health care competition
health care competition. I don’t know how to handle this Health & Medical question and need guidance.
Competition is a driving force in business. Respond to the following questions regarding competition and competition in the healthcare industry:
From an economics perspective, what is a competitive market?
Based on your definition and understanding of economic competition, is the healthcare industry a competitive market? Why or why not?
Provide one example of a recent merger or acquisition between healthcare providers, healthcare providers and insurers or pharmacy benefit providers and insurers.
What are the issues influencing these decisions on acquisition?
What is the role of the government in regulating these business transactions?
health care competition
Finance 310 Investments Portfolio Part 2
custom writing service Finance 310 Investments Portfolio Part 2. I need an explanation for this Business question to help me study.
I have a second part for the project, that you completed for me, so the same stocks you used in part one are needed for part two of the project. The Point of the Project
You are a portfolio manager, and you are trying to put together a portfolio that is designed to beat the market (represented here by the S&P 500 index). To do this you will first pick ten stocks, and then you will figure out how much of each of them to buy, using monthly data from the last five years to make your decisions. You have 100 million dollars to play with and you will pick stocks before the start of trading on August 8th.
You will decide if you have beaten the S&P 500 by looking at the performance of your portfolio over the period August 8th–November 8th.To do this you will compare the risk-adjusted returns of your portfolio with the risk-adjusted return of the S&P. The project has three parts.
Project Part II
We are now going to find the optimal portfolio of risky stocks using historical information. You need to answer the following questions:
(1.5 points) How did your stocks perform over the past five years? How volatile were your stocks?
(1.5 points) How did the market do over the past 5 years? How volatile was the market?
(2 points) Calculate the correlation matrix between all the stocks over the past five-years. Are any of the correlations high (above .6) or low (below 0.1)? What does this tell you?
(2.5 points) Find your optimal portfolio using five years of historical information. What are the optimal portfolio weights?
(2.5 points) Graph the minimum variance frontier.
(2 points) Do your portfolio weights seem reasonable? Would you feel comfortable recommending this investment portfolio to a client?
(1.5 points) Why does it make sense to use historical information (returns, standard deviations and covariances) as inputs to portfolio theory? Also give at least one argument against using historical information.
(2.5 points) What is your optimal portfolio if you do not allow short sales? Use historical inputs. Are the weights more reasonable? Would you restrict short sales? Why or why not? Graph the MVF in this case. How does it compare to #5? Why?
(2 points) You are an investor with an ‘ethical agenda.’ Eliminate two stocks from your portfolio. Explain why you found these companies to be ‘bad’ or ‘objectionable.’ What is the optimal portfolio now? Use historical information. How does this portfolio compare? What is the cost to you as an investor?
P.(2 points) Presentation (i.e., see the next page).
Make a title page that includes your name and section number and anything else you deem helpful. You should hand in a hard-copy at the beginning of class. Include answers to all the questions and any supporting material you think is helpful. Make it presentable to a “client,” or a prospective employer. It should be user friendly, concise, well-written, neat and convincing. Print only the relevant parts of the spreadsheet. The answers should be brief, but convincing. Make it easy to find your answers. Include supporting material in the appendix. Practice good printing etiquette. Write well. The assignment should be maximum eight pages (including any appendix, but excluding the title page). Longer is not always better.
Finance 310 Investments Portfolio Part 2
WEEK 9 Essay
Companies often project their corporate values on their suppliers through a supplier code of conduct or similarly named requirements. Writing these requirements can be arduous and require the input of multiple stakeholders. What is the supplier code of conduct for your selected company? If you were asked to create this code for your company, discuss how you would assemble a team or committee to write it. How would the committee work? Who would be included on the committee? Be sure to respond to at least one of your classmates’ posts.
