Growing Up, Staying Young Essay -- Personal Narrative Papers

Ifrs Impairment of Assets

Intangibles and Impairment of Assets Learn | Consult | Research Intangibles †¢ Identifiable non-fiscal resource without physical substance †¢ IAS 38 endorses extraordinary models for an advantage for be perceived as impalpable resource †¢ Tangible or elusive must meet the rules of advantage for be perceived †Controlled by element because of past occasion †Probable future monetary inflow (income or cost sparing) Recognition †¢ Must meet the meaning of benefit †¢ Must meet rules set by IAS 38 †Cost of advantage dependably estimated †Probable financial inflow Recognized at cost!! Acknowledgment †Internally produced The standard expresses that consumption on inside created brands, mastheads, distributing titles, client records and things comparative in substance are not perceived as immaterial resources (since they can't be recognized from the expense of building up the business all in all). †¢ Similarly, fire up, preparing, publiciz ing, special, migration and rearrangement costs are completely perceived as costs. Bought Intangibles †¢ If estimation of an elusive can not be esteemed dependably, while buying an organization, incorporate the incentive as a piece of generosity A unique note on altruism †¢ Inherent altruism Vs Purchased generosity How is it extraordinary? †Balancing figure †Cant be sold as a different resource Research and Development †¢ Research †Initial examination done to gain new logical information or comprehension †¢ Development †Application of research discoveries to structure another item or improve a current arrangement of item before creation R&D treatment †¢ Write-off Research costs †¢ Development costs †Capitalize if following conditions met †Technical plausibility †Intention and capacity to make, use or sell †Economic attainability †showcase for the item/value †Expenditures owing to advancement dependab ly estimated Starting acknowledgment Eg. improvement use The PIRATE measures †Recognition Subsequent acknowledgment †¢ Cost model or Revaluation model Revaluation Model †¢ If the revaluation model is followed, the revaluation must be reasonable incentive at date of revaluation by reference to a functioning business sector. †A functioning business sector is where the entirety of the accompanying conditions exist: †¢ The things exchanged are homogenous, †¢ Willing purchasers and dealers can typically be found whenever †¢ Prices are accessible to the general population. Amortization and debilitation †¢ If helpful life is fixed amortize Straight line with zero lingering esteem †Start amortization once resource is prepared to utilize †¢ If helpful life isn't fixed, test for hindrance †Atleast yearly (IAS 36) Impairment of Assets †¢ The focal point of IAS 36 †¢ Impairment happens when the conveying esteem (NBV) surpasses the recoverable s um The Recoverable Amount †¢ The expense or spending on a benefit can be recuperated in two different ways 1. By selling it 2. By utilizing it †¢ So the recoverable sum is either the worth we get from selling a benefit (the reasonable worth) or the worth we get by utilizing the advantage (esteem being used) Recoverable Amount The FV less expense to sell †¢ FV is controlled by; An official consent to sell †Current market costs (if dynamic market exists) †¢ Less any selling costs Value being used †¢ Estimate the future incomes (inflows and outpourings) coming about because of the utilization of the advantage and available to last its †¢ Apply appropriate rebate rate to accompany a PV of future incomes. †¢ Financing cost and assessments excluded Impairment Review †¢ Calculate the conveying esteem †¢ Calculate the recoverable sum as higher of: †Fair Value less expense to sell †Value being used (PV of future incomes) †¢ If CV>RV, at that point report impedance in any case leave it as it is Reporting a debilitation Impairment misfortunes must be remembered I. e. the advantage recorded to its recoverable sum †¢ Impairment misfortunes are commonly charged to I/S †¢ If resource has been revalued, charge to revaluation hold until depleted, than to I/S. Page 246 Page 246 Indicators of impedance †¢ External sources †Significant decrease in advertise estimation of the advantage †Significant changes with an antagonistic impact on the element in the innovative, showcase, monetary or legitimate condition in which the element works †Increased market financing costs or other market paces of return influencing rebate rates and in this way diminishing an incentive being used Markers of weakness †¢ Internal sources †Evidence of out of date quality or physical harm. †Significant changes with an unfriendly impact on the substance including: †¢ the benefit turning out to be inactive †¢ plans to stop or rebuild an activity to which the advantage has a place †¢ Plans with discard it sooner than anticipated †¢ reevaluating the helpful existence of a benefit as limited as opposed to uncertain †Internal proof accessible that benefit execution will be more awful than anticipated.

