Fundamentals of finance Essay Example | Topics and Well Written Essays - 2000 words

Fundamentals of finance - Essay Example ITV broadcasting operates a group of channels which include ITV1 and also delivers content across a number of platforms like ITV player and itv.com. Its studios produce and sell formats and programmes both in UK and globally. WPP Plc operates a communications services group. The operations of the company encompass media, information and consultancy, public affairs, public relations, identity services, branding, investment management and advertising. WPP is a global leader in the marketing of communication services, and it comprises of public relation and public affairs companies, advertising companies and promotion and relationship marketing companies. The history of WPP dates back in 1985 when Martin Sorrel builds a worldwide marketing services company after a search on public entity. 2. Company strengths and weaknesses Analysis of the financial performance of each company WPP Plc Current ratio The current ratio for WPP Plc in 2011 was 0.94:1. Current ratio measures the ability of a firm to cater for its short term obligations using its short term assets. The current ratio is lower than 1, and this means that WPP Plc was not in a better financial position to cater for its obligations. Gearing ratios 1. Debt to equity ratio The debt to equity ratio for WPP Plc during the 2011 financial year was 2.67. This ratio is obtained by dividing total liabilities by shareholders equity and this ratio means that the total liabilities are more than the shareholders equity. This high ratio is an indication of how aggressive WPP plc has been when it comes to using debts to finance its growth. A lot of debt was used to finance the 2011 growth and this ahs led to increased operations and hence the company was able to generate increased earnings using this financing than it would have done without these finances. 2. Debt ratio The debt ratio for WPP plc in 2011 was 0.72. The debt ratio is less than 1, and this indicates that the company has less debts than assets or has more ass ets that the debts. As a result, the company faces fewer risks when it comes to debt loads. Profitability ratios 1. Profit margin Profit margin for WPP plc in the 2011 financial years was 9.14%. This ratio measures how much a company generates from each dollar of sales (Bull 2007). This means that the company keeps $0.914 of each dollar of revenue collected. The profit margin ratio for the company in 2011 was low which indicates a high risk that any decline in sales will erase or do way with the profit and lead to a net loss. 2. Return on assets WPP plc return on assets ratio for the 2011 financial year was 3.7%. The low ratio is an indicator of how inefficient the company was in managing its assets in order to generate income. In simple terms, the ratio shows how less profitable the company was relative to its total assets. 3. Return on equity The return on equity for WPP for the 2011 was 13.6%. This low percentage is an indication the company did not generate much profit from the shareholders funds invested in the company. Dividend payout ratio Dividend payout ratio for WPP plc was 33% during the 2011 financial year. The high dividend ratio for the company is an indication the earnings of the company highly support the payment of

Which equation is correct Essay Example | Topics and Well Written Essays - 750 words

Which equation is correct - Essay Example Because, copper has two oxides Copper (I) oxide Cu2O and Copper (II) oxide CuO; therefore, there can be following two possible equations for thermal decomposition of Copper (II) carbonate: It is to be determined as which of the two equations is the correct equation. Looking at the right side of equation, we find the clue for designing an experiment to determine the correct equation of the thermal decomposition. There are two clues – 1. Mass of the black residue and 2. Volume of the gas liberated. If one starts the thermal decomposition experiment with two moles i.e. 247 grams (2x123.5 grams) of copper carbonate and mass of the black residue is 143 gram, then Equation 1 is correct; on the other hand the mass of black residue being 159 grams implies Equation two being correct. One can measure the volume of the gas released as well. In case of Equation 1 being correct, two moles of copper carbonate will give two and a half moles of carbon dioxide gas, which is 2.5x22.4 liters = 56 liters at STP (Standard Temperature and Pressure, which is 273.16 K and 1 Atmosphere). In case of Equation 2 being correct, two moles of copper carbonate will give only two moles of gases, which will occupy 44.8 liters at STP. Based on these clues, we design the following experiment to determine the correct equation for thermal decomposition of copper carbonate. Pneumatic trough, test tube (13 x 100 mm), one hole stopper to fit test tube, plastic tube (from pulled Beral), graduated cylinder (100 mL), thermometer, laboratory burner, test tube clamp, CuCO3 (solid), balance 5. Bubbles started getting into the graduated cylinder. Towards the end of the decomposition reaction the rate of CO2 release slowed down. When the bubbling stopped, the burner and the delivery tube were removed. Because 2.5x10-3 moles of copper nitrate gives 2.5x10-3 moles of carbon dioxide gas, therefore, Equation 2 is the correct equation for decomposition of the copper carbonate.