Analyzing Various Types Of Debt Instruments Existing Finance Essay
INTRODUCTION First chapter describes the basis behind doing this study. Then, it examines the objectives of this study and some limitations of the study. PURPOSE OF THE STUDY The purpose of this study is to analyze various types of Debt instruments existing. It aims to develop an understanding of the growth of the topic. It also includes the impact of these instruments on the country and on various companies. OBJECTIVES OF THE STUDY The main objectives of this paper are – To conduct a study on the requirement of debt instruments To understand why debts instruments are important To analyze these instruments LIMITATIONS OF STUDY Due to lack of information available the graphs and the statistics shown are of previous years (2007-2008) As the data was gathered from secondary sources, the authority of the data could not be tested. Another problem was knowledge constraint and this report is an attempt to gather as much of relevant data as possible. However, every effort was made to ensure that these do not in any way adversely affect the results of the study. INTRODUCTION The debt markets today are a major source of financing than the banking system. It is any market situation where debt instruments are traded. It establishes a planned environment where the debts are traded amongst the interested parties. The debt markets are known by other names based on the types of instruments are traded. For example when municipal or corporate bond are traded, debt market is called bond market whereas if notes or securities or mortgages are traded market is called credit market. The debt market is three times larger than stock/equity market. The debt markets are categorized into two other markets called money market and capital market. Money market is a subsection of the fixed income market. It specializes in short-term debts with the maturity of one-year. Capital markets specialize in long-term debts. It is a market in which financial instruments are traded by the institutions and individuals. Institutions or organizations in either private or public sectors sell securities to raise funds in these markets. Both these terms are mistakenly applied. In capital market assets (including equities) are taken into consideration and they are amortized over the period of time. Money market is more of debts which are readily sold at price predictable within short time. But it is very difficult to distinguish between money and non-money based on one year maturity line. Some of the debt instruments are traded Over-the-counter and not through exchanges. They are traded in an electronic network market where the brokers or dealers act as mediators. Money markets are not accessible by small investors except through MFs. Corporate associates or groups or even individual investors may participate in the debt market. There may be very little difference between how corporate associates or an individual participate depending on the regulations of the government. The interest rates are the price of the money which increases with the increase in the demand to borrow money. The debt market is influenced by credit-worthiness of the borrower, term-to-maturity, security for loan and many other factors. But government also tries to regulate the interest rates to stimulate the economies with complete focus on inflation. The main advantage of debt market is the degree of risk associated with the investment opportunity is very low. For the investors who avoid participating in the riskier ventures in which there is less or smaller returns favors bonds and similar investments. A significant amount of money is earned even of returns are not high in the debt market. WHAT ARE DEBT INSTRUMENTS? For every individual financial planning is an important task. For the preservation of principal amount the investors should distribute a major portion of their investments in debt instruments. A debt instrument is an electronic obligation or any paper that permits an issuing party to raise funds by assuring it to pay back a lender in accordance with the terms and conditions of a contract. The predetermined conditions which are mentioned in the contract are the periodicity and rate of interest and the date of the repayments of the principal amount. Debt instruments are an easier way for participants and markets transfer the rights of debt obligations from one party to another. Debt obligation transferability increases liquidity and gives creditors a means of trading debt obligations on the market. Without debt instruments acting as a means to facilitate trading, debt is an obligation from one party to another. When a debt instrument is used as a medium to facilitate debt trading, debt obligations can be moved from one party to another quickly and efficiently. In Indian Securities market, the term “bond” is used for debt instrument given by Central and state government and the term “debenture” is used for the instruments issued by private sectors. OBJECTIVE OF DEBT INSTRUMENT Preservation of principal amount and getting modest returns is the main objective of the debt funds. Investors look for both short-term and long-term investments. There are many instruments available in the market so one can choose easily any or mix of instruments according to