The Axis of Evil vs. Evil Empire Sample Essay Example For Students

The Axis of Evil vs. Evil Empire Sample Essay The phrases â€Å"Evil Empire† by Ronald Reagan. and â€Å"Axis of Evil† by George w. Bush where phrases used by both presidents to indicate marks that were unsafe or a menace to the universe ; such as the Soviet brotherhood or Iran developing atomic arms among with Iraq and north Korea. Both of these addresss were indicating out the â€Å"bad cats of the world† as in meaning to maintain the peace. but it was besides a manner that the United States Military forces could take action and get down a struggle against the â€Å"bad guys† . In 1983 Ronald Reagan predicted the terminal of the Soviet Union. and he describes the socialist province as â€Å"the focal point of immorality in the modern world† because of its military capablenesss. The Soviet Union was under great troubles in the late 1970’s and early 1980’s. Bloated military budget. societal jobs. and economic stagnancy where the chief issues among others. In January 29 2002 Presid ent George W. Bush gave the term â€Å"axis of evil† to the states of Iraq. Iran and North Korea. These states were portrayed by George W. Bush during the State of the Union as possessing atomic arms ; the axis of immorality was condemned as a totalitarian government who was carrying arms of mass devastation. We will write a custom essay on The Axis of Evil vs. Evil Empire Sample specifically for you for only $16.38 $13.9/page Order now Bush lambasted these states for denying their people’s freedom. rejecting international reviews. and cultivating nervus gas and splenic fever. The two addresss have similar thoughts despite the different epoch. both of them speak about states or organisations that are considered possible dainties. they make them look like evil forces with possible devastation forces upon the people of the United States and the universe. In Ronald Reagan the address is seeking to come to a peacefully understanding with the Communists. and in George W. Bush address provides more grounds against the enemies and declares that the war against panic is merely acquiring started. Both of the addresss â€Å"excuse† the United States Military to take immediate actions against those evil forces. Some differences could be the external factors. In the cold war the was the tenseness betweem the communist universe and the United States. the Soviet Union wanted to populate in a universe in where the U. S were defeated and both states were in a â€Å"race† to develop arms and engineering. Meanwhile in the war against panic the struggle was created because of states possessing so much arms and heavy weapon including atomic. biological or chemical arms. The Cold War was a stand-off between the United States and Russia. At this clip. America truly felt threatened ; no one knew whether they’d wake up the following forenoon absolutely all right. or watching the sky as an atom-bomb fell from a Russian plane. The Soviet Union wanted to get the better of the United States. but the Soviet Union was besides in great troubles at the clip. America was in great fiscal emphasis as the World War had merely ended. The war on terrorist act is the existent war against terrorists groups that started slaying people on 2001 September. 11. It was a similar scenario to the cold war. people didn’t cognize if they’ll board a plane and arrive at their finish safe and sane. or leap in a plane that is being hijacked and crashed into say. the White House. Peoples are in a terror here every bit good. non to advert there is a widespread hatred for Muslims because of their wrongly placed association with terrorists. as Russian citizens were one time associated with Communist undercover agents. The United States was besides in great fiscal emphasis. .u5b80c05a1ec176ad616ebd7fd0343174 , .u5b80c05a1ec176ad616ebd7fd0343174 .postImageUrl , .u5b80c05a1ec176ad616ebd7fd0343174 .centered-text-area { min-height: 80px; position: relative; } .u5b80c05a1ec176ad616ebd7fd0343174 , .u5b80c05a1ec176ad616ebd7fd0343174:hover , .u5b80c05a1ec176ad616ebd7fd0343174:visited , .u5b80c05a1ec176ad616ebd7fd0343174:active { border:0!important; } .u5b80c05a1ec176ad616ebd7fd0343174 .clearfix:after { content: ""; display: table; clear: both; } .u5b80c05a1ec176ad616ebd7fd0343174 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u5b80c05a1ec176ad616ebd7fd0343174:active , .u5b80c05a1ec176ad616ebd7fd0343174:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u5b80c05a1ec176ad616ebd7fd0343174 .centered-text-area { width: 100%; position: relative ; } .u5b80c05a1ec176ad616ebd7fd0343174 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u5b80c05a1ec176ad616ebd7fd0343174 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u5b80c05a1ec176ad616ebd7fd0343174 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u5b80c05a1ec176ad616ebd7fd0343174:hover .ctaButton { background-color: #34495E!important; } .u5b80c05a1ec176ad616ebd7fd0343174 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u5b80c05a1ec176ad616ebd7fd0343174 .u5b80c05a1ec176ad616ebd7fd0343174-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u5b80c05a1ec176ad616ebd7fd0343174:after { content: ""; display: block; clear: both; } READ: Totalitarian Agriculture EssayThe Cold war and the war on Panic are really similar ; the struggles reveal that when the United States is in economic problem it develops a demand for holding a psychological enemy. Given the fact that the United States Military is known as the most advanced of the universe. and how the U. S can bring forth so much net income out of a war because of advanced military engineering and war stuffs. Just like in World War II. that the U. S was the lone state to do a net income out of it. It could be said that the United States develops these struggles to acquire out of an economic depression. Both of these struggles terrorize citizens into bit by bit deteriorate their civil autonomies. These struggles were alibis for one-sided invasions.

Simon Bolivar essays

Simon Bolivar essays The Generals Disunited States of South America Let us hasten to break the chains of those who groan in the dungeons waiting for salvation from you. Do not betray their trust. Do not be deaf to the cries of your brothers. Avenge the dead, save the dying, relieve the oppressed, and bring freedom to all! Those were the powerful words written by Simon Bolivar, which persuaded the people of Colombia to support him with the liberation of foreign states. Never before has South America seen a leader as determined as Bolivar, a man willing to sacrifice his life for the rights and freedom of the people by any means necessary. He was an excellent horseback rider, a man who killed a monk with his sword, an excellent strategist in the battleground, a general who enlisted the help of cannibals in his army, a man who escaped several assassination attempts, and a boy who played badminton with a young Spanish prince Ferdinand in his palace. They fit the description of Simon Bolivar; a man who accomplished more during his forty-seven years of lifetime, than forty seven men could hope to achieve in a hundred years. The Latin American Wars of Independence do not form an easy to tell narrative; there were different levels of violence, different revolutionary ideals and levels of popular participation throughout the Spanish colonies. Simon Bolivar was a man of integrity living among corruption, whose ideals and philosophies were seldom appreciated before his death, but they continue to be a basis of influence in modern South American society. The young and relentless general, Simon Jose Antonio de la Santisima Trinidad Bolivar became publicly known as the Liberator when he rid the South American colonies of three hundred years of Spanish rule. He was born into an aristocratic family on Caracas, Venezuela in 1783. During his early life, he was taught the non-conformists ways of Jean Jacques...

Assessment task 2 Essay Example | Topics and Well Written Essays - 1250 words

Assessment task 2 - Essay Example iv. The outcome of the intervention is for better diagnosis which helps to set the appropriate treatment for the patient. The question that makes need of my research is whether performing of ECG test on patient arrival helps in better diagnosis compared to delayed ECG test on stroke’s patients ? PART II The method of searching online has been used as a resource for information. These are research healthcare databases such as Medline plus, U.S National Library of medicine. The reason to use this database is that it is a nursing database that you can search online and offer usually access a greater scope of information. The most nursing research and articles as well as journal are found mainly on this database. Medline plus is also a free access to the public. This provides a tool for nursing in finding the resources a given case study as it is in my research. I made my search on electronic databases as well as catalogues in finding the information that was to link the case stud y of ECG test on stroke and also give the appropriate information. I made use of a key word that was typed on Google search. The basic search method that was followed are; identifying the key concept to be searched, entering keyword into the Google search box , clicking on search then an appropriate database was evaluated based on information presented and the level of trust to the source of this information. On evaluation after comparison with other sources such as The Alan E. Lindsay, ECG Learning center in cyber space but felt Medline plus had more accurate information which met my search demand. Other sources that were identified and downloaded on this ECG test but gave sketchy information on it and hence Medline plus was taken as the best. PART III A stroke usually happens if the blood flow stops to some part of the brain. Causes of stroke When blood flow get stopped for long as few seconds and the brain does not get blood which carries with it oxygen then it can cause the cell s to die and this causes a permanent damage. Usually there are two types of stroke that are major. They include; ischemic and also hemorrhagic stroke. Ischemic stroke occurs at the time when blood vessel supplying blood to the brain gets blocked by a clot in blood. This usually happens in two ways: A clot forms in the artery which is very narrow (thrombotic stroke),a clot breaks off right from any place of blood vessels that are in the brain or from other parts of the body and then travels to the brain(cerebral embolism or the embolic stroke). Ischemic strokes can be caused by clogging of arteries. Some Fat and cholesterol usually collect on the walls of arteries and forms sticky substance known as plaque. Hemorrhagic stroke usually occurs if the blood vessel on brain part is weak and bursts thereby causes blood leak to the brain. Some people may have defects that are in blood vessels and in the brain making this likely to happen (Latchaw 2009). STROKE RISK FACTORS High blood pressu re is a high risk for strokes followed by the others such as; Atrial fibrillation, Diabetes, Family history on stroke, High cholesterol, age(especially in age 55 and above) and race such as black people who are more prone to dying of a stroke. People with heart disease and also poor blood flow from

