Managing Financial Principles and Techniques Coursework

Managing Financial Principles and Techniques - Coursework congressmanManagement of the institution is also recommended to reduce the amount of cash and cash equivalent assets outstanding to suspend investing in projects with negative net present value, and avoid pushing management into empire building. In all, Autonomy Plc has a good performance in its liquidity, profitability, efficiency and Long term financial stableness as on average it out performed the industry performance. These interpret a favourable signal to the companionship horizontal trend. To suppliers, the quick payment system operated by the company is unique to the industry as such(prenominal) suppliers should strife at strengthening their relationship. For applicants, the company is a going concern applicant should not swerve to seek a cargoner with the companyGlobalisation, the new information technology, and deregulation of financial market places have alleviated the provision and search of finance. Millions o f shares are traded every day on the worlds stock markets. (Penman, 2003). Investors who trade on these stocks are often forced to ask themselves whether they are buying or selling at the right price. (Artril & Elliot , 2003). Artrill & Elliot (2003) reason that, they often attempt to provide answers to these questions by turning to various media including internet chat rooms, printed press, talking heads on television and financial networks, who often voice opinions on what they feel the stock prices should be. In addition, investors consult investing analysts who provide an almost endless stream of information and recommendations to sort out. There are often claims that around shares are undervalued and vice versa. (Penman, 2003).This information at times becomes confusing leaving the investor with no clear singularity of what the true prices of stocks should be. (Penman, 2003). In the prevailing circumstances, Brealey & Myers (2005) state that the investor is forced to make t he investment decision following his/her disposition or based on the information provided by the market. (Penman, 2003). Investors who make the decision based on intellect are referred to as intuitive investors while those who make investment decisions based on capital market efficiency are referred to as passive investors. (Penman, 2003). Passive investors carry out their investment decisions based on the assumption that the market price is a fair price for the risk taken, that is, that market forces have determined the price to the appropriate point. (Brealey & Myers 2005).These investment mechanisms appear to be very simple, as they do not beseech much effort. (Penman, 2003 pp 3). However, Berlin & Lexa (2003) caution that, both investors run risks that are even more than the risks of the firms they are investing in since they can either pay too much or sell for less and as a result suffer a decrease in returns on their investments. (Penman, 2003). Penman (2003) argument was supported by Brealey and Myers (2005) when they stated that, the intuitive investor has the problem of the intuitive bridge builder one may be jocund