Financial Analysis - 1243 Words

Name: Course: College: Tutor: Date: Brazilian fiscal policy Fiscal policy refers to use of government revenue collection and expenditure to influence its economy. Fiscal policy targets a country’s budget of its economic activities. Government can adjust its spending and taxation levels through changing the income distribution, resource allocation or level of aggregate demand and economic activity. In the context of Brazil, in 1970s, the government put some stringent penalties to regulate its imports. The government kept the import tax and penalties high. To implement the policies, the government applied tax deduction on imports, for instance, a Brazilian resident who imported intangibles like knowhow, software and royalties would be†¦show more content†¦The pressure of trade imbalance and oil shock sharply increased the import bill (Pessoa, 2004). The stringent policy of imports tax and duties was seen as a high growth policy. The strategy can be effective in enhancing growth but the main components considered should be basic industrial inputs like fertilizers, steel, petrochemicals etc. However, import substitution and restrictions policies do not favor intangible good especially technology software and knowhow which are often bound to importation. Concerning the companies that require inputs like software, the policy is likely to result in reduced public investment. For instance, the inflation and crisis that followed in 1981 to 1983 so a reduction Brazils gross investment from 21% to 16%. Some of the things that have been quoted as the reasons for the declines was increased uncertainties in the future of the economy. Such uncertainties are posed by unfavorable fiscal policies. In the case of Commutronics, the company fought to invest in the country in amidst of unfavorable policies, however, few companies would stand such p olicies such policies particularly where the deductions were affecting shareholders capital as was the case for Commutronics (Poterba, 1999). Q3 Commutronics argument for and against market solution Commutronics had not accumulated enough profits and had no sufficient capital reserves. The company’s registered capital was therefore very low. The withholding tax rate ofShow MoreRelatedFinancial Statement Analysis : Financial Analysis1558 Words   |  7 Pagesyou hear the phase financial statement analysis, one wonders what is stands for. financial statement analysis is one of the most important part of any company to be successful. The reason companies rely on financial statements is for the company to come profitable even if the company is small or large. 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According to theRead MoreFinancial Analysis1076 Words   |  5 PagesCango Financial CanGo Financial Analysis Report The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measuredRead MoreFinancial Trend Analysis Of Tata Steel Ltd Essay1257 Words   |  6 Pages TERM PAPER ON â€Å"Financial Trend Analysis Of TATA STEEL Ltd.† BY SAMIKSH SHARMA {A3146915005} B.Com (H) – Evening Class of 2015-18 Under the Supervision of: Dr . 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There are five to six main types of financial ratios including liquidity measurement ratios, profitability indicator ratios, debt ratios, operating performance ratios and cash flow indicator ratios (Richard Loth, n.b and Jim Riley,n.b)1 and 2. However, these can be grouped into two principal categoryRead MoreFinancial Analysis2238 Words   |  9 Pagestimes | Apendix: Ratios of the Grand Hotel Financial analysis | | | Financial ratios are useful tool to analyze the firm performance and financial situation or to compare the firm’s financial situation with other. It will help managers or the board of director to make good decisions in their performance and future prospects. Financial ratios could be classified into five types: profitability, liquidity, financial leverage, asset turnover, and dividend policy ratios (PaulineRead MoreFinancial Analysis4661 Words   |  19 PagesFinal Project – Financial Analysis Beatrice Valdez, MBA Student Capella University MBA 6016 Finance and Value Creation [ May 16, 2012 ] Michael Blagg, Professor Table of Contents Executive Summary | | 3 | Historical Financial Statement Analysis: Financial Ratios | | 3-4 | Balance Sheet | | 4-6 | Income Statement | | 6 | Statement of Cash Flows | | 6 | Pro-Forma Financial Statements | | 7 | Balance Sheet Pro-Forma | | 7-8 | Income Statement Pro-Forma | | 9 | CashRead MoreFinancial Ratio Analysis : Financial Ratios Analysis1634 Words   |  7 Pages UNIVERSITY OF HOUSTON CLEAR-LAKE HADM 5233: FINANCIAL MANAGEMENT II ASSIGNMENT: FINANCIAL RATIO ANALYSIS UHCL Honesty Code â€Å"I will be honest in all my academic activities and will not tolerate dishonesty.† Uday Sekhar Reddy Mareddy