Identity Theft Research Paper Example | Topics and Well Written Essays - 1000 words

Identity Theft - Research Paper Example In this regard, the paper will also assess how these bodies handle such cases. Identity theft Introduction Identity theft is argued to be a form of stealing someone’s identity whereby the thief pretends to be the victim, characteristically in order to have access to resources in the victim’s name and identity (Vacca, 2003). This form of theft can cause and lead to adverse consequences to the victim in the event of being held accountable for crimes committed by the thief. According to Hammond, (2003), identity theft takes place when someone uses other person’s personal identification documents or information. Some of the common identification documents or information prone to such effects includes social security number or credit card number, which are used by identity thieves to commit fraud or other related crimes (Hammond, 2003). Different methods of how someone’s identity can be compromised and what identity thieves do with stolen identity Stealing is o ne and most common method used by identity thieves to obtain victims personal information. This mostly happens in the streets whereby thieves snatches or steals a purse or wallet (Social engineering framework, 2011). This can also come in the form of identity victims kidnapping victims and asking them to disclose their personal information. Using this method, identity thieves can go further to commit various crimes using the victim’s personal identification documents or information. Dumpster diving is a method used by identity thieves by a way of rummaging through the other person’s trash for them to look for some personal information that can aid them launch an attack (Social engineering framework, 2011). In some cases, people dump vital personal information documents without being aware of the danger they pose. However, some documents are dumped after being considered irrelevant or after being used. Identity thieves can use such information obtained from peopleâ€⠄¢s trash to commit a crime. Skimming is a situation where the thief uses a special device to store victim’s personal information. Skimming is a form of high-tech technique whereby thieves scan or swipe victim’s credit or bank card in order to get off the magnetic strip (Social engineering framework, 2011). This is common in areas where victims use their personal documents to purchase items or services. Phishing is another method used to by identity thieves to obtain personal information of their victims. They pretend to be a financial institution or other organizations that people presume to be genuine. They send a malicious email in the effort to encourage their victims to enter specific information (Vacca, 2003). Unknowingly, victims provide all their personal information, which is used by the impersonators. Changing of address is also used by identity thieves whereby they change victims address mostly in situations where victims have to fill out a â€Å"change of address† form. They can transfer victim’s bills after ordering high ticket items. Pretexting is also another method used by identity thieves by a way of using false pretense to obtain the victim’s personal information for them to use it to carryout various crimes (Vacca, 2003). Thombstone theft is another method used to steel personal information. It involves stealing dead person’

Acupressure Complimentary Treatment Assignment Example | Topics and Well Written Essays - 2500 words

Acupressure Complimentary Treatment - Assignment Example Acupressure machine rental within the center itself. The machines can be used in the center which will be open six days per week and can be rented out on a pay per session rate of  £10 plus vat or a monthly subscription of  £100 per month plus vat. The complementary therapy. The therapists will be partnering with the center so they will not receive payment for attending rather they will receive a fifty percent split on profits earned per session. My model encourages the complimentary treatment model to be rolled out away from its usual niche environment and instead it is on offer in a high street setting. Up to now, any complimentary centers which I have seen operating in the high street have operated in below par premises which are not in keeping with a therapeutic environment. By offering a quality service in a high street environment at a competitive rate this presents a unique offering to the customers. Furthermore, the implementation of acupressure rental is a significant addition to the therapeutic center; it provides an economic therapeutic option to the customer while presenting my business with another viable income stream. Also, complementary treatments can be upsold from acupressure rental subscribers and cross sales can be created from therapy customers to acupressure machine rental. Up sales to complementary therapies in the center namely: Acupuncture; Head massage; Reflexology and kinesiology and also cross sales back from the therapies to device rental. There is also the logic behind the therapies been offered; acupuncture is a natural progression from acupressure rental; head massage is a quick and relaxing treatment which suits busy shoppers as does Reflexology.  Ã‚  

Role of Risk Management in an Organisation

Role of Risk Management in an Organisation Task One – Individual Research Report The Task You are asked to research, critically examine and discuss the role of the ‘risk management’ function within an organisation. Examine and discuss the purpose of risk management within an enterprise. The purpose of risk management in an organization is to identify the possible problems before it occur in a business. Risk handling actions may be deliberated and raised as needed through the life of the creation or plan to alleviate opposing impacts on attaining objectives. Risk management is a constant and progressive process that is significant part of business. It address issues that endanger the achievement of objectives. Constant risk management method is practical to successfully expect and alleviate the risks that have serious impact on the plan. To have an effective risk management it should have a comprised aggressive and early risk documentation through the association and participation of related inventors. Technical issues are a main concern both early and during all plan stages. Risk management must deliberate both external and internal sources for schedule, cost, and technical risk. Examine and discuss the benefits of risk management within an enterprise There are a lot of benefits of risk management within an enterprise. Some of those are formation of a more risk that is focused on culture for the organization. In this the organization will implement ERM note that will increase the focus on risk. The senior ranks results in more conversation of risk at all levels. Discussion of risk and communication is recognized as a process to deliver information to senior management and also a way to segment risk information inside and through operations of the company. In that case it will let improved visions and decision making regarding risk at all levels. Regular risk reporting, ERM maintain better structure, broadcasting, and investigation of risks. Consistent reports can progress the focus of executive and directors by providing data that allows improved risk moderation decisions. Improved focus and perspective on risk. Efficient use of resources and effective coordination of regulatory and compliance matters. Examine and discuss each of the following risk management components explaining how they relate to the overall role of the ‘risk management’ function Reviewing of activities and internal environment The internal environment contains the manner of an organization, persuading the  risks awareness of its people, and the foundation for all other people. It provide  discipline and structure that the people will follow to avoid risk management. Internal  environment factors include an individual’s risk management and it over sight by the  board of directors its integrity, ethical values and competence of the individual. An  organization’s internal environment has a significant impact on how enterprise risk  management is implemented and functions on an ongoing basis. Setting objectives Objectives are set in every organization or business in order to evade risk management. Establishing a basis for operations, reporting, and compliance objectives. Every  Individual have a different risks from internal and external sources, and a qualification  active incident, documentation of risk assessment, and risk response to establish  objectives aligned with the individual risk desire which drives risk tolerance levels for  the object. Also objective is the guide that one business should follow  in order to have a good outcome. Event identification Management identifies potential event that will affect the individual and determines whether they represent opportunities that might adversely affect the individual ability to successfully implement strategy and they will achieve their objectives. Event should be positive impact so that no rick will develop in individual which will lead the management assessment and response. Risk assessment with particular reference to the impact and likelihood of risk Risk assessment allows a person to deliberate the level to which potential events have  an impact in achieving the objectives. In risk assessment it can be qualitative or  quantitative methods wherein they can used questionnaires that they can distributed to  the employee and the company or business owner will be able to determine what the  risk management problem in the company. They will assess it together with the top  management and the board to develop a certain solution that will help them  in resolving the risk management. Risk response plans After assessing the relevant risk, management now determines how will respond. Responses may include risk avoidance, reduction, sharing, and acceptance. In  seeing its response, management assesses the result on risk likelihood and impact,  as well as costs and benefits. Management identifies any opportunities that might be  available. At the completion of its risk response actions, management may have a view  of individual risks and responses and their place with associated acceptance. Control activities Procedure and policies that help ensure that the management risk respond is carried out  is the control activities. Also the activities happen all over the organization in all  functions and levels. Control activities include a variety of activities such as  reconciliations, authorizations, verifications, approval and reviews of operating  performance also segregation of duties and security of assets. Control activities generally  established to ensure risk responses are appropriately carried out by individual with  respect to certain objectives. Information and communication Relevant information is identified, taken, and communicated in a form and now the  people are given timeframe that enable them to carry out their responsibilities. Information gathered are generated as data. That information will provide the  management the risk that they need to resolved and making informed decisions relative  to objectives. Effective communication also have an important role in risk management,  it is one of the important factors in a company. All workers must get a clear message  from the management that enterprise risk management responsibilities must be taken  seriously. They should understand their own role in enterprise risk management, as well  as how they will relate the activities to their work and to the work of others. They must  have a means of communicating significant information upstream. There is also effective  communication with external parties, for example customers, suppliers, regulators, and  shareholders. Monitoring Enterprise risk management is monitoring and assessing the presence and functioning of its mechanisms over time. This is being done through ongoing monitoring activities. The management do evaluation to monitor the performance of the people. Through evaluation they will know if the people in the company are implementing the objectives and no risk management will happen. Ongoing monitoring occurs in the normal course of management activities. The opportunity and occurrence of separate evaluations will depend mainly on the assessment of risks and the effectiveness of constant monitoring actions. Enterprise risk management deficiencies are reported to top management and the board.

