Conclusion - Group Assignments PDF

Title Conclusion - Group Assignments
Author Te koaua Ni koaua
Course Financial management
Institution The University of the South Pacific
Pages 2
File Size 83.6 KB
File Type PDF
Total Downloads 21
Total Views 145

Summary

Group Assignments...


Description

Conclusion and Recommendation Looking at the performance of the company from 2017 to 2019, I would recommend investors to invest more in the company because it is a good decision for them. As can be seen on EPS graph, there is an increase in the earning per share every year which indicates that there is an increase in the Company’s profitability. In an article, it was proposed that (Kumar, 2015) the increase in the company’s profits will also leads to declaration of dividend that is to be paid to investors and provides benefits to them which also causes the increase in shareholder wealth. In addition, The RP Patel Company have prepared a well-planed business projects which are reliable and profitable if completed. For example, the construction of their apartment in Suva. The same article also states that (Kumar, 2015) “the goal a smart investor is to get best possible deal when investing in shares of a company as the better the deal, the higher will be the potential for return from investment.” Which explained that this project by RP Patel Company is beneficial to investors to have the opportunity to invest and gain higher returns. Moreover, financial disclosures are always prepared and available for shareholders. Financial reports are helpful and important for their decision making of whether to invest in the company or not. Financial reports prepared are also reliable because they are assessed well by management and directors. Financial disclosures provided to shareholders help to know more about the company’s performance and help to reduce risk to shareholders. A recent study to investigate the benefits of financial disclosures concluded that (Lawrence, 2013) “The quality of financial disclosures is beneficial to investors because it increases individuals’ returns and reduce individuals’ relative information disadvantage.”

Bibliography Kumar, P. (2015). International Journal of Research – Granthaalayah. Impact of earning per share and price earnings ratio on market price of share, 56 (1), 113-118 Lawrence, A. (2013). Journal of Accounting and Economic. Individual investors and financial disclosures, 5 (2), 130-147...


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