Chapter 4 FOREIGN DIRECT INVESTMENT FDI is the outcome of Mutual interest of MNC’s and host countries. The FDI refers to the investment of MNC’’ in host countries in the form of creating productive facilities and having ownership and control. On the other hand if MNC or a foreign organization or a foreign individual buys bonds issued by host country it is not FDI‚ as it has no attached management or controlling interest. Such investments are called Portfolio Investments. In developing countries
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1 Elasticity of Demand The demand of any product depends on the pricing strategy being followed by the company as well as other factors like nature of product i.e. necessity or luxury‚ availability of substitutes‚ switching cost etc. If the product is a necessity usually it has an inelastic demand. Inelastic demand refers to the situation where one unit increase or decrease in the product’s price cause less than one dollar change in the units demanded of that product (Kreps‚ D. M. 1990). If product
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PART1-Investment Policy Statement Purpose of Policy Statement The purpose of the Policy Statement is to create an agreement between XXXX‚ YYY‚ and ZZZ to collectively manage a mock $1‚000‚000 portfolio during the 2011 fall semester. It will define the investment objectives‚ strategies‚ and risks associated with this portfolio. Investment Objectives The objective of our team is to seek capital appreciation of portfolio in three months. Moreover‚ given the little risk tolerance
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STUDY ON INDEX AND STOCK PRICE MOVEMENT OF VARIOUS INDUSTRIES IN EQUITY MARKET AT SHAREKHAN CHAPTER – 1 INTRODUCTION CHAPTER: 1 1.1 INTRODUCTION 1.1.1 INDEX AND STOCK PRICE MOVING AVERAGE Individual stock price is compared
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Coca-Cola Company (NYSE: KO) |DATE |#Shares |Closing |Market |P/E |Dividends |Market | | | |Price |Value |Ratio | |Index | |6/7/10 |1000 |$50.80 |$50‚800 |16.94 |1.76 |118.87B | |6/8/10 |1000 |$51.56 |$51
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Initial investment An initial investment is the money a business owner needs to start up a firm. It might include the business owner’s own money‚ money borrowed from an array of sources including family and friends or banks‚ or capital raised from investors. The term initial investment is also used as the money a business owner uses to invest in a capital investment venture such as a piece of equipment or a building. IRR The higher a projects internal rate of return‚ the
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GMRe: GM stock recommendation After reading Jeff Bennett and Sharon Terlep’s recent article‚ “U.S. Balks at GM Plan” in the 17 September‚ 2012 issue of the Wall Street Journal‚ I would like to make recommendation on when it would be best to allow GM to buy back 200 million shares from Treasury. In order to make this decision‚ I suggest analyzing from two aspects. One is the political influence. When should Treasury accept the buyback offer‚ so that can benefit the Obama administration? The other
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maturity‚ credit‚ and liquidity transformation without explicit access to central bank liquidity or public sector credit guarantees. Examples of shadow banks include finance companies‚ asset-backed commercial paper (ABCP) conduits‚ structured investment vehicles (SIVs)‚ credit hedge funds‚ money market mutual funds‚ securities lenders‚ limited-purpose finance companies (LPFCs)‚ and the government-sponsored enterprises (GSEs). Our paper documents the institutional features of shadow banks‚ discusses
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ACKNOWLEDGEMENT: It was a great pleasure to prepare a project on the various aspects and operations. We would like to thank and convey my gratitude to honorable teacher‚ Munir chowdhury‚ Senior Lecturer‚ Faculty of Business Administration‚ for instruct me to prepare this project and we would also like to express my sincere appreciation to him for his wholehearted support and guidance. Thanks him from the core of our Heart. EXECUTIVE SUMMARY: Importance of banking system in a country is
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1. You have a cash obligation of $132‚240 to be made at the end of year 5. Show how you can use coupon bonds with a coupon rate of 8%‚ a face value of $1‚000‚ a maturity date at the end of year 6‚ and a yield to maturity of 8% to ensure that you can meet your cash obligation at the end of year 5. Suppose that you purchase the bonds at the beginning of year 1 and that the market interest rate changes only once right after you have purchased the bonds. There are three possible interest rates‚ 7.9%
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