A Study of Factors Driving Shareholders’ Value

[pic] A Study of Factors Driving Shareholders’ Value and Influencing Sensex Fluctuation In India Executive Summary The objective of this project is to analyze the most important factors which drive shareholders, value. Shareholders’ value here refers to the MVA (market value added) which means the additional value which shareholders are earning on their invested money. The performance of a company matters a lot in creating a positive image of that company in front of its stakeholders. Moreover, the main objective of a company is to maximize the shareholders’ value. So, shareholders always want to know that the Company with whom they have entrusted their hard earned money is efficiently utilizing it and thus, creating Value for them. We have always read the annual report of the Companies to find out information about their â€Å"top line† and â€Å"bottom line†. We also have various financial ratios and terms which act as essential factors to consider for our aid like Return on Capital Employed (ROCE), Return on Net worth (RONW), Earning per Share (EPS), Dividend per Share (DPS), Debt Equity Ratio (D/E Ratio) and Economic Value Added (EVA). This research is an attempt to find out whether EVA, DPS, D/E Ratio, EPS, ROCE, RONW of the companies listed in sensex really explains the value accretion for the shareholders and cause fluctuation in sensex. So, I have taken these variables as Independent variables and MVA as a dependent Variable (shareholders’ value) to apply regression analysis to come out with a result that which variable is having a high degree of Correlation with MVA and significantly explains variation in MVA. To perform this analysis secondary data has been collected from Prowess and www. bseindia. com Out of 30 companies listed in sensex, 23 companies are selected as sample. 7 companies are eliminated because of inadequate information available for these companies. The reason behind choosing these companies is that their reliability in terms of selection of the Companies as only those Companies are selected which have a listing history of at least 3 month with sufficient trading frequency. After that the data of different financial indicators of these Companies (RONW, ROCE, D/E Ratio, EPS, DPS, Avg. Market Capitalization and Beta value) are collected for the period of 2003-2008. CAPM model is used for calculating cost of equity. The EVA and MVA is calculated. After that change in MVA has been calculated with respect of previous year. Here 2003 has been taken as a base year and study has been done year wise from 2004-2008. Both EVA and Change in MVA are standardized by dividing both of them by Net Worth of the respective companies. This is done in order to get relative value of EVA and MVA over the same Net Worth. SPSS software is used for applying simple and multiple regression analysis. First Simple regression has been applied taking one Independent variable at a time in order to find most important variable and eliminate least important variable and analyze each variables influence over Change in MVA individually. After this multiple regressions has been applied in order to find the combination of Independent variables which are strongly correlated with change in MVA. In my study EVA has been found the most important variable then RONW, and then ROCE. These variables are having a high degree of correlation with change in MVA and significantly explaining the variation in MVA individually. While the combination of EVA, EPS, and DPS are having a very high degree of correlation with change in MVA. So, my analysis shows that it is best to invest in a company generating higher and positive EVA, RONW, and ROCE it will add additional value to shareholders. INDEX Chapter-1 Introduction Page No. 1. 1 Company Profile†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 12-13 1. 2 Product & Services Offered by IL Investsmart†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 14-16 1. 3 Background of the Problem†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17-19 1. Introduction of the Project†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 20-21 1. 5 Scope of the Project†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 22 1. 6 Literature Review†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 23-24 1. 7 Abbreviation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 25 1. 8 Research Objective†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 26 1. 9 Introducing MVA and EVA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 27 Chapter-2 Research Methodology†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦29-30 2. 1 Limitation of Research†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 31 Chapter -3 Research Analysis 3. 1 Different Measures used for Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦36-36 3. 2 Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 37 3. Year wise Result of Simple Regression analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦38-42 3. 4 Overall Re sult of Simple Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 43 3. 5 Year wise Results of Multiple Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 44-62 3. 6 Overall result of Multiple Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 63-64 Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 65 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 66 Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 67 Appendices Appendix-1 Table of Annual Return of Sensex†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 68 Appendix-2 Table of Year wise Annual NOPAT of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 9 Appendix-3 Table of Year wise Annual RONW of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 70 Appendix-4 Table of Year wise Annual ROCE of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 71 Appendix-5 Table of Year wise Annual D/E Ratios of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 72 Appendix-6 Table of Year wise EPS of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 73 Appendix-7 Table of Year wise DPS of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 74 Appendix-8 Table of Year wise Annual Market Cap. of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 75 Appendix-9 Table of Year wise Equity of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦76 Appendix-10 Table of Year wise Bank borrowing of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 Appendix-11 Table of Year wise Annual Beta value of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 78 Appendix-12 Table of Year wise Levered Beta value of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦79 Appendix-13 Table of Year wise cost of equity of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 80 Appendix-14 Table of Year wise Cost of Capital of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 81 Appendix-15 Table of Year wise EVA of Companies†¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 82 Appendix-16 Table of Year wise Stdz. EVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 83 Appendix-17 Table of Yaer wise MVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 84 Appendix-18 Table of Change in MVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 85 Appendix-19 Table of Stdz. MVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 86 Chapter-1 Introduction 1. 1-Company Profile: IL IL Investsmart Limited (IIL) is one of India’s leading financial services organizations providing individuals and corporate with customized financial management solutions. Investsmart has a strong presence across wide range of products and operates in the areas of Investment Management and Advisory Services, Broking Services, Merchant Banking, Project Syndication, Equity and Debt Broking, Commodity Broking and Distribution of Financial Products. Earlier the company was owned by IL Group but is now held by HSBC, one of the world's largest banking and financial services organizations. According to press Release by HSBC, the Company has completed the acquisition of 93. 86% of IL Investsmart Limited for a total consideration of INR 1,311 Crore. According to Sandy Flockhart, Group Managing Director & Chief Executive Officer of Asia-Pacific, Investsmart will give HSBC access to the World’s third-largest Investor base, with over 20 million retail Investors. The business already has 143000 Customers. The documentation and name changing process is yet going on (till 15th June 2009). In India, The HSBC Group offers a range of financial services including corporate, commercial, retail and private banking, insurance, asset management, investment banking, equities and capital markets, institutional brokerage, custodial services. It also provides software development expertise and global services facilities for the HSBC Group's operations worldwide. IL Investsmart Ltd has an all India presence through its network of branches and franchisees over 128 cities. Following a successful Initial Public Offer (IPO), IIL has been listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). IIL is geared towards understanding and achieving the financial goals of all its customers, through its specialists in the aforesaid areas. IIL’s 2000 employee provide a complete range of Investment solution in India through 88 branches and 190 Franchisee outlets from 128 Cities. It has been recognized as â€Å"National Best Performing Financial Advisor – Retail† for two years in a row (06-07 and 07-08) by CNBC TV 18, With a market capitalization of approximately US$260 million. The Corporate Office and Research Division are located in Mumbai. In Delhi, the regional office is at Caunaght Place and the branch office is at Pitampura. . 