Rates and Statistics for Suicide in the United States

Rates and Statistics for Suicide in the United States Depression Suicide Print Rates and Statistics for Suicide in the United States By Leonard Holmes Updated on December 12, 2019 Depression Overview Types Symptoms Causes & Risk Factors Diagnosis Treatment Coping ADA & Your Rights Depression in Kids Aliyev Alexei Sergeevich / Getty Images In This Article Table of Contents Expand The Suicide Rate Statistic Breakdowns How the US Compares Depression and Suicide Warning Signs What to Do View All Information presented in this article may be triggering to some people. If you are having suicidal thoughts, contact the National Suicide Prevention Lifeline at 1-800-273-8255 for support and assistance from a trained counselor. If you or a loved one are in immediate danger, call 911 immediately. Suicides in the United States have been on the rise, up 33% from 1999 through 2017, and the pace of the increase has been rising since 2006.?? In 2016, suicide ranked as the 10th leading cause of death among Americans. It is the second leading cause of death for those under the age of 35.?? The annual suicide rate in the U.S. is over 14 deaths per 100,000 population.?? Nearly 47,000 people died from suicide in 2017. According to the CDC, one person dies from suicide every 11 minutes. The Suicide Rate The suicide rate is the number of completed suicides per 100,000 people.  Attempted suicide is not counted in the suicide rate. In addition to completed suicides, the CDC reports that in 2017 10.6 million adults in the United States seriously thought about suicide, 3.2 million people made a plan, and 1.4 million attempted suicide.?? The Centers for Disease Control and Prevention gather data from hospitals on cases of self-harm and suicide each year.?? However, some consider the numbers to be low because the stigma still surrounding suicide can result in underreporting. Suicide Rate Statistic Breakdowns When the suicide rate is broken down by demographics, important information can be observed. For example:?? The suicide rate is four times higher for males than females. In the United States, male deaths make up almost 80% of all suicide deaths.Suicide is attempted three times as often by females; women are also more likely to have suicidal thoughts.Firearms are the most common cause of death for males.Poisoning is the most common cause of death for females.Lesbian, gay, and bisexual kids are three times more likely to attempt suicide than heterosexual kids.41% of trans adults attempt suicide.The suicide rate is 1.8 times higher in rural areas than in urban areas.??  The suicide rate is highest among middle-aged white males. A 2015 study in the Proceedings of the Natural Sciences found that the suicide rate among white, middle-aged American men has increased dramatically in recent years.??Among Native Americans and Alaska Natives, suicide is the eighth leading cause of death across all ages. For the age group 15 to 34 of Native Americans and Alaska Natives, suicide jumps to the second lead ing cause of death. Suicide statistics by age group have been consistent for several years. Broken down by age group across all racial and ethnic groups, suicide as a leading cause of death ranked as follows: Age Group Suicide Leading Cause of Death 10-14 Third 15-34 Second 35-44 Fourth 45-54 Fifth 55-64 Eighth 65 and older 17th Suicide is expensiveâ€"costly not only in the emotional toll it takes  but also for its real financial impact. The estimated loss is over $58  billion in medical costs and lost work.?? Differences in Suicide Among Men and Women How the United States Compares The World Health Organization reports that nearly 800,000 people die worldwide each year from suicide, which is about one person every 40 seconds.?? Globally, it is the second leading cause of death for those between the ages of 15 and 24. A 2019 report published in The BMJ found that the global suicide rate has dropped by almost a third since 1990.?? The study found that while the actual number of suicides increased during this time, the suicide rate dropped from 16.6 deaths per 100,000 in 1990 to 11.2 deaths per 100,000 in 2016. These global declines in suicide deaths are largely attributed to drops in the suicide rates in China and India. Other countries including the United States, Zimbabwe, Jamaica, and Belize all experienced significant increases in suicides over the same time period.?? Depression and Suicide Depression and suicide are linked, with an estimate that up to 60% of people who commit suicide have major depression.?? But its important to note that this figure doesnt mean most people with depression will attempt suicide. Research suggests that the majority of suicides are related to a psychiatric condition, including depression, substance use disorders, and psychosis.?? Estimates suggest that the suicide risk for mental disorders including depression, alcoholism, and schizophrenia is around 5% to 8%. However, while many people who commit suicide had symptoms of a mental condition, it is important to note that most people with symptoms of mental disorders do not commit suicide. Depression and Risk of Suicide Depression and Suicide Warning Signs There are warning signs you can watch for in those who may be at risk of attempting suicide.?? Though there is no single type of person who may commit suicide and the symptoms below are not exhaustive, these are the most common signs observed among people who may be contemplating taking their own life. A change in personality, especially behaviors in social situationsWithdrawal from interaction or communication with othersMood changes that are drastic, such as being very low mood one day to being in a very high mood the nextTriggers such as life crisis or trauma in a person who is already living with depressionThreats of suicide, or expressed negative wishes regarding life, such as wishing theyd never been bornGiving away cherished belongings to friends and loved onesDeep depression observed that affects their ability to function socially or in the workplaceAggressive or risky behaviors, such as high-speed driving Suicide Warning Signs and Risk Factors What to Do If you or someone you know is depressed, there are effective treatments available. Talking to your doctor is a good first step. Your primary care provider can offer support, treatment, and referrals to a mental health professional for other treatment options, which may include antidepressants and psychotherapy.If you need help finding a therapist, the Anxiety and Depression Association of America offers an online search tool to help find professionals in your area.Visit the National Alliance on Mental Illness to learn more about support groups that you might find helpful. Tips for Coping With Depression and Suicidal Thoughts

What Drives Capital Flow In Business Finance Essay - Free Essay Example

