Premium Essay

Investment Project

In: Business and Management

Submitted By Clayton26
Words 4177
Pages 17
Executive Summary
As a group we plan on using a range of valuations to analysis the food and drinks industry to assist Mr. Richie Rich for considering an investment. We will draw up a short description on the industry as an overall and also provide a background summary on each of the company’s chosen. The valuation methods we will use will be; Cash Flow valuation, Dividend valuation, Price Earnings valuation, Stock Market valuation and Net Asset valuation using these we will draw up a conclusion and provide our recommendation on which company/ companies Mr Richie Rich should invest in. One point to note when investing is that we should have realistic expectations. There's nothing wrong with hoping for the 'best' from your investments, but you could be heading for trouble if your financial goals are based on unrealistic assumptions.

Allocation
Luke McDonagh X00113375 Kerry Group & Aryzta
Clayton Stafford X00111060 Glanbia & Fyffes

Background
Kerry Group
This brief history traces the evolution and growth of Kerry Group from its modest beginnings in the south west of Ireland some 40 years ago into a successful, publicly traded, multinational corporation and leading player in the global food industry. Having commenced operation from a green field site in Listowel, Co. Kerry in 1972, the Kerry organisation has realised sustained profitable growth with current annualised sales of approximately €5.8 billion. With operations established in 26 countries across five continents, EMEA markets account for 49% of sales, Americas markets 38% and sales to Asia Pacific markets represent 13% of total Group sales. Kerry Group is quoted on the Dublin and London stock exchanges, with a market capitalisation in excess of €13 billion and some 30,000 shareholders. Since its inception, Kerry’s Board, management and suppliers have progressively worked to grow the Kerry…...

Similar Documents

Premium Essay

Team Project Investment

...i ECO 526 – Financial Economics Team Project Instructor: Paul Fowler Atkinson Term: Fall 2012 Project: Your team is a part of a large Hedge Fund. Your mission is to construct a virtual portfolio using the S&P as your core portfolio, and hedge your risk using options, futures and other derivatives using Stock Track http://www.stocktrak.com/ Objective: Portfolio optimization and hedging. Paper (One per group) 1) Your group paper should cover why you chose the capital markets assets that you did, and how you selected your investments. 2) External data and investment theory should be used, and cited. A minimum of ten citations should be rigorously documented. 3) The team should attempt to hedge your portfolio using “puts” or inverse ETFs. 4) Portfolio changes week to week should be detailed. 5) Your group paper should include an abstract, and introduction, details on portfolio sections, and related investment theory. 6) Paper is to be a minimum of ten written pages, plus extra pages for citations and support. 7) Minimum submittal standards are one inch margins, 12 point Times Roman font, and double spaced. 8) The content matters! The thought process and the explanation of the......

Words: 255 - Pages: 2

Free Essay

It 255 Project Part 2 Richman Investments Project Part Ii

...Richman Investments Removable Media Acceptable Use Policy Policy statement It is the goal of Richman Investments to implement the controlled use of removable media devices that transfer information by all users who have access to any means of data within the company. Objective This form is an official Richman Investments document pertaining to the establishment of principles and working practices that are to be abided by all users in order for data to be safely stored and transferred by means of a removable device. The importance of controlling removable media and the objective of this policy is to: 1. Prohibit any unauthorized disclosure of information as may be necessary to company policy. 2. Maintain data integrity. 3. Build network integrity by instilling confidence and trust with data on the network. 4. Keep high standards of security with the use of protected and restricted data. 5. Avoid malicious network intusions. 6. Prevent unintended or malicious harm on the Richman Investments data network. Applicable Parties This policy applies to all Richman Investment employees, members, committees, business partners, third party IT services, guests, or anyone who is approved access to the data network, IT hardware resources, or any equipment with means of access to files within Richman Investments. Removable Devices Defined 1. USB Memory sticks (flash drive) 2. USB or external hard drive 3. Media Card Readers 4. Embedded......