2-Products and Services Offered by the IL: The Company has grouped its Product and services in following manners: o Retail Offering o Institutional Offering o Advisory Report & Advisory Services o Online Trading Retail Offering: It includes Advisory Products regarding research reports and analysis. Trading product: It includes Equity and Derivatives. NRI Products: It includes NRE Equity, NRI Portfolio Management services, Mutual Funds, IPO, Insurance, Wealth Management Products, PAN card services, Advisory Report and Accounting and income Tax return filling in India. Institutional Offering: |Investment Banking Services | |IL Investsmart (IIL) offers extensive range of Investment Banking Services for equity | |related products and instruments. Their team advises Customers on transactions like business | |structuring and capital raising opportunities based on their corporate needs and state of capital | |markets. Services it specialize in include Management of: | |Initial Public Offering (IPOs) | |Follow-on Offerings | |Qualified Institutional Placements (QIPs) | |Buyback of Equities | |Open Offers | |Mergers & Acquisitions | |Private Equity Placements | |ESOPs | |Institutional Equity Broking Services: | It includes IPOs, equities, derivatives and mutual funds. It also focuses on identifying undiscovered value stocks to investors. Through its gamut of services, this division is well-suited to corporate investors, banks, financial institutions, insurance companies and FII’s. Their Institutional Equity Business (IEB) is well positioned to offer support for a complete range of investment banking service to corporate. Institutional Debt Broking Services: | Its institutional debt broking division includes, secondary market broking, primary market debt placement & distribution and provident fund advisory services. Advisory Report & Advisory Services: It includes Equity Report, Mutual Fu nd Report, Debt Market Report, Sector Report, Derivatives & Technical Reports. The reports are sent to the Customers on a daily basis before opening of Stock Market in the Morning through email. It also provides Advisory Services by message alert and appointing Relationship Manager to HNI clients. Online Trading: For Online trading Company provides three products as online trading Platform: SmartStart It is a powerful browser based trading system for those who are relatively new to online investing. A unique integrated account, which integrates Cusomer’s banking, broking, and demat accounts. A comprehensive trading service, which allows Investors to invest in equities and derivatives. SmartStart trading platform allows you the flexibility of trading on any internet capable system, with access to both the NSE and BSE. SmartInvest is a browser-based system designed for customers who transact occasionally. It is ideal for investors who believe in the Buy and Hold approach towards investment in equities. SmartInvest's capability as a browser-based trading platform gives the benefit of real-time streaming data with the flexibility of trading on any Internet capable system. With access to both the NSE & BSE. SmartInvest sophisticated yet easy to use point and click order entry interface allows you to react more quickly to the markets and make better decisions. SmartTrade is an EXE based desktop software designed for active traders who transact frequently to capture favorable short-term price movements. The platform offers active traders the tools they need to make critical decisions with confidence. SmartTrade is designed and built from the ground up to address the needs of active traders. SmartTrade makes the most of state-of the-art technology to deliver power, speed and reliability. Through an easy-to-use interface, users are provided with the same tools and advantages that the professionals enjoy. 1. 3-Background of the Problem In two month of my training my job was divided into two parts. In one part I was told to sell the online trading product of the Company and in other part I was told to do my project in equity research. Since the Company is very much customer oriented, It wants to give a complete Investment solution to the customer so that the Company can delight them. For this company has a research division located in Mumbai. Since I was working in Pitampura Branch and that branch deals in Equity only (Online trading Product). So, I was upposed to do my project on Equity research. In this two month as a summer trainee I use to generate Client Database from my own sources and then approaching to the potential Customers by calling and arranging meeting with them and finally converting them into Customers. I was also handling the query of Existing Customer s of the Company regarding Online Products. On the basis of their Query I felt that the new retail Investors as well as existing Customers need a strong support from company to have an idea in which stock they should invest, so that in future their investment will result in a positive or will increase market value of their Investment in Stock market. For this Company use to send three research reports regarding better investment option on a daily basis on their email-id, message alert on mobile, and appoint Relationship Manager. So, for complete Customer satisfaction the company needs to have a strong research Division which is already there in Mumbai. Moreover, because of Global Melt Down investors are very much afraid to invest in Stock Market as the sensex reaches to a minimum of 8000 from 21000 within a Year. Now they are looking for those brokerage firms, which will guide them with a strong research analysis. So, in this case it is very much essential for the Research analysts working in the Company to analyze those factors which are really going to accelerate the market value of share holders in order to gain a competitive edge over the Competitors. It is the time to do an in depth study on those factors which an investor should consider before investing in a particular Company or Stock, if they want to add some more money to their pocket. So, I was given a task to analyze those financial factors which will drive the share holders’ value in future and will keep them at safe end for a long as well as short term Investment. Since, if the market value of stock will increase, sensex will also go up. So, here we need to study on those factors which will increase the Market Value. First thing which comes in my mind is that Stock of a particular Company is very much similar to a person, like whatever is happening in a person’s life, he or she is the one who is responsible for that. For example if a person is not able to pass an MBA exam then we say that something is wrong with his or her mind, if he or she is not able to walk properly then something is wrong with his or her health. It means the problem is within the person. The same things apply in the stock Market like if a company is not able to increase its market value (Share holders’ Value) or market Capitalization it might be the reason that Company is not performing well, not generating enough Profit, not able to use its assets in an effective and efficient manner, not able to increase the earnings of its owner and etc. because of which it is destroying the share holders’ value. So, I decided to work on the financial performance of Companies itself and to analyze whether the financial Performance of a company like (RONW, ROCE, D/E Ratio, EPS, DPS, EVA) is having any kind of correlation with their market value. I have also tried to analyze that is it so that we should consider these factors as a driver of Share holders’ value? Will positive change in these factors give positive result to the Share holders? This is the rationale behind working on this project which is very much required to understand in this recovery period of Economy. 1. 4-Introduction of the Project Today, one of the major goals of financial management is maximum utilization of the capital employed for maximization of Shareholders’ value. Since capital resources are scarce and costly, companies try to employ these resources in a way that yields highest return. Of course this should be accompanied by steps taken to minimize the cost of acquired resources. Otherwise, it will not increase the shareholders wealth and the firm's value. The manager of a firm (as an internal user of financial information) and the investors and other parties (as the external users) are interested to use an appropriate performance measure in order to assess how the managerial actions affect the value of the firm. For this purpose the performance measure used, must consider at least three things, which are: the amount of capital invested, the return earned on the capital, and the cost of capital (Weighted Average Cost of Capital). So, the first question comes to our mind is that how do shareholders know that the Company with whom they have entrusted their hard earned money is efficiently utilizing it and thus, creating Value for them. We have always read the annual report of the Companies to find out information about their â€Å"top line† and â€Å"bottom line†. We also have various financial ratios and terms which act as essential factors to consider for our aid like Return on Capital Employed (ROCE), Return on Net worth (RONW), Earning per Share (EPS), Dividend per Share (DPS), D/E Ratio, and Economic Value Added (EVA). Out of all these factors EVA was introduced as an Indicator for Shareholders’ wealth maximization in 1990’s by Stern Stewart & Co. It has been a focal point for majority of the studies. Stern has claimed that EVA as a tool of financial management is not just a phenomenon and neither is it limited to only `for profit' organizations. Economic Value Added has been put to use for management performance evaluation and much more than just a measure of performance, it is a framework for complete financial management (for improving allocation of scarce capital; and for valuation of a target company at the time of acquisition). On the other hand, Market Value Added (MVA) is an indicator which measures the stock returns and shows the effect of different factors on share prices, in a particular market. While EVA is an accounting-based measure for the corporate performance of one year, MVA is a market-generated number. MVA is cumulative measure of the value created by the management in excess of the capital invested. This research is an attempt to find out whether EVA, EPS, ROCE, RONW, DPS, D/E Ratio of the companies listed in sensex explains the value accretion for the shareholders and fluctuation in sensex. 1. 