How do you evaluate a stock Essay Example | Topics and Well Written Essays - 500 words

How do you evaluate a stock - Essay Example The P/E ratios are compared only in organizations within the same market or industry. The price to sales ratio (PSR) should be near one. It is computed through dividing market capitalization by revenue of the most recent trading period. It is most suitable for analyzing stocks in the same sector. The Return on Equity (ROE) illustrates the returns for shareholder’s equity. It should appropriately be more than 10%. The ratio illustrated the effectiveness of the company in generating profit per equity unit. The earnings growth should be a minimum of 10% higher than the previous year. This trend should be illustrated in several years. The higher the growth, the more investments returns. The debt to asset ratio illustrates that debts should be equal to or less than 50% of the assets. This ensures appropriate levels of leverage across several companies. The greater the ratio, the leverage degree is higher hence results to financial risks. The returns on assets for Wal-Mart and Costco in the trading period ended 2014 are; 7.86% and 6.50% respectively. The performance of Wal-Mart is thus higher due to the greater returns on assets. The returns on equity for Wal-Mart in 2014 are 21%, and that for Costco in the same period is 17.79%, thus Wal-Mart illustrates the most appropriate value. Risk identification is very important in ensuring higher investment returns. The investors and fund managers usually quantify the forecasted losses of the stock investments and then adopt appropriate actions in relation to risk tolerance and also investment approaches. The risk assessment involves the study of several factors in relation to growth, profitability, low valuation, and the fiscal strength. A stock possessing all the illustrated characteristics is the most appropriate for investments (Horcher 3). The risk management techniques ensure successful stock trading. The trading profits can be safeguarded through simple strategies like; trade planning, take-profit points,

International Law Essay Example | Topics and Well Written Essays - 3000 words

International Law - Essay Example In order to determine whether or not the state has a right to use self-defence against a non-state actor under contemporary international law, the theory of jus ad bellum within the context of the UN Charter, Article 51 will have to examined. This paper will argue that the principle characteristics of the theory of jus ad bellum and Article 51, although design to control hostilities between states, can be interpreted to permit the use of military force in self-defence against non-state actors. The theory jus ad bellum is a evolved from Western cultures as a guide for reconciling â€Å"right with might† or â€Å"sollen with sein.†5 The primary objective of the doctrine of jus ad bellum was to cultivate a concept that military force was only justified in response to unprovoked aggression. Likewise, military force could be legitimately used for the purpose of restoring order or correcting a violated right. Military force could also be used legitimately for punitive reason.6 Taken together as a whole, the theory of jus ad bellum dictates generally that military force could legitimately be used for humanitarian intervention and for protection of sovereignty. After the Second World War, the United Nations was formed by virtue of the UN Charter which ultimately re-introduced and reconstructed the ambit of jus ad bellum.7 The primary purpose of the UN was to prevent war among the nations of the world.8 Following the 1990s Kosovo conflict International Commission on Intervention and State Sovereignty modified the UN Charter setting restraints for the exceptions to the UN’s policy on permissible military force between states under the auspices of jus ad bellum. Under the UN Charter the contemporary concept of just war of jus ad bellum dictates merely that war can no longer be justified on the grounds of humanitarian intervention, but for purposes of self defence.9 The UN Charter was implemented on October 24,