Study On The Us Stores Takeover Of Morrisons Finance Essay - Free Essay Example

Sample details Pages: 6 Words: 1720 Downloads: 8 Date added: 2017/06/26 Category Business Essay Type Research paper Did you like this example? The US Stores market performance is unsatisfied. The share price and P/E ratio of the firm have been dropping. The company intends to carry out a strategy to expand world-wide markets by acquiring a major UK retailer. Don’t waste time! Our writers will create an original "Study On The Us Stores Takeover Of Morrisons Finance Essay" essay for you Create order Merger and acquisition is one of the approaches to achieve the corporate strategies, such as expanse the market share and proportion of products. In this takeover proposal, the motives for US Stores takeover are investigated from different aspects. The fair valuation of quasi-acquired company is evaluated to determine the maximum offer price. Finally, the proposal investigates the corporate takeover bids and methods of payment. Introduction The US Stores market performance is not satisfactory. The share price and P/E ratio of the firm have been dropping. The corporate strategy is to expand world-wide markets by acquiring a major UK retailer. Merger and acquisition is one of the approaches to achieve corporate strategies, such as expanse the market share and proportion of products. Other strategies, such as organic growth, establishment of joint ventures, and co-alliance, among which I suggest MA, because it provides an economic way to entry the European market and acquisition activity is a efficient growth mechanism in the retail industry. One major UK retailer has been chosen as the target company, considering the following reasons: 1) from the global perspective, British retailers generally have moderate or small size; 2) ownership and management are concentrated; 3) domestic market oriented; and 4) excellent cash earning ability. This takeover proposal is structured as below. Section 2 refers to the motives f or US Stores takeover. Section 3 describes the valuation of a quasi-acquired company. Finally, section 4 investigates the corporate takeover bids and methods of payment. Motivation The scale of cross-border merger is growing significantly during the 1990s, which aided by globalization and deregulation in the last two decades. By summarizing the previous literatures, Berkovitch and Narayanan (1993) category plenty of hypotheses into three major groups: the synergy motive, the agency motive, and hubris motives. Besides, the motivation of cross-border merger in retail industry has its own characteristics. 1) Synergies The primary motivation in taking over UK retailer is to achieve synergies. It is defined as the reactions that take place when two elements combine together to produce a more significant effect than the sum of the effects of two parts (Gaughan, 2007).An empirical investigation made by Berkovitch and Narayanan (1993) summarizes that the synergy motive suggests that takeovers occur because of economic gains that result by merging the resources of the two firms. Friedrich Trauiwein (1990) proposes an efficiency theory, which suggests that shareholders of the bidder will benefit from MA through synergies. It is believed that US Stores takeover project will enhance its operating and financial economies of scale and increase its market shares and market image. 2) Market Extension Taking over a firm in the same industry will result in an increase in its market share and consequently have a crucial impact on the bidders market power (Gaughan, 2007). Robert S. Stillman (1983) argues that, according to a more concentrated industry, the product prices may raise after horizontal mergers, which brings about an increase of bidders equity values. Consequently, the firms share value in the affected industry will increase. Trauiweins monopoly theory defines mergers and acquisition as being executed and projected to obtain a market power. According to this theory, the US Stores Inc can aim at simultaneously limiting competition in more than one market. The prospects of US Stores growth opportunity in North America is unoptimistic, and takeover a major UK retailer which can provide an efficient entry to European retail market and the chance of expanding its global market power is an sensible corporate growth strategy . 3) Growth US Stores takes a strategy to expand its economic scale for the purpose of business growth. Expansion through MA is more efficient than internal organic growth. Merger and acquisition, which compared with internal organic growth, is a convenient way to control the trend of market production and consumption. MA is a very ordinary characteristic of modern business activity and MA form a primary motive force for the growth of firms (Michael Firth, 1979). 4) Management Motives Cross-border takeover creates numbers of new business opportunities (Healy et al. 1990, 23) and make the entrance to world-wide markets an easy way (Black, Carnes and Jandik, 2001). In addition, cross-border takeovers gain a effect on reputation enhancement, cost reduction, value maximization, earnings volatility reduction, and international diversification. Valuation The Selection of Target Company Wm Morrison Supermarkets plc is the fourth largest chain of supermarkets in the United Kingdom. Morrisons market share is at 11.8%. We choose Morrisons as our Target Company, rather than Sainsbury plc or Marks and Spencer plc, according to the following factors: First, Under-leveraged companies are attractive targets since the bidder can issue debt to finance its takeover. Shown from the table below, the D/E ratio of Sainsbury and MS is 129% and 258% separately, which is significantly higher than Morrisons. The Sainsbury pension fund is a big liability, which will prevent Sainsbury from being acquired to some extent. Secondly, companies which have adequate amounts of cash and liquid assets will be potential takeover targets, because the bidder can payoff its costs with the target companys liquid assets once obtain the control power. According to the of Morrisons annual report and financial statement, the cash from operating activities increased by  £208m (24%) which refl ects the strong profit generation of the Group from increased turnover and good profit conversion, combined with cost control throughout the business and improved working capital management. Thirdly, the P/E ratio of Morrisons is lower than industry average P/E ratio. The EPS will increase if a company with higher P/E ratio takes over a company whose P/E ratio is lower. Fourthly, firms can be successfully acquired if they have a higher proportion of institutional shareholdings. The proportion of Morrisons private shareholders is much less than institutional shareholders. Assumption Beta: Assume Morrisons beta is 0.737, provided by Bloomberg web site, is reasonable. Bond price: Using Safeways bond yield as Morrisons bond price, which is 4.2%. The interest rate on 10-year government bond is 4.05%. Using CAMP to calculate Morrisons cost of equity. Taking 10-year government bond interest rate as risk-free rate. Assume that the market rate of return is 10.3%. According to Ibbotson Associates, the SP has returned an average of 10.3 percent a year. WACC: Using the the total market value of share capital as Morrisons total equity and market value of debt as total debt when calculate the cost of capital. Growth rate: Assume Morrisons growth rate is in line with 10-year government bond interest rate. When calculate the value of the firm, the cost of capital is the WACC. Assume that the FCF will grow at a constant rate. If US stores Inc purchases Morrisons, Morrisons sales will increase 2% per year faster than 4% for the next 5 years. Due to cost-saving s ynergies, the CoGS ratio will be reduced by 1% perpetually. Capex: the capital expenditure of 2009 is  £678m, which is much higher than its historical average level. Assume the capital expenditure is the average of recent three years. Capital expenditure = ( £678 m +  £410 m + £269 m) / 3 =  £425 m Taking the motivation for US Stores takeover, Morrisons corporate governance structure, and the side effects of hostile takeover into consideration, agreed bid is suggested. If the takeover of Morrisons fails to agree, the bidder should then go directly to the targets shareholders. In this case, a hostile takeover is going to be carried out. The market value of Morrisons is  ¿Ãƒâ€šÃ‚ ¡7825.972 m, the maximum premium on pre-bid price is 20%, and the maximum price US Stores willing to pay is  ¿Ãƒâ€šÃ‚ ¡9.391.166 m. There are five reasons to determine that friendly bid should be our choice: 1. The fair value of the firm plus the synergies is  £8519 m, which is not much higher than market value. The premium that range from 25% to 45% paid for a hostile takeover will offset the synergies. In this case, the long-term performance of the bidder will be affected by the value-decreasing. Signal effect: security offer and cash offer have different signaling implications. Literature on share-for-share offer shows a negative stock price reaction to new common stock offerings. Nickolaos G. Travlos (1987) show his result of an empirical study, which indicate that bidding firms suffer significant losses in pure stock exchange acquisitions, but they obtain normal returns in cash offers. According to Myers and Majluf model, the market participants regard a cash offer as good news and a share-for-share offer as bad news about the bidding firms fair value. Faccio and Masulis (2005) argue that when a security offer is made, the market interprets it as a signal that the shares are overvalued. In that case, the share price will drop. Announce ment effect: Similar to signal effect, security offer is associated with negative price movement after the announcement (Faccio and Masulis, 2005). Security offers become less attractive to US Stores as P/E ratio will drop down (Nickolaos G. Travlos, 1987). Cash offer is chosen as payment method and there will bring an increase in price-earnings ratios. Petzemas (2008) finds that cash payment acquisitions usually outperform stock payment acquisitions. The difficulties US Stores Inc faces are that the earnings are held up well, but the share price and P/E ratio have been dropping constantly. And the market prospect is not optimistic. In this situation, the cash offer signals a high valuation of the corporation (Fishman, 1989). In order to enhance its market share price and P/E ratio, the US Stores Inc is proposed to purchase by cash. Long-term Performance studied by Loughran and Vijh shows that thecash offer gains a positive long-term return and shares offer gains a negative ab normal return. The US Stores Inc cross-border acquisition is proposed for the following motivations: taking over UK retailer to achieve synergies; increase its market share and market power; for the purpose of business growth; and other management motivations. US Stores Inc choose Morrisons as its target among Sainsbury and MS by evaluating its leverage, assets liquidity and composition of shareholders. And valuate its cost of capital, fair value and synergy value. Taking the motivation for US Stores takeover, Morrisons corporate governance, and the side effects of hostile takeover into consideration, agreed bid is suggested. And depend on the bidders purpose and financial position, the target shareholders preference and market perceptions, payment in cash should be an appropriate method.