5-Scope of the Research Since, BSE Sensex of India represents the whole Indian Economy. The companies listed in sensex are the representative of all the major industries of Indian Economy. Millions of investors have invested their money in the stock market. The stock market is something where investors can earn lot of money but risk is also there, because it follows fundamental of high Risk High Return. So, it is very much require to analyze the behavior of market. It means we should know in which company we should invest or we should not. So, the scope of research is to analyze the most important driver of shareholders’ value. Since, Research Division of IL Invetssmart are very much working on analyzing the behavior of stock market so that they can properly guide their customers regarding investment. This research will be a value addition for the Research Division of IL Investsmart, as it ill give an idea which factor is highly correlated with Market value of the Companies. The market value of the Companies is very much dependent on the performance of the Companies. But which performance measure should be taken into consideration by the Investors before investing in any company is very much required. So, this research will expla in whether performance measure does have any correlation with market Value added of the Companies. If it is so then which of the performance measures is strongly influencing the shareholders’ value? The research is an attempt to analyze the influence of few performance measures over the shareholders’ value and this will help in taking correct investment decision. 1. 6-Literature review Stewart (1991) had carried out a research to find out the relationship between EVA and MVA. This study was done by taking average EVA values for the year 1987 and 1988 of 613 companies in USA and then comparing them with their MVA values for 1988. The study found an r2 of 97% between the EVA and MVA value for the Companies with positive EVA while this correlation was insignificant for the companies with negative EVA values. Finegan (1991) took a sample of 450 Companies in USA and found that average value of EVA could explain 61% of the variance in MVA whereas the similar figure was 44% between the change in EVA and change in MVA. He also observed that this r2 was 47% between ROCE and MVA. Dodd and Chen (1992) found ROA as a better driver of Shares returns as compared to EVA. Stern (1993) found out that EVA is the best measure that drives the Shareholders’ value with an r2 of 50% with MVA. The next important driver was ROE with an r2 of 25% with MVA. Lehn and Makhija (1996) also studied the relationship of share returns with ROE, ROA, Return on Sales (ROS), EVA, MVA and CEO turnover. Correlation was found to be highest in case of EVA however, (EVA divided by the Cost of Capital), NOPAT (Net Operating Profit after Tax) and free cash flow and correlation with them with market value divided by invested Capital. He found NOPAT as a better indicator with an r2 of 33% compared with 31% in case of EVA. However, changes in EVA values explained 74% of the change in market value over a period of 10 years. Uyemara and others (1996) studied MVA’s correlation with EVA, Net Income, EPS, ROE, and ROA over a period of 10 years. r2 was highest technology industry for the period 1990-95 and found an r2 of 42%. EPS was judged as the second best measure of with an r2 of 34%. Kramer and Pushner (1997) established that lagged levels of NOPAT explained MVA better as compared to EVA. This correlation was found higher even when changes in NOPAT were correlated with changes in MVA. According to Biddle and others (1991), Net Income was found to be the best measure to explain Share returns. Majority of these studies were focused on US Companies. Giffith (2004) concluded that an Investor or analyst using EVA or MVA measures to forecast performance would have experienced significant losses. Ferguson and others (2005) also doubted that adopting EVA improves stock performance. JHvH de Wet (2005) analyze the database of 89 south African Companies and observed that the Standardized Cash Flow from Operations (CFO divided by the invested Capital in the beginning) had an r2 of 38% with the Standardized MVA (MVA divided by the invested Capital in the beginning), which was found to be the best driver as compared to the Standardized EVA (EVA divided by the Invested Capital in the beginning), ROA, ROE, EPS, and DPS. He also observed that Correlation of EPS and DPS for valuing the Shares. Roji George (2005) analyzed the data of 21 Indian banks for the period 1999-2003 and concluded that there is a positive relationship between EVA and productivity and negative relationship between EVA and NPA. So, what I have found that nobody has done any analysis on the 30 companies which is listed in Sensex, while these companies represent all the major Industries of Indian Economy. So, it is better to analyze these Companies’ behavior. So, this research is an attempt to bridge this research gap. 1. 7- Abbreviation |NOPAT |Net Operating Profit After Tax | |RONW |Return on Networth | |ROCE Return on Capital Employed | |D/E Ratio |Debt/Equity Ratio | |EPS |Earning per Share | |DPS |Dividend per Share | |EVA |Economic Value Added | |MVA |Market Value Added | |R |Coefficient of Correlation | |R2 |Coefficient of Determination | 1. 8-Research Objective The following are the objectives of my research: Main Objective The primary objective is to find out what drives the share ho lders’ value. Specific Objective 1) To find out the correlation of the measures like RONNW, ROCE, D/E Ratio, EPS, DPS and EVA with MVA(Market Value added) 2) To find out the most important factors or variable which explain variance in MVA and that variable should be consider before investing in any Company. 1. 9- Introducing EVA and MVA As the introductory paragraph of this paper suggests, EVA is the surplus profit after accounting for all the expenses including the cost of capital. We have always looked at the figures of Profit after Tax to find out whether a company is performing well or not. However, what we forget is that the shareholders invest money in a company in expectation of some return. So, the basis for evaluation should be whether the company has earned over and above the minimum required rate of return by the investors. If there is surplus after accounting for this opportunity cost of equity, the company is creating value for its shareholders. If not, then it is destroying value. In other words, value is created when return earned by the firm is more than its cost of capital or firm invests in the project with positive NPV. EVA can be calculated through any of the following methods:  · Increasing revenue, Reducing operating costs, Efficient utilization of assets and Raising funds at cheaper cost Chapter-2 Research Methodology Research MEthodology Quantitative Research Design has been used in this research. This analysis was carried out over a period of 6 years (2003-2008) on companies which form part of BSE Sensex. Nature of Data: Secondary Data has been used for this research. The Year wise annual data of NOPAT, RONW, ROCE, D/E Ratio, EPS, DPS, Avg. Market Capitalization, beta value of 23 Companies out of 30 Companies listed in the Sensex. Source of Data: For regression analysis the data has been collected from CMIE’s Prowess and www. bseindia. com. Research Design: Descriptive Research Design has been used as the problem is well define and key issues are known and which is to find out the most important variable which drive the Shareholders, Value. Under this Research design, Cross Sectional Study has been done. Year wise annual value of all the variables has been collected from 2003-2008 for finding the cause and effect relationship between Independent Variables (RONW, ROCE, D/E Ratio, EPS, DPS and EVA) with dependent variable (Change in MVA). The study has been done on yearly basis. Sampling: Judgment (Purposive) Sampling Method has been used for selecting Companies. The analysis has been carried out over 23 Companies out of 30 Companies listed in sensex. Though Sensex comprises 30 companies, 7 companies were eliminated because of the inadequate information available for these Companies. The reason for choosing these Companies are their reliability in terms of selection of the Companies as only those Companies are selected which have a listing history of at least 3 month with sufficient trading frequency. Sample Size: Sample size is of 23 Companies has been taken for the Year 2003-2008. The following Table shows the List of Companies: |Company Name | |Bharat Heavy Electricals Ltd. Oil & Natural Gas Corpn. Ltd. | |Bharti Airtel Ltd. |Ranbaxy Laboratories Ltd. | |Grasim Industries Ltd. |Reliance Industries Ltd. | |H D F C Bank Ltd. |Reliance Infrastructure Ltd. | |Hindalco Industries Ltd. |State Bank Of India | |Hindustan Unilever Ltd. |Sterlite Industries (India) Ltd. | |Housing Development Finance Corpn. Ltd. |Sun Pharmaceutical Inds. Ltd. | |I C I C I Bank Ltd. |Tata Motors Ltd. | |I T C Ltd. |Tata Power Co. Ltd. | |Infosys Technologies Ltd. |Tata Steel Ltd. | |Larsen & Toubro Ltd. |Wipro Ltd. | |Mahindra & Mahindra Ltd. |   | Statistical Tool : The Simple Regression Analysis and Multiple Regression Analysis have been done using SPSS to establish the relationship of MVA with EVA, ROCE, RONW, EPS, DPS, and D/E Ratio on Yearly basis. 2. 1- Limitation of Research The following are the limitation of this research: Since, the research has been carried out to find out the important factors which drive shareholders value. So, only the financial ratios which measures performance of the Companies are taken into consideration. Hence, the focus of research is on micro economic factors only. While macroeconomic factors (like GDP, FIIs, and Inflation) also does matter in creating or eroding the value of shareholders. Chapter-3 Research Analysis 3. 1- Different measures used for the analysis In this research our main objective is to find out the factors which investor should look for or take into consideration before buying share of any Company. Now it becomes very much essential to know the correlation between these Variables and the Shareholders value. Hence we have included some of the main variables like RONW, ROCE, D/E Ratio, EPS, DPS, EVA. These are the variables based on which an Investor decide to buy the shares of a particular Company. As depending upon these variables they buy the shares, the market Value of that particular Company increase which results in increase in Shareholder’s Value. Hence Dependent Variable is MVA. (For data please see Appendix-17 p. no. 84) But since MVA is Stock concept so, for applying Regression Analysis change in MVA (Market Value Added) with respect to previous year has been used. MVA=Market Capitalization-Investment (Book Value) Change in MVA= (MVAt – MVAt-1 )/MVAt-1)x100 Here, MVAt= MVA of the Companies of Proceeding Year. MVAt-1= MVA of the Companies of preceding Year Independent Variables are: six performance measures are considered as Independent Variable RONW, ROCE, D/E Ratio, EPS, DPS EVA. All these variables are flow variables. 