Acc/275 Week 1 Case Study Finance Case

Case Analysis: Alpen Bank The main issue that Alpen bank is facing is whether or not they should launch the credit card business in the Romania market and which group of target audience they should select while applying the launching strategy. Moreover, specifically to Carle, he needs to come up with a program from which, Alpen bank can generate at least €5 million in profit within 2 years. Moreover, clarified positioning strategy and customer segmentation is also needed to secure the success of the program. In the case, it seemed that Alpen had the opportunity to act since economic environment in Romania had changed from 2006 after its entering into the EU: the economy there was developing; a

Note , Bank 247,000 Note, Stark 157,000 Accounts payable 343,000 Accrued expenses 51,000 Long-term debt, current portion 7,000 21 21 Long-term debt 43,000 50 50 Total liabilities $848,000 61 61 86 86 21 21 Projected Income Statement for Year 2011 (thousands of dollars) 2011 (P) net sales 3,600 cost of goods sold beginning inventory 418 purchases 2,736 76% 3,154 ending inventory 562 total cost of goods sold 2,592 72% gross profit 1,008 operating expenses 900 25% operating profit 108 purchase discount

b. What do you think will happen to the portfolio’s expected rate of return and standard deviation if the portfolio contained 75 percent of Project B?

If the client’s risk index was increased to.055 the investment would be affected in the following manner. The optimal solution becomes $ 98, 800 and the funds would be allocated in the following manner: Growth fund $ 293, 334, Income fund $ 160, 000, and Money Market fund $ 346, 667.

d) If the return on bonds increases from 10% to 13%, what will happen to the optimal allocation of funds?

In a summary of this report, I have introduced the basic information about this portfolio, which includes ten stocks and two bonds, then I have gone on to analyse the past performance of the existing portfolio, which includes the dividend yield, sectors and payout ratio. From this analysis I have found

2. Determine the profile of the investor for which this company may be a fit, relative to that potential investor’s investment strategy. Provide support for your rationale.

30% of the portfolio is to be invested in stocks in order to provide a better return and also offset the lower returns from the cash and bond returns in the portfolio.

2. What historical evidence of the business operations of the private estate of Apollonius was

3. Due to best historical performance, 15% of the fund should be allocated to Value Fixed Income which is the third highest weight in the portfolio recommended above.

The management of portfolios of investors on a discretionary basis, in compliance with the mandate given, when these portfolios include one or more

The Equity Index Fund (GEQZX) is a Biblically Responsible Investment (BRI) fund created by GuideStone Funds. The objective stated in the prospectus is to gain the same performance as the S&P 500 Index by investing in the same components. The screening process is to recreate the S&P 500 by investing in the same assets which include 486 different holdings. All of the companies in the mutual fund will have the same weight as they do in the index it is following. The mutual fund does maintain some cash with a 2% allocation for liquidity purposes. The mutual fund has shared close returns. The returns are within 1% of the benchmark, S&P 500, as shown in Figure 1 acquired from GuideStone’s website. There are two share classes which are Investor and Institutional. To invest in the Investor Class shares a minimum initial investment of $1,000 is required. Subsequent investments must be at least $100. The management fee is 0.10%. The gross expense ratio is 0.43%. The net expense ratio is 0.42%. There is no 12 b-1, Redemption fees, or Sales Charge. The portfolio turnovers for each year between January 1, 2011 and December 31, 2015 were 4%, 3%, 4%, 5%, and 6% respectively. The fund’s sector allocation is 12.8% Consumer Discretionary, 8.8% Consumer Staples, 7.8% Energy, 16.6% Financial Services, 12.6% Health Care, 10.7% Industrials, 20.8% Technology, 3% Materials, 3.1% Telecommunications, and 3.8%

Dartmouth Inc's latest net income was $1,250,000, and it had 225,000 shares outstanding. The company wants to pay out 45% of its income. What dividend per share should it declare?

On the other hand, the Balanced Strategy has a strategic asset allocation of 38.0% liquid growth, 27.7% alternatives and 34.3% liquid defensive with an investment objective of maximizing the earnings rate subject to a greater than 60% probability of exceeding CPI+3.0% pa. over rolling 7 year periods. This strategy is ideal for members with medium term investment

The main methods of reducing the risks associated with investments in securities based on portfolio formation are: