Wal-Mart Case Study Example | Topics and Well Written Essays - 500 words

Wal-Mart - Case Study Example Therefore a person should possess strong financial, mathematical, communication and computer skills to perform the role of an equity analyst. Wal Mart is using the Dividend Discount Models to estimate the intrinsic value of the company. Wal Mart is using the Constant growth Dividend Discount Model to estimate intrinsic value of company and its perpetual growth in dividends. Equity analyst is using different method of estimating the growth of dividends. Firstly, estimate the historical dividend growth in a perpetual fashion. Secondly, future growth is estimated by the equity or financial analysts on the ground of recent data. Growth of dividend and in sale over several years is forecasted by estimating the historical value of stocks. In its financial statements, the average increase in shares has decreased as in 2009 they were 3,939 and in 2010 is 3,866 while sales has increased more than decrease in stock. In 2010 the annual growth of dividend is 14.7 while average growth till 2010 is 31.3 and all forecast is depend the value of historical values of stocks. Wal Mart is at the maturity stage of Three stage of dividends discount. This model calculates present stock price by using present value of all cash flows at the cost of equity. The Wal Mart has current earnings growth is 10.40 per cent with $ 1.09 payout ratio on $ 3.72. Therefore at maturity its payout ratio would be 40 % of its earning. Wal Mart price/ Earning Ratio is used to estimate the intrinsic value of stock. The P/E multiple of Wal Mart was 14.23 times. According to the analyst Wal Mart is current value is depend on the heavy traffic of customers or US benefits while risk is attached with the political, economic condition of the country where this store is operating and wage laws. A price earnings ratio 1 is assumed risky while 20 expressed is good to do business for

Modern World Theories Essay Example | Topics and Well Written Essays - 3500 words

Modern World Theories - Essay Example justice would be most required. Thus, such an effort is made in this discussion to comprehend three of the most prominent theories of the modern world. As a first step, let us understand them in their popular definitions to initiate the discussion. Liberalism, as opposed to Marxism and Neo-Conservatism, is a "political theory founded on the natural goodness of humans and the autonomy of the individual and favouring civil and political liberties, government by law with the consent of the governed, and protection from arbitrary authority [and] An economic theory in favour of laissez-faire, the free market, and the gold standard" (Liberalism. 2008). Now, to understand another major modern theory, Marxism can be well defined as the "political and economic philosophy of Karl Marx and Friedrich Engels in which the concept of class struggle plays a central role in understanding society's allegedly inevitable development from bourgeois oppression under capitalism to a socialist and ultimately classless society" (Marxism. 2008). Another major political philosophy that came out, mainly in the US, as a rejection of social liberalism and the New Left movements is the Neo- Conservatism which is difficult to be defined, yet may be understood as one that "refers to the political goals and ideology of the "new conservatives" in the United States, characterized by hawkish views on foreign policy and a lesser emphasis on social issues and minimal government than other strains of American conservatism" (Definition: Neoconservatism (United States). 2007). Now, to have a comprehensive idea of these philosophies, let us discuss them in detail. Liberalism In critical perspective, Liberalism, as opposed by the other political, cultural, social and economic theories of consideration, may be put in a high status in the modern context as it ensures maximum individual freedom in the democratic way of governments. Various characteristic features of the theory may be considered in favour of Liberalism. Among them the notable ones are the emphasis on individual freedom, opposition to the government regulation through the advocacy of free market, importance on the liberal government, democracy, and civil rights and the equality of opportunity to the individual. There so many values, elements, institutions, and other characteristics that buttress the great role of Liberalism. One of the primary considerations among them is its perspectives on human nature. Liberalism, in its radical social form, has been the champion of human liberty and all its perspectives of human being concentrated on this ultimate concept of the liberals. Human beings, when they are adult, mature persons to enjoy the freedom and selection of things most suiting their growth and progress, were allowed the freedom without the intervention of the government. Unlike the classical liberals who consider the individuals as able to assume the ways of developing their life, modern liberals cling to the idea about human nature "that we are basically moved by impersonal forces and have no capacity to initiate any improvements in our lives. Any such improvement has to come from the outside, and government, with its concentrated and massive coercive power, is the most promising candidate to bring about such improvement"