John Updike’s A P, Richard Wright’s The Man Who Was...

John Updike’s â€Å"A P,† Richard Wright’s â€Å"The Man Who Was Almost a Man,† and James Joyce’s â€Å"Araby† Stories about youth and the transition from that stage of life into adulthood form a very solidly populated segment of literature. In three such stories, John Updike’s â€Å"A P,† Richard Wright’s â€Å"The Man Who Was Almost a Man,† and James Joyce’s â€Å"Araby†, young men face their transitions into adulthood. Each of these boys faces a different element of youth that requires a fundamental shift in their attitudes. Sammy, in â€Å"AP†, must make a moral decision about his associations with adult institutions that mistreat others. Dave, in â€Å"The Man Who Was Almost a Man,† struggles with the idea that what defines a man is physical power. The narrator of†¦show more content†¦Sammy, however, surprises us, just like the story does. His immediate infatuation with the girls and everything they represented (the youth he was quickly denying himself by being tied at such a young age to the very adult world of work) quic kly brought him to realize that his life was still that of a young person. What he thinks is an act of bravery, which will certainly be awarded with the attentions of â€Å"Queenie†, turns out to be a solo act of personal assertion. Just when Sammie thinks his life is ending, it is truly just beginning. Richard Wright’s story, â€Å"The Man Who Was Almost a Man†, is also a story of a youthful ignorance of the actual complexities of the world. To Dave, the main character of the story, getting a gun will make all the difference in his becoming a man, musing â€Å"Shucks, a man oughta hava little gun aftah he done worked hard all day†¦.†(923) Just as the youth of the girls in AP, are the central symbol of that story, the gun is the central literary symbol of Wright’s. With a gun in his hand, Dave is convinced that his fears will disappear, that he will become powerful and honored. Just as Updike demonstrates with Sammy, Wright shows us that Dave is both naà ¯ve and misguided. From the first, Dave demonstrates his childishness in his very strategy to get the gun. He speculates, sounding quite immature, that his mother will give him a gun. He is subsequently childish in his handling, or mishandling, of the old revolver. As heShow MoreRelatedANALIZ T EXT INTERPRETATION AND ANALYSIS28843 Words   |  116 Pagesresolved is one within the protagonist’s psyche or personality. External conflict may reflect a basic opposition between man and nature (such as in Jack London’s famous short story â€Å"To Build a Fire† or Ernest Hemingway’s â€Å"The Old Man and the Sea†) or between man and society (as in Richard Wright’s â€Å"The Man Who Was Almost a Man†). It may also take the form of an opposition between man and man (between the protagonist and a human adversary, the antagonist), as, for example, in most detective fiction. Internal

Index Methodology of Dse Free Essays

string(40) " will be allowed during VECTOR session\." A stock market index is a number that indicates the relative level of prices or value of securities in a market on a particular day compared with a base-day figure, which is usually 100 or 1000. There are many different ways of constructing an index. One of the most common methods is illustrated by the following simple example. We will write a custom essay sample on Index Methodology of Dse or any similar topic only for you Order Now The values of a market portfolio at the close of trading on Day 1 and Day 2 are recorded below: | |Value of portfolio |Index | |DAY1 |Tk 20,000 |1000 | |(base day) | | | |Day 2 |Tk 30,000 |1500 | We take Day 1 as the base day. The index on that day will be taken as a standard.The value assigned to the base day index is 1000 in this example. On Day 2 the value of the portfolio has changed from Tk 20,000 to Tk 30,000, a 50% increase. Therefore, the value of the index on Day 2 will change to indicate a corresponding 50% increase in market value. The computation follows the procedure below: Day 2’s portfolio value Day 2’s index = ————————— * Base Day’s index Base Day’s portfolio value Tk 30,000 = ———– * 1000 Tk 20,000 =1500Day 2’s index is 1500 as compared to the 1000 of day 1. The above illustration only serves as an introduction to how a particular index is constructed. The daily computation of an index is more involved especially when there are changes in market capitalization of constituent stocks, e. g. , rights offers, stock dividend etc. The primary objective of constructing market indices is to measure the performance of the market. The indices provide vital information about the current and historical behavior of the market.Index Calculation Algorithm (according to IOSCO Index Methodology): Yesterday’s Closing Index X Current M. Cap Current Index = ————————————————————–   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Opening M. Cap Yesterday’s Closing Index X Closing M. Cap Closing Index = ————————————————————–   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Opening M. Cap Current M. Cap = ? ( LTP X Total no. of indexed shares ) Closing M. Cap = ? ( CP X Total no. of indexed shares ) Abbreviations and Acronyms M.Cap   Ã¢â‚¬â€œ Market Capitalization DSE      Ã‚   – Dhaka Stock Exchange IOSCO – International Organization of Securities Exchange Commissions (IOSCO) LTP   Ã‚  Ã‚     Ã¢â‚¬â€œ Last Traded Price CP   Ã‚  Ã‚  Ã‚  Ã‚     Ã¢â‚¬â€œ Closing Price DSE Share Price Index: |Sl. No |Index Name |Base Index |Remarks | |1 |DSI (all shares) |350 (as on 01-11-1993) |   | |2 |DGEN |817. 