of the reasons central banks and treasuries enter the foreign exchange markets,and in what important ways are they different from other foreign exchange participants?

The Foreign Exchange Market

What are some of the reasons central banks and treasuries enter the foreign exchange markets,and in what important ways are they different from other foreign exchange participants?

What are the four currencies that constitute about 80% of all foreign exchange trading?

Answers all questions and give short explanation. Reference the PowerPoint attached Questions are at the end of PowerPoints. You do not have to add question to the paper.

What are the advantages and the disadvantages of a merger?

Restructuring through the process of Mergers and Acquisitions (M&A)

Respond to the following question:

As part of the financial planning process, a common practice in the corporate finance world is restructuring through the process of mergers and acquisitions (M&A). It seems that on a regular basis,investment bankers arrange M&A transactions,forming one company from separate companies. What are the advantages and the disadvantages of a merger? In your response, provide an example of either a merger that was successful, or one that was unsuccessful.

Write a paper of 1,000-1,250 content words (title page, abstract and reference page not included).

Prepare this assignment according to the APA guidelines,including a title page, an introduction,and a conclusion. An abstract is not required. Cite in text and include a References section.

Include at least three credible outside references from search engines or scholarly sources from the APUS Online Library.

Note that your attached paper will automatically be submitted to Turnitin

What are the respective market value weights for each component of the firm’s financing equity,preferred stock,and debt?

Weighted Average Cost of Capital Essay

Review and explain the Weighted Average Cost of Capital (WACC) concepts as follows:

When writing your assignment, assume you are the CFO of Hankins Corporation. Given the key financial data below perform a detailed and thorough financial analysis (shows and explains all calculations) that includes the following:

Describe the firm’s market value capital structure:

What is the market value for each type of financing used by the firm: equity, preferred stock, and debt?

What is the total market value for Hankins Corporation?

What are the respective market value weights for each component of the firm’s financing equity,preferred stock,and debt?

If the firm is evaluating a new investment project that has the same risk as the firm’s typical project, what rate should the firm use to discount the project’s cash flows? Hint: the firm’s WACC is the appropriate discount rate. Compute Hankins’ WACC:

What is the cost of equity using CAPM?

If the YTM of the bonds is 5.93%, and YTM represents the cost of debt, what is the after-tax cost of this debt?

What is the cost of the firm’s preferred stock?

Based on this information, what is the WACC for Hankins Corporation?

Key financial data for Hankins Corporation:

Common stock outstanding = 5.4 million shares; market value = $64/share; beta = 1.13

5.6% Preferred stock outstanding = 290,000 shares issued with par value = $100 each. Current market value of preferred stock = $103/share.

6.7% semi-annual bonds outstanding = 125,000 bonds issued with par value = $1,000 each; market value is 109% of par; all bonds mature in 20 years.

Market risk premium = 6.8%

T-bills current yield = 4.3%

Corporate tax rate = 34%

As always, include proper APA style citations and a reference list.

Compare the performance of these size premiums with the global market premium over the same period.Do they outperform or underperform the market?

Evaluating the risk and return of size premiums

The number in each cell indicates the monthly size premium for that particular country/region. You are also given the global market monthly premium named ‘Global Market’.

Based on the Excel spreadsheet indicated above,perform the following tasks. You are encouraged to use Excel to perform the analyses. However, your analyses and discussion of findings must be presented as a report in a Word/PDF format. The word limit for the report is 1500 words excluding Executive Summary, Table of Contents, Tables, Figures, and References.

1) Calculate the time-series average returns and standard deviations to the size premiums across the six regions/countries. You should also consider the reward to risk ratios calculated as premium divided by standard deviation. Over the sample period and regions/countries considered, do you think that size matters in investment strategy? 

2) Compare the performance of these size premiums with the global market premium over the same period.Do they outperform or underperform the market?

3) Examine the time-series return pattern of these size premiums. Are there any specific periods in which the size premiums outperform or underperform? Based on the time-series return pattern, do you think market condition (e.g. boom or recession) plays a role in explaining the return variation for the size premiums?

4) Conduct some literature review on academic articles on the size premiums. Based on your review,identify two potential theories/reasons why small firms may outperform large firms.Also, review the findings on past literature conducted on size premiums in the regions/countries above. Is your finding consistent with the extant literature?

5) Structure and presentation of the report including referencing.

6) Writing style and grammar.