Business law - Free Essay Example

Structure: Analysis, Legal rules and Application Introduction and General Analysis Abbey Limited has three directors, Jo, Keira and Lin who hold the shares equally. The main objective of the company is to import exotic fruit from Malaysia. To diversify, a subsidiary company, Baja Ltd was set up with equal shareholding to import dried fruits from Africa. Baja Ltd is in financial difficulties and its Board decided to turn down a contract from Zylo Ltd to import wooden bowls although Lin wanted to go ahead with it. Lin takes the contract over and sets up a small business without disclosing this to other directors. Baja Limitedà ¢Ã¢â€š ¬Ã¢â€ž ¢s auditors have told the directors that the company is in bad financial position and its creditors want Abbey Limited to pay its debts A company has a separate legal entity from its owner and has its own debts and liabilities and own property in its own name. As a consequence a subsidiaryà ¢Ã¢â€š ¬Ã¢â€ž ¢s debts and obligations are not generally being enforceable against its parent company. However, only in certain circumstances courts will be prepared to à ¢Ã¢â€š ¬Ã…“lift the veil of incorporationà ¢Ã¢â€š ¬Ã‚ [1] to establish who is hiding behind the legal personality of a company. Under the new proposals for à ¢Ã¢â€š ¬Ã…“Modernising Company Lawà ¢Ã¢â€š ¬Ã‚  white paper whic h contains important proposal with regard to a contract which a company itself is unable to accept due to lack of resources for example, then a director may be able to take that contract personally for his own benefit. This allows directors to make full use of information, property etc which belong to the company for their own benefit without the consent of the shareholders and members provided they obtain the authorisation from the Board of Directors to do so. The important difference here which must be noted is, in case of private companies, the board of directors will have such powers to authorise a director to exploit a corporate opportunity like that unless it has been expressly denied in the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s constitution. On the other hand, in case of Public limited companies, the board of directors will not have such powers bestowed upon them as they need authorisation from the shareholders first unless a specific provision to authorise such transaction has been mad e in the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s constitution. 1. Baja Ltd is a creditor of a Subsidiary company of Abbey Ltd, who is in financial trouble does this makes the parent company liable for its debts? 2. Was the behaviour of other two directors prejudicial to her as a minority shareholder? 3. Can Lin be prevented from taking the contract rejected by the Company? 3. The procedure to remove a director The object clause of the company states, to import exotic fruits from Malaysia which is very specific to its business, therefore any acts beyond those set out in its object clause would be ultra vires. However, generally object clauses are drafted so widely which covers every possible business and activity a company may wish to carry out. Therefore, the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s decision to diversify in to import of dried fruit market is unlikely to be ultra vires. In addition to this under the new proposals[2] the doctrine of ultra vires does not exist. As a subsidi ary of Abbey Limited, Baja Limited will have a separate legal personality from it parent company. Thus the parent company, Abbey limited will not be liable for the debts and obligations of the subsidiary, Baja Limited, beyond the amount of the subsidiaryà ¢Ã¢â€š ¬Ã¢â€ž ¢s share capital. In this case, all directors hold equal share holding in Baja Limited and therefore their liability is limited to the amount of share capital of Baja Limited. However, this is based on an assumption that none of the directors have given any express guarantee or indemnity for Baja Limitedà ¢Ã¢â€š ¬Ã¢â€ž ¢s debts. If it can be established that one party, the Abbey Limited and its directors, are responsible for encouraging other party, its subsidiary, unlawfully to break its contract with the third party that is its creditors and not pay, then the Abbey Limited would be held liable to the third party, Baja Limitedà ¢Ã¢â€š ¬Ã¢â€ž ¢s creditors, for its damages arising out of the breach. Clearly compa ny has arranged its corporate structure in such a way as to limit its financial exposure. Under normal circumstances the parent company or the other subsidiary will not be liable for the debts of the other subsidiary with certain exceptions. The courts will only impose liability on parties involved in the contract other than the company itself, if it has a substantial proof of fraud. However, in Stoczina Gdanska SA V Latvian Shipping Co Others[3] there was no direct contractual relationship between the parent company and the third party therefore the claim was brought under tort. In à ¢Ã¢â€š ¬Ã…“CMS Dolphin Ltd v Simonet[4] it was held by Lawrence Collins J that a director was liable for breach of fiduciary duty in diverting a business opportunity from his company although the director in question had left the company. However, even after leaving the company a directorà ¢Ã¢â€š ¬Ã¢â€ž ¢s fiduciary duties continue and therefore he may not divert business opportunities from the company or misuse information while he was acting as a director of his previous company. In this particular case the director took all the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s staff and its main clients with him and set up in business on his ownà ¢Ã¢â€š ¬Ã‚ . It has been established in certain cases by the courts that a