3704 (as on 24-11-2001) |SEC directive regarding index was on | | |(A, B, G ; N) | |17-11-2001 | |3 |DS20 |1000 (as on 01-01-2001) |   | DSE introduced the DSE-20 index from January 1, 2001 comprising the blue-chip shares with a base index of 1000 as on January 1, 2000. Since then, the index has been revised on two occasions, once in 2002 and later in 2004.The companies which are placed under the index currently are Square Pharmaceuticals, Islami Bank Bangladesh, Prime Bank, British American Tobacco, Beximco Pharmaceuticals, Southeast Bank, Dhaka Bank, National Bank, Square Textiles, Bata Shoe, BOC Bangladesh, Singer Bangladesh, ACI Ltd, Uttara Finance, Meghna Cement, Bangladesh Lamps, AMCL (Pran), Monno Ceramic, Apex Tannery and GQ Ball Pen. Apart from DSE-20, the prime bourse of the country has two other indices namely DSE general index or DGEN and all share price index or DSI.The benchmark index-DGEN- excludes companies of Z-category and is calculated on the basis of price movement of individual stocks. On the other hand, DSI includes all securities and is calculated on the basis of price movement of individual stocks. DSE-25, the revised index of the blue-chip shares of Dhaka Stock Exchange (DSE) was launched on trial basis on July 19 2010. DSE -25 reflected the price movement of the top companies in a more accurate way. The DSE-25 included new companies from IT, insurance and service sectors for the first time since the inception of DSE-20 from January 2001.Meanwhile, DSE had also completed sector-wise index comprising 16 sectors. The sectors are bank, investment, fuel ; power, food, engineering, cement, insurance, IT, jute, paper ; printing, ceramic, tannery, pharmaceutical, textile, service ; real estate and miscellaneous. The new criteria of DSE-25 index are earning per share, minimum market capitalisation worth Tk 200 million, retaining minimum 30 per cent shares in public hand, minimum payment of 10 per cent dividend for the last three consecutive years and 95 per cent trading days in the last six months.Good corporate governance, regular holding of annual general meetings and sectoral representation are the other key qualifications for becoming eligible for inclusion in the index. CSE share price index: A good market representative index should involve: †¢ Scientific calculation formulas with clear adjustment procedure †¢ Logical scrip selection criteria †¢ Distinct base date †¢ Meaningful base value The only index the CSE has been maintaining since 10th October 1995 is a ALL SHARE PRICE INDEX using Chained Paasche method.It faces question of clarity. This index was subject to unusual ups and downs and without a distinct base value. Therefore in need of a clean slate CSE finds the date 1 January 2000 is the best date to start new Indices: An All Share Price Index with new formula and base date 30th December 1999 (the last day of the year) and new base index of thousand (to mark the millenium) will replace the existing one and A completely new Selective Index incorporating 30 scrips with base date 30th December 1999 and base index 1000.We have studied index of a number of bourses and found that the Laspayers Method to calculate index is regarded as the most transparent and scientific method. The method is described below in this write-up. The following conditions will be followed while calculating the All Share Price Index: †¢ All Share Price Index does not necessarily mean that all the listed stocks should be considered for calculating the index. Inactive stocks not being traded for consecutive six months will not be conside red in the calculation. †¢ Only the active scrips will be considered for calculating the index. Mutual Funds and Debt securities will not be considered in calculating index. †¢ A newly listed scrip will be included in the index after five consecutive trading days. †¢ Only normal trades should be considered in calculating index. †¢ All share price index will be calculated only once in a day – after the trading hour in the on line system. †¢ No changes in number of shares will be allowed during VECTOR session. You read "Index Methodology of Dse" in category "Papers" †¢ Index committee will review the index – its criteria, performance, calculation method after every six month. †¢ Index Base Date is 30th December 1999 †¢ Base Day index 1000 †¢ CSE selective index (cse – 30)At the beginning of new millennium a selective Index will be introduced, which is found to be very popular in almost all the developed exchanges worldwide. Here the selection criteria play a very important role in forming an index. Criteria for a Selective Index: It provides a discussion about the important criterion for an index, which is to be used as a benchmark of performance. The criterion is that the movement of the index