Sample details Pages: 7 Words: 2032 Downloads: 7 Date added: 2017/06/26 Category Business Essay Type Research paper Did you like this example? This capital inflow is also very helpful when it comes to rectifying the savings and investment gap for the capital-scarce economies like that of India. The capital is a very crucial part of the economy as it brings in the modern technology which enhance the development in the financial sectors through the capital inflow . Capital inflow is also crucial for the Capital flows that can bring in an increase in the growth and productivity of those countries which can get enough skilled workers along with a good infrastructure .Capital flows can bring in the governments support to follow the macroeconomic policies . Don’t waste time! Our writers will create an original "What Drives Capital Flow In Business Finance Essay" essay for you Create order Capital inflow is also crucial for the Capital flows in two major ways: -Portfolio equity investment: This is one parameter where the buying company shares, which have been taken form the stock markets, will be taken without a good control. Portfolio debt investment, is primarily dealing with the covers bonds and long-term borrowing that come form banks and multilateral institutions, such as the World Bank. Here the Capital inflow , takes into consideration the forging long-term ties with firms among the foreign countries. 1.1 Aim of the research: The basic aim of this research is the MA and related parameters understanding which has been done by the study of concepts and factors effecting of MA in the countries like the Indian economy. This has been done in the best possible way so as to relate the concept of MA to employment, inflation, GDP etc and see its effect on the Indian industry for the same. 1.2 Research objective The researcher is trying to work on the aspect of MA and related factor of the economy like employment, inflation, GDP etc in India. The main objectives of the research are given below: Study of the Indian economy and its growth at present FDI growth in India and that of other economies of the world Study of the parameters like employment ,inflation, GDP etc which effect the MA Role of government in the growth of MA The advantages and disadvantages of MA increase in a country like India Effect of MA in the economies of countries like India 1.3 Hypothesis: The major two hypothesis that we are assessing here are that : Deep Financial markets in the acquisition countries are positively associated with cross border Mergers Acquisitions. The difference among the Developed to Developed and Developed to Developing MA flows. 3. LITERATURE REVIEW How to get capital inflow:   When we take into consideration a well-developed and also the extensively surveyed empirical research of Caves 1996; Markusen 1995 which explains the reason of the multinational corporations which are brought up in the overseas in contrast to the export directly or other forms of collaborations like the license of their product or technology. Thus it has been seen as the most persuasive way of explaining given by Holger Gà ¶rg and David Greenaway who stress on the coexistence of proprietary knowledge and also the role of market failures for protecting that knowledge. Here it is understood that the firm internalizes some of its transactions for the protection of the brand, technology, and also that of its marketing advantages(Wang, Jian-Ye, and Magnus Blomstrà ¶m. 1992) . Here the main motives are based on the existence of a type of firm-specific asset, which could be some kind of technological advantage, which could also entail the innovative management along with the organizational processes and also the new production methods and technologies. Here the most important point then is the choice of a particular location, and its advantages as it is to the local economy by these firms in the same industry. Here the most important point then is the potential transmission channels which will play host economy and have similar characteristics which bring in benefits from spillovers . (Wang, Jian-Ye, and Magnus Blomstrà ¶m. 1992). FDI in china and India: Foreign direct investment in India could would be possible in many a ways. One way could be the parent companies bringing in the equity capital which can be done by purchasing shares of the foreign companies. Another way could be reinvesting the affiliates earnings. Yet another might be the short- or long-term lending which might happen among the parents company and the affiliates(David Besanko, David Dranove, Mark T. Shanley 1996).. Thus when one has to name a company as a multinational e nterprise to be in the category of FOREIGN DIRECT INVESTMENT data, the parent company will have to have a minimum equity stake in the company of about the range of 10 percent in the affiliate. (Levine, R., N. Loayza, and T. Beck. 2000) When we talk of making the foreign affiliates this would include the new production facilities which can also be addressed as Greenfield investments which entail the acquiring and control in the present entities by cross-border mergers or acquisitions(David Besanko, David Dranove, Mark T. Shanley 1996).. Recent years have seen a marked shift toward international mergers and acquisitions. One of them that is that of HP and Compaq have also been covered in the case study in the research. Thus in the case of the developing nations, the equity investments take place as per the percentage of gross national income seen in the present and past years.. Here one more parameter that is Debt flows, of the countries like India have increased since 2002 from zero as seen in the first two years. Also FOREIGN DIRECT INVESTMENT with respect to the GDP has increased so as to becomes the largest source of capital which comes form the developed nations to developing ones like Indian . (Levine, R., N. Loayza, and T. Beck. 2000) Diagram 1 Shown in the chart 1 above is the growing FDI of India since the past 10 years. In the year 1990 to 2005, many a developing economies like that of India and like countries saw a vast FOREIGN DIRECT INVESTMENT inflows which increased form about 18 % to 36%.. Also with this the geographical composition in the structuring of the FOREIGN DIRECT INVESTMENT took a turnover in the past 40 yrs.. Here it can be noticed that Latin Americas share in the FOREIGN DIRECT INVESTMENT fell with a huge margin of 52 percent as it was in the 1970s to 33 percent in 1990s.If we talk of the continent of Asia, its share of inflows increased from 25 % to 60 % in that same time period. (Levine, R., N. Loayza, and T. Beck. 200 0) Privilege given to countries like China and India in terms of FOREIGN DIRECT INVESTMENT shows that there is a shift on the higher side of the source of development finance. Thus the capital inflows make an effect on the economy of the receiving countries and their economic performance which will entail their trade, savings, stability, investment along with their growth. FDI in developing Nations: Korea is another country which has shown tremendous progress in its FDI. In the Republic of Korea the FDI got raised from $5.2 billion in 1998 to $10.2 billion in 2000. This country that is Republic of Korea has done well in the field of FDI where it is ahead of many developing in the ASEAN arena.It but could not leave behind in progress countries like Hong Kong (China) and China. According to FDI figures the Korean economy, has made a good performance.. It but still is lagging behind form Malaysia, Thailand, China, Hong Kong (China), and Singapore .Most of the FDI is due to the currency devaluation which brought in a good business environment.