Determine the appropriate hedging strategies

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Reference no: EM132553330 , Length: 5 pages + 8 ppt

BAF 403 Financial Institutions and Markets Assignment - Emirates College of Technology, UAE

Learning Outcome 1. Evaluate the advantages and disadvantages of long-term capital market for rising corporate finance.

Learning Outcome 2. Compare the different types of financial markets securities.

Learning Outcome 3. Select appropriate hedging strategies using future markets for reducing financial risk and evaluate the performance of different types of derivatives.

Learning Outcome 4. Evaluate the performance of financial institutions currently working in the market.

Project Objective - The objective of this project is to familiarize students with real life financial markets and asset valuation, obtaining financial information from various public sources and evaluating this information.

Also, the main purpose of the current topic is to enhance the students' ability to understand the financial markets and all its aspects by giving them the opportunity to know the formulation of these markets especially in UAE, for what we use it, and how it effect the decisions of the investors and how to evaluate the performance of financial institutions currently working in the market . This exercise will allow the student to find and use information found to analyze Dubai or Abu Dhabi Stock Market.

The student must draw on the additional reading outside class material and lectures examples. Student must demonstrate extensive readings and able to illustrate and support his/her views from peer reviewed journals.

The Project Title - Analyzing Abu Dhabi stock Exchange Markets (ADIX) and Dubai Financial Market (DFM).

The Project problem - The students are required to do the following things in the research:

1. Analyze the Abu Dhabi stock Markets and Dubai Financial Market by describing the nature and the development of these two Financial markets in details.

2. Explain the difference between types of financial markets used in UAE, and how these differences are used for trading securities and the types of securities traded on those markets.

3. Evaluate the advantages and disadvantages of long-term capital market for rising corporate finance.

4. Compare between the different types of financial markets securities and what the major types that are used in both ADIX and DFM.

5. Determine whether both markets use any derivatives security in trading and determine the appropriate hedging strategies using future markets for reducing financial risk and evaluate the performance of different types of derivatives.

6. Choose one company that is listed in either markets, analysis the company selected, and make a report about it.

Company profile

1) Where is the headquarters of your company? Who is the CEO, CFO? When was your company founded?

2) In which stock markets the company's stock is trading and what is the ticker symbol? Does the company have any Debt; if yes list all the existing Debt?

3) What is your company's primary business line? What products / services are produced by your company? What industries group your company belongs?

4) What is the size of your company? (Total assets, total sales, and total number of employees)

5) What is the EPS, PE ratio for your company? (Compare through past 3 years and to competitors/industry).

6) What is the market price of stock? (Graph using excel the past performance of the company's daily stock price for the past three years along with the market index- both at the same graph!)

7) What is your company's and its' competitors' ROA and ROE for the past three years? (Graphs)

8) What is your company's and its' competitors' debt ratio for the past three years? (Graphs)

Deliverables: The student should submit the project explaining the following points:

1- Introduction & Background

2- Problem statement

3- Research question/s

4- literature review

5- Discussions

6- Conclusion & Recommendation

7- A Bibliography/ Reference

Reference no: EM132553330

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