its requirements. FEATURES OF DEBT INSTRUMENTS The features of the instruments are: Safety of the principal amount Guaranteed returns for the investors. Some of these instruments also qualify for tax rebates under Section 80C. Currently 8-9% interest per annum are quoted for medium to long-term deposits whereas it is 6-7% returns for short-term deposits Nowadays, many banks provide funds sweep-in /sweep-out facility where a balance beyond a certain limit automatically gets converted into a fixed deposit and banks pay the fixed deposit interest on it. This can be an option for a short-term horizon. There are three main features of debt instruments Maturity Coupon Principal Maturity Maturity refers to the date on which the bond matures. It is the date on which the borrower agrees to repay the principal amount. Term-to-maturity refers to the number of years remaining for the bond to mature. It changes every day from the date of the issue to the maturity of the bond. It is also called the tenure or term of the bond. Coupon Coupon Rate refers to the periodic payment of interest made by the issuer of the bond to the lender of the bond. Coupons are declared either by stating the number (example: 8%) or with a benchmark rate (example: MIBOR 0.5%). It is usually represented as a percentage of the face value or the par value of the bond. Principal It is the amount which is borrowed. It is the face or the par value of the bond. The product of the coupon rate and principal is the coupon. For example a GS CG2008 11.40% bond refers to a Central Government bond maturing in the year 2008, and paying a coupon of 11.40%. Since Central Government bonds have a face value of Rs.100, and normally pay coupon semi-annually, this bond will pay Rs. 5.70 as six- monthly coupon, until maturity, when the bond will be redeemed. The term to maturity of a bond can be calculated on any date, as the distance between such a date and the date of maturity. It is also called the term or the tenor of the bond. For instance, on February 17, 2004, the term to maturity of the bond maturing on May 23, 2008 will be 4.27 years. The general day count convention in bond market is 30/360European which assumes total 360 days in a year and 30 days in a month. There is no rigid classification of bonds on the basis of their term to maturity. Generally bonds with tenors of 1-5 years are called short-term bonds; bonds with tenors ranging from 4 to 10 years are medium term bonds and above 10 years are long term bonds. In India, the Central Government has issued up to 30 year bonds. CHARACTERISTICS OF DEBT INSTRUMENTS The primary characteristics of debt instruments are: Issuance of an instrument is easy Any company with or without past track record can issue these instruments Rate of interest are fixed or floating Fixed commitments are imposed on servicing Debt instruments may be flexible in the period of repayment or nature of interest but they impose fixed commitments on servicing or business. Failure to do servicing of these instruments would be termed as default with adverse effects on the company’s standing in the financial sector. Risk is low Investors in such instruments being creditors of the company have priority over equity and preference shareholders in receiving return (in the form of interest) in such instruments. These carries priority claim on the assets of the firm (if secured) in the event of bankruptcy. TYPES OF DEBT INSTRUMENTS There are various debt instruments. The debt instruments can be categorized into long-term and short-term debt depending on the time for which the amount has been raised or the repayment period. The debt instruments are mentioned as follows: C:UsersdellDesktopdebtinst.bmp Long term Debt Long-term debts are mainly bonds and debentures with the tenure greater than one year. Debentures A debenture is an instrument of debt executed by the company acknowledging its obligation to repay the sum at a specified rate and also carrying an interest. Company can raise loan capital from debentures A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company’s capital structure, it does not become share capital. The main characteristics of debentures are: Fixed interest instrument with changeable period of maturity May or may not be listed on stock exchange, if listed they should be rated by any of the credit rating agencies chosen by SEBI Can be either offered for subscription or privately placed A debenture redemption reserve has to be maintained when offered for subscription The period of maturity varies from 3 to 10 years and may also be more for projects having high gestation period Types of debentures Various types of debentures are as follows: Non convertible debentures (NCD) Fully convertible debentures (FCD) Partially convertible debentures (PCD) NCDs are those in which total amount if instrument in redeemed by the lender whereas FCDs are those in which the whole value of the instrument is converted into equity. The conversion price is given when the instrument is borrowed. PCDs are those in which part of the instrument is redeemed and part of it is converted into equity. Conversion price is the price of each equity share received by converting the par or face value of the debenture. The number of equity shares exchangeable per unit of the convertible security