Benefits and Career Options After MBA in Finance
The demand for MBA graduates is always high in the corporate and government sectors. MBA graduates are responsible for maintaining efficient functioning of an organization….
Financial Management
Comparison of income statement and balance sheet numbers
Why might an analyst pay more attention to average balance values in looking at a seasonal or growing firm than when studying a firm that…
Fixed asset turnover ratio
Is the fixed asset turnover ratio more relevant in the analysis of McDonald’s Corporation or General Motors Corporation? Why? The fixed asset turnover ratio is…
American Express Traveller’s Cheques
A well-known advertisement by American Express urged travelers returning home to keep their travelers checks rather than cash them in. The reason given was to…
Yield management
Why do airlines often insist that you pay for your ticket on the date you book your flight rather than the date you actually fly?…
Required rate of return
What determines investors’ required rate of return from a bond or stock? Investors’ required rate of return from a bond or stock (or any security)…
Value of a security and its price
Distinguish between the value of a security and its price. Under what conditions would value equal price? The value of anything is what it is…
Holding period of investors
What is the relationship of the value of a security to the holding period of investors? Why is this so? The value of a security…
What is the philosophy of fundamental security analysts?
Fundamental security analysis is based on long-term economic value. Fundamental analysts believe each security has a true or “intrinsic” value around which its price oscillates….
What is the philosophy of technical security analysts?
Technical security analysis is based on the study of short-term price changes. Technical analysts believe that in the short term, price changes are primarily driven…