( World Investment Report 2002) Viet Nam also is improving in foreign direct investment (FDI) with a figure of 5.8 billion USD in 2005.this is the highest in last eight years. Here the huge four billion USD is a result of the 771 recently licensed FDI projects .In 2005 Viet Nams foreign investors saw a whooping , revenue of , 20 billion US D . 4.   METHEDOLOGY  Here the methodology of the research is based on the gravity model as is relation to the factors of   GDP, Employment, Inflation (WPI), Industrial Production and Market Capitalization of stocks and FDI as major factors of capital inflow. 3.1Research Design Here this approach of the research design which will be based on the aim the FDI research will be crucial for the study. This will help the researcher to clearly define the aim of the research and then base the research design, on that basis as and when required. . Here I have taken up the research on a particular topic which is the MA and its effects on the Indian economy capital inflow which has been in many ways been important and needs the best and suitable methods for its analysis and progression. 3.2 Research Purpose Here one factor is very important. This parameter is the Time Horizon which is critical for the researcher for the knowledge of the right type of research which has to be done in a fixed time limit . . When we list the research ,it could be of primarily two types which pertain to the factor of time horizon studies .These are the cross-sectional and longitudinal studies. When we take the Cross-sectional it entails a situation of time ,at the same time the longitudinal study looks at the series of events in a long period of time. Survey: The strategy of survey has been resorted to study the different industries in India where capital inflow is coming from the MA. 3.3 Case Study: It has been seen and critically analyzed that case study of India and its economy was a vital part to be studied here. Robson (2002) explains the case study as a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence. 3.4 Data collection : Here the relevance of and the importance of the factors like the primary and secondary data also becomes important form the different sources: 1. Primary Data : It has been seen and critically analyzed that the primary data was collected form the employees of various industries which have been giving crucial information for the further quantitative analysis of the factors of   GDP, Employment, Inflation (WPI), Industrial Production and Market Capitalization of stocks and FDI as major factors of capital inflow. 2. Secondary research: The secondary data has been taken form many a sources like journals internet and books. 3.5 Validity and Reliability: Validity is defined as the degree to which the researcher has measured what he has set out to measure. Here when we talk of the quantitative data one also has to see to it that its is the valid data. The regression analysis had to take factors which were relevant to the aim of the research for making this research a research with validity of the information . Here the relevance of and the importance of the factors like the reliability and validity of the research has been taken into account carefully. (Yin. R.K (2003) 3.6 Limitation of the research There is no major problems as such except for the fact that some of the Macro economic factors like employment etc. did not cover the whole period of study i.e. from 1990-91 to 2008 09. 6. CONCLUSION  When we talk of the distance between or the gap of the globe in terms of the rich and poor countries this would basically entail to the financial along with the physical assets that bring in the countrys wealth.. Many a countries with developed economies have a larger amount of the capital as compared to countries like India ,Pakistan etc. This is also because countries like Japan and Korea are economics which have more advanced technologies. Thus when we have to judge a country on the parameter of economic advancement the counties which are under developed are the ones who have to get more capital and thus enhance themselves technologically. Many a emerging economies which have tried to enhance the capital formation have been unsuccessful. This is also because the globalization, is today very much reliant on the foreign capital. When we talk of the capital flows of the developing economies it has increased from a whooping $104 billion to a huge $472 billion in 2005.The idea of enhancement through foreign capital is great as this is one way to get the enormous benefits for the developing nations like India.

Arbitrage in the Government Bond Market Case study Coursework

Essays on Arbitrage in the Government Bond Market Case study Coursework Full of 18 March Case Study: Arbitrage in the Government Bond Market Part A. Creation of Synthetic BondsThe cash flows of the callable bond which is valued at $4.2 billion in shown in Table 1 in the Appendix. The information in the table indicates that after the initial investment of $4.2 billion, interest payments of 4.125 which equates to $173.25 million is payable semi-annually. The net cash flow which is the interest over the five year period equates to a total of $1,732.5 million. The present value of these amounts is shown in the last row which indicates the present value cash flow (PVFCF). In order to capitalize on the mispricing in the bond market Ms Thompson discussed two options. One option involves creating a synthetic bond with the $4.2 million callable bond. This bond would pay the same interest as the May’00-05’callable bond. The amount of 12% May05’ bonds required to match the coupon payments of the callable bond are as follows: X Ãâ€" 12% Ãâ€" 100 = 8.25% Ãâ€" 100 X Ãâ€" 12 = 8.25 Dividing both sides by 12 yields: X = 8.25/12 Therefore, X= 0.6875 The fraction of 12% May 05’ treasury bonds required is 0.6875. Therefore, the fraction of treasury STRIP required to pay the principal amount at maturity is 0.3125 (1 – 0.6875). The ask price and bid price of the May 05’ synthetic bond is therefore calculated as follows: Ask price = 0.6875 Ãâ€" 129.901 + 0.3125 Ãâ€" 30.312 = 98.78 Bid price = 0.6875 Ãâ€" 129.7188 + 0.3125 Ãâ€" 29.91 = 98.53 The alternative option would involve the 8.875% May 00’. A similar calculation as that used in the previous option. The following calculations provides information on the fraction of 8.875% May 00’ noncallable treasury bonds and May 00’ Treasury STRIPS required to match the 8.25% May 05’ interest payments and principal payment at maturity. X Ãâ€" 8.875% Ãâ€" 100 = 8.25% Ãâ€" 100 X Ãâ€" 8.785 = 8.25 Dividing both sides by 8.875 yields: X = 8.25/8.875 Therefore, X= 0.9296 The fraction of 8.875% May 00’ treasury bonds required is 0.9296. Therefore, the