fully represents the aggregate movement of the index’s constituent assets and that the index’s returns are realizable by an investor who has held a portfolio identical to the asset mix of the index.Value-Weighted Index satisfies the above criterion. Selection of stocks for the benchmark index should be such that it represents the whole market. In addition it will be guaranteed that the constituent stocks have high percentage coverage of the market in terms of market value. This will make it difficult if not possible for a few investors to manipulate the movement of the index. Criteria for cse-30 index: (After revision in the Listing ; Index Committee Meeting held on 28th Apr 2009) Two layer methods are followed for selection of listed companies in the CSE-30 Index.In the first layer method, basic criteria are considered for primary selection. Basic criteria: Must be listed with the Chittagong Stock Exchange Limited. 2. In case of IPO/New Issue, this should be on listing either with DSE or CSE for a minimum period of 2 years or remained in Commercial Production in Bangladesh for the minimum same period prior to its listing. 3. Companies that did not hold their Annual General Meetings regularly will not be considered. 4. Minimum market capitalization must be Tk. 200 million and at least two times of paid-up capital. . Must have at least 20% free floating share capital. Free floating share capital shall mean the share capital which will exclude Govt’s holding (other than ICB), Sponsors/Directors ; their Associates’ holding plus other locked-in portions. 6. Must have positive revenue reserve/ retained earnings. 7. Must be traded for at least 50% trading days of the six monthly review period. 8. Paid dividend in any of the last 2 years. 9. Company having negative Earning Per Share (EPS) for last two consecutive years will not be considered. On being qualified on the basis of the Basic Criteria, the companies are required to meet the following further Selection Criteria to have the final berth in CSE-30 Index. Selection criteria: 1. Higher Net Assets Value (NAV) per share 2. Higher rate of Earning Per Share (EPS) 3. Higher rate of Dividend 4. Lower Price Earning (PE) Ratio 5. Higher Dividend Yield (DY) 6. Higher rate of free floating in equity 7. Larger number of shareholders 8. Higher liquidity in terms of trading day 9. Higher liquidity in terms of number of contract 10. Longer duration of continuous remaining in the CSE-30 Index 11.Regular payment of listing fees CSE Selective Categories Index – CSCX Chittagong Stock Exchange (CSE) launched a new index named CSCX (CSE Selective Categories’ Index) comprised A, B G category companies from 14th February 2004 to replace the earlier CSE Trade Volume Weighted Index. The Base Date of this index is 15th April 2001 (when A, B Z category were introduced) and Base Value is set to 1000. The new index includes all but not the Z category companies. This also excludes the companies/scrips which are debt securities, mutual funds, suspended for indifinte period and non-traded for preceding six months of review meeting.The index will be reviewed in the Index Committee Meeting after every six months like other two indices of CSE. This index will be disseminated on line to all the Brokers’ Work Stations (BWSs) during trading sessions and after every three minutes the index value will be refreshed. The construction principle of this index based on Laspeyres method like other two CSE indices, CSE All Share Price Index and CSE-30 Index. It may be mentioned here that the base value of these two indices was also set to 1000 with a base date 30th December 1999. The current values (as on 11th Feruary 2004) of CSE All Share Price Index and CSE-30 Index are 1601. 4 and 1483. 60 respectively. IDLC Index While selecting the stocks to include in IDLC-50, a number of factors are considered: financial health of the company, regular trading in the market, investment risk, amount of investable shares, number of outstanding shares, price sensitiveness, price risk etc. IDLC-50 follows globally accepted methodology to include or exclude any stock in the index. As a result, IDLC-50 always represents fundamentally strong companies. This index is constructed following â€Å"Float Adjusted IV|arket Capitalization Weighted† methodology.This methodology is used for the first time to generate a capital market index in Bangladesh. (more on this below) The performance of a stock market is affected by the price movement of the publicly traded shares (floated shares), rather than all outstanding shares. In our capital market, float is an important factor; because for many listed companies, a small portion of shares is publicly traded. So, to accurately measure the performance of the market segment comprising the selected 50 stocks, it is necessary to perform the index calculation by adjusting the number of publicly traded shares.This is called float adjustment. IDLC-50 is float-adjusted, and thus can represent the market more accurately. IDLC-50 will track the performance of 50 stocks traded in DSE and CSE. Existing indexes include either too many or too few shares. IDLC-50 contains an optimum number of shares