1.6.2 Using the matrix The results of the evaluation reflect the scores that are awarded to each option and the weightings that are attached to the different criteria. A change in one or the other (or in both) will lead to a change in the results. Accordingly, when you construct a matrix of this kind be sure to think hard about the scores and weightings. A matrix like this can be used in many ways, for example, when interviewing applicants as part of a selection process.
1.2.1 Selecting the scales The scales that are used determine the look of the graph. For example, if the horizontal distance between ‘Year 1’ and ‘Year 6’ shown in Figure 2 were doubled, the line would be stretched to double its present length. If the horizontal distance were halved,
4.1 Introduction This section looks at how discounted cash flow (DCF) and the net present value (NPV) rule help investors to choose between possible alternative investments and decide whether the return offered on an investment is worth it, given the risk. DCF allows us to compare two alternative investments with different expected cash flows, different maturities and different risks. NPV allows us to decide whether or not to go ahead in either case.<
3.7 Interest rate risk This has to be seen in conjunction with the previous comments about the secondary market in shares and debt instruments. An efficient secondary market can ensure that there is always a ready buyer for an investment, but the price at which the investment can actually be sold will depend entirely on market conditions at the time of sale. The secondary market price will not necessarily bear any relation to the price originally paid by the investor. The following example illustrates the general p
1 The planning phase Once the project brief has been agreed by the project sponsors and approved by the main stakeholders, you can move into the detailed planning phase. The project plan can become a working tool that helps to keep the project team focused on the project's tasks and activities and points them towards completion. It enables managers to keep track of resources, time and progress towards achieving objectives. All projects are different and the planning for each will be different. The difficult
6.1 Introduction The process of keeping up-to-date in your chosen subject area is useful for your studies and afterwards, for your own personal satisfaction, or perhaps in your career as part of your continuing professional development. There are a great many tools available that make it quite easy to keep yourself up to date. You can set them up so that the information comes to you, rather than you having to go out on the web looking for it. Over the next few pages, you will be experimenting with some
4.4 O is for Objectivity One of the characteristics of ‘good’ information is that it should be balanced and present both sides of an argument or issue. This way the reader is left to weigh up the evidence and make a decision. In reality, we recognise that no information is truly objective. This means that the onus is on you, the reader, to develop a critical awareness of the positions represented in what you read, and to take account of this when you interpret the information. In some cases, authors may be
3.2 Search engines and subject gateways Although both search engines and subject gateways will help you find the resources that you need, the types of information that you find will differ. Search engines such as Google and Yahoo! search the internet for keywords or phrases, and then show you the results. These results are not mediated by the search engines, and therefore you need to use your own judgement on the reliability of the results. You may, for example, find websites written by experts, alongside websites written by
3.1 Introduction You can find a lot of information about the business and management on the internet. To find this information you might choose to use: search engines and subject gateways books and electronic books databases journals encyclopedias news sources internet resources.
2.2.1 Checklist of common features Is there any online help? Can I do a simple search? Can I look at the information in both short and detailed form? Can I choose where in the record I want my search terms to be found? Can I search for phrases? Can I combine search terms? Can I use truncation? Can I use wildcards? Can I do an advanced search? Can I get a list
2.2 Basic principles Whatever resource you choose to use to find information on the internet, many of the same principles apply. Each source that you use will probably look quite different from the one you tried before, but you'll notice that there are always features that are similar – a box to type your search terms in, for instance, or a clickable help button. Different resources refer to the same functions using different terminology, but the principles behind them are exactly the same. The trick is to chec
2.1.1 Choosing keywords Keywords are significant words which define the subject you are looking for. The importance of keywords is illustrated by the fact that there is a whole industry around providing advice to companies on how to select keywords for their websites that are likely to make it to the top of results lists generated by search engines. We often choose keywords as part of an iterative process; usually if we don't hit on the right search terms straight off, most of us tweak them as we go along based on t
1.4 Evaluating information How well does the following statement describe your approach to evaluating the information that you use?
When I come across a new piece of information (e.g. a website, newspaper article) I consider the quality of the information, and based on that I decide whether or not to use it.
5 – This is an excellent match; this is exactly what I do
References 1.8 Summary In this unit we have looked at how companies raise equity finance. We have examined how companies may move from private equity finance, supported by the venture capital companies, to public equity finance through an IPO. We then went on to study seasoned or secondary equity offerings (SEOs) with particular focus on rights issues. We looked at why companies may choose to list on more than one exchange and at the circumstances that might lead to a company de-listing and reverting to 1.5 Cross-listing For many companies, particularly MNCs, there are attractions in having a share listing on more than one stock exchange. The last decade has witnessed an increase in such cross-listings globally. Chouinard and D'Souza (2004) noted that the proportion of non-US listings on the New York Stock Exchange (NYSE) doubled from about 8.5 per cent in 1994 to 17 per cent at the start of 2003. This period also saw a rise from 7 per cent to 10 per cent in the non-US listings on NASDAQ. Author(s): 1.4 Seasoned equity offerings The issuance of additional shares is called a seasoned or secondary equity offering (SEO). SEOs are common in the London market, but less common in the USA. In some countries, including the UK, one form of SEO is a rights issue. In such issues the existing shareholders are given the right to buy further shares, usually in an amount proportionate to their prevailing holdings. This is known as a pre-emption right. While rights issues can support the need of a successful comp 1.2 Staying private – private equity and venture capital For many companies – particularly in Europe and Asia – private equity together with retained earnings have been a sufficient source of capitalisation, allowing these companies to avoid listing on a stock exchange. (Retained earnings are the post-tax undistributed – i.e. not paid out in dividends – profits of a company.) The capacity to remain private has been assisted by the rapid growth of private equity in recent years. Private equity has been employed not just by newly established Learning outcomes After studying this unit you should be able to: understand private equity and the role of venture capital companies in providing this; understand why and how public equity issues can be undertaken; look at the reasons for cross-listing on stock exchanges; examine why a company might de-list from an exchange and return to private ownership. 2.2 Recent governance failures As we have discussed before, the creation of corporate regulation is often linked to perceived failures of corporations and their management to behave in the way society expect them to. Corporate governance is not an exception to this trend, and, as with accounting, different countries may well experience difficulties at different times. For example, the development of British codes of best practice, which began with the Cadbury Committee, can be related to governance scandals such as Polly P