holding / parent companies with subsidiaries, were in fact carrying on business through the agency of their subsidiary companies. Although this was only found in a case where the business activities of those subsidiaries were closely controlled and directed by the subsidiary companies and therefore the latter can be considered as merely an agent carrying on that holding or parent companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s business. It should be noted that if a subsidiary company is acting as an agent of its parent company then it is likely that it may be liable for the same rights and liabilities of its holding company. However, no subsidiary company has been held responsible for its ho lding companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s debts. In Smith Stone and Knight Ltd (à ¢Ã¢â€š ¬Ã…“SSKà ¢Ã¢â€š ¬Ã‚ ) v Birmingham Corporationà ¢Ã¢â€š ¬Ã‚  (BCà ¢Ã¢â€š ¬Ã‚ )[5] a subsidiary owned by SSK carried out a business activities from a piece of land owed by SSK. A compulsory purchase order was issued by BC. A compensation for loss of business was to be paid to the company and its owner. However, the subsidiary company did not own the land, BC refused to pay any compensation. It was held that the subsidiary company was an agent of SSK and therefore BC must pay compensation. Advice: 1) Baja Limited is a creditor of a subsidiary in which the company holds 100% shares. The Company holds 100% shares in Baja Limited the subsidiary company and you are the directors in both companies with equal shareholding, it is possible that the courts may decide to lift the corporate veil and impose liabilities for subsidiaries debt on you. This situation may occur especially if you ignore the warnings issued by the Auditors of Baja Limited that the company is in a very bad financial position and you carry on trading regardless. 2) Lin as a director of the company is in a fiduciary position and therefore must not make an undisclosed profit using her position as a director. The fact that she was only approached by Zylo Limited because of her position as a director of the company She must have disclosed this to other directors, Jo and Keira. The fact that Baja Limited was unable to take on the contract due to its ailing financial position and therefore could not obtain the benefit of that contract is immaterial. It would have been better to obtain consent from the company in a General meeting to take that contract and keep the profits before actually taking the contract. Furthermore, if Lin does take the contract and makes profit then she would have to account those profits to the company. In Boston Deep Sea Fishing Co v Ansell[6] A was one of the directors of B Co w as paid a commission on the contract by the shipbuilders. A was also a shareholder of an Ice company who was supplying ice to the B Co. A received a bonus when he employed Ice Company in respect of B Coà ¢Ã¢â€š ¬Ã¢â€ž ¢s fishing smacks. It was held that A must account to B Co for the commission and the bonus he received although B co could not have received any bonus from the Ice company as it was not a shareholder in that company. Therefore, Jo and Keira may either prevent her from taking the contract by her stating that there is a conflict of interest[7] and that this must be recorded in the minutes in detail so that there is no suspicion of secret dealings. On the other hand, they could approve her involvement with Zylo Limited but insist that Lin must account to the Company Baja Limited any profits she makes as required by law. 3) The Articles of a company does not create a contract between the company and the directors. There is no information as to when company was inco rporated to determine how long Lin has been a director of the Company. Also there is no information as to whether there is any provision in the Articles with regards to her directorship or service contract, if any, or whether or not it has been renewed. Therefore, the provisions of section 319(6) may apply which means either party (the company or herself) on giving reasonable notice may terminate her employment. The question is, whether reasonable amount of notice has been given to her. Any director can be removed from their office by an ordinary resolution of the members.[8] Therefore, in order to remove Lin as a director of the company a resolution in general meeting with a simple majority is needed and this applies notwithstanding the contrary provisions in the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Articles. However, with a majority of votes, whether that majority is on a resolution for his own removal from the office[9] a director may become virtually irremovable. If on the other hand, a director with a service contract with the company but does not have majority vote on a resolution to remove him from the office may be entitled to a substantial compensation for loss of office. If a director is removed in such a way he or she may be entitled to compensation for unfair dismissal. The procedure for removal of a director is set in section 303 of the Act, which provides for an ordinary resolution, that is, by majority of votes in the general meeting a director can be removed from his or her office. However, if the directors are the major shareholders then the minority shareholders have very limited rights to object the way the majority directors are running the affairs of the company. If the director is removed from the office it terminates any service contract it may have with the company. The amount of damages the director may be able to claim usually depends up on the remuneration package under his contract with the company. It is not clear whether or not Lin, a s one of the director of the company, has a Directorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ Service Contract. If she has then it depends how long her appointment as a director is to last. If say, for example her appointment is for 5 years, that is the maximum term without shareholders approval a director could have, then a set procedure as set out above needs to followed in order to remove her as a director of the Company. Bibliography and References 1. Business Law and Practice by Scott Slorach Jason Ellis published by Blackstone press. 