1) Return on Net Worth (RONW) =NOPAT/Total NETWORTH NETWORTH=EQUITY+RESERVE & SURPLUSES Return on Networth measures a company's earnings in relation to all of the Investor’s it is using. RONW tells us what earnings were generated from the Networth. The Networth of the company comprises both equity and reserve and Surpluses. These types of financing are used to fund the operations of the company. The RONW figure gives investors an idea as to how effectively the company is converting the money it has into net income. (For data please see appendix-3, p. no-70) 2) Return on Capital Employed (ROCE) = EBIT/(NET Worth+Debt) Return on Capital Employed (ROCE) is a measure of the returns that a company is realizing from its capital. It calculates as profit before interest and tax divided by the difference between total assets and current liabilities. The resulting ratio represents the efficiency with which capital is being utilized to generate revenue. (For data please see appendix-4, p. no. 71) 3)D/E Ratio=Total Debt /Total Equity D/E Ratio gives the idea about the Capital structure of the Company. It shows how risky is the Investment in a Company. On the basis of D/E ratio we can have an idea of the fixed liabilities of the Company if it is using more of Debt. (For data please see appendix-5, p. no. 72) 3) Earning per Share (EPS) = PAT/The Number of Equity Shares Earning per Share is the portion of a company's profit allocated to each outstanding share of common stock. Earning per Share as the name indicates, is the â€Å"per share earning† of a company in a reported period. This is the most important factor in the fundamental analysis of a stock. This coupled with a few related ratios gives a fair idea about the worth of a stock. (For data please see appendix-6 p. no. 73) 4) DPS is the Dividend allotted to each share holders (For data please see appendix-7. P. No. 74) 5) Economic Value Added (EVA) = NOPAT-(Cost of Equity x Networth) EVA attempts to measure how much `value' was created by an organization for its shareholders, during an accounting period. It is defined as the excess of a company's after tax net operating profit over the required minimum rate of return that the investors and lenders could get by investing in other securities of comparable risk. For data see appendix-15, p. no. 82) For Calculating Cost of Equity CAPM (Capital Assets Pricing Model has been used) Ke=Cost of Equity =Rf +? *(Rm-Rf) (For data please see appendix-13, p. no. 80) Rf =Yearly Risk free Rate of Return=6% (The yield of Treasury Bill has been taken as risk free rate of return which is around 6% for the period of 2003-2008) Rm=Yearly Sensex Rate of Return=17% (Average from 1995 to 2007 comes out to be 17% – please see appendix-1, p. no. 68) ? = Beta Value of a particular Stock of a Company E= Total Networth (Equity+ Reserve and Surpluses) Since, the value of ? shows the riskiness of a particular stock with respect to market. This ? value shows riskiness on the basis of book value of a particular Company. So, these ? values of the Companies are converted into Unlevered ? and then Levered ? based on Company’s present Market Capitalization, so that an accurate and present riskiness of the stock of Company can be taken into consideration for the research The Formula is: Unlevered ? ju= ? /1+(D/S)(1-T) Here, D=Total Debt used by the Company S=Total Equity used by the Company (Book Value) T= Corporate Tax Rate (30%) Now Calculating Levered ? based on Market Capitalization using unlevered ? Levered ? = ? ju x (1+(D/S)x(1-T) (For data Please see appendix. -12, p. no. 79) Here, S=Present Market Capitalization of the Company. For an accurate result, the change in MVA and EVA has been standardized by dividing them by the Net worth of the respective Company. Standardization is done in order to find the relative value of EVA and MVA over the Net worth used by the Company. (For Stdz. EVA and Stdz. MVA please see Appendix-16, p. no. 83 and Appendix-19 p. no. 86) The collected and calculated data of ll the variables are attached in Appendices. Please see appendices for detail list. 3. 2-Regression Analysis The analysis is done in two parts. Firstly, simple regression analysis has been done between Dependent Variable (Stdz. MVA) and Independent variables (RONW, ROCE, D/E Ratio, EPS, DPS and Stdz. Eva) taking one Independent Variable at a time for all the Years (2004-2008). Year 2003 has been considered as a base year for the Year 2004 to get change in MVA in 2004 and the same process has been used to calculate change in MVA till 2008. This Simple Regression analysis has been performed in order to understand the key variables which are having high degree of correlation with MVA. After analyzing the key variables, multiple regressions Analysis have been applied with the key variables in order to analyze the impact of key Independent Variables together on Change in MVA. 3. -Year wise Result of Simple Regression Analysis from 2004 to 2008 Result of the Year 2004: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 771 |. 817 |. 089 |. 332 |. 201 |. 851 | |R2 |. 594 |. 667 |. 008 |. 110 |. 040 |. 724 | |Adjusted R2 |. 575 |. 652 |-. 039 |. 068 |-. 005 |. 711 | |Standard error of Estimate |2. 47868 |2. 4331 |3. 87455 |3. 66887 |3. 81084 |2. 04402 | |Significance |. 000 |. 000 |. 686 |. 121 |. 358 |. 000 | |p-Value | | | | | | | Interpretation: From this table, it can be observed that Change in MVA is positively related with all the financial indicators but only three variable ROCE, RONW and EVA are highly correlated with change in MVA. The coefficient of correlation of change in MVA with RONW, ROCE and EVA is 0. 771, 0. 817 and 0. 51 respectively; moreover the p-value (significance) is also less than . 001. So, at 99% confidence level we can say that, these three variables significantly explain the variation in MVA. This shows that all these three variables are very much important from investment point of view. The coefficient of determination (Adjusted R2) Of Change in MVA with RONW is . 594 which means change in RONW explains 59. 4% of variation in MVA, while with ROCE it is . 652 which means change in RONW explains 65. 2% of variation in MVA and with EVA it is . 711, which means ch ange in EVA explains 71. 1% variation in MVA, the most important driver of change in MVA. So, the simple regression analysis for this year shows that these three variables are very much important while EVA is the most important variable to consider before investment. While, EPS explains 6. 8% of variation in MVA but p value is more than . 000 and DPS has a very little bit of significance and D/E Ratio is insignificant to consider as a driver of Shareholders’ value. Result of the Year 2005: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 578 |. 543 |. 046 |. 323 |. 289 |. 96 | |R2 |. 334 |. 295 |. 002 |. 104 |. 084 |. 484 | |Adjusted R2 |. 303 |. 262 |-. 045 |. 061 |. 040 |. 459 | |Standard error of |2. 73331 |2. 81226 |3. 34638 |3. 17073 |3. 20682 |2. 40672 | |Estimate | | | | | | | |Significance |. 004 |. 007 |. 835 |. 133 |. 181 |. 00 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of Change in MVA with Stdz. EVA is the highest (. 696) then with RONW (. 578) and then with ROCE (. 543) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 459, . 303 and . 262 respectively which shows highest variation in MVA is explained by EVA that is 45. 9%. Moreover, the significance level lies between . 005 to . 010 which is less than . 010. Hence, these three variables are the most important variables to consider as standard error is also very low in comparison to other variable. While EPS and DPS has a very little significance and D/E Ratio is insignificant to consider. Result of the Year 2006 | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 725 |. 638 |. 025 |. 450 |. 054 |. 801 | |R2 |. 525 |. 407 |. 001 |. 203 |. 003 |. 641 | |Adjusted R2 |. 503 |. 379 |-. 047 |. 165 |-. 045 |. 624 | |Standard error of |2. 60034 |2. 0531 |3. 77240 |3. 36897 |3. 76802 |2. 25987 | |Estimate | | | | | | | |Significance |. 000 |. 001 |. 910 |. 031 |. 806 |. 000 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of Change in MVA with EVA is the highest (. 801) then with RONW (. 725) and then with ROCE (. 638) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 624, . 503 and . 379 respectively which again shows the highest variation in MVA is explained by EVA that is 62. 4% . Moreover, the significance level is also . 000 which is less than . 001. Hence, at 99% confidence level we can say that these three variables are the most important variables to consider and again EPS and DPS has a very little significance. D/E Ratio is again insignificant to consider Result of the Year 2007: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 801 |. 795 |. 075 |. 66 |. 275 |. 896 | |R2 |. 641 |. 632 |. 006 |. 134 |. 075 |. 802 | |Adjusted R2 |. 624 |. 615 |-. 042 |. 092 |. 031 |. 793 | |Standard error of |2. 37916 |2. 40757 |3. 95859 |3. 69485 |3. 81708 |1. 76595 | |Estimate | | | | | | | |Significance |. 000 |. 000 |. 34 |. 086 |. 205 |. 000 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of Change in MVA with EVA is again highest (. 896) the n with RONW (. 801) & then with RONW (. 795) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 793, . 624 and . 615 respectively which again shows highest variation in MVA is explained by EVA that is 79. 3% . Moreover, the significance level is also . 000 in each of three cases which is less than . 001. Hence, out of all variables these three variables are the most important variables out of these three variables EVA is coming out to be the most important variable to consider while EPS and DPS are again having a little Significance and D/E Ratio is insignificant to consider as the driver of shareholders’ value. Result of the Year 2008: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 900 |. 890 |. 152 |. 252 |. 259 |. 950 | |R2 |. 811 |. 793 |. 023 |. 063 |. 067 |. 903 | |Adjusted R2 |. 802 |. 783 |-. 034 |. 019 |. 023 |. 99 | |Standard error of Estimate |2. 70932 |2. 83630 |6. 15528 |6. 02644 |6. 01501 |1. 93688 | |Significance |. 000 |. 000 |. 490 |. 246 |. 233 |. 000 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of MVA with EVA is the highest (. 950) then with RONW (. 900) and then with ROCE (. 890) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 899, . 802 and . 83 respectively which shows hi ghest variation in MVA is explained by EVA that is 89. 9%. Moreover, the significance level is also . 000 which is less than . 001. Hence, these three variables are the most important variables to consider while EPS and DPS are again having a little Significance and D/E Ratio is again insignificant to consider as the driver of shareholders’ value as significance is more than . 