i.e. debentures is called the conversion ratio. The period of time after which the debenture is converted into equity is called the conversion period. The convertible instruments are generally used to stem the sudden outflow of the capital at the time of maturity of the instrument causing temporary liquidity problems. Alternately, the company has to raise funds from a different source or issue fresh instruments to tide over and also has to bear the transaction costs in the process. Debentures might be either callable or puttable. Callable debenture is a debenture in which the issuing company has the option of redeeming the security before the specified redemption date at a pre-determined price. Similarly, a puttable security is a security where the holder of the instrument has the option of getting it redeemed before maturity. Bonds A bond is a debt security in which authorized borrower or issuer owes the lender or the holder a debt and is obliged to repay the principal amount and interest at maturity. It is a loan in the form of securities having varying terminologies: The issuer is equivalent to the borrower, the bond holder to the lender, and the coupon to the interest. It enables the issuer to finance long-term investments with external funds. Bonds and stocks are both securities, but the major difference between the two is that stock-holders are the owners of the company (i.e., they have an equity stake), whereas bond-holders are lenders to the issuing company. Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely. An exception is a consol bond, is a perpetuity bond (i.e., bond with no maturity). There may be many types of bonds- such as infrastructure, regular income, deep discounts or tax savings. These are instruments having fixed interest rate and a definite period of maturity. The main difference between bonds and debentures is that debenture is secured and bond is not. Hence bonds have higher rate of interest than debentures. There are many kinds of bonds available such as: Floating rate or fixed rate bonds High yield bonds Subordinated bonds Perpetual bonds Asset-backed securities Bearer bond Zero Coupon bonds Registered bond Inflation linked bonds Book entry bonds Municipal bonds War bond Lottery bond Medium term loan These are loans extended for a period of 2 to 5 years. The purposes for which these loans are issued are: Short gestation projects: The short gestation projects could be for purchase of balancing equipment, for incremental expansion of capacity. Refinancing of loans in case of very long projects where the repayment of the term loans might occur prior to sufficient cash flows being generated by the project. For meeting any other medium term shortfall in funding arising out of an acquisition or bulleted repayment of a large loan, etc The methods for issuing medium term loans are similar to those required for project finance. In case of meeting a medium term mismatches not linked to a project or equipment, the financing decision would be on the basis of a cash flow analysis indicating the need for such medium term funding and an analysis of overall profitability and financial to the business to provide lender comfort. Other than these aspects, the procedures for availing Medium Term loans follows the requirements sought by the lenders in case of Project financing/ long term lending. Public Deposits These are those deposits that are achieved by many small and large firms from the public. The public deposits are issued mainly to finance the working capital requirements of the firm. The rate of interest offered varies with time period of the public deposits. The rate of interest which is mostly offered by the companies on the deposits made on one year is 8-9%, for two year deposits rate is 9-10% and for three years rate offered is 10-11%. For public deposits there are some rules which the companies have to follow according to Companies Amendment Rules 1978: 3 years is the maximum period of maturity for public deposits whereas 6 months is minimum period For NBFC 5 years is the maximum period of maturity The companies need to disclose the information regarding the financial position and performance 10% of the deposits need to be kept aside by the companies every year by 30th April by the companies having public deposits. This will mature by 31st March next year. Advantages enjoyed by companies Simple and Easy process in gaining public deposit No restrictive agreement Reasonable cost incurred after tax No collateral Disadvantages Very limited funds raised Short period of maturity Advantages enjoyed by investors Higher rate of interest Shorter maturity period Disadvantages No tax exemption No collateral Short-term debts The debts which are raised for less than one year are short-term debts. These are categorized into market instruments and financial assistance granted by NBFC, Commercial Banks and Term Lending Institutions focusing on the short term needs of a business. Commercial Paper These are unsecured promissory notes. These are issued by those companies having high credit ratings. The maturity of CPs is 1 to 270 days. They are issued at face value and redeemed at face value. CPs can be issued by companies, which have a minimum networth of Rs.4 crores and needs a mandatory credit rating of minimum A2 (ICRA), P2 (Crisil), D2 (Duff