and incorporates the most relevant set of information required by rational investors. By containing appropriate number of liquid shares, IDLC-50 can be used to measure performance of professionally managed portfolios including mutual funds, discretionary portfolio accounts etc.Active investment in stock markets may not be advisable or feasible for individuals with lower investable wealth and risk tolerance. IDLC-50 may be used by individuals as an indicative tool for pursuing index-based investment strategy. In future, Mutual Funds, Index Futures, Exchange Traded Funds can be launched based on this index. Such instruments are widely used in major stock markets of the world. IDLC-50 can be a reliable performance indicator for the listed companies. The listed companies would be able to compare their financial health with the help of IDLC-50.One of the most challenging jobs for an accurate index is to maintain consistency. For IDLC-50, we follow standard practices of globally accepted indexes for proper adjustment. It ensures that replacement of stocks in Index, additional issue of capital etc. do not destroy the historical value of the index. An index committee has been formed to conduct and monitor the overall operations of the index. The IDLC-50 Index Committee comprises capital market experts, fund managers market participants and senior officials from IDLC and Alif Assets. The index committee will perform the following core responsibilities: Selecting stocks based on fundamental characteristics, monitoring index operation activity, reviewing the methodology and of the index. IDLC-50 follows internationally accepted methodologies recognized indexes. are selected based on the following indicators. o Public Float (Public portion of outstanding share) o Market Capitalization o Liquidity/Turnover o Sector representation o Price to Earning o A and N category o Average Market Risk (Standard deviation) etc. and is generated by algorithm of globally The following formula is applied to calculate the value of IDLC-50: Market Capitalization Today/ Market capitalization on base date) X Base Index value While calculating the market capitalization, IDLC-50 considers the public-traded portion of the outstanding shares. Stock market indices differ from one another basically in their sampling and/or weighting methods Sampling method: There are some market indices that a re composed of all stocks listed in a market, e. g. , the American Stock Market Index and the Hong Kong Stock Exchange All-Ordinaries Index. In general, an index based on a larger percentage of the total number of listed stocks will be more representative that one based on a smaller percentage.Although an index that consists of all listed stocks can be considered as more representative, a number of stocks may have very few transactions, the quoted price of these stocks may not reflect their true market value. An index may still be highly representative even if it consists of only a relatively small percentage of the total number of stocks. Here, the sample selection process plays an important role. Most of well-known stock market indices of the major stock markets in developed countries are still considered as highly representative since their constituent stocks comprise a high percentage of total value of the market.For example, the Hang Seng Index (Hong Kong) is composed of 33 constituent stocks comprising approximately 70% of tota l value. FOX index (Finland) is composed of 25 most traded shares which is correspond to roughly 80% of the total market value and ATX 50 (Australia) comprises 84% of the capitalization and 97% of the turnover of all Australian stocks. Weighting method: Value-weighted method may be considered as a most appropriate method than others. For a value-weighted index, the weight of each constituent stock is proportional to its market share in terms of capitalization.We can assume that the amount of money invested in each of the constituent stocks is proportional to its percentage of the total value of all constituent stocks. Examples include all major stock market indices of Hong Kong, London and many others. ———————– ASSIGNMENT ON Done By: Minakshi Chakraborty Id No. 55 BBA, 13th Batch Department of Banking University of Dhaka Done For: Mr. Hasibul Alam Chawdhory Lecturer Department of Banking University of Dhaka STOCK MARKET INDEX How to cite Index Methodology of Dse, Papers

DiversityGlobally Inclusive Workplace

