Covid-19 and Corporate Finance The covid-19 epidemic has negatively impacted the global economy and is threatening to cripple the operations of organizations. The current market conditions do not provide investors with an incentive to engage in risky investments and concerns because of uncertainty are making it challenging for businesses to generate regular earnings. Organizations are becoming conservative when making capital budgeting decisions, and investor confidence has significantly reduced because of the uncertainty surrounding Covid-19 epidemic. Current Market Conditions Markets are functioning but have posted abysmal performance since Covid-19 became a global epidemic. Investors are concerned about the effect of the pandemic on the global economic conditions; thus, the sharp decline. FTSE share index Nikkei Share and the Dow Jones are some of the many stock markets that have experienced a sharp decline in recent months. Investors anticipate that financial institutions might reduce the interest rate, and traders are turning to less risky investments (Jones, Brown & Palumbo, 2020). The tremendous uncertainty and the new reality that a seismic shift is being experienced in the world have negatively affected investor confidence…
ALL YOU NEED TO KNOW ABOUT THE EFFECTS OF COVID-19 TO THE GLOBAL AND MARKET ECONOMY Covid-19 has remained a threat to not only in China- where it started but also worldwide as the virus is rapidly spreading to other nations. It is a pandemic that has affected both the most developed countries such as the USA, India and even Italy and also the thirdworld countries which comprises African countries such as Kenya, and South Africa. image link As of now, no vaccine or medication has been found to fight the virus. This makes the virus uncontrollable as it has no solution although preventive measures such as emphasizing high levels of hygiene especially frequent washing of hands using sanitizers, discouraging social gatherings as spread COVID-19 is favored by crowded places, staying indoors to avoid exposure to the virus, the introduction of face masks and gloves among many other precautions have been put in place. EFFECTS OF COVID-19 TO THE GLOBAL AND MARKET ECONOMY The coronavirus pandemic has drowned the way of life of many across the globe, affecting it socially,…
Detroit Bankruptcy Issue Detroit Municipality Demographics Recent studies have shown that the U.S had, from the past, seen several municipalities file for bankruptcy. According to the American constitution, a public institution can file for bankruptcy in the case where the current budget depicts massive deficiencies, notably where the collected income has failed to meet the municipality’s colossal expenditure. Detroit city became a victim of this scenario in 2013, thus making the history as the largest United States municipality to file for bankruptcy. Detroit’s budget had a deficit of more than $19 billion. In demographics, Detroit ‘s 5 million people comprise of white people who represent 70% of the total population, followed by the Black-Americans, who stand at 22% as three %comprise of Asians (Duggan, 2019). In this regard, the remaining percentage goes to the Native Americans and new minority groups. Detroit’s median household income, particularly among city residents, stands at $57,000. The decline of a vast economic state like Detroit attracted a considerable debate over the decision by its administration to file for bankruptcy. The fact that Detroit municipal administration…
Economic Impact of Universities in Manitoba Manitoba is a Canadian province that is bordered by Saskatchewan and Ontario. One of the most significant industries in the province is the education sector. The region has numerous schools, including universities that do not only provide a skilled labor force to the country but also adds some necessary knowledge into the society. Some of the top universities in the province include the University of Manitoba, Brandon University, Canadian Mennonite University, The University of Winnipeg, and Universite de Saint-Boniface. All these Universities meet UniRank selection criteria that postulates that the institution must be chattered and accredited by the relevant Canadian bodies, offer at least a bachelor and a post-graduate degree, and deliver courses face to face, non-distance format. These institutions aim to provide knowledge to the society for sustainable economic development. There is a total of eight Universities in Manitoba. Geographically, these Universities are concentrated in Winnipeg. Six out of the Eight Universities are located in this region. The six Universities include Université de Saint-Boniface, University of Winnipeg, University of Manitoba, University College of…
Bank Wars and the Mexican War. “Bank war.” Bank war refers to the campaign begun by president Andrew Jackson in 1833 to destroy the second bank of NaUnited States by failing to renew its charter (Carpenter, Daniel & Schneer, 220). President Andrew Jackson, he was convinced that his opposition to the bank had won public support. The second bank was a private organization with a 20-year charter and permission to operate nationally. Relationship between killing the bank by Jackson and the Panic of 1837 “Killing the Bank” In September 1833, President Andrew Jackson announced that the government would no longer use the country’s second bank and consecutively removed federal governments using his executive power. The panic of 1837. The panic was a financial crisis brought about by the economic policies of President Andrew Jackson. The panic brought significant economic recession that went till the 1840s (Carpenter, Daniel & Schneer, 220) with the effect of an increase in the unemployment rate. In contrast, profit, prices, and wages went down. Hence, “Killing the Bank” act by the President is what led to…