fraction of treasury STRIP required to pay the principal amount at maturity is 0.0704 (1 – 0.9296). The ask price and bid price of the May 00’ synthetic bond is therefore calculated as follows: Ask price = 0.9296 Ãâ€" 104.5 + 0.0704 Ãâ€" 46.656 = 100.43 Bid price = 0.9296 Ãâ€" 104.375 + 0.0704 Ãâ€" 46.25 = 100.28 Part 2 – Case for Mispriced Callable Bonds The May ’00 – ’05 callable Treasury bond is overpriced. The information in Table 2 in the Appendix indicates this. Investors can sell the May ’00 – ’05 callable Treasury bond at the bid price of $101.125 and buy the cheaper priced synthetic bond at the bid ask price of 98.78. The profit on the transaction would be worth 2.2345 per share or $98.49 million. If the both the callable and the synthetic bond had the same price the investor should prefer to buy the synthetic bond. The reason is that when the interest rate on a callable bond falls the government is likely to call the bond since they will be able to refinance it at a lower rate of interest. The May ’05 bond should therefore be worth more because it is a noncallable Treasury bond and therefore provides the government with an option. The May ’00 synthetic bond is also worth more than the May’00 – ’05 callable bond because when the level of interest rate rise the government will not call the callable bond since it is at a lower rate. Part 3 – The Case of a Bond Trader Who Does Not Currently Own the Callable Bond Part 4 – Varying Scenarios Part 5 Fall in the Price of Callable Bond by 150bps in One Year If the price of the callable bond falls by 150 basis points below that of the synthetic bond with corresponding maturity then the (asked) yield-to-maturity of the synthetic bond which was constructed using the May ’05 non callable bond and the May ’05 STRIP would be as follows: Yield–to-Maturity (YTM) is the rate of return on the bond if it is held until it matures. It is found using the equation for value of the bond Vb, in which rd is the return. Vb = 98.78 = (8.875/2)/(1+ rd/2)1 + (8.875/2)/(1+ rd/2)2 + (8.875/2)/(1+ rd/2)3+ (8.875/2)/(1+ rd/2)4 + (8.875/2)/(1+ rd/2)5 + (8.875/2)/(1+ rd/2)6 + (8.875/2)/(1+ rd/2)7+(8.875/2)/(1+ rd/2)8 + (8.875/2)/(1+ rd/2)9 + (8.875/2)/(1+ rd/2)10 YTM = rd= 4.595% YTM (ask) synthetic May’05 is 4.595% The YTM (bid) on the synthetic May ’05 bond is Vb = 98.53 = (8.875/2)/(1+ rd/2)1 + (8.875/2)/(1+ rd/2)2 + (8.875/2)/(1+ rd/2)3+ (8.875/2)/(1+ rd/2)4 + (8.875/2)/(1+ rd/2)5 + (8.875/2)/(1+ rd/2)6 + (8.875/2)/(1+ rd/2)7+(8.875/2)/(1+ rd/2)8 + (8.875/2)/(1+ rd/2)9 + (8.875/2)/(1+ rd/2)10 YTM = rd = 4.627% If the callable bond one year from now is 150bps below that of the synthetic bond with corresponding maturity the expected asked price of the synthetic bond and the bid price of the callable bond one year from now is as follows: Asked price of synthetic bond one year from now: Vb = 98.78 = (8.875/2)/(1+ rd/2)1 + (8.875/2)/(1+ rd/2)2 YTM = rd= 5.097% Bid price of the callable bond one year from now using the bond valuation formula is: Vb = 99.61 = (8.25/2)/(1+ rd/2)1 + (8.25/2)/(1+ rd/2)2 YTM = rd= 4.338% A higher the rate means that the returns are better. Even as the price of the callable bond falls below par value the yield is less than that of the synthetic May ’05 synthetic bond because it is still overpriced. Use of $10 million Loan Assuming no securities are owned and $10 million is borrowed on the repo market to perform the transaction in order to exploit the arbitrage opportunity and assuming other securities can be posted as collateral. Since I own no securities then I would borrow some and collateralize it using the $10 million loan. I would then sell the security in a short sale. I would therefore have to pay the interest of 4.125 semi-annually until I am ready to return the bond. When that time comes I would enter the market and purchase the bond if it is not overpriced or I would enter into a similar borrowing arrangement with another bond holder. Buy-and-Hold Strategy If I use a buy-and-hold strategy for one year, my arbitrage profit would be calculated as follows: Repurchase Arrangements Description    $mn Interest Repo Market Loan 10 (527000) Borrow 8.25 May 00 - 05 10 (825000) Sell short 8.25 May 00 -05 Callable bond 10.04 828300 Net Profit/loss       (523700) Figure 1 Much of the information in Figure 1 would result in a profit if I had investments of my own. The difference between long-term borrowing and short sales indicate that borrowing bonds and selling them short has major benefits but the cost of the funds used to so may outweigh the benefits which is the case in Figure 1, the result been a loss of $523,700. Attribution Analysis Most of the profit under section (a) can be attributed to directional value trading as it is assumed that the callable bonds are overvalued when compared with the synthetic bonds. This mispricing is expected to be corrected in the future. Works cited Edleson, M.E and Tufano, P. Arbitrage in the Government Bond Market? Boston: Harvard Business School. 1995. Print. Appendix Cash Flow Table for 8.25% May 00- 05 Callable bond Date/ Period 0 1 2 3 4 5 6 7 8 9 10 Net Cash Flow Cash flow (4200) 173.25 173.25 173.25 173.25 173.25 173.25 173.25 173.25 173.25 4373.25 1732.5 PV 1 1.0413 1.0842 1.1289 1.17549 1.22398 1.2745 1.327 1.3818 1.4388 1.49813    PVFCF (4200) 166 160 153 147 142 136 131 125 120 2919 0 Table 1 Calculation Showing that Callable May 00 - 05 Bonds are Mispriced Description    Millions Price Value ($mn) Callable Bonds    42 101.125 4247.25 Synthetic Bonds:             May 05 TB    42 98.78 4148.76                Profit       2.345 98.49 Table 2

The Times of the New Year Free Essays

My best friend was a drug addict and i had to help her into rehab. She did not want to go to rehab so we told her we were taking her to disneyland. She was so excited that she drove right home and packed her bags. We will write a custom essay sample on The Times of the New Year or any similar topic only for you Order Now Every country has their own holiday system. Different countries have different holidays. There are also some common holidays that people celebrate around the world, such as Christmas and New Year. Different countries have their own definition of the New Year. was said that long long time ago, there lived a horrible beast named† Nian† In the mountain. Every year, on the first day of the year, which Is the first new moon of the year, the beast would awaken and descend upon the village. The Vietnamese lunar New Year festival, Tet Nguyen Dan, Is the most significant holiday taking place within the first three days of the New Year. The nearer New Year comes the more excited and enthusiastic people are. In general, preparation for Tet starts one week before New Year’s Day. The New Year’s cake New Year’s cake Is a pastry made of the flour of glutinous rice nd used primarily in the lunar New Year period. 1 . Introduction (300 words) The New Year cake Is a special Year goods In Spring Festival. Those Rice cake were made by glutinous rice. A Turbulent Year for Israel 1996 has been a very turbulent year for Israel. This Iles In the assassination of Yitzhak Rabin on November 4, 1995. How to cite The Times of the New Year, Essays