2. Business Law by Stephen Judge, second edition published by Macmillan law masters. 3. Company Law, by Charles worth Morse 16th Edition published by Thomson, Sweet Maxwell. 4. Gower Daviesà ¢Ã¢â€š ¬Ã¢â€ž ¢ Principles of Modern Company Law 7th Edition, by Paul L Davies published by Thomson, Sweet Maxwell 5. www. Nortonrose.com/articles 6. Department of Trade Industry web site: Modernising Company law White paper 1 Footnotes [1] Salmon v Salmon, 1897 [2] Proposed White paper on Company Law [3] 2001, 1 Lloyds Law Rep 537 [4] 2002 BCC 600 [5] [1939] 4 All ER 116, Gower and Daviesà ¢Ã¢â€š ¬Ã¢â€ž ¢ Principles of Modern Company Law, 7th Edition, page 182 [6] 1888 ch D 339 CA, Company Law, by Charles worth Morse page 275-276 [7] Section 317 Companies Act 1985 [8] Section 303 Companies Act 1985: [9] See Bushell v Faith, 1970 AC 1099

Investment Analysis Using Reuters Financial Database Finance Essay - Free Essay Example

Standard Chartered PLC is the merging of The Standard Bank of British South Africa and the Chartered Bank of India, Australia and China at 1969. The company headquarter is in London, England and the branches are operating all over the world (Standard Chartered Bank, 2010). They main business strategy is focus on Consumer banking, Wholesale banking, SME banking, Islamic banking and Private banking. Other than that, Standard Chartered is approaching 3 main principal in their business model that are participate in growing market, positioning as a global leader and effective costs and risks control (Standard Chartered Bank, 2010). Standard Chartered also listed on London, Hong Kong and Mumbai stock exchanges market and it also part of FTSE 100 Index. Standard Chartered tends to come out with large capital for the further expansion to Europe, Asia and Africa. At 2000, Standard Chartered is successful to acquire ANZ Grindlays and it help to enter the market in India and Pakistan. As a result, it brings the huge profit for the companies and strengthens their market position (Yahoo Finance, 2010). Technical Analysis Dow Theory is a type of technical analysis that assumes the stock market movements are rise or fall together and economic trend can be predicted (Copsey, 1999). Dow and Hamilton stated that there are three types of price movements for the Dow Theory: primary movements, secondary movements and daily fluctuations. Primary moves can be indentifying from a few months to several years and it can determine the trend of the market. The primary upward trend market is representing the bull market and downward trend is representing the bear market. Secondary movements are move in opposite direction of the primary trend from a few weeks to a few months. Therefore, the secondary trend movement are regularly more volatile than those of the primary move. Daily fluctuations always go with or against the primary trend and within a few hours to a few days, but not exceed a week (Stock Charts, 2010). Figure 1: Bull Trend from 2003 to 2007 In figure 1, Standard Chartered is on the upward trend during 2003 to 2007. The upward trend price can form a series of rising peaks and rising troughs. Therefore, STAN.L is in bull trend because the price is moves according to the support line. It doesnt move straight upward but has some corrections along the way. Figure 2: Bear Trend from 2008 to 2009 In figure 2, Standard Chartered is on the downward trend during 2008 to 2009 when a bear trend starts at the end of a bull trend. The downward trend price can form a series of declining peaks and declining troughs. Hence, STAN.L is in bear trend because the price is moves according to the resistant line. In a bear market, it is not moving straight downward because secondary movement create rallies in that period. When a rally ends with a bottom low, it shows the end of the bear trend and the rise of the bull trend. In 2010, the red support line is showing the bull trend after 2009 and it might continue for at least few years before the bear trend start. Elliott Wave Theory Elliott Wave theory is a type of technical analysis that uses to predict the market trends and the price patterns. Elliott believed that stock markets follow repetitive cycles because it reflected the investor psychology (Beckman, 1976). Therefore, market cycles are dividing to two separate type of wave: impulsive wave and corrective wave. An impulse wave will contain 5 elements while corrective wave contain 3 elements. The impulse waves are following the direction of the trend for example up in a bull market and down in a bear market, the corrective waves are always move against the trend (Arotec, 2010). Figure 3: Elliot Wave on STAN.L C A B 5 4 3 2 1 In figure 3, the impulse wave for Standard Chartered is follows a bull trend. The graph show that the three waves in the direction of the upward trend (1, 3, and 5) and wave 5 is the end of the bull market because it already achieves the new highest price. After that, the share price fall drastically during 2008 and corrective wave is begin to show the bear trend (A and B). But the wave A seems to be the bottom of the bear trend and wave B continued to rise after 2009 and achieve the new peak compare to wave 5. So, the wave