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In the late eighteenth century, the Industrial Revolution made its debut in Great Britain and subsequently spread across Europe, North America and the rest of the world. These changes stimulated a major transformation in the way of life, and created a modern society that was no longer rooted in agricultural production but in industrial manufacture. Great Britain was able to emerge as the world’s first industrial nation through a combination of numerous factors such as natural resources, inventions, transport systems, and the population surge. It changed the way people worked and lived, and a revolution was started. As stated by Steven Kreis in Lecture 17, â€Å"England proudly proclaimed itself to be the "Workshop of the World," a position that country held until the end of the 19th century when Germany, Japan and United States overtook it.† A major cause for the Industrial Revolution was the enormous spurt of population growth in England. The increase in population meant that there were more people in surplus from agricultural jobs, and they had to find work in industrial factories. Enclosure brought forth a great increase in farming production and profits. Farming was improved through the use of crop rotation, enclosures, and the division on farms across England. Crops that were grown consisted of turnips, barley, clover, wheat. This improvement in farming caused a population explosion, which soon led to a higher demand for goods. The new means of production demanded new kinds of skills, new regulation in work, and a large labor force. The goods produced met immediate consumer demand and also created new demands. In the long run, industrialization raised the standard of living and overcame the poverty that most Europeans, who lived d... ...ndustrialization spread to the United States then across Europe. The BBC website indicates France, by contrast, was home to some of the finest scientific minds, but had an absolute monarchy which wielded great control over economic and political life. In Britain people believed that through industrial production they could create untold wealth - and the government believed that it was its responsibility to make this happen. In conclusion, the Industrial Revolution had profoundly impacted Europe in the 18th century. The Industrial Revolution also had considerable impact upon the nature of work, people, geography, and technology. It significantly changed the daily lives of ordinary men, women, and children. All of these factors came together in the late 18th century to create the unique conditions in England that culminated in the first-ever Industrial Revolution.

Financial Analysis of Axis Bank

CORPORATE FINANCE END TERM PROJECT To study the Financials of ICICI bank, HDFC bank and Axis bank and to conduct Comparative Financial Analysis among them. UNDER THE GUIDANCE: Dr. ASHISH GARG PROGRAM COORDINATOR PGDM (FINANCE) Submitted by:Janmey Patel (202) Nikhil Arora (206) Shashank Mohore (228) Aniket Gupta (229) Parandeep Singh Chawla (231) TABLE OF CONTENTS Overview of Indian Banking Industry4 Types of Commercial Bank4 Public Sector Bank4 Private Sector Bank4 Foreign Bank4 Regional Rural Banks4 Overview of ICICI Bank 5Overview of Axis Bank 5 Overview of HDFC Bank 5 Stock Analysis6 Return & Risk Analysis7 Calculations:7 Terms:7 Risk7 Return7 Risk & Returns Figures8 Covariance & Correlations8 Terms8 Correlation Effect8 Covariance & Correlation Figures8 Portfolio Variance & Standard Deviation9 Portfolio Return Figures9 Portfolio Risk Figures9 Cost of Capital10 Cost of Debt10 Cost of Equity10 Cost of Debt & Equity Figures10 Weighted Average Cost of Capital Calculations11Comparat ive Analysis11 Leverages11 Leverage Figures12 Graphical Representation for Leverages12 P/E Ratio Analysis13 P/E Ratio Figures13 Dividend Policy Analysis13 Dividend Yield and Dividend Payout Ratio14 Conclusions and Inference14 Return14 Risk15 Choice based upon Risk and Return15 Cost of Capital16 Choice Based on Cost of Capital16 PE Ratio Analysis17 Leverage17 Dividend Policy18 Overview of Indian Banking Industry Types of Commercial Bank Public Sector Bank In case of Public Sector banks the major shareholders is Government of India.For example State Bank of India, Punjab National Bank, Bank of India etc. Private Sector Bank In case of Private Sector Banks the major Shareholders are Private Individuals. For example ICICI Bank, Axis Bank, HDFC Bank etc. Foreign Bank In case of Foreign Bank the major Shareholders are the foreign entities. For example Standard Chartered Bank, Citi Bank, HSBC etc. Regional Rural Banks In case of Regional Banks the major shareholders are Central