Marketing and Guinness Essay Example

Marketing and Guinness Essay Marketing Strategy for Guinness Introduction Guinness is a renowned stout (beer) company in Ireland, and throughout the world. It is particularly famous for its unique taste and its quality. The beer is an icon for Ireland, with is epic advertisements and classic colour of black and white. Arthur Guinness established the stout in 1759, at St. James’ Gate in Dublin. The company has survived years of competition through its creative advertising and high quality product. Mission Statement The Guinness brand is part of the large Diageo group, its mission statement quotes that they wish ‘To become one of the world’s most trusted and respected companies’. We feel that this is been achieved with the Guinness brand as it is much respected worldwide. They are always striving to grow, and be known for their outstanding stout. Guinness has succeeded in growing into the world’s number one stout brewer. In 2000 its overseas sales overtook Irish and British sales, for the first time and these numbers have continued to grow ever since. Situational Analysis Company Analysis Goals Diageo as a company are constantly striving to reach new goals, to improve the Guinness brand and quality of the product. In recent times the global economic environment has taken a downturn, which has meant that the company has had to do their best to stay competitive and hold their place in the global market. In recent years the sales of the iconic Irish drink have been falling on a domestic level so Diageo decided that it would have to look further a field to developing markets for new sales. We will write a custom essay sample on Marketing and Guinness specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Marketing and Guinness specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Marketing and Guinness specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Diageo got in touch with the famous advertisers Saatchi Saatchi and started about entering the African market and creating what the advertising company call a â€Å"love mark†, described as a brand that enjoys loyalty beyond reason from consumers. One of the company’s aims is to gain a foothold in this market to increase sales, and profits, and develop their worldwide recognition of the brand. Focus Diageos main focus for Guinness has and will be to maintain a product of up most quality, with a loyal customer following. They focus on advertising to promote the stout. Culture Even though the stout is synonymous with Ireland, the drink is accepted worldwide. Guinness sells the stout to 150 countries across the world, with its top markets in Ireland, Great Britain, United States, Nigeria and Cameroon. Guinness is famous for its Irish provenance and epic colour; it is the most famous black stout and is brewed in over 50 countries. Guinness sell a numerous range of stouts, with Guinness Draught and Guinness Foreign Extra Stout been the most popular worldwide. Guinness takes into account the culture of different countries, and understands that different tastes appeal to different regions of the world. Guinness Draught is predominantly sold in Europe, Japan, Australia and North America. This Guinness is available as Guinness Original, Extra cold, Extra smooth, and their most recent – Guinness Red. Guinness Foreign Extra stout is most popular in Caribbean, Africa and Asia, due to its slightly stronger taste. Guinness are ingenious with their advertising strategies, this is evident through the celebration of Arthur Guinness day, it was the 250th global celebration last year, however due to the massive success of the day, it is now a yearly occasion. The day was celebrated in over 150 countries throughout the world. S. W. O. T. Analysis Strengths Guinness is a worldwide renowned brand, under the Diageo PLC. Guinness’ strengths lie in the uniqueness of the brand and its cleverly created advertising campaigns, such as the â€Å"good things come to those who wait† campaign or â€Å"its alive inside†. Diageo understand their markets and the wants of the their target consumers. One of Guinness’ key strengths lies their near monopoly in the stout market, they are the only brand to sell a stout globally. Guinness is a remarkably strong brand that is recognized globally. This means that consumer recognition of the product is instant, when a consumer sees the epic white and black, they automatically think of Guinness. The â€Å"Harp of Brian Boru† is synonymous with Ireland and Guinness itself. Weaknesses One of the main weaknesses for Guinness is the fact that stout has such a unique taste which younger consumers find too strong, this means that they are unable to reach a vast number of consumers. Another problem which Guinness face is the â€Å"old man† image. If Guinness wants to reach a younger spectrum of the market they must shift this portrayal of the drink. The majority of Guinness consumers fall under the plus 35 age bracket, with the most loyal drinkers been 40 plus. Opportunities There are numerous opportunities, which Guinness can act upon, from expanding the global brand to reaching new markets. Guinness have altered the stout for different markets around the globe, to suit the respective markets needs, however, we feel that there is huge scope to try target consumers under 35. By doing so they would have a broader range of consumers in the market. Guinness would need to make a slightly lighter tasting stout to appeal to the younger drinkers, whose taste buds are less developed. The option to ad a new product â€Å"Guinness Light†, to reach this younger end of the market would boost sales in an economically difficult time. Guinness light would not only have a lighter taste but also would have fewer calories, to appeal to the health conscious generation of today. Threats The main threats that the Guinness brand has to face today are economic. During the global recession the brand must strive to be stronger and uphold its quality. Consumers are spending less on goods, which they want, as apposed to what they need. People are less likely to go out to pubs with friends, to save money most consumers would choose to stay at home, however this is where Guinness sold in cans is a success. There is also the threat of competitors, seen as Guinness has endured years of success with the unique stout, other companies may see this as an opportunity to try gain some of this success. Consumer Analysis Statistics show that 80% of Guinness drinkers fall within the 30-60 age group. Guinness has always performed well among the older market segment. Generally stout drinkers have more mature taste buds and are accustomed to the strong taste of the beverage. Guinness is the quintessential Irish beer, and an acquired taste. The consumer value of the beverage is to enjoy it after a day of work, in the pub, with friends, or at least this is the typical consumer profile of a Guinness drinker. Competitor Analysis Currently Guinness is the key brand in the stout