In other words, a company is using equity capital as a borrowing base in a desire to increase returns. ... When operating leverage is high, a small percentage increase in sales can produce a much larger change in net income. ... Financial Leverage: Financial leverage, briefly stated, refers to the use of borrowed money to enhance the amount of return to a company's owners. ... The idea is that a company can borrow money at a fixed interest rate and then use that money to buy or invest in assets on which it will earn a return that is greater than the cost of the interest of the borrowed m...

• Word Count: 762
• Approx Pages: 3
• Has Bibliography
• Grade Level: Undergraduate

Apple is a stock that you can trust because you know they will increase revenue. ... In the real world, with real money, I am not sure I would have invested my money in something as high as Google. I would most definitely invest in Starbucks because of their seasonal effect and increased revenue. I am happy with the stocks I have chosen but I am not sure I would reinvest my money on Google because with only $100,000 there are many other companies that I believe I could have long-term trust in. I do not know when I would begin to invest my own real money in the stock market but at least I would...

• Word Count: 528
• Approx Pages: 2
• Grade Level: High School

Motivating employees increases overall productivity which is very beneficial for the company. ... As a result, organizations continually spend a lot of money to ensure that their employees feel appreciated. ... Another factor which is definitely pressuring organizations is the increasing rate of employee turnover. ... While money is a significant motivator, it only goes so far particularly concerning job satisfaction. ... While money is an important factor, a long term strategy which enhances the morale of employees is quite vital. ...

• Word Count: 830
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• Has Bibliography
• Grade Level: Undergraduate

For example, an increase in demand for Aus exports from china has been recently occurring with a 55% jump in demand for iron ore, will increase demand for the AUD and cause an appreciation. This is best shown through an increase in demand on a diagram. [SD graph of AUD showing an increase in demand] As seen on this diagram, the price of the $A has increased due to the sharp rise in demand for exports. ... This is because investors would move their money from Australia into neighbouring countries, an event deemed as capital flight This would increase supply and reduce demand for the AUD causi...

• Word Count: 1109
• Approx Pages: 4
• Grade Level: Undergraduate

Increased interests in investments are resulting in rising employment opportunities for financial advisors. ... This increases the demand for financial advisors because people need advice on where to invest this money. ... With these companies looking for financial advisors to help assist their already established customers, it increases the outlook for this career. ... One of the most rewarding factors that you will find in this career is the satisfaction you receive when you help someone save money, for instance, helping a couple save money for retirement, or save for their daughter'...

• Word Count: 616
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• Grade Level: High School

A budget is simply (1) a tool to increase your consciousness of how and where you spend your money and (2) a guideline to help you spend your money on the things that are most important to you. ... Here are some tips on how to meet your financial goals: Try to reduce your expenses Control your spending and cut spending to areas that are higher than you expected If possible, increase your income Rationalize your spending, another important rule of financial advice. Think twice before spending your money. ... Save your money. ... You can save money in many different ways. ...

• Word Count: 1197
• Approx Pages: 5
• Grade Level: High School

Here capital refers to money that people invest in a business, yet capital can be money invested in the stock market or capital can simply be a physical investment in a plant, factory, and the forklifts. ... Investors are rewarded with this gain for taking the risk of investing their money. ... A capital gains tax cut would increase economic growth by unlocking potential capital gains with a more inviting investment opportunity. ... This will provide more money to be invested in the economy. Dismissing the capital gains tax will also make the United States an inviting country for internat...

• Word Count: 786
• Approx Pages: 3
• Grade Level: Undergraduate

This is the main way of raising money for the business. The person who purchases stock is doing so as an investment, a means of making money. ... Grocery stores are reporting an increase in grocery deliveries. ... This all means people are staying home, not spending money, which effects the economy and stocks take a drop. ... Cable news stations showed double digit increases. ...

• Word Count: 502
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• Grade Level: High School

A main reason is that the educational fee is demanded to maintain the high level for teaching, updating standard of education, investing infrastructure and modern equipment, leading to the fact that cost for education will increase every year to suit with the national budget. For example, the Obama Administration invested about $14 billion to improve education systems for employee requisitions, increasing many excellent professors and rising campus abilities, (U.S. ... Nowadays, no one cannot denied that many wealthy families are willing to pay a large number of money for their children to stu...

• Word Count: 552
• Approx Pages: 2
• Has Bibliography
• Grade Level: Undergraduate

Other benefit is that financiers aren't anticipating an instant return on invested money. ... Also you do not have to worry about repaying any money if your venture not be successful. ... Historical Relationships Risk/Return Generally companies issue bonds and shares of common stock to increase their capital worth. You act as creditor when you buy bonds, who loans out money to the company. ... Interest rates risks increase when existing rates increase. ...

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This means you have the possibility to make money, lose some money or lose everything you have invested. ... For example, if a war breaks out then stocks will increase dramatically in defense or military companies. ... The risk is that you are very likely to lose all the money you wagered. ... You can't take your money back without suffering a penalty. ... Many people lose a lot of money when investing in high risk stocks. ...

• Word Count: 632
• Approx Pages: 3
• Has Bibliography
• Grade Level: High School

This class helps us realize how much money we let go without even trying to save it. ... Thirdly, savings are important but not all of us save money. Majority of us spend the money right away or start planning how to save it for a few weeks so that we can enough money to buy something. Saving money isn't something teens are generally good at. ... In conclusion, after giving this topic much thought, one way to increase the financial literacy levels of our teens is to provide it to all students not just the Academy of Finance. ...