001. Moreover out of these three, EVA is the most important and powerful variable. 3. 4-Overall Result of Simple Regression analysis [pic] Over all Result of the Analysis: Hence, my over all Analysis shows that only three financial Indicators (EVA, RONW, and ROCE) are the important driver of shareholders’ value. Out of these three, EVA is the most important Indicator. So, if a company is earning more than its cost of capital, it is adding more value to the shareholders. In second, RONW is the important Indicator, which shows that companies utilizing its shareholders’ funds in an effective & efficient manner are adding value to shareholders. Third important Indicator is ROCE which shows Companies generating higher ROCE will add value to Shareholders. SO, before investment these three variables must be considered. 3. 5- Year wise Result of Multiple Regression Analysis In multiple regression analysis I found that there is multi collinearity exist between ROCE, RONW and EVA. So, I applied multiple regression taking three independent variables at a time excluding the variables like D/E Ratio because this variable is insignificant to consider while EPS and DPS is little bit of significant. So to come out with a strong and accurate analysis it is irrelevant to ignore these two variables. Result -1: In Result-1 analysis between Change in MVA with EPS, DPS and RONW has been observed for the period of 2004 to 2008. EPS and DPS have been taken because of their little significance. In this case Hypothesis is as follows: H0: EPS, DPS, RONW are not significantly explaining variation in MVA H1: EPS, DPS, RONW are significantly explaining variation in MVA Result of the Year 2004 Model Summary |Model |R |R Square |Adjusted R |Std. Error of the | | | | |Square |Estimate | |1 |. 834(a) |. 696 |. 647 |2. 25663 | a Predictors: (Constant), RONW, EPS, DPS ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 742(a) |. 550 |. 479 |2. 36227 |2. 192 | a Predictors: (Constant), RONW, DPS, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 831(a) |. 691 |. 642 |2. 20440 |2. 115 | Predictors: (Constant), DPS, RONW, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 860(a) |. 739 |. 698 |2. 13011 |2. 501 | a Predictors: (Constant), RONW, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 927(a) |. 859 |. 837 |2. 45654 |2. 493 | a Predictors: (Constant), RONW, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) Model | |Sum of Squares |df |Mean Square | |1 |. 875(a) |. 765 |. 728 |1. 98181 | a Predictors: (Constant), ROCE, EPS, DPS ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 728(a) |. 530 |. 455 |2. 41542 |1. 856 | a Predictors: (Constant), ROCE, DPS, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |Df |Mean Square |F | |1 |. 764(a) |. 584 |. 519 |2. 55798 |1. 913 | Predictors: (Constant), ROCE, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 850(a) |. 722 |. 678 |2. 19925 |1. 759 | a Predictors: (Constant), ROCE, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 918(a) |. 843 |. 818 |2. 59745 |2. 016 | a Predictors: (Constant), ROCE, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square | |1 |. 888(a) |. 788 |. 754 |1. 88405 | a Predictors: (Constant), Stdz. EVA, DPS, EPS ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 824(a) |. 679 |. 628 |1. 99688 |2. 328 | a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 89(a) |. 790 |. 757 |1. 81740 |1. 914 | a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 923(a) |. 852 |. 829 |1. 60570 |2. 184 | a Predictors: (Constant), Stdz. EVA, DPS, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 966(a) |. 932 |. 922 |1. 0292 |2. 103 | a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) Model | |Sum of Squares |df |Mean Square |F |Sig. | |1 |Regression |759. 238 |3 |253. 079 |87. 270 |. 000(a) | | |Residual |5 5. 099 |19 |2. 900 | | | | |Total |814. 337 |22 | | | | |a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA Coefficients(a) Model | |Unstandardized Coefficients |Standardized Coefficients | | |Collinearity Statistics | | | |B |Std. Error |Beta |t |Sig. |Tolerance |VIF | |1 |(Constant) |3. 899 |. 674 | |5. 789 |. 000 | | | | |EPS |-. 017 |. 010 |-. 147 |-1. 92 |. 089 |. 530 |1. 886 | | |DPS |-. 026 |. 065 |-. 033 |-. 405 |. 690 |. 525 |1. 905 | | |Stdz. EVA |21. 424 |1. 383 |. 933 |15. 494 |. 000 |. 982 |1. 018 | |a Dependent Variable: Stdz. MVA Interpretation: The model Summary shows that EPS, DPS and EVA together having a high degree of correlation that is . 966 with change in MVA while variation in these three variables together explains 92. 2% of variation in MVA as adjusted R2 is 0. 922. The Durbin-Watson is 2. 103 which show that variables are following a similar trend and are not scattered. The analysis shows that this year these three variables are very strongly related with Change in MVA. The ANOVA table shows F is 87. 270 and significance is . 000 which is less than . 001. It means Reject H0 and accept H1. Hence, these three variables significantly explain the variation in MVA and are very much important to consider. The coefficient table shows that there is no multi collinearity exists between independent variables because Tolerance is greater than 0. 2 and VIF is less than 5. It also shows that beta value of EVA is . 933. So, EVA is the most power full variable over here. Overall Result: The analysis of all the years results in rejection of H0 and acceptance of H1. It means these three variables are also significantly explaining variation in MVA. 3. -Overall Result of Multiple Regression Analysis Since, because of multi colinearity between RONW, ROCE and EVA it was not possible to include these three variables together in the multiple regression analysis. But as they are correlated with each other, so we can consider any one of them with the other variables to reac h at a conclusive result. Now after analyzing multiple regressions with three sets of independent variable with dependent variable which are: Set-1 Change in MVA with EPS, DPS, RONW Set-2 Change in MVA with EPS, DPS, ROCE Set-3 Change in MVA with EPS, DPS, EVA The question comes in our mind is which set is to be given preference over other. Though all the sets are highly correlated with change in MVA and there is a little bit of variation in their correlation we can consider any one set out of the three. But to conclude the analysis a Year wise Comparison has been done with the help of following graph between the three sets: [pic] From the graph we can see that correlation of Change in MVA with EPS, DPS and EVA was the highest throughout the Years. Moreover it is also increasing year by year. So, it is very much useful to consider as these three variables together act as a most important driver of shareholders’ value. While the second most important set to consider is EPS, DPS and RONW and then EPS, DPS and ROCE. Recommendations Since, my research analysis has shown that there are three most important factors EVA, RONW and ROCE which drive the shareholders’ value. Moreover a combination of EPS, DPS, and EVA together causes major variation in shareholders’ value. So, Research division of IL should focus on these factors because companies generating higher ROCE, RONW, and EVA from their business will add more value to the Shareholders’ investment. Now a day, it has become very much important for the Brokerage firms to provide valuable services to their customers specially a proper guide line that where they should invest and where they should not in order to bit the Competitors and retain customers with themselves. So, research division of IL Investsmart should guide the investors to invest in the shares of those companies which is earning more than cost of capital that is company with positive EVA moreover the companies which is effectively using the Owners fund means generating higher RONW and a higher ROCE. EPS, and DPS can be taken into consideration but can be avoided also if company is to good in generating positive EVA and higher RONW and ROCE because these variables indicate the growth of an organization. If the organization is growing and its not giving any dividend still it is good to invest in that Company, as the growth company will leads to increase in Market value and this will result in increase in Shareholders’ value. Conclusion At the end I would conclude that the year wise research done over the period of five years from 2004 to 2008 has shows that EVA is the most important driver of shareholders’ value as the correlation between EVA and change in MVA is very strong. so, a company generating positive and higher EVA is the best option to invest in because this will result in increase in market value which will result in increase in shareholders’ value. The second most important variable RONW and the third most important variable ROCE should be consider before investing in the share of any company because these two variables are also having a high degree of correlation with change in MVA. EPS and DPS alone are not the important factor to consider individually. But the combination of EPS, DPS and EVA together are highly correlated with change in MVA. According to my research analysis in 2008 it was found that these three variables together have explained 92. 2% of variation in MVA. So, the combination of these three variable can also be taken into consider before selecting a company to invest in. The analysis also shows that Correlation of change in MVA has been found to be increasing year by Year from 2004 to 2008. So, for future investment it is better to look into these ratios before investing in any company. The regression analysis shows strong correlation of change in MVA with EVA, RONW and ROCE, which is not a surprise since shareholders should value an enterprise, based on the return what they are getting on their invested oney, which proves that it doesn’t matter whether the company retains or distributed its earnings, so long it is being utilized for productive purposes. Bibliography o CMIE’S Prowess o http://www. bseindia. com/about/abindices/bse30. asp o http://www. bseindia. com/about/abindices/betavalue s. asp o http://www. bseindia. com/histdata/hindices. asp o http://neeravnagar. blogspot. com/2007/08/drivers-of-shareholders-value. html o Ali M Ghanbari (Jul’07) â€Å"The Relationship between Economic Value Added and Market Value Added: An Empirical Analysis in Indian Automobile Industry† The ICFAI Journals of Accounting Research. o Chapter 32 of â€Å"Investment Valuation† by Aswath Damodaran ———————– 65

