3BM070 Strategic Corporate Finance ASSIGNMENT 2 Essay

3BM070 Strategic Corporate Finance ASSIGNMENT 2 - Essay Example The ratio is seen to be as high as 30% (Damodaran, 2012). a) Whether making investments in the shares of BP is profitable or not, has been analysed on the basis of the above calculations in respect to p/e ratio and the share price value calculated using the dividend growth model. The p/e ratio aids investors to understand the market prospects of a given stock. A higher p/e ratio is generally considered to be better as it results out of higher earnings and market value existing for a share. It is also considered that firms having a higher p/e ratio is likely to give more dividends (Bakshi and Chen, 2005). The ratio helps investors to decide upon the price at which shares must be purchased based on the evaluation of its earnings. The ratio therefore aids in establishing a relationship between earnings and the market value per share. It is extremely essential that the ratio is studied by investors based on industry average and previous year’s values. The ratio can be interpreted wrongly if not suitably compared with the p/e ratios of previous years and the general ratio existing in the industry (Sharpe, 2002). From the calculations carried out it has been seen that the p/e ratio of BP in the 2013 has been lower than the general industry standards. The industry standards were at 12.8 while the ratio for BP was as low as 6.49%. This indicates that the market value of shares and the EPS values for the year 2013 of BP were lower than the general industry standards. On the other hand, it was seen that the p/e ratio for the year 20014 had risen to 30%. This was identified due to a fall in the earning per share (EPS) values, although the price of shares had experienced lower level of decline. Although a higher p/e ratio is considered to be better, it may be judged wrongly if not compared with the figures of the previous year. In case of BP, although the p/e ratio had risen, the cause behind it was a fall

English composition assignment 666 Essay Example | Topics and Well Written Essays - 1000 words

English composition assignment 666 - Essay Example need to define whether Islam is a religion that is an enemy of the United States, or if it was merely misjudged and given a bad reputation by the actions of a few Islamic radicals. Using various reputable sources such as online newspapers, both electronic and print journals, and other possible sources, I plan to discuss this very issue and portray both sides of the story. by doing that, I will be able to present factual data and other actions that can help lay the issue to rest. Goldstein, J. (2013). What is racial profiling? police testify complaint is rarely made. The New York Times. Retrieved from http://www.nytimes.com/2013/05/13/nyregion/what-racial-profiling-police-testify- complaint-is-rarely-made.html?_r=0 Kessler, C. (2013). Muslims must face history of Islam. The Australian. Retrieved from http://www.theaustralian.com.au/national-affairs/opinion/muslims-must-face- history-of-islam/story-e6frgd0x-1226650925628 Simcox, R. & Dyer, E. (2013). A brief history of radical islamists in the U.S. armed forces. The Atlantic. Retrieved from http://www.theatlantic.com/international/archive/2013/04/a-brief-history-of-radical- islamists-in-the-us-armed-forces/274544/ Sobiesky, M. (2013). At war with Islam, Martel Sobieskys warning after Boston. Retrieved from http://www.standupamericanow.org/articles/2013/04/at-war-with- islam-martel-sobieskeys-warning-after-boston Stoakes, E. (2012). Islam is not â€Å"the enemy†-- irrational hatred is. Retrieved from Independent Blogs. Retrieved from