Question: Discuss about the Diversityfor Globally Inclusive Workplace. Answer: Introduction: Diversity is about the distinctions and similarities among the workers as age, race, sex, social foundation, religion, physical capacities and inabilities, and sexual introduction. The principle point or motivation behind directing this exploration paper is to vitally evaluate the diversity management issues faced by the personnel at the workplace. Additionally, for this research paper, I would like to select Bullying and Harassment topic as is a research topic. Moreover, Telstra is selected that is an Australian media and communication organization. Furthermore, this paper would give a concise exchange concerning why Bullying as well as Harassment is measured as a diversity management issue in today's globalized business time. Additionally, contemporary work environment practices would also be given to deal with the part of assorted qualities. At long last, an examination of qualities as well as shortcomings of such practices would be discussed. Theme: Protection from bullying as well as harassment at working environment is ended up fundamental prerequisite of administration or association to diversity management issue and keeps up beneficial or else steady culture in the firm" Bullying as well as Harassment as a Diversity Issue In the present time of globalization, diversity is one of the real issues in the front of Telstra because several issues are faced by the employees related to diversity within the company. It is on the grounds that it doesn't just influence hierarchical and singular execution additionally has negative effect on the authoritative notoriety, brand picture, business and vital approaches and so on. In addition, Telstra is confronting significant issues with regards to workplace diversity. Similarly, today, workplace diversity is known as the subject of huge consideration. Then again, it ought to likewise be noted down that, in the late time, it is more troublesome and confounded errand for Telstras managers to oversee w workplace diversity in a viable and legitimate way. For case, a few issues or difficulties are confronted by them when they attempt to oversee working environment differences. Consequently, to oversee and comprehend the benefit of dealing with workplace diversity in the w ork environment, bosses, business directors, representatives receive and execute dynamic projects so they can adequately enhance the earth for assorted qualities in the work environment and to bring development. Because of these reasons, working environment assorted qualities is one of the significant attentiveness toward Telstra (Shakhray, 2009). In the present time, Bullying and Harassment as a Diversity Issue in the working environment is obviously the subject of critical consideration since it influenced the hierarchical execution, singular execution, authoritative achievement, procedure, methodologies, and distinctive arrangements of Telstra. However, managing of workforce diversity offers different noteworthy advantages and favorable circumstances to the associations and representatives. For instance, differences in the work environment can advance development and lessen authoritative business issues successfully. Additionally, diversity is likewise opening appealing and element markets for the Telstra to enhance the representative's assurance and expansions efficiency (Kirton, and Greene, 2012). In addition to this, in the present time, Bullying as well as harassment is known as one of the significant problems of working environment differing qualities since it straightforwardly and adversely influence the conduct and conclusion of a person. Along with this, Bullying as well as harassment can be in diverse structures at working environment. For instance, if the superior representative or the top administration is rebuffing human being advancement, preparing and improvement open doors in working environment, it would be believed as Bullying as well as Harassment (D'Almeida, 2007). In addition, uncalled for treatment with somebody, giving workaholic behavior load, spreading noxious bits of gossip and so forth is the significant sorts of Bullying as well as Harassment. Notwithstanding this, it is broke down that, a few sorts of exercises of Bullying as well as Harassment are done at the work environment that contrarily influences conduct and results of the worker. Then again, it is likewise investigated that, physical or verbal misuse, mental provocation, terrorizing and so on exercises are additionally done at the working environment to a specific gathering of individuals of person that influence the general achievement and notoriety of an association in the business sector. Similarly, it can be said that, in today's additionally testing, focused, and quickly developing business period, Bullying and Harassment is viewed as a standout amongst the most noteworthy assorted qualities administration issue (Mattiske, 2012). Workforce Diversity Challenges The accompanying are the principle and basic difficulties connected with the Bullying and Harassment at the working environment. Communication communication is one of the real difficulties confronted by the Telstra. Notwithstanding this, perceptual, social and dialect obstructions influence the method for communication of the representatives. Because of contrasts in discernment, dialect, sentiment of workers, correspondence issues are confronted by the representatives. This has a noteworthy effect of representatives' aptitudes, and capacity to work all the more viably. Along these lines, there is strict need to defeat communication issues by embracing differences programs. Moreover, multifaceted systems should likewise be embraced by the new chiefs keeping in mind the end goal to manage the correspondence issues in a powerful and appropriate way. This system would likewise help