C will fall that predict STAN.L price will drop in the future. Support and Resistance Support and Resistance is a form of technical analysis that driven by the greed and fear forces. In other words, it represents the demand and supply theory. The price of the stocks will move down when the supply increase and the price will move up when the demand increase. In trending market, bull cycle occurs when demand increase and bear cycle occurs when supply increase. Therefore, non-trending market occurs when supply and demand are the same. A support level act as a floor to support the price to going further down and a resistance level act as a ceiling to support the price to going further up (Martinez, 2007). Figure 4: Support and Resistance Line from 2006 to 2008 In figure 4, the trend channel had been draw from 2005 to 2008 to show the Standard Chartered share price is oscillates between the support and resistance lines. The support line has been tested 5 times without being broken but at 2008 the breakout occurred and the share price fell below the support level. So, the bull trend end and the bear trend start. At the end of 2008, the share price drops to the bottom and oscillates between the second support and resistance lines. The share price had moved sideways during 2008 to 2009 and the resistance line has been tested 3 times without broken but at middle of 2009 the breakout occurred. Therefore, the share price rises against the resistance line and achieves the new peak. Chart Patterns Investment analysts always look for the patterns to indicate the direction of the market. There are two major types of patterns that are reversal patterns and continuation patterns. Reversal patterns provide an indication that the market is turning in its primary trend and continuation patterns provide an indication that the market is going continue in the same direction (Dawson and Steeley, 2003). Head and Shoulders (Reversal Patterns) The head and shoulders pattern is a most famous reversal patterns in technical analysis. It is always happened from uptrends to downtrends (bullish to bearish). This pattern includes three successive peaks with the left shoulder, a head, and a right shoulder and a line drawn as the neckline (Osier and Chang, 1995). Figure 5: Head and Shoulders Pattern from 2007 to 2008 Neckline Left Shoulder Right Shoulder Head In figure 5, the left shoulder form at middle of 2007 and marks the high point of the Standard Chartered price of the bull trend. Investors who bought the shares fear that the price has risen too high and might fall. So, they sell STAN.L shares to prevent the profit turn to loss. Bargain hunters soon return to the market and eventually push the price through to new highs that form a head patterns. However, the new highs are quickly turned back and price falling again to the neckline. The advance from the low of the forms the right shoulder because bargain hunters will buy the shares and the market rallies once more, but fails to achieve the previous peak because of the fear. STAN.L shares price fall after it breakout from the neckline at 1290p at middle of 2008. Figure 6: Volume for Head and Shoulders Pattern In figure 6, volume has a greater significance in the head and shoulders pattern. The higher price on the left shoulder will reflect the high volume as it shows on figure 6. However, the volume during the head is less than the volume during the left shoulder. The decreases in volume along with new highs that form the head serve as a warning sign. Bargain hunters are not aggressive then before that can be show on the volume. On the last rallying, volume on right shoulder increase and signalling that the buyers may have exhausted themselves. Standard Chartered share price break the neckline and the pattern is complete. STAN.L share price is falling and the bear market start. Head and Shoulder Bottom or Head and Shoulder Top? Neckline Right Shoulder Head Left Shoulder Neckline Right Shoulder Head Left ShoulderFor the year 2011, the graphs show us that there are 2 possibilities of the head and shoulder top or bottom trend will occur in this graph. Therefore, it depend on the bargain hunters whether they will enter the market to take advantage of profit taking or investors will sell the shares because it reach another peak for Standard Chartered share price. Flag and Pennant (Continuation Patterns) The flag and pennant pattern is a most familiar continuation patterns in technical analysis. There are consolidation patterns and happen after some sharp movement in the price. It only acts in short-term period during the bull or bear markets (Kirkpatrick and Dahlquist, 2007). Figure 7: Flag and Pennant Pattern at Q2 2009 FlagpolegpoleIn figure 7, Standard Chartered share price had a sharp increase and the volume increase drastically in 2009. Then, a pennant appears within 12 weeks after a sharp increase in price and volume. Bargain hunters are not willing to bid up the stock and shareholder enter the market to sell their shares to earn the profit. The flagpole occurs from the sharp advance break a trend line. The form of flags and pennants require a sharp advance or decline on heavy volume. According to figure 7, the volume of STAN.L shares decline after the heavy volume. When the share price break above resistance signals, the pennant is finished and the bull trend continues. MA (Moving Average) MA is type of technical analysis to indicate the trend of the market and help to predict the market turning point. The share price will use as an indicator to form a trend and it do not predict the price direction. A short MA will respond more quickly than a longer period MA (Greene, 2008). Golden Cross Death Cross Golden CrossFigure 