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The report will display the current economic interest rates and the conditions for the companies to enter the sustainable4 manufacturing company. The conditions of raising capitals will also be discussed in this assessment. The report will helps to analyse different data, all the data of the country related to the economics, and politics will be calculated as well as described as per the need of the industry. This report will display the impacts of the economic condition and the best options in the company will be identified by the report. The best funding option for the chosen company will be given in the report. It will hold a detailed discussion of funding and capital rising. All the types of shares will be described for better reference of the subject. This report will help the company to understand about the financial market in detail and the details of the current economic trend and the previous year’s data of the economy with respect to the manufacturing industry will be analysed here.
Discussion of the information (1900)
1. Use the theories of Keynesian Economics. Learners are to identify at least two Australian-based sources.
This part of the report will display the economic and political climate of the financial and services industry of Australia along with the interest rates and growth outlook of the Australian economy.
Economic and political climate of financial and services industry
Australia is one of the richest countries in the economy. It is the only country that has not been affected by the global financial crisis and the recession. The economic condition of the country is stable for a long time. The economic stability is one of the greatest supports for the business of the economy. The data of the Economic Times has revealed that the country has grown economically since a long time. The business of the country is one of the strongest pillars of the country. The economic and labour market of Australia is stable and progressive since a long time. The average rate of raining the employment in Australia is 3%. The economic condition is always stable and the political situation of country has always helped the country to become more progressive.
2. Outline key features of common economic theories that relate to the decisions being made in your report.
In this part, the Keyney’s theory will be explained. The theory states that lowering the tax and government expenditure helps the economy to come out from the depressive situation. In this way, the optimal economic result can be achieved. The main feature of this theory is that the demand of the economy makes the economy more progressive. If there is more income of the common people, the demand of the economy increases. The aggregate demand is the main factor of this economic theory.
3. Outline key features of microeconomic principles and how they relate to debt and equity markets and organisational practices for companies
There are various features of the microeconomic principles. The features of the microeconomic principles will be explained below:
Ø Microscopic: this study is based on the individual firms. This is an in-depth study of all the economic factors.
Ø Allocation of resources: Micro economy helps to allocate the resources in the companies. It helps to maximise the satisfaction of people and the production can be managed by the microeconomic principles.
Ø Efficiency of economics: Microeconomic principles help to increase the efficiency of economics. The production efficiency can also be managed by the microeconomic principles of the corporations.
Microeconomics is responsible for the entrepreneurial growth and the debt and equity is the cordial part of the institutions. The proper applying of the microeconomic principles helps the company to manage the debt and equity. The debt and equity of the companies depend on the microeconomic decisions.
4. Explain and apply two key mathematical principles and two statistical methods.
Two key mathematical principles that can be applied in the microeconomics are Maerkov’s Principle and Laplace’s Principle.
According to the Markov’s principle is that P(n) is derivable as soon as P(n) is derivable. According to the Laplace’s principle the asymptotic expression can be given for the probability.
Two statistical method of checking the economic data of the country are qualitative analysis and quantitative analysis.
5. Described a range of statistical ratios and analysis tools relevant to the financial services industry and indicated what they are.
The key ratio that can be used to calculate the profitability, liquidity and the effectiveness of the company are gross profit margin ratio, net profit margin ratio, return on debt, return on equity, current ratio, quick ratio etc. There are some more ratio and the main methods to calculate the economic data of the company are the regression, correlation and the variation of economic data.
6. Outline two sources of relevant financial services information and their relevance to your report.
The data from the trading economics and the economic times the data can be obtained that are relevant to the report.
7. Explain the principles of statistical standards and sampling techniques that you used to gather valid data.
There are several techniques of collecting data and the sampling techniques are also different. Some major sampling techniques are probability sampling and the non-probability sampling. The probability sampling is a technique where the data is not at all biased and the standard of data is maintained. Non- probability sampling is the technique that is dependent on the sources. In many cases the data of non-probability sampling are not standard.
8. Apply relevant financial modelling techniques to economic data to inform your decision regarding the funding method. Modelling techniques should include the Payback Period before financing, yield curves, rate of return. Explain the types of graphs, charts, diagrams and tables used in your statistical modelling and reporting and rationale of using those.
9. Showed evidence that you have analysed documentation from a variety of sources, and consolidated that information to assist in justifying your recommendations.
10. Applied asset and debt pricing models and explained the theories behind the models to show how they have influenced your decision.
11. Demonstrate that you have used realistic rates of return for debt and equity based on an analysis of the company data provided.
12. Determine if the hypothesis is correct or not and explain your findings in line with the company requirements in your report.
13. . Determine if there is any correlation between the company share price and the ASX All Ordinaries (using the Product Moment Correlation Co-Efficient, and x" as Ethical Trading Group share prices and "y" as the ASX All Ordinaries values) and provide your opinion as to whether there is any strong correlation that could be used to help predict movements in the value of the company.
14. Calculate the Dividend yield each year based on an annual average share price and the dividends paid, and then prepare a graph that enables the company to identify any trend in the dividend yield over the last 5 years.
15. Legislation, statutory requirements and industry codes of practice will each have an impact on your report. Describe two key features of each of these.
The above report displays the different statistical method of calculating and evaluating data. Different ratios of understanding the trend of economics has also been described in this part. The economic trend of the country has been given. The financial industry of the country has been analysed. This report can be considered as a guide of statistical and mathematical method collecting and evaluating economic data. Different micro economic principles have been described in the report. This report will help the reader to understand the economic trend of the country and the financial industry of the country.