MONEY MARKET

Money Market

Answer.

Suppose there are 500,000 Euros in the fixed deposit of the bank. The interest rate of the bank is 2.3% each year. The annually expenditure is 60,000 Euros.

Year

Saving Deposit

Expenditure

Interest Earned

1

500000

60000

-

2

440000

60000

10120

3

380000

60000

8740

4

320000

60000

7360

5

260000

60000

5980

6

200000

60000

4600

7

140000

60000

3220

8

80000

60000

1840

9

20000

-

460

If Euros 500,000 are invested, than at the end of the ninth year interest amount of 42,320 with principal amount of 500,000, with total of 5,42,320 is collected.

Answer .

Standard Life Insurance is ready to pay for the rest of life (for retirement plan). Standard life insurance has 193 funds, for single £1,000, with monthly £1,00 and £1,000 annually (Standard Chartered, 2013) .So, if 500000 Euros are invested in Standard Life than 50,000 monthly and 500000 annually because with minimum £80 initially invested, investor gets tax relief of £20 and pensions gets £ 100.

Answer 3.

Share Analysis

Tesco PLC

Over view

Tesco PLC is one of the largest retailers of the world. It was founded by Jack Cohen in year 1919. Initially Tesco was a market stall , but over the years, Tesco PLC has grown up. Tesco PLC is currently operating in fourteen countries of the world with 6200 stores. There are approximately 500,000 employees working in Tesco serving tens of millions of customers every week. The primarily focus of Tesco PLC is to continue to emphasize on doing the right thing for the customers and communities that TESCO PLC is serving (Tesco, 2013, pp. 1-2). There are over 300,000 employees and about 3000 stores in the United Kingdom. More than 60% of revenue and profits come from UK business. The success of Tesco PLC begins with bringing a great shopping trip in their store.

Income Statement

2012-02Latest Qtr

Revenue

64539

65038

Cost of revenue

59278

59973

Gross profit

5261

5065

Operating Income

5261

5065

Interest expense

(1426)

(1449)

Income before interest tax

3835

3616

Provision for income tax

879

812

Minority interest

8

2

Other Income

8

2

Net income from continuous operation

2956

2804

Net Income from discontinuous operations

(142)

(90)

Other.

(8)

(2)

Net income

2806

2712

Earning per share

1.01

Basic

1.05

1.01

Diluted

1.04

Weighted average share.

Basic

2674

Diluted

2687

2687

Key Ratios

Profitability Ratios

2011

2012

Tax Rate %

23.73

22.92

Net Margin %

4.39

4.35

Asset Turn Over (Avg)

1.30

1.32

Return on Assets %

5.70

5.73

Financial Leverage (Avg)

2.84

2.85

Return on equity (ROE)

16.96

16.30

Return on Invested Capital

16.96

16.30

Liquidity Ratio

Liquidity Ratios

02-2012

Latest Quarter

Current Ratio

0.67

0.68

Quick Ratio

0.12

0.31

Quick Ratio

2.85

2.95

Financial Leverage

--

0.58

Industry Comparison

Stock

Industry

Price/Earnings TTM

10.5

26.0

Price/Book

1.7

2.5

Price/Sales TTM

0.5

0.3

Rev Growth (3 Yr Avg)

6.2

-0.8

EPS Growth (3 Yr Avg)

10.7

11.2

Operating Margin % TTM

5.9

3.1

Net Margin % TTM

4.2

0.7

ROE TTM

15.7

5.6

Debt/Equity

0.6

0.8

Efficiency

2012-02

Latest Quarter

Days Sales Outstanding (DSO)

-

15.85

Days Inventory

-

21.98

Payables Period

36.18

67.75

Cash Conversion Cycle

-

-29.92

Receivable Turn Over

-

23.02

Inventory Turn Over

-

16.61

Fixed Asset turn Over

2.39

2.54

Asset Turn Over

1.32

1.29

Efficiency Ratios

Tesco (TSCDY)

Industry Avg

S & P

Price/Earning

10.5

26

15.6

Price/Book

1.7

2.5

2.2

Price/Sales

0.5

0.3

1.4

Price/Cash flows

0.1

6.6

9.5

Dividend Yield %

-

1.5

2.1

Price/ air Value

-

-

-

Marks & Spencer's

Overview

Marks and Spencer is one of the leading retailer in the world. They offer flattering clothing and stylish clothing along with home products. There are about 78000 people working in the retail store of Marks and Spencer. (Marks & Spencer, 2013, pp.1-2). There are about seven hundred UK stores along with 2000 suppliers of Marks and Spencer. Approximately 21 million people visit the retail store of Marks and Spencer every week.

Profitability Ratios

2012-032012-09

Tax Rate %

-

-

Net Margin

5.16

5.16

Assets Turn Over (Average)

1.36

1.36

Return on Assets %

7.02

7.02

Financial Leverage (Average)

2.62

2.62

Return on Equity %

18.81

18.81

Return on Invested Capital

9.87

9.87

Liquidity Ratios

2012-03

Latest qtr

Current Ratio

-

-

Quick Ratio

-

-

Financial Leverage

2.62

2.62

Debt/Equity

0.90

0.90

Efficiency Ratios

Efficiency

2012-03

Latest Qtr

Days sales outstanding (DSO)

3.91

3.91

Days Inventory

-

-

Payables Period

-

-

Cash Conversion Cycle

-

-

Receivables Turn Over

93.32

93.32

Inventory Turn Over

-

-

Fixed Assets Turn Over

-

-

Asset Turn Over

1.36

1.36

2012-03

TTM

Revenue

9934

9934

Gross Margin

-

-

Operating Income

747

747

Operating Margin %

7.5

7.5

Net Income

513

513

Earning per share

0.32

0.32

Dividends

0.17

0.17

Payout Ratio %

52.8

52.8

Shares

-

-

Book Value per share

2.80

2.68

Operating Cash flow

1352

1352

Cap Standing

-

-

Free Cash flow

-

-

Free Cash flow per share

-

-

Working capital

-

-

Income ...