8: Moving Average Triple from 2005 to 2010 Death Cross In figure 8, there are 3 moving average line that the red colour represents the 50 period, green colour represent the 100 period and purple colour represent the 200 period of MA. The interaction between 50 day and 200 day of MA can use as an indicator of a switching between a Bull and a Bear market. The golden cross is usually show the start of bull market and death cross is show the start of bear market. In figure 8, the 50 day and 200 day had cross around end of 2006 and Standard Chartered share price is moving up and signifying the start of bull market. It creates the buy signal for the investor to enter the market. Next, the line cross again at end of 2008 and the 200 day MA is moving above the 50 day MA. It shows the death cross and the STAN.L share is falling and start of bear market. It creates a sell signal for the investor to quit the market. At 2009, the 50 day MA is cross against the 200 day MA and the golden cross occur. As STAN.L is on bull trend during 2009-2010, it cre ates the buy signal again and the share price is achieving a new peak. MACD (Moving Average Convergence and Divergence) MACD is a type of oscillator that can measure market momentum as well as follow or indicate the trend. MACD consists of two lines, the MACD Line and the Signal Line. The MACD Line measures the difference between a short moving average and a long moving average. It generates the buy and sell signal. When the MACD Line and the Signal Line cross signals are generated (Stock Charts, 2010). Figure 9: MACD from 2008 to 2010 Buy Bullish Divergence In figure 9, the red colour line is a MACD Line and the green colour is a Signal Line. A buy signal is generated when the MACD Line crosses from below to above the Signal Line, the further below the zero line that this occurs the stronger the signal. The Standard Chartered share is generating a buy signal during 2008 to 2009 when the share price drop to the bottom of the bear market. So, it create the bullish divergence is when prices are making lower lows but the MACD is making higher lows. This is a sign that the down move is weakening and ensuring the buy signal. Figure 10: MACD from Aug 2010 to Dec 2010 Sell Bearish Divergence In figure 10, Standard Chartered PLC share is generating a sell signal during August 2010 to November 2010. A sell signal is generated when the MACD Line crosses from above to below the Signal Line, the further above the zero line that this occurs the stronger the signal. So, the sign of up move is weakening due to bearish divergence occur when prices are making higher highs but the MACD is making lower highs. Consequently, it strengthens the sell signal for STAN.L share. Average Direction Index The Average Directional Index is an indicator for the market whether is trending or moving sideways. The analysis of Average Direction Index is a process of assessing market trend and determines whether investors to decide which is the strongest trends and gain good profits during the strong trend (Option Trading Guide, 2010). Figure 11: Average Direction Index from Aug 2010 to Dec 2010 Sell Buy In figure 11, the red colour line is Positive Direction Indicator (+DI) and the green colour line is Negative Direction Indicator (-DI). If the +DI line is above the -DI line then the trend is up, and if the -DI line is above the +DI line the trend is down. Buy and sell signals are generated by the +DI and -DI lines. If the +DI crosses above the -DI line, this is a buy signal. A sell signal is generated when the -DI line crosses above the +DI line. Standard Chartered share is on the uptrend during early of September 2010 when the +DI line is cross over -DI line and it creates the buy signal. On middle of December 2010, the -DI line is cross over +DI and it show the market is overbought. As a result, investor should leave the market and sell the share due to the sell signal is been create. Fundamental Analysis Ratio Analysis: Value Investing In fundamental analysis, I choose value investing as my stock picking strategy. According to Chan and Lakonishok (2004), value stocks have made higher returns compare to growth stocks. The analyst had done the experiments over the small-cap stocks and large-cap stocks and the result show that value investing is more suitable. It was because value stocks had less effect compare to growth stocks when the stock market in the downturn. There are several studies prove that extrapolative biases in investor behaviour might affect the investment decision. Investors are overbid the prices of growth stocks as the prices of value stocks dropped far below their value based on fundamentals. Therefore, value investing is the best choice for long-term investment strategy. Figure 12: Overview of Standard Chartered Fundamental Analysis as at 14/12/2010 Earning Yield Earning Yield is the ratio of earning per share over the current market price per share. The earnings yield is the opposite of the P/E ratio. It is measure the percentage of each dollar invested in the stock that was earned by the company. According to Graham (1949), he suggests that if the earning yield was double the yield on a low risk corporate bond (AAA rated) the stock represents good value. Standard Chartered earning yield is 6.34% and the 5 years AAA bond yield is 3.35%. So, the earning yield should be 6.68% to meet the criteria. Figure 13: STAN.L PE Ratio as at 14/12/2010 P/E Ratio P/E ratio is the ratio of current share price over the annual earning by the company per share. A high P/E ratio company is expecting higher earnings growth in the future compared to company with a lower P/E. P/E ratio usually do not reflect the real value of the share