• Word Count: 753
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• Grade Level: High School

This is with the hope that there will be a decrease in their impact on the environment and an increase in financial savings. ... The warmth from heating the first floor rose to where the rink was, leading to an increase in energy to keep the rink cold. ... The new rink will also use wasted heat to heat the ice rink sub-floor so that they are able to save money with producing "new" heat. ... To conclude, the University of Colorado was able to design a new recreational center that was sustainable, and in doing so, will save them a lot of money down the road. ... This means that in 8.7 years,...

• Word Count: 841
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• Has Bibliography
• Grade Level: High School

It increased employment, people could live in bigger houses, and people could travel distances to see doctors. ... They felt invincible, and so did the money they had. They would invest their money into a lot of things, and also use their money to buy all the things that were on trend, and things they thought would benefit them. People would invest in stocks, factories, they would put all their money into the bank, thinking that it would be safe, and a great way to earn more money. As well as investing their money, they would spend it. ...

• Word Count: 683
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• Grade Level: High School

I am against the tax cuts because it shows that most of the money returned from the cuts is going to those who are already very rich. ... As stated earlier, the rich are the ones who are getting the most money. The middle classes and the poor class are the ones who should be getting more money, equal amounts. ... If the after-tax reward is increased, individuals may be encouraged to substitute saving for consumption. ...

• Word Count: 502
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• Grade Level: High School

The borrowing of money results in some form of interest that must be paid back on top of the money borrowed which takes more money out of my parent's paycheck over the course of time. ... Without this important aspect of the economy, there would be no money coming in. Therefore, it would be much harder for money to go out without racking up tons of debt. Employment does not only provide money for my family to live off. ... Increased inflation takes away from purchasing power and often scares consumers away from buying luxury items, and larger ticket items that would typically be purchased...

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This bank had a strong response to the 2008 financial crisis, when this crisis first happened EU asked EIB to offset falling investments, which led to more than on third increase in the total value of on going, outstanding loans by 2011. This was a 10 billion Euro capital increase agreed by their shareholders, the EU Member States in 2012, allows for 60 billion Euro additional lending in the EU during 2013-2015 periods. ... I am also including a link to the banks statistical report that breaks down the banks financial statistics between the geographical finance contracts signed, statistical Su...

• Word Count: 565
• Approx Pages: 2
• Has Bibliography
• Grade Level: Undergraduate

Options which means that the managers will not do well unless the price of the stock increases, benefiting can create an incentive for managers to manipulate information to prop up a stock temporarily, given them the chance to cash out before the stock price returns to a level reflective of the firm's true prospect. ... Bank raises funds by borrowing (taking deposits) and lending that money to other borrowers together. ...

• Word Count: 317
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• Grade Level: Undergraduate

Although property must be viewed as an illiquid investment because the transfer costs of properties are high and the selling period averages several months, according to steady profit return and low risk, many people buy in property to against currency inflation, and to compensate increasing life expense contrasted to decreasing social security after retirement. ... He gets $376,190 mortgage at 6.29% p.a. from Wizard home loan, calculate how much money he should spend weekly to obtain this property.) Capital growth Capital growth is the money you make as the value of your property appreci...

• Word Count: 824
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• Grade Level: High School

Making up the East Asian and Southeast Asian Region, Japan, Korea, Malaysia, and Singapore have undergone an remarkable increase in GDP, converting from a poor and technology backwards economy to a group of prosperous nations. ... (Industrial Development) These countries received a considerable amount of explicit and implicit economic assistance from the United States during the cold war era, and this provided money at the initial stage of economic development. ... The government's education policies generated rapid increases in labor force skills and enhanced the productivity and emp...

• Word Count: 828
• Approx Pages: 3
• Grade Level: Undergraduate

(interpretation of the ratio) This results indicates that the business has set its selling prices at a level, which will cover the cost of goods sold with money left over for other operating expenses. ... (Interpretation of the ratio) Although the business has seen an increase of 12.5% in revenue earned by total sales this has been offset by a 29.44% increase in other operating expenses. An area of concern is the 614% increase in depreciation for buildings when there has been no increase in the value of buildings indicated in the balance sheet. ... This result should indicate a greater volume ...

• Word Count: 985
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• Grade Level: Undergraduate

The reason is to avoid the speculative activity by demonic money speculator as well as to bring back its normal value. ... Mahathtir also tries to encourage the public to save their money while spending. ... Therefore the money can be used to help our economy. ... But now, we will create a new market in 3rd world and developing countries such as Africa and Eastern Europe due to the increase in purchasing power and the change of the regime. ... The rationale of this step is to encourage people to spend their money locally and ...

• Word Count: 1144
• Approx Pages: 5
• Grade Level: High School

Their hard work coupled with technological improvements in transportation and food storage, such as steam power (railroads, steamboats) and refrigeration, lead to a steady increase in prosperity. ... The lack of internal investment, dominance of foreign investment, minimal rail due to highly mountainous terrain, and native laborers meant that although Chile's natural resources were being sold, the natives often saw little of the money. ...

• Word Count: 434
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• Grade Level: Undergraduate

This stream of cash flows from monthly payments will enable management to make quarterly distributions or recycle the money in similar projects. ... In some cases, the percentage rent increase clause assures automatic adjustment to the inflation in the cost of living. ...

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Shareholders There are an increasing number of shareholders In a company who have an interest in so far, s they have invested money in the company in question, and are also looking for a return on that investment, and are looking for a return on that investment in the form of dividends. ...

• Word Count: 419
• Approx Pages: 2
• Grade Level: Undergraduate