the directors in diminishing the correspondence hole among the administrator and worker (Shakhray, 2009). Resistance to change Change is another vital issue for the representatives of Telstra. For instance, there might be sure representatives or laborers that may decline to acknowledge the way that the social and social cosmetics of their working environment are evolving. In the same way, they don't acknowledge any advancement or change inside the association on the off chance that it would accompany the positive results. It implies a few sorts of social or social components that influence the supervisor's choice in regards to the change. This influences a supervisor's administrative style contrarily and makes a considerable measure of issues in the front of new administrators (Kirton, and Greene, 2012). Issues or difficulties identified with Implementation of diversity in the working environment approaches In the present time, execution or usage of differences arrangements, procedures, strategies and system can be major and noteworthy issues for the new directors. Case in point, in execution any technique identified with assorted qualities, supervisors are required to consider distinctive differences components or powers including social, social, correspondence cross society correspondence variables. Every one of these elements bound the supervisors to not think of some as essential things in the arrangement and assorted qualities strategy. Similarly, Implementation of assorted qualities in the working environment arrangements is additionally the key difficulties for the new chiefs in the 21st century. Be that as it may, such sorts of issues can be overcome by the new troughs by making and executing a jerked system to bump up the impacts of disparities in the work environment for t heir particular organization (Wellington, 2012). Effective Management of Diversity in the Workplace It is additionally essential issues that directors are likewise required to effectively manage the diversity in the working environment. Along these lines, particular technique must be made and executed by the new administrators with a specific end goal to build a culture of assorted qualities that infiltrates each office as well as competence of the association. Contemporary Workplace Practices to Manage Bullying as well as Harassment Diversity Issue Today, in order to deal with diversity issue such as Bullying as well as Harassment, Telstra ought to embrace the accompanying current/contemporary work environment rehearses: Understand Core Areas of Business: It is a standout amongst the most far reaching, important and vibrant technique to manage assorted diversity issues identified with Bullying as well as Harassment. For instance, the procedure concentrates on creating solid relationships with all the workers all the way through making normal comprehension about the center estimations of businesses. Moreover, it would conquer working environment strife among the representatives by creating center authoritative qualities. In addition, this methodology would likewise urge representatives to keep up the authoritative benchmarks, qualities and standards successfully (Barak, 2010). Developing Ethical Programs: In the late time, creating moral benchmarks, projects, rules and standards is viewed as vibrant procedures to manage the bullying as well as harassment diversity issue. Moreover, this is on account of the technique assumes a more far reaching part in making moral attitude and capacity of the representatives (Kirton, and Greene, 2012). Along these lines, this procedure would concentrate on upgrading the moral capacities to settle on moral choice adequately that is essential in lessening the negative results of Bullying and Harassment differences. This will straightforwardly or by implication help the administration, administrators and organization in decreasing the difficulties with regards to Bullying and Harassment differences at the working environment (Graen, 2003). Use and Implement Leadership as well as Motivational Theories: It is a major technique to bargain and beat the issues of bullying as well as harassment in the work environment. For instance, according to this methodology, motivational and authority speculations are connected with working environment to prompt representatives and diminish assorted qualities problems (Kersten, 2000). Conclusion On the basis of the above discussion, it can be assumed that in the present time, dealing with the diversity issue has become a major subject of concern for the business organizations. References Barak, M.E. (2010) Managing Diversity: Toward a Globally Inclusive Workplace (2nd ed.). London: SAGE. Cawsey, G. Deszca, C. (2011) Organizational Change: An Action-Oriented Toolkit. London: SAGE. Daft, L. Marcic, M. (2012) Understanding Management (8th ed.). Canada: Cengage Learning. D'Almeida, C.M. (2007) The Effects of Cultural Diversity in the Workplace. United State: ProQuest. Graen, G.B. (2003) Dealing with diversity. United State of America: IAP. Kersten, A. (2000) Diversity management Dialogue, dialectics and diversion. 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