but it is helpful to compare the P/E ratios of one firm to other firms in the same sector. According to Graham (1949), the stocks with a PE of less than 40% of the market average over the last 5 years will have the large room to growth. Standard Chartered P/E ratio is 15.78% and the overall sector PE ratio is 13.02%. Therefore, Standard Chartered does not fulfil the 40% criteria. Figure 14: 10 year UK bond and STAN.L Fundamental Ratio as at 14/12/2010 Dividend Yield Dividend Yield is the ratio of annual dividends that paid by the company over the current share price. In other word, dividend yield is use to determine the amount of cash flow that the company earn to be invested in its own share. Therefore, for those risks adverse investors that prefer a steady income from their investment portfolio should invest in stocks that paying relatively high and stable dividend yields. According to Graham (1949), a value stock should have a yield at least 2/3 that of AAA rated bonds. Standard Chartered dividend yield is 2.65% and 10 year UK government bond yield is 4.18%. Therefore, the dividend yield should be 2.79% to meet the criteria. Price to Book Value DDM is a share valuation method on the cash flow that receives in the future to find the intrinsic value. In real life, many investors do not believe on DDM because it always produces a negative bias to valuation estimates. Hence, we will use constant growth rate of the dividend or 3-stage model to solve the biasness (Fuller and Hsia, 1984). First, we need to assume the risk free interest rate, expected dividend growth rate, risk premium and periods of dividend growth. For Standard Chartered DDM, we will use the default risk free rate that same as the yield on 10 year UK gilts. According to Goedhart, Koller, and Williams (2002), the risk premium for UK equity market is 3.5% to 4%. The result of DDM is show at figure 18, constant growth rate model has show if the expected dividend growth rate is 7% then the share price is more than the current value. But for the estimate growth rate at 5% or 6%, it show the current share price is overvalue and investors should sell the share. Therefore, a constant growth rate of 7% p.a. might not be realistic in this current economic situation. For 3-stage model, we will assume that the first stage is high stable growth and will last for 5 years, second stage is declining growth that last for 10 years and the last is infinite stable growth. Standard Chartered is on the maturity stage in the business life cycle and the potential to grow is limited because the competition is very high in UK. As a result, for case 1 and case 2 the value of the stock is under the current share price but case 3 is 13.88% more than the current share price. But 15% for the first 5 years is unrealistic and it shows the share is overvalued. From the aspect from technical analysis, Standard Chartered share price is on bull trend according to Dow Theory and Elliot Wave Theory. From the chart patterns, it shows the STAN.L is on head and shoulder top or bottom but we need to determine the volume for the share price in the future to confirm the patterns. Moving average and MACD are produce the sell signal for STAN.L because the share is on the peak compares to historical data. At last, the average direction index also giving the same signal that STAN.L is overbought and it advise the investors to sell the share in the future. From the aspect from fundamental analysis, Standard Chartered share price is testing by the ratio analysis to determine whether the share is undervalued. Standard Chartered is fail on earning yield, PE ratio, dividend yield, P/B ratio, and debt to equity ratio, therefore, the share price is not undervalue. Next, we use target price model to calculate the intrinsic value of the share. So, Standard Chartered share price in target pricing is higher than current price but after our justification the share price is not undervalue because the estimate EPS is too high for current market. The DDM also show that the Standard Chartered share price is overvalue by our estimation for constant growth and 3-stage model. In the nutshell, investors need to decide whether to follow technical analysis or fundamental analysis. Therefore, we need to determine whether the FTSE 100 markets are efficient. If FTSE 100 is weak form efficient market hypothesis, all the historical information will reflect on the share price and analyst cant use technical analysis to do the prediction. Analyst stating that FTSE 100 might be semi-strong form efficient market hypothesis that reveal all publicly available information on the share price and fundamental analysis cant produce any unusual return. Some of the researchers claim that stock market is like random walk that analyst cant predict the share price by historical data. Therefore, Malkiel (1999) is claim that there is no point to do technical analysis and fundamental analysis because the stock prices reflect all the available information that is relevant to the price. But some of the analysts claim that there are some fund managers able to beat the market consistent ly by their stock picking technique. At last, there are many different opinion between practitioners and academics as to how efficient markets and how useful stock picking and the market timing. For my opinion, whether we choose technical analysis or fundamental analysis, we need to determine the result by ourselves. There is no right or wrong answer on which analysis we approach. In this project, the result for technical analysis and fundamental analysis on Standard Chartered share is showing the sell signal, so the investors who have the share should hold the share or sell it in the future.