Words: 1105 - Pages: 5

Premium Essay

Investment

...ones. Mortgage bonds are secured corporate bonds that are backed by real estate, although they may include equipment as well. They may cover all mortgageable property or just specific pieces. Because mortgage bond collateral provides a clear claim on a company’s assets, mortgage bonds are considered high-grade and safe from default. A trustee acting on behalf of bondholders holds the collateral; if the bond defaults, this trustee may foreclose for the bondholders. There are two types of mortgage bonds: first mortgage bonds and junior mortgage bonds. Should an issuer have to liquidate, first mortgage bonds are paid off before juniors are. To finance projects such as bridges, hospitals, and power plants, municipalities sell revenue bonds (or limited obligation bonds). Revenue bonds are backed by the revenue generated by those projects. Collateral trust bonds are backed by financial assets in the form of a securities portfolio containing stocks and bonds. A third-party trustee holds the securities. Equipment-trust certificates are backed by company equipment. They are popular with airlines and railroads that need to finance new purchases of equipment. The equipment bought may be the same equipment that is collateralized. A trustee for the bondholders keeps the title to the equipment. After all the bondholders have been paid back, the trustee then returns the title to the company. Unsecured Bonds Unsecured bonds, also called debentures, are not backed by equipment,......

Words: 811 - Pages: 4

Premium Essay

Investment

...By complying with these standards, our business will grow since clients value the integrity these standards bring to firms that abide by them.” “The CFA Institute Soft Dollar Standards are easy to adopt because they reflect the fiduciary duty we have to our clients, placing their interests first and foremost. It also allows us to purchase research with cash credits for the investment and administration departments, which will reduce our overhead costs.” Statement 2: Pinto also recommends they outsource the research function of the firm to stockbrokers who will supply all research. He states this will result in a substantial cost savings by reducing the firm’s workforce and office space needs. In Exhibit 1 below, Pinto presents to the board the database he has developed with regard to stockbroker selection: Exhibit 1 Stockbroker Services Average Gross Trade Name of Commission Execution Broker Fee Charged Period Services Provided Additional Information Stockbroker 0.30% 2 days Brokerage/trading Investment A services only management software available (See Note 1 below) Stockbroker 0.27% 1 day Investment bank with Negotiable commission B mutual fund recapture/rebates subsidiary Stockbroker 0.27% 1 day Brokerage/trading Invitation to annual C services only client conference By accessing this mock exam, you agree to the following terms of use: This mock exam is provided to currently registered CFA candidates. Candidates may view and print the exam for personal exam......

Words: 10965 - Pages: 44

Premium Essay

Investment

...INVESTMENT APPRAISAL HANDOUT Example The capital investment committee of a state owned corporation is currently considering two projects. The estimated income from operations and net cash flows expected from each operation are as follows: | PROJECT A | PROJECT B | Year | Income from operations$ | Net Cash Flow$ | Income fromOperations$ | Net Cash Flow$ | 1 | 12,000 | 44,000 | 26,000 | 58,000 | 2 | 18,000 | 50,000 | 20,000 | 52,000 | 3 | 20,000 | 52,000 | 16,000 | 48,000 | 4 | 16,000 | 48,000 | 16,000 | 48,000 | 5 | 22,000 | 54,000 | 6,000 | 38,000 | | 88,000 | 248,000 | 84,000 | 244,000 | Each project requires an investment of $160,000. Straight line depreciation will be used, and no residual value is expected. The committee has selected a rate of 15% for purposes of the net present value analysis Required 1. Calculate the following: a) The average rate of return for each project b) The net present value for each project. Use the present value of $1 table available on the internet http://highered.mcgraw-hill.com/sites/0072994029/student_view0/present_and_future_value_tables.html 2. Why is the present value of Project B greater than Project A even though its average rate of return is less? 3. Prepare a summary for the capita; investment committee, advising it on the relative merits of the two projects SOLUTION 1. a ) Average rate of return for Project A $88,000 /5 = 22% ($160,000 +$0) /2 b) )......