Year One Ba-Hons Photography Image Analysis

Photographs are one of the media or instruments of visual representations. It is an embodiment of visual elements which appear as symbols and are linked together to convey several meanings. According to McLean (1973), they are pictures which have many characteristics and attributes in common with other images (quoted in Noth 1995: 461). They play an important role, along with film, in broadening the visual field for examination and analysis and in molding critical approaches to visual representation (Chaplin 1994: 80). This paper aims to present an image analysis of Nick Ut’s Trang Bang (1972). It will narrate a brief biography of the artist then it will reveal the photograph’s visual elements and their corresponding meanings. It will also identify the underlying symbols behind the image and demonstrate their impact on the society. Furthermore, it endeavors to express and to show the implication of photographs with regards to visual culture and visual literacy. Nick Ut (b. March 29, 1951- ) whose real name is Ut Cong Huynh is a Vietnamese photographer. His photography career begins when he has been introduced by his mother to the Associated Press office in Saigon; he is 14 years old then. The occurrence on the rainy day of the 8th of June, 1972, the epoch when the Americans and South Vietnamese invaded Cambodia, draws attention with his career when he shoots Kim Phuc—a nine year old girl—running and blaring naked in down Route 1 (Ut 2007); the photograph is entitled as T rang Bang. Trang Bang, a gelatin silver print, depicts the June 8, 1972 event when the children and their families run away and flee the village of Trang Bang down Route 1; their bodies are being burned and seared by napalm (Faas and Fulton n. d. ). The image encompasses five children that are running and screaming and behind them are militant troops, walking after the terrified kids. The focus of the picture is the naked little girl who is squealing. Figure 1 Children Fleeing an American Napalm Strike, Trang Bang, June 8, 1972 Her stretched arms bestow a line element in the image which illustrates balance and symmetry. The eyes of the spectator will usually fix on the dead center due to the strong and powerful expression of Kim Phuc, revealing an excruciating pain. Nevertheless, if the focus of the picture will be given to the screaming boy on the foreground whom is said to be Kim Phuc’s brother Phan Thanh Tam, technically speaking, Ut demonstrates the rule of thirds in his masterpiece due to his manipulation to the placement of the subject which is off the center; therefore the eyes of the spectator will definitely turn and fix with the other elements in the whole picture per se. He also displays a shallow depth of field in the photograph because only the subjects of interest or focus are enhanced—the shrieking and running children, the other element—the troops—is quite out of focus due to the blurry details of the figures. The black smoke on the background gives a strong contrast in the picture. The said photograph is a historical account that records and synthesizes the incident of June 1972. It analyzes and demonstrates the notion of horror and agony during wars which can be pulled out from the facial expressions of the children especially Phan Thanh Tam’s. He summarizes and encapsulates the terror, fear and affliction of the people during the Vietnam War (Pyle 2000). That image can imply a lot of things if it will be based to John Berger’s Way of Seeing theory (1972): it is seeing which establishes our place in the surrounding world; we explain that world with words, but words can never undo the fact that we are surrounded by it. The way we see things is affected by what we know or what we believe (Berger 1972: 7-8). With that, it can be hauled that whatever the interpretation or analysis of the spectators with the image, it will still be anchored on what he or she knows regarding the event that has transpired in Vietnam during the year 1972. The photograph is a representation of the reality that it portrays (Noth 1997: 46). However, Eco (1984) disagrees because according to him, a photograph can lie (quoted in Noth 1997: 461), by which Berger (1984) states that the result of the treatment and manipulation of the reality is that to a definite level, â€Å"the photographer creates the reality of the photograph (quoted in Noth: 461). Nevertheless, in the case of Nick Ut’s Trang Bang, it cannot be implied that the photographer has altered and manipulated the reality that he has documented during the occurrence in 1972 because the reproduction of the image, which have been placed in newspapers, magazines, etc. , creates a different perspective from the original photo that is taken by Ut. The reproduction delineates a cropped image of the original (Look at figure 1 and 2). Figure 2 Napalm Bomb Attack, Vietnam It shows that the original, which has been signed by Ut, encompasses other elements in the picture, for instance, the official member of the press who looks like fixing his camera, the lines on the background which probably signifies the napalm. The manipulated image appears more closely to the spectators and constructs a more focused representation of the event. Because of the reproductions, Ut cannot be blamed for the cropped photo because of the intervention of the press with regards to the dissemination of the image to narrate the historical event. It is definitely the press’ responsibility as to how they will broadcast and transmit the information with wide, visual consumers all over the world. According to Gillian Rose in her Visual Methodologies (2001), the novelty and advantage of photography branch out from its most evident potential: it is about rendering that particular moment in time (quoted Mirzoeff 1999: 67) by which Ut demonstrates in his Trang Bang. In accordance with what he said during an interview, â€Å"the girl was running with her arms out. She was crying, ‘nong qua! Nong qua! (Too hot! Too hot! ). She had torn off all her clothes. When I saw she was burned, I dropped my camera beside the road. I knew I had a good picture. I got her into our van and took her and the family to the Cu Chi hospital. † (quoted in Pyle 2000). Moreover, his magnum opus implies that photography makes achievable ways of seeing what is unimaginable then (Mirzoeff 1999: 68). It does illustrate that the language and expression of the photograph is to combine naturalism and realism. The artifact then evolves to be reality (quoted Molyneaux 1997: 80). Nick Ut’s Trang Bang may be manipulated or not, it still conveys a scheme of meanings and symbols. The implication of an image is created from an interaction of a myriad of schemes and codes. A photograph is not a realistic illustration of what is real in spite of its appearances. It is a material that has been produced in an elaborate manner and approach of production and has been dispensed, circulated and consumed by a set of social relations (Forrester 1996: 140). Burgin (1982) has argued then that a photograph presents itself as something that cannot be disagreed with in which he states as â€Å"an offer you cannot refuse† (quoted in Forrester 1996: 142). Trang Bang being an object of representation communicates with its spectator about the Vietnam War that happens in mid-1972. Nick Ut, as one of the war photographers, has to deal with the lack of viewing space for his work because he is confined and restricted to what he sees in the lens compared to other artists who can demonstrate an array of symbols and emotionally-driven and affecting scenes however, war photographers are offered with revolutionizing and altering the reality into an allegorical and symbolic masterpieces (Marien 2006: 46).

Free Essays on Democracies In Crisis

â€Å"Democracies in Crisis† According to the assignment given some believe that there is a general decline in industrial democracies all over the world. Problems that are non-reversible are allegedly spreading through-out industrialized democratic powers. On the contrary some also say that these same democracies are flexible enough to endure the so-called overwhelming problems that are currently facing them. When first given this assignment my indifference to the topic was obvious, but some research lead to a quite different prospective on the countries chosen, Germany and Spain, as well as all industrialized democratic powers of the world. When studying Germany it is not difficult to find information pertaining to the past and Germany’s struggles to attain the level that the nation currently possesses. Germany is interesting to study because of the relatively late development of the Nation State known today. German government, as it is, is quite different from the past approaches taken to running the country. Of these past attempts the most notable was the Third Reich dictated by Hitler, which saw Germany become a world menace. The National Socialist party took control over German politics in 1933; Adolph Hitler, a Nazi, was named as Chancellor and immediately focused his attention and action upon total world domination for the Germans. This reign ended, after a massive world wide battle, in 1945. (WBE 8) 1 Then the task of establishing a government within Germany that would prove more favorable to the country itself and the rest of the industrialized world became priority number one for the allied forces which had put an end to the Nazi rule. â€Å"It has been suggested that the Third Reich reflected a cultural context that permitted and even facilitated its emergence. A number of themes have been identified in Germany’s culture that would make the Nazi ideology appealing across a broad spectrum. Clearly, th... Free Essays on Democracies In Crisis Free Essays on Democracies In Crisis â€Å"Democracies in Crisis† According to the assignment given some believe that there is a general decline in industrial democracies all over the world. Problems that are non-reversible are allegedly spreading through-out industrialized democratic powers. On the contrary some also say that these same democracies are flexible enough to endure the so-called overwhelming problems that are currently facing them. When first given this assignment my indifference to the topic was obvious, but some research lead to a quite different prospective on the countries chosen, Germany and Spain, as well as all industrialized democratic powers of the world. When studying Germany it is not difficult to find information pertaining to the past and Germany’s struggles to attain the level that the nation currently possesses. Germany is interesting to study because of the relatively late development of the Nation State known today. German government, as it is, is quite different from the past approaches taken to running the country. Of these past attempts the most notable was the Third Reich dictated by Hitler, which saw Germany become a world menace. The National Socialist party took control over German politics in 1933; Adolph Hitler, a Nazi, was named as Chancellor and immediately focused his attention and action upon total world domination for the Germans. This reign ended, after a massive world wide battle, in 1945. (WBE 8) 1 Then the task of establishing a government within Germany that would prove more favorable to the country itself and the rest of the industrialized world became priority number one for the allied forces which had put an end to the Nazi rule. â€Å"It has been suggested that the Third Reich reflected a cultural context that permitted and even facilitated its emergence. A number of themes have been identified in Germany’s culture that would make the Nazi ideology appealing across a broad spectrum. Clearly, th...

Black Boys Journey essays

Black Boy's Journey essays The novel Black Boy, written by Richard Wright takes you back in the deep south of Jackson, Mississippi where whites attempted to tame into submission blacks by hard discipline. It seemed that the more Richard had gained in life, the more he was hurt. Richard was alienated from his environment, even though he tried to distance himself from the prejudice all around him, the white people still tried to turn him into the stereotypical southern black person. Richard was always a rebel, from his boyhood to his older teenage years. From the beginning he would not subdue below the white man himself like the other black people around him did. The white people around him knew that he was different from other black men. The people were scared because he challenged the system that they had created for themselves as the super power. They feared Richard, and some of the white people felt it necessary to act out their racist feelings to order to cover up their fear. Their were many events in Richard Wrights life which may have shaped his philosophy of his life. In the novel, the principal at Richards school had asked Richard to give a speech to a large audience of white and black students, Richard refused to read the principals prepared speech. By reading the principals speech, Richard was saying what the white power wanted him to say and to Richard this would be giving in to the thing he hated so much. Richard was willing to leave school without a diploma instead of this. White people alienated Richard from his environment because he did not accept the way of life that other black people did. This even that occurred in his life, shaped his philosophy on life, extremely, this told people that he would have his mind set on one thing and concentrate on that, to achieve his goal, in other words he had a hard head and no one could persuade or change his mind on...

Sir alex Ferguson case Essay Example | Topics and Well Written Essays - 1000 words

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Access to Insurance versus Access to Care Research Paper

Access to Insurance versus Access to Care - Research Paper Example Insurance and access to healthcare serve a basis of intensive debate that is tailored towards addressing pertinent issues in healthcare. Access to insurance and access to care are two different concepts. Health insurance is risk mitigation measure where an individual transfers health risks to another party, and makes premium payments to that party in return. In other words, insurance premiums guarantee healthcare coverage by the insurer. The ability to pay for insurance covers measures access to insurance. When premiums are high, then the number of people that can afford the insurance cover is low, and vice versa. The affordability of insurance measures the relative accessibility. On the other hand, access to care refers to the ease of receiving care by a patient when in need. Access to health encompasses primary care, healthcare specialists, and emergency treatment (Berenson & Rich, 2010). Access to care measures the ease or difficulties associated with getting services across the three variables. In this regard, holding an insurance cover does not necessarily guarantee access to care. For instance, Medicare program caters for the elderly and disables populations in the United States (Getzen, 2010). However, the program is divided into various parts, each of which outlines the extent of healthcare variables provided for by that part. Each part provides healthcare insurance, but limits care services accessed under that part. The federal health care reform legislation of 2010 seeks to promote universal coverage and regulate health insurance policies offered by insurance companies (The Joint Commission, 2012). The legislation also seeks to enhance the extent of health complications covered, as well as push for affordable insurance premiums. Low income earners remain uncovered by insurance, a scenario that has negatively affected the health sector in the United States. The ultimate interest of the legislation is to promote insurance