Analysis Of James Joyce s The Unnamed Young Boy

The temporary feelings Conflict in most cases creates a situation where two or more people, themes, or concepts never get to share common perceptions of certain matters. In James Joyce s short story, the unnamed young boy was antagonistic forward everything that surrounds him. He hardly what is best for him. All his daily experiences keep different scenes of dilemma that makes it hard for him to make clear decisions. All these come at his adolescent stage when he feels like he should identify with his sexual feelings. However, his religion fights against his sense of romance to Mangan s sister. They feel carried away by his feeling, but held back by religion. The boy keeps a distance from what his fantasies and what he cherishes the†¦show more content†¦On his visit to the market place his anticipation is downtrodden by the real condition of â€Å"Araby† in contrast to his expectations, the boy feels disregarded by the lady at the bazaar who cares for nothing but herself. From Harry Stone p erspective, he does not state whether or not he enjoys the story, rather he compares the events of the young boy s life to those that the author also experiences as a young boy. Harry Stone expresses his critique of the story as one which offers a diverse reflection of society. He explains the reading experience as a criticism of civilization, religion, a nation and human existence in general. In the second concept, the narrator is forced to fight between his urge to identify his sexuality and the underlying norms of his religion. Joyce tries to bring out the effect of religion on the society. In the short story, Joyce presents religion as an oppressive social vice that flocks the minds of the people with beliefs without logics. The ties of religion have twined the spirit of the narrator. This creates a wrong understanding about the reality that surrounds emerging teenage sexual feelings. The notion throws the narrator into a world of blue rays without a clear understanding of the reality of everything that surrounds him. The boy falls in love Mangan s sister. If Mangan is an age mate to the narrator, then he illusion into a love affair with an older as his first love. TheShow MoreRelatedLife After Death By James Joyce1544 Words   |  7 Pagesliterature. James Joyce was an Irish novelist, and no doubt one of the most influential writers of the early 20th century. Joyce e xplores the intersection of life and death in, The Dubliners, a collection of short stories. He begins with the story, â€Å"The Sisters,† and ends the collection with, â€Å"The Dead.† In both of these stories, Joyce uses the stream-of-consciousness to show the reader observations of big events through small details in the everyday lives of the main characters. 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chapter 17 AP World History the diversity of American...

I. Chapter 17: The diversity of American colonial societies 1530-1770 18th century Choctow leader red shoes befriended French in Mississippi valley(traded deerskins for guns)became rich but English cut off French shipping so he made an alliance with the English so was murdered by French resulted in 1747 civil war of the Choctow and killed colonist and Chocktows 1.Wars,epidemics,and territorial loss but also adapted technology and politics but in the end were dominated 2.political and economic demands of Europe,new plants,animals,diseases,technology,American staple crops and other riches 3.complex colonial society: Americans,Africans,and Europeans Societies represented by diverse cultures,slave trade,natives,and Eruopean colonizer†¦show more content†¦Slavery and Slave trade Portuguese captured and enslaved Amerindians and progressed inland because of slave deaths Eventually used African slaves more more productive and resistant to disease but more$ 5 africans for every European 1650-1750 d. 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Research Paper Depression And Suicide - 1539 Words

Research Paper: Depression and Suicide Imagine in a place where everyone that you knew all displayed depression and everyone lead to giving up. And you were the only one that saw the world as a beautiful place. How would you help others in need? There would be no one trying to help one another and you were the only one that wanted to help everyone else. What if everyone you knew were getting hurt all the time and were always fighting for no real reason what would you say to try to help them get back on their feet? If you were the one that everybody dependent on what would you tell them to try to solve their problems? Most people don’t know what to do in these sorts of situations. Therefore they look for help or stay in their comfort zone and stay quite as long as they can or solve their own problems. The government has all the power in the United States it is only right that they should spend money on programs for people that may suffer from depression or suicidal thoughts. In addition teachers and others should have a conversation with their students or children about how they’re feeling. They should do their best to make their children feel happy with themselves and more comfortable talking about their problems. These mature individuals should show the young teens or adults that the world is not as bad as it seems that the world is a beautiful place where one can overcome anything. In the article, â€Å"Developing a Comprehensive School Suicide Prevention Program† Keith A. KingShow MoreRelatedSuicide : Suicide And Depression1389 Words   |  6 PagesSuicide and Depression in Prisons Suicide is the leading cause of death in prisons across the United States (Marzaro, Hawton, Rivlin, Fazel, 2011). According to the United States Department of Justice, nearly 23% of state prisoners report symptoms of depression each year (Pardini et al., 2014). With, one out of seven inmates met the diagnostic criteria for major depressive disorder (Pardini et al., 2014). 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Explain the Strengths and Weaknesses of Aquinas...