Words: 480 - Pages: 2

Premium Essay

Investment Portfolio Project

...Investment Portfolio Project University of Phoenix Introduction needs to go here | | |5 Yr Average | | |  |Return | |T-bond |25% |0.02 | |Microsoft |20% |-0.33 | |Time Warner |10% |0.11 | |Disney |20% |0.02 | |Motorola |10% |-0.05 | |Home Depot |15% |-0.02 | | | | | |Average Return |-0.042 | |Risk Free | |-1.72 | | | | | | | |-1.76 | |STDEV | |0.15 | | | | | |Sharpe | |-11.65 | | | | | | | |5 Yr Average | | | |betas | | |  |Return | | | | | |T-bond |25% |0.02 | | |Microsoft |1 | |Microsoft ......

Words: 1086 - Pages: 5

Premium Essay

Investment Simulation Project

...GROUP: 3 INVESTMENT SIMULATION PROJECT NORTH SOUTH UNIVERSITY INVESTMENT SIMULATION PROJECT PREPARED FOR Saif Rahman (SfR) Lecturer COURSE: FIN 435 SECTION: 03 GROUP: 03 PREPARED BY NAME | ID | Md. Sarwar Hossain | 0930068030 | Fatima Tuz Zahra | 0930785530 | Ahmed Aman Yousoof | 0930274530 | Yakin Reza | 0930042030 | Naima Rahman | 0930283030 | Date of Submission: August 08, 2012 TABLE OF CONTENTS | | | Executive Summary | 03 | Introduction | 04 | Objective | 04 | Asset Allocation | 05 | Macroeconomic & Industrial Scene | 07 | Diversification | 07 | Trading Strategies & Economic Rationale for Selecting Stocks | 07 | Portfolio Performance | 10 | Holding Period Return | 13 | Portfolio Risk & Return | 14 | Security Market Line | 15 | Lessons Learned from Trading | 16 | Conclusion | 17 | References | 18 | Appendix | 19 | Executive Summary The investment simulation project is a fictitious investment in the Dhaka Stock Exchange that started from June 4, 2012 and ended on August 01, 2012 over a period of two months and separated in three phases. The initial investment in the portfolio was around BDT 1,000,000. The objective of the project was to maximize the after tax wealth through a well diversified portfolio. Given the consistent market fall at the Dhaka Stock Exchange since our investment......

Words: 3910 - Pages: 16

Premium Essay

Investment & Portfolio Project

...1. Introduction This is the final project of the Course Named: Investment & Portfolio Analysis. The purpose of this project is to examine thoroughly if the CAPM holds true in the emerging capital market of Pakistan. Tests are conducted for a period of five years (2005-2009), which is characterized by intense return volatility (covering historically high returns over the examined period). 2.1. Karachi Stock Exchange * Incorporated on March 10, 1949 * Premier Stock exchange of the country * Started with 5 companies that had a paid up capital of Rs. 37 million. * Trading was done through an open-out-cry system * The first index was the KSE 50 Index * Exchange owned by 200 members * 652 companies listed * 4 indices * Modern Risk Management System a. Var Based Margin b. Pre Trade Margin Verification * KSE is FIX Compliant * Electronic Trading through KATS * Market capitalization*: US $ 26.04 billion * Publicly Listed Company with strategic investor * Products to include: a. Options b. ETFs c. Tradable Sector Indices d. Debt Market Trading * Broad based investor participation * Cross border listings of companies * Opening up of branches in other cities and in the region 2.2.1. Definition A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and trader s, to trade company stocks and......

