Fundamentals of Investing Valuation and Management

Question: Discuss about theFundamentals of Investing forValuation and Management. Answer: Introduction: Evaluating the Investments of Mr. Z: Investment per sq ft price per sq ft Amount Expected rent Property 1 1,200 SGD 2,200 SGD 2,640,000 SGD 6,500 SGD 9,500 Property 2 1,000 SGD 2,500 SGD 2,500,000 SGD 7,500 SGD 9,800 Current share price Net Book Value Price to book ratio Dividend yield (%) Average Traded Volume D-REIT 1.8 1.9 0.795 1.75 12.5mn Bounty ltd 1.2 1.6 0.75 2.25 1.5mn C-REIT 1.75 1.5 1.167 4.5 5.5mn able ltd 17 18.8 0.95 5.75 20.0mn Recommendations The different type of investment proposals shall have to be evaluated in order to assist Mr. Z to select the best investment opportunity. As such, this shall assist Mr. Z in determining the best investment opportunity in D- REIT since it yields the best possible value of S$1.90 without any monthly rentals paid. Here the assets are comprised of retail malls as well as office blocks. The following are the three vital recommendations, which can be formed in order to help Mr Z. The purchase of D-REIT securities, the yield after two successive years shall be 24%. In such a manner, the annual return for investment yields up to 12%. In such a manner, the Net book value of assets shall amount to 1.9M. In this regard, it can be said that the market is in a development phase and shall help the business enterprise in the development of the goals and the objectives of the business entity. As such, this shall be a profitable sector for investment for Mr. Z. The investment in D- REIT shall be offered 100% protection through the insurance. As such, this shall help to achieve profitability and growth in an intensely competitive market. The amount of return generated in the first year shall match with the expectations of Mr Z. As such, it shall be 12% in the first year. The return generated at the end of first years shall be 13%. The investment shall be made over a period of Two years in the accounting year. Smart et al. (2013) stated that the investment proposal should have to be analyzed to match with the expectations of the business entity. The free risk currency and the real estate operations shall help the business entity to attain the goals and the objectives of the business entity. The return due to the investment is dependent on the economy of the business entity. Garff (2013) stated that the productivity of the securities should depend on the economic condition of the consumers and the amount of market transactions in a particular period of time. Investment Merits There shall be certain high return of that shall have an impact on the operational policies of the business entity. The component of D-REIT shall have to state the operational strategies of the business entity. The net book value in the organization shall have be 1.90, which can be stated as substantial when compared to the other assets in the organization. Joehnk (2013) stated that the insurance companies that would protect the company in the case of any financial losses should protect the investment. The security of D-REIT shall be composed of various other factors that have an impact on the operational policies of the business entity. Graff (2013) stated that the global financial market would have to operate in a financially vulnerable market. As such, this shall have an impact on the operational policies of the business entity. The last transacted price is 1.80, which is considerably lower than the market price of the organization. Thus, this shall help Mr .Z to invest in a considerably lower market share. This shall serve the client in two ways. Titman and Martin (2014) mentioned that this should not have a negative impact on the inherent financial condition of the business entity. A existing dividend yield of 5.75% for the organization shall help Mr. Z to profit financially. Finally, the return on market share is substantial when compared to other shares in the global market. In addition, the security can be considered stable and it operates in the real estate market. As such, it is in a growth path and would provide regular returns over a period. Besides this, it has been a proven market security over a period. The real estate market has been on a upward growth spree and is a major contributor to the sales revenue of the organization. Thus, there have been a number of distinct advantages when investing in the securities of D- Riet. Investment Demerits Madura and Gill (2015) mentioned that every financial investment is subjected to certain market risk. As such, the amount of yield that can be achieved from investing in cannot be granted. As such, this can lead to financial losses for the business entity. In addition, the global financial market is in a strong market position. As such, this can lead to financial losses for the business enterprise. Titman and Martin (2014) mentioned that a vulnerable market condition could also have an influence on the operational policies of the business entity. Thus, it can be said that there are many disadvantages to the operational strategies of the business entity. Kalesnik (2014) mentioned that the investment opportunities should also depend on the external market condition of the business enterprise. As such, the factors are cost and the economic condition of the buyers. The investment opportunity offers the insurance protection as well as a higher rate of return. However, there are certain disadvantages. The investment shall require substantial investment of the monetary resources of the country. As such, this increases the level of risk that is associated with the business entity. Besides this, the investment could be done under a single portfolio that shall offer limited opportunities to the business organization. In addition, the investment would cater to a limited business segment, which restricts business growth for Mr. Z. Thus, Brigham and Houston (2012) noted that this is a pertinent issue in business growth and financial sustainability for Mr. Z. Thus, Mr Z has to consider these issues in the development of the goals and the objectives of the business entity. According to Dolvin et al. (2012) stated that the lack of stability in the market conditions should lead to the development of the goals and the objectives of the business entity. Thus, this shall have an impact on the business sustainability of the business entity. However, the nature of security shall have a considerable impact on the market sustainability of the business entity. References Brigham, E. F., Houston, J. F. (2012). Fundamentals of financial management. Cengage Learning. . Dolvin, S. D., Jordan, B. D., Miller Jr, T. W. (2012). Fundamentals of investments: valuation and management. Garff, D. (2013). Multi-style global equity investing: A statistical study on combining fundamentals, momentum, risk and valuation for improved performance. Momentum, Risk and Valuation for Improved Performance (November 30, 2013). Joehnk, M. D. (2013). Fundamentals of Investing. Pearson Education Limited Kalesnik, V. (2014). The Second Generation of Index Investing. Madura, J., Gill, H. S. (2015). Personal finance. Pearson Canada. Smart, S. J., Smart, S. B., Gitman, L. J., Joehnk, M. D. (2013). Fundamentals of investing. Pearson Higher Ed. Titman, S., Martin, J. D. (2014). Valuation. Pearson Higher Ed.a