To start with, it’s important for us to look at the definitions of each concept given in these situations. Nominal interest rates refer to interest rates which do not consider the effects of inflation when calculating. Real interest rates, on the other hand, account for inflation. In this case, the interest rates for America and Euro area will be eight (8) percent and nine (9) […]

Executive Summary This report explores on a white paper that explores the different aspects of prospect theory. The report is based on a case study of a major consulting firm (Shefrain Consulting). The first aspect that the report discusses is the difference between prospect theory and expected utility theory. Several differences are indicated and one of the difference is that in the prospect theory an […]

This section presents the annotated bibliography for the sources that will be used to carry out the financial analysis for Delta Airlines. Annotated bibliography Broderick, S. (January 01, 2018). Fleet simplified, Aeromexico eyes Delta joint-venture opportunities. Aviation Week & Space Technology, 26. Broderick (2018) states that Delta Airlines (DAL) has consistently set the pace in profitability among its major competitors American Airlines and United Continental. Delta airlines […]

Financial analysis is the is the evaluation processes of businesses and projects to its performance suitability. Through financial analysis, it is possible to determine whether a business if liquid, profitable, or solvent enough to be worth investing in (Byrd, Hickman, & McPherson, 2013). Financial analysis is used to identify projects and companies to invest, set financial policies, build long-term business plans, as well as evaluation […]

Below is an analysis of the amount of revenue that Netflix was able to collect from 2014 to 2018 based on its income statement. Figure: Netflix’s Revenue from 2014 to 2018 According to the graph, it is clear that for the five years period, Netflix has been having an increasing amount of revenue.  The revenue is inclusive of tax they collected from their customers, which […]