Words: 12484 - Pages: 50

Premium Essay

Investment

...Chapter 01 The Investment Environment Multiple Choice Questions 11. The material wealth of a society is equal to the sum of _________. A. all financial assets B. all real assets C. all financial and real assets D. all physical assets E. none of the above Financial assets do not directly contribute the productive capacity of the economy. 13. _______ are financial assets. A. Bonds B. Machines C. Stocks D. A and C E. A, B and C Machines are real assets; stocks and bonds are financial assets. Difficulty: Easy 14. An example of a derivative security is ______. A. a common share of General Motors B. a call option on Mobil stock C. a commodity futures contract D. B and C E. A and B The values of B and C are derived from that of an underlying financial asset; the value of A is based on the value of the firm only. 17. An example of a primitive security is __________. A. a common share of General Motors B. a call option on Mobil stock C. a call option on a stock of a firm based in a Third World country D. a U.S. government bond E. A and D A primitive security's return is based only upon the earning power of the issuing agency, such as stock in General Motors and the U.S. government. Difficulty: Easy 19. _________ financial asset(s). A. Buildings are B. Land is a C. Derivatives are D. U.S. Agency bonds are E. C and D A and B are real assets. Difficulty: Easy 20. The value of a derivative security _______. A. depends on the value of the related......

Words: 1247 - Pages: 5

Free Essay

Investment Project

...Becoming a multinational corporation gives the company a chance to grow and profit on a completely different level and could potentially make that corporation a household name worldwide. Not only does this create many opportunities for the company, it allows investors a chance to diversify their portfolios and enter the world of international investing. This project allowed me to learn more about international investing and competition in the global market. Two foreign stocks that trade on U.S. stock exchanges and two U.S.-based multinational corporations were included in the portfolio I created. Anheuser-Busch (BUD), a brewing company founded in 1366, produces, markets, and distributes beer, as well as non-alcoholic beverages. It boasts a portfolio of approximately 200 beer brands. The company’s international brands include Budweiser, Stella Artois, Corona, Beck’s, Leffe and Hoegaarden, while its local brands primarily consist of Bud Light, Skol, Brahma, Antarctica, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, and Jupiler. The company has operations in 24 countries. Anheuser-Busch is a foreign stock, as it is headquartered in Belgium. National Grid (NGG) is also a foreign stock; this company is headquartered in the United Kingdom. National Grid conducts and allocates electricity and gas to industrial, residential, and commercial consumers. The company operates high voltage electricity and gas transmission networks in Great Britain, a gas distribution system in......

Words: 1714 - Pages: 7

Premium Essay

Investment Team Project

...YMJ Investment – Final Project Throughout the semester we really had to watch the markets in order to obtain a successful portfolio. The way we approached this task was through constant watching of the securities market to find out current trends as well as picking up stocks we thought were undervalued at that time. The latter, of course, applies to our managed portfolio, where we were able to select stocks we deemed were good investments. We observed that this specific portfolio gave us more stable returns, which we attributed to the lower betas of these stocks. One can also conclude that the worst performers of the same portfolio were due the same cause. Based on the returns of our managed portfolio, one can conclude that we chose to take a safe approach and invest in stocks that had low, but steady returns and growths. At the end of the semester, our strategy proved to be successful based on our overall returns. On the other hand, our control portfolio, which takes a passive management approach, had a different outcome. In this type of management, it is imperative that one waits a longer period of time to receive the expected returns. However, we had surprising results as our stocks for this portfolio had large returns. We believe that this exceptional result was due our clever choice of industry. Also, the worst performers of this portfolio presented larger negative returns than we predicted. We also attribute these results to the betas of the stocks that were......

Words: 2165 - Pages: 9

Premium Essay

Project and Investment Appraisal for Sustainable Value Creation

...IFAC Board Exposure Draft November 2012 Comments due: February 28, 2013 Professional Accountants in Business International Good Practice Guidance Project and Investment Appraisal for Sustainable Value Creation IFAC’s mission is to serve the public interest by: contributing to the development of high-quality standards and guidance; facilitating the adoption and implementation of high-quality standards and guidance; contributing to the development of strong professional accountancy organizations and accounting firms and to high-quality practices by professional accountants, and promoting the value of professional accountants worldwide; and speaking out on public interest issues. The PAIB Committee serves IFAC member bodies and professional accountants worldwide who work in commerce, industry, financial services, education, and the public and not-for-profit sectors. Its aim is to promote and contribute to the value of professional accountants in business. To achieve this objective, its activities focus on:   increasing awareness of the important roles professional accountants play in creating, enabling, preserving, and reporting value for organizations and their stakeholders; and supporting member organizations in enhancing the competence of their members through development and sharing of good practices and ideas. Copyright © November 2012 by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please see......