market, which means that competitors find it hard to position their brand. In Ireland Murphy’s would be Guinness’ biggest competitor, they are a less popular stout as it does not have the same quality taste as Guinness, however the drink is cheaper than Guinness which may be an advantage to them during the recession. A pint of Murphy’s costs between â‚ ¬4 and â‚ ¬5, where as a pint of Guinness ranges from â‚ ¬4 to â‚ ¬6. Murphy’s is a cheap stout, it appeals to the younger sector of the market as they are budget conscious, and they would not be looking for quality. It is not as well known or recognized as Guinness as its brand isn’t as well established. Besides stouts, companies selling beer would be huge competitors to Guinness, especially world-renowned brands such as Heineken. As they sell their drink roughly around the same price as Guinness, and target similar if not the same market, not only this but Heineken are also famous for there unique and epic advertisements. Cider represents a growing threat in the alcoholic market, it is a lighter drink compared to a stout. The younger end of the market prefers cider; these consumers’ tastes are less acquired compared to the older end. Bulmers has grown its share in the market over the last 10 years, from 2. % to 10% (http://www. bulmers. ie/marketing-case-study/default. asp). It is one of the most popular ciders in the Irish market. In today’s highly competitive market Guinness must strive to increase brand awareness, loyalty to the brand and reach a younger market if it wants to stay as widely recognized, popular and an iconic brand and stout in the Irish market and ar ound the world. Guinness’ competitive advantage over the other stouts, ciders and beers in the market is its unique taste, the fact that it is synonymous with Ireland. Climate Macro-Environmental Analysis Economic Environment Currently we are experiencing a global economic downturn, which makes it difficult for companies to survive. Guinness has a strong and well-established brand which will stand to them during these tough times. Consumers are less willing to spend money in restaurants and pubs, they are more likely to stay in or have friends over. Guinness needs to re-strategise in order to stay competitive, and keep their large foothold in the stout market. A larger emphasis on the stout been sold in cans may be needed in order to keep their sales up. Social and Cultural Environment Guinness as a brand tries to advertise to people of all different cultures, by doing this they can target a large consumer base, as it is a product that is consumed in the three groupings of global economic expansion. Seeing as two of the top five consumers of Guinness in the world are part of the peripheral zone, they have achieved in infiltrating these zones. Their aim is to reach out and capture a person’s attention and imagination with their advertising. By using advertising which identifies with particular cultures in which they are trying to infiltrate, they capture a wider consumer base. Guinness is a universal brand which is enjoyed by some 1. 8 billion consumers yearly. To achieve such staggering numbers, it is a reflection of how successful the brand is. By using different types of promotions and techniques to advertise, Guinness reach out to many types of people and different cultures throughout the world. For example in New Zealand and Australia Guinness hold competitions called Pint Master, in which you rate your pint and your bartender as to how well the pint was poured you then scratch a card and then reveal in you have won a Nintendo Wii. This type of promotion is popular as it encourages people to buy a pint of Guinness as they could possibly win a prize. It also generates word of mouth and gets people interested in the stout, reinforcing the idea of Guinness. In the United States, Guinness has created an App for I-phones and I-pads. This app shows consumers which pubs throughout America sell Guinness, it can find over 20,000 in the U. S. alone. Throughout Guinness’ different advertising campaigns they attempt to incorporate cultural values without isolating other cultures. Sport is both a social activity and part of culture, Guinness associate themselves with sports that are popular to respective countries around the world. In America they targeted the super bowel audience with the ingenious American football advertisement, they have also used this method of advertising for Hurling in Ireland and America targeting both Irish and the Irish Diaspora in America. In Africa Guinness sponsors several leagues and promote the stout through memorable advertisements, which romanticize the sport. Guinness is a multinational company, which positively uses globalisation to connect with cultures without imposing upon them. This has made Guinness a reputable company with a good ethical reputation. Collaborations Guinness is one of the biggest sponsors in Ireland. The company sponsors a wide range of events. The Guinness Cork Jazz Festival is famous all over the world. Guinness also sponsors the Rugby World Cup, Irish Rugby and the Galway Races. Guinness was the creator of the original music festival; a two-day music festival called Witness which features the biggest music acts in the world. It subsequently has changed sponsorship to Heineken. Sponsoring huge events like these is all part of the intricate advertising strategy; consumers will also associate the beverage with enjoying good times with friends. Guinness began sponsoring the All Ireland Hurling championship in 1995. It was the first ever sponsor of the event and the first five years of the sponsorship alone brought hurling to the attention of new audiences and greatly enhanced the image of the sport. Guinness is also the official beer of the Irish Rugby Football Union (IRFU), and sponsor of the Guinness series in rugby. The Guinness book of World Records is a book published annually, containing a collection of world records, both human achievements and the extremes of the natural world. It all began in Wexford, Ireland, in 1951 with Sir Hugh Beaver the managing director of the Guinness Brewery. The first edition of the book was published in 1955. It is now renowned throughout the world and although Guinness and indirectly Diageo owned the rights to the book, in 2001 Gullane Entertainment purchased it. The book, however still holds the Guinness name. The most recent venture of Guinness is its collaboration with Google Earth and iTunes for the new iPhone application. Using the GPS on the phone, the Guinness Pub Finder app allows you to find a nearby pub serving Guinness. The database is selective to the USA with a database of more than 20,000 bars across the country. This shows us how Guinness is evolving with new and improved methods to accessing it’s a younger and more technologically advanced generation. Positioning Positioning is part of any companies marketing strategy; their objective is to influence consumer’s perception of a brand or product. Guinness’ aim is to occupy a distinct and clear part of consumers’ minds. Guinness successfully