a) Explain the strengths and weaknesses of Aquinas’ cosmological arguments. The cosmological argument is an a posteriori argument based on the question of the relation of the universe’s existence and God’s existence. This argument focuses on the theory that if the universe exists then something must have caused it to existence, ie. A God or Creator. Supporters of this argument claim that to fully comprehend the existence of the universe, one must rely on a theory of a God however critics would say that due to the inability to prove God’s existence means that the universe cannot be fully explained. Many who don’t support the cosmological believe there doesn’t necessarily need to be an explanation for the universe’s existence as it†¦show more content†¦Everything in the universe is dependant on something else which means that once there was a time when nothing existed. This means that the being which created the universe must have been external to it and also must be a necessary being, aka, must have always e xisted. Aquinas continued to argue that this necessary being is God and that if God didn’t exist, nothing else would. This logically explains the existence of the universe without itShow MoreRelatedThe Question of Why God Exists595 Words   |  2 PagesGod exists. The Cosmological argument is an argument by the Christian, Theologian and Philosopher St. Thomas Aquinas (1225-1274) in an attempt to prove God’s existence. I will argue that the weaknesses of this argument outweigh its strengths, and therefore making the Cosmological argument a weak argument for the proof of God’s existence. The Cosmological argument is seen as a benchmark in the question of the existence of God. Meaning this is highly regarded as the strong argument for their claimRead MoreThe Key Ideas of the Cosmological Argument for the Existence of God1061 Words   |  5 PagesThe Key Ideas of the Cosmological Argument for the Existence of God A) The cosmological argument is to prove the existence of god. In this type of argument we are looking at cause and not design. This type of argument is an aposteriori argument because it is based upon experience. Thomas Aquinas puts the key ideas into 3 ways. First way is, motion/change. Nothing can move by itself or change itself. The first thing to have moved must have been moved by something else and Read MoreExamine the Key Features of the Teleological Argument?1491 Words   |  6 PagesExamine the key features of the Teleological argument. The word teleological comes from the Greek word ‘Telos’ which means purpose. The teleological argument is a posteriori and like the cosmological argument, attempts to prove the existence of God. It claims that certain phenomena within the universe appear to display features of design and are perfectly adapted to fulfil their function. Therefore, if features of the universe are so perfectly designed, for example the structure and function ofRead MoreThe Design Argument - as Level Essay examples3128 Words   |  13 Pagesa. Outline the Key Concepts of the Design Argument [21 marks] The design argument is also referred to at the Teleological Argument stemmed from the Greek work ‘Telos’ meaning end or purpose. It is an ‘A posterior’ argument (from experience) based on our empirical senses and it is synthetic meaning that it is from observation. The argument is also inductive meaning there a number of possible conclusions. The main basis of the Teleological argument is based on a designer commonly known as ‘the

New BusinessH Ltd

Questions: You have the following information about a H Ltd, a new business: Budgeted Credit sales Budgeted Cash sales January, 2014 40,000 30,000 February 45,000 20,000 March 50,000 25,000 April 55,000 30,000 Collections on credit sales average 40 percent in the month of sales and the remaining 60 percent in the month following the sales. Cost of sales (purchases) averages 60% of total sales revenue. Twenty percent of cost of sales is on cash basis, and 80 percent is paid in the month following purchases. Other operating expenses according to the forecasted income statement follow: January February March Wages and salaries $18,000 $18,000 $18,000 Office rent 6,000 6,000 6,000 Insurance 1,000 1,000 1,000 Utilities 2,000 2,000 2,000 Other operating costs 5,000 5,000 5,000 Depreciation 3,000 3,000 3,000 Interest expense 500 500 500 Note that the payroll, utilities, other operating costs, and interest expense are paid in cash each month as the expense is incurred. The insurance expense is paid in January each year in advance for the whole year ($12,000 per year). The office rent is paid quarterly in advance starting January each year. In March, the company plans to sell some old equipment and estimates it will received $10,000 from the sale. At the same time, it must spend $30,000 on new equipment. The beginning cash balance on June 1 is $10,000. Required: a) Prepare the businesss cash budget for each of the three months: January, February, and March. b) Give three recommendations on how you could improve the cash flow of H Ltd. Answers: a) The following is the cash budget: Particulars January February March Cash collections: Budgeted cash sales 30,000.00 20,000.00 25,000.00 Budgeted credit sales January 16,000.00 24,000.00 40,000.00 February 18,000.00 27,000.00 45,000.00 March 20,000.00 Sale of equipment 10,000.00 Total cash collections 46,000.00 62,000.00 82,000.00 Less: cash payments 57,900.00 66,900.00 65,700.00 Cash deficit -11,900.00 -4,900.00 16,300.00 Particulars January February March Cash payments: Cost of sales: 42,000.00 39,000.00 45,000.00 Cash 8,400.00 7,800.00 9,000.00 Credit 33,600.00 31,200.00 Other operating expenses: Wages and salaries 18,000.00 18,000.00 18,000.00 Office rent 12,000.00 Insurance 12,000.00 Utilities 2,000.00 2,000.00 2,000.00 Other operating costs 5,000.00 5,000.00 5,000.00 Interest expense 500.00 500.00 500.00 Purchase of new equipment 30,000.00 Total cash payments 57,900.00 66,900.00 65,700.00 b) The following are the ways in which the cash flows could be improved: Defer the purchase of the new equipment Try to reduce the operating costs Increase the % of the credit sales collections.