Words: 13604 - Pages: 55

Premium Essay

Investment

... Investment Banking Giuliano Iannotta Investment Banking A Guide to Underwriting and Advisory Services Professor Giuliano Iannotta Department of Finance ` Universita Bocconi via Roentgen 1 20136 Milano Italy giuliano.iannotta@unibocconi.it ISBN: 978-3-540-93764-7 e-ISBN: 978-3-540-93765-4 DOI 10.1007/978-3-540-93765-4 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2009943831 # Springer-Verlag Berlin Heidelberg 2010 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMXDesign GmbH, Heidelberg, Germany Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com) To my......

Words: 86170 - Pages: 345

Free Essay

Investment

...pemodal setuju dengan taksiran Direktur Keuangan. Apa kesimpulan saudara? 6. Sekarang asumsikan bahwa perusahaan kesulitan menerbitkan obligasi. Sebagai hasilnya perusahaan akan menerbitkan tambahan saham biasa. Saham baru tersebut akan ditawarkan dengan harga Rp 1500 per lembar dan 70 juta lembar saham baru akan diterbitkan karena biaya emisi ditaksir sebesar Rp 5 miliar. a. Berapa harga saham setelah penerbitan saham baru dan pasar berpendapat bahwa proyek tersebut diharapkan akan menghasilkan NPV seperti jawaban saudara/ri pada pertanyaan nomor (3)? b. Siapa yang akan menikmati tambahan kemakmuran yang lebih besar? Pemegang saham lama, ataukah pemegang saham baru? Jelaskan Appendices Table 1 Estimated balance sheet of the project t year 0 (in billion rupiah) Net operating working capital 20.0Fixed assets 80.0 | Debt 100.0 | Total 100.0 | Total 100.0 | Estimated profit and loss for the year 1 (in billion rupiah) | Year 1 | SalesVariable costsFixed costsDepreciation | 60.0033.003.004.00 | EBITInterest expense | 20.0012.50 | EBTCorporate Income Tax (30%) | 7.502.52 | EAT | 5.25 | Table 2 Projected operating profit (EBIT) and EAT (in billion rupiah) | Year 1 | Year 2 | Year 3 | Notes | ......

Words: 3705 - Pages: 15

Premium Essay

Investment Project

... Investment Principles and Analysis Trinity University FNCE 3352 Spring 2010 INSTRUCTOR: Carl M. Hubbard, Ph.D., CFA Office: CGC N3l6; phone 999-7283, carl.hubbard@trinity.edu OFFICE HOURS: 9:30 – 11:30 MW; 2:30 – 4:00 TTh; Other times available by appointment. TEXTBOOK: Zvi Bodie, Alex Kane, and Alan J. Marcus. Essentials of Investments, 7th Edition. New York: McGraw-Hill, 2008. CALCULATOR: Texas Instruments BAII Plus Calculator COURSE OBJECTIVES The learning objectives for students in this course are: (l) improve your understanding of financial securities and markets, (2) develop the ability to analyze investment companies, common stocks, and bonds for investment decisions, (3) understand how options are valued and how option contracts are used in hedging and speculating, (4) understand how to apply security analysis techniques in relatively efficient capital markets, and (5) gain practical experience in trading securities. The prerequisite for this course is the completion of FNCE 3301 with a grade of C- or better. REQUIREMENTS OF THE COURSE 1. Complete the assigned readings and problems. 2. Attend and participate in each class meeting. 3. Complete the security analysis project. 4. Complete the three examinations as scheduled. READING AND PROBLEM ASSIGNMENTS The reading and problem assignments are designed to achieve the goals of the course and are to be completed in preparation for the discussion of...

Words: 1971 - Pages: 8