positions their brand as one of â€Å"top quality† with a â€Å"unique taste† and one that is synonymous with Ireland. When a consumer thinks of Guinness they automatically, think black and white, and think of Ireland. Its through the brands innovative advertising that the stout has been positioned clearly in the minds of consumers today, which is a hard task to achieve in such a competitive and ever expanding market. Their campaign â€Å"good things come to those who wait†, creates the idea that the 119. seconds it takes to pour the stout, is worth the wait for a drink that is uniquely brewed, with quality taste every time. Marketing Mix Product Guinness is a dark stout made of roasted, malted barley, hops, yeast and water. Its distinct ‘black’ appearance beer is not actually black but rather dark ruby red because of the way the ingredients are prepared. The white head is creamy due to bubbles of nitrogen and carbon dioxide gas as the beer is poured. This is what makes the product so unique, it is important that it is poured and served in a particular way. The two-part pour method means the perfect pint can be prepared in 119. 5 seconds precisely. The complete Guinness product line includes: †¢Guinness Draught; creamy pint, available in keg, bottle and can (typically sold in Europe, the US, Canada and Australia) †¢Guinness Draught Extra Cold available in keg. Other than being served a few degrees cooler, it is the same as Guinness Draught. †¢Guinness Foreign Extra Stout stronger in taste and more bitter than Guinness Draught (it is especially popular in Asia, Africa and the Caribbean They are all brewed with the classic and unique Guinness techniques. However, it uses local ingredients so, in Nigeria for example, Guinness is made using sorghum, which grows better than barley. A stronger Guinness called Foreign Extra Stout is also brewed in Africa and other places. Price Guinness prices are competitive relative to other stouts and beers within the market. Government measures in Ireland control the cost of alcohol in the country, with retailers passing the savings on to consumers. Since 1976, there hasnt been a very big variation in the number of pints that the manufacturing worker could buy with a gross wage. Place Guinness is primarily a product that can only be drunk in bars. Many Irish drinkers associate ‘the black stuff’ with the common pint. Now readily available in cans and bottles, it is more widespread towards off licenses and supermarkets. Over the past years, Guinness has been performing relatively well in foreign markets. In the United States, sales are picking up. Australia and Africa are also giving the brand a good reception. Promotion Guinness’ advertisements and promotional strategy relies on rich Irish heritage. The Irish perception of Guinness however, finds that most people think of Guinness as the most advertised brand and not a rich, Irish brand. The adverts are famous throughout the world; they are universal and appeal to all, far and wide. Guinness has produced amazingly creative and imaginative television adverts and slogans. It is the reason the brand is so famous and well known today. New Strategy and Repositioning of the product Selected Marketing Strategy (Guinness Lite) In order to reach a greater market, Guinness needs to re-position itself as the beer of choice for younger potential consumers. The idea is to tweak the current product to make it more appealing to younger drinkers with a less accustomed pallet. Guinness Lite could be a part of the new product line, this would mean a lighter stout and a lower alcoholic strength. In order to capture a younger generation, one that is attracted primarily to lagers and beers the company should look for ways of engineering their product to suit that market preference. In order to maintain the older market, the company should still retain its older Guinness brand. In other words, there will be two offerings; the classic Guinness brand and the new one. Since the company will be introducing a different brand, they need to change their packaging. Diageo should re-package the new Guinness Lite in a can. The can should have different colours from the old Guinness so that young people can see that they are buying a different product from their parents, while still maintaining the harp and classic Guinness logo, to keep the overall look and feel of the iconic brand. The third and last aspect about Guinness’ positioning will be its Irish heritage. The beer will be tailored for the Young Irish population. In order to attract the younger consumer, Guinness Lite’s pricing should be tailored to suit that category. Since most youth are not yet as financially stable as their older counterparts, it will be necessary to place the product’s price at a consumer-friendly level. They should maintain their prices at that level in order to stay competitive. The most important element of the new marketing strategy, which will also form part of the promotional strategy, is appealing to the younger audience. We know that over 80% of Guinness drinkers fall within the 30-60 age group. A mere 15% of Guinness consumers lie between the 20-29 age bracket. This may be because many youngsters are looking for something that will differentiate them from their parents. Guinness in the eye of younger drinkers is generally considered as a drink that is predominantly popular with older generations. Advertising on a personal level, towards a younger customer base its important. New ad campaigns with young actors and a fresh image will bode well for the new product. Guinness Lite should be a common product in supermarkets and other retail outlets. Taking a shift from the pub going market segment, as we need to make the product easily available to the home drinker. As it has been stated earlier, drinking habits in Ireland have changed and it would therefore be necessary for the company to consider retail chains and supermarkets as their primary distribution channels. In the past Guinness focused on pubs and bars, as their major retail distribution channel but this need not be the case for Guinness Lite. In order to revitalise the Guinness brand, the company should re-position themselves as the brand of choice for young consumers. This needs to capture their needs and preferences. They need to change the product content and its packaging. Pricing, distribution and promotion need to capture this element. However, since the focus is in Ireland, then the company’s promotional strategy should reflect its rich Irish heritage. These two issues are the core concepts that can get Guinness back on track. Conclusion As a whole Guinness is an iconic reputable company, with global recognition. It has endured massive profits over the last decade. It is constantly striving to reach new markets and new potential consumers; Diageo has achieved this through innovative advertising and creative promotional campaigns. We believe the brand will continue to expand and grow. Guinness as a brand and product shows no sing of slowing down in the future. It will continue to be a pioneering brand for years to come.