Financial Statement Analysis & Security Valuation Essay

Financial Statement Analysis & Security Valuation - Essay Example The Morrison plc relies on the viable, competitive benefits and the corporate picture or image regards for improvement the strategic requirements. The financial analysis will make use of Reformulation, ratio, valuation using AOP and FCF model (including sensitivity and WACC calculation) to help in creating a meaningful summary of information based on financial statement of the company. The exhibited big difference between cost of goods sold (CGS) to sales and selling, general and administrative expense to sales indicates that Morrison Plc classify their costs based on the major expense category differently. The unexpected dividend changes normally results to the signaling effects and wealth-transfer. The transfer of the wealth between the debt holders and the equity holders in the market depends on the unexpected changes in the market; hence, the wealth transfers in the market (Fabozzi & Grant 2000, 87). The signaling effect is the change in the stock prices in the market with the unexpected change in the dividend. The unexpected increase in dividend will normally signal the decrease in the price of the stock in the market. The dividend is a significant determinant of the operation in the market because it determines the future earnings of the managers in the market. The higher dividend implies that the managers are reducing the agency problems between them and th eir shareholders; hence, they will be able to involve the shareholders in the increase of stock price (MacMinn, 2005, p. 20). The dividend policy determines the payment of which the business will pay to its shareholders. It determines whether the business will be paying the fraction of the profit to the shareholders, or they will be keeping the whole profit in the business (Baker & Kolb 2009). The dividend policy determines the image the firm will be able to uphold in the market especially to the investors. The market

Management Consulting Essay Example | Topics and Well Written Essays - 1500 words

Management Consulting - Essay Example To put the above question into perspective it is important to examine what qualifies these assertions in the following two broad ways: Consulting as a Method which is Fashionable Consulting involves a scientific methodology of solving problems or providing a theoretical framework of solving or creating a model of solving a particular problem according to Kubr (2000). In terms of methodology, any new framework is normally created by the process of induction i.e. through making generalizations and doing comparative analysis based on studies that were previously done. The approach is thus pegged on product consulting as a ‘fashion’ that tailors on theoretical framework which is based on expert based knowledge. Tuomi and Naarmala (2010) state that when making generalizations about a theory, it is important to do so from a position of theoretical propositions in the form of concepts. Consulting as a Product which is Fashionable The process of developing new consulting product s makes avenues for string concepts and models that define goods and services which customers enjoy and which are accessible to them. In a sense this ensures that products which would otherwise not be ‘seen’ get to be noticed and the positive sanctions as well as incentives about it are illuminated by way of service so that buying them becomes faster and convenient (Brotheridge and Power, 2007). This assertion authoritatively is what consulting is all about. Literally, consulting is ‘a situation in which one person has a problem or difficulty and seeks help from someone with special skills’’ (Kipping and Engwall, 2002; Greiner and Poulfelt, 2009). However, consultants do not always decide for their customers the way forward. Instead, they provide advice without necessarily asserting themselves to a formal authority situation where they necessarily insist that their clients choose a particular way. Consulting has also been defined as ‘activity, recommending appropriate action and helping to implement those recommendations’ (Tuomi & Naarmala, 2010). In the end, this is important since it provides an avenue for development of new and probable systems that justify changes to be made in an organization or a business entity as well as offering training for managers and other employees. It also in a significant way addresses issues regarding problem identification and recognition and ultimately its assessment and solutions (Biswas and Twitchell, 2002). Further consulting within the prism of methodology also creates the ground for an outsider to offer both competent, non-partisan discussion about the problem. Further, consulting culminating to a fashion ushers in more resources in respect to developing a product or a project and does more in providing information and availing opportunities for social networking. Indeed, scholars and experts have often suggested that the use of consulting in a problematic situation enhances the number of possible solutions to look into and thus increases the holistic view and approach to management. The products thus become, in a sense, a fashion out of a scientifically oriented approach. Thommen and Richter (2004) state that in the work place the issue is increasingly examinable in two ways: One is that the employment of consultative way of working in various departments in any organization is