Supply and demand laws Reply 1 Supply and demand laws cause the price of oil to change. When supply outweighs demand, rates are likely to fall, and when the demand exceeds, supply prices will rise. For instance, in China and Europe drop in oil prices in 2014 contributed to less requirement compared to the supply. The excess supply caused the prices to drop instantly. Another factor which makes prices to change is politics and natural disasters. Natural disasters can cause damages which can cause a lot of changes. The loss will make the cost of production to rise, and raw materials might be scarce. Such kind of changes will make the prices to grow beyond the anticipations of the customers. Sometimes the government still causes fluctuation due to the strict policies which they impose. Policies like high taxation to increase income makes the manufacturers to the fuel to raise their prices. The prices will increase since the organization aims to make a profit and all circumstances. Reply 2 Fuels tend to increase due to various reasons. Some of the points…
WAL-MART EMPLOYMENT PRACTICES Executive Summary: In the case against Wal-Mart by Bernett, the court approves the settlement of money up to $35million to the workers at Walmart whose rights had been denied. This case saw a toll on the company and led to uncovering of various corporate malpractices conducted by the organization against their workers. Wal-Mart was also mandated by the court to ensure that issues regarding wage and hour violations in the company were handled. Other lawsuits filed against the company in its nationwide stores were meant to reimburse its 1.4 million workers nationwide (Mcfadden, 2020). These lawsuits had a significant impact on the company’s revenues. This position paper resolves to recommend courses of action that can be undertaken by the company’s top management to ensure that similar cases do not recur as well as steps they should have committed to preventing them. Introduction Unethical practices that have been reported over the years concerning Wal-Mart’s practices have tainted its reputation as a leading retail store. Unethical labour practices have in the stores which are against the Employee’s rights. Issues concerning…
Finance discussion Section 1 By being the Chief Finance Officer, there is a need to ensure that the business is able to raise capital and issue a particular level of equity. The company then requires an approach that will be welcoming to investors who will help the business achieve its intended goals and meet also meet the desires of the investors who find value in the shares of the company that they purchase. The purchasing of these shares can be done through both common stock and preferred stock. Although the two, common stock and proffered stock, work in more similar ways, they are still different. Bratton and Wachter (2013) detail that common stock allows the investor also to have some partial ownership to the company, which then gives the investors the right to choose representatives in the company. For preferred stock, on the other hand, it is more similar to a bond since the shares allow the investor to receive a certain amount in every dollar that the company makes. The allowance of these two stocks will allow businesses to…
FOOD SAFETY, SECURITY, AND BIOTERRORISM: IS IT ALL A SCARE TACTIC? Introduction Food safety encompasses the hygienic handling, preparation, and even the storage of food in ways that ensure its safety as far as consumption is concerned. Bioterrorism, on the other hand, refers to the ways and techniques of converting safe food to bad food that becomes unfit for consumption. This paper attempts to establish a connection between food safety and security versus bioterrorism. The above will be achieved by succinctly looking into the following three key areas: Elements of Food Security According to Schmidhuber and Tubiello (2007), four salient features of food security helps ensure the safety of food for consumption; these are: availability of food, stability of the food, utilization of the food and access to food. Availability as an element sees to it that issues, such as starvation are non-existence. Additionally, this element plays a crucial role in ensuring that issues such as struggling for food are also non-existent. The second is stability that ensures there is a constant supply of food to all in sufficient quantities.…
How To Run Your Business Based on Forecasting and What-if Analysis For many businesses, accurate budget forecasting is hard to achieve. Either these companies are still using tools and models long outdated by rapid advancements in technology, or they do not possess the expertise to make consistent adjustments throughout the year. If you fear that your company may be in a similar position, maybe it is time to switch to a more modern, efficient business forecasting method. Gone are the days of manual spreadsheet creation. Not only are these obsolete systems prone to errors, but they also require countless additional hours of paid labor. With numerous Excel spreadsheets requiring constant updating, approvals, and consolidations, it is no wonder incorrect data inputs frequently arise. If you’ve been looking to use this period of global economic re-adjustment to make your numbers line up, you are on the right track. With the amount of data you have already gathered from your business’s performance throughout the first quarter of the year, you can quickly determine the accuracy of your quarterly forecasts. You…