Government, Concerned State Government and Sponsor Bank in the ratio of 50:15:35.For example Andhra Pradesh Grameena Vikas Bank etc. Overview of ICICI Bank ICICI (Industrial Credit and Investment Corporation of India) Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI bank is the 2nd largest bank in India by assets and 3rd largest by  market capitalization.Overview of Axis Bank Axis Bank was begun its operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i. e. National Insur ance Company Ltd. , The New India Assurance Company Ltd. , The Oriental Insurance Company Ltd. nd United India Insurance Company Ltd. Overview of HDFC Bank HDFC (Housing Development Finance Corporation Limited) bank was amongst the first to receive an approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. HDFC Bank is the fifth largest bank in India by assets and the second largest bank by  market capitalization  as of march 31, 2012. Stock AnalysisBankex (Index tracking the performance of leading banking sector stocks) has grown at a compounded annual rate of about 31%. India’s gross domestic product (GDP) growth will make the Indian banking industry the third largest in the world by 2025. In coming years with its assets size poised to touch USD 28,500 billion by the turn of the 2025 from the current asset size of USD 1,350 billion. Return ; Risk Analysis Calculati ons: 1) The daily stock prices for the 3 banks for the duration of 5 years are taken from Nifty. 2) For the daily stock prices of the market we took the figures for 5 years of Nifty Bank. ) Formula for Daily Return Current Stock Price-Previous Stock PricePrevious Stock Prices 4) Average Daily Return is calculated by taking the average of Daily Returns. 5) Formula for Annualized Daily Return (1+Average Daily Return)249 – 1 6) Formula for Beta Covariance(Market, XYZ Bank)Standard DeviationMarket*Standard Deviation(XYZ Bank) 7) Formula for Annualized Standard Deviation (1+Variance(XYZ))249 – 1 8) Formula for Correlation Covariance(X, Y)Standard DeviationX*Standard Deviation(Y) Terms: Risk 1) Risk is the chance that an  investment’s actual  return  will be  different  than expected. 2) Risk  is usually measured by calculating he  standard deviation  of the  historical returns  or  average returns  of a specific investment. 3) A high standard deviations indicates a high degree of risk. Return 1. The gain or loss  of a security in a particular period. 2. The return consists of the  income  and the  capital gains relative  on an  investment. 3. It is usually quoted as a percentage. Risk ; Returns Figures Particulars| ICICI Bank| Axis Bank| HDFC Bank| Average Daily Return | 0. 001| 0. 001| 0. 00031| Standard Deviation | 0. 034| 0. 032| 0. 03393| Covariance (Nifty Bank, X)| 0. 001| 0. 001| 0. 00048| Standard Deviation (Nifty Bank)| 0. 025| 0. 025| 0. 02454| Beta | 1. 53| 1. 077| 0. 80000| Annualised Daily Return | 0. 159| 0. 331| 0. 08| Annualised Standard Deviation | 0. 580| 0. 545| 0. 58| Annualised Standard Deviation (Nifty Bank)| 0. 402| 0. 402| 0. 40| Covariance ; Correlations Terms Correlation Effect 1. Relationship depends on correlation coefficient 2. -1. 0 ; r ; +1. 0 3. The smaller the correlation, the greater the risk reduction potential 4. If r = +1. 0, no risk reduction is possible Covariance ; Corre lation Figures Covariance| ICICI Bank| Axis Bank| HDFC Bank| ICICI Bank| 1. 00000| 0. 00081| 0. 00058| Axis Bank| 0. 00081| 1. 00000| 0. 00052| HDFC Bank| 0. 00058| 0. 0052| 1. 00000| Correlation| ICICI Bank| Axis Bank| HDFC Bank| ICICI Bank| NA| 0. 00255| 0. 00174| Axis Bank| 0. 00255| NA| 0. 00167| HDFC Bank| 0. 00174| 0. 00167| NA| Portfolio Variance ; Standard Deviation Portfolio Return Figures Equal Weight Portfolio Return| Particulars| Return | Weight | Portfolio Return| ICICI | 16| 0. 33| 5. 333| HDFC | 8| 0. 33| 2. 667| AXIS | 33. 07| 0. 33| 11. 023| Total | 19. 023| Portfolio Risk Figures RISK (%) | ICICI | 0. 58| HDFC | 0. 58| AXIS | 0. 55| Portfolio | 0. 3278| Cost of Capital It is the minimum rate of return the suppliers of capital would expect to receive if the capital were invested.Cost of Debt Cost of debt is calculated using the formula: cost of debt kd=interest X (1-t)debt 1) Interest is the amount paid by the company as a interest on the Debt in the current year. I t is taken from the Profit ; Loss statement of the company. 2) Debt is long term debt which we have taken from the Balance Sheet of the Company. 3) The tax rate t is the corporate tax rate and is equal to the 33. 9%. Cost of Equity The Cost of Equity in this case has been calculated with the help of Gordan Dividend Model. Cost of Equity ke=Proposed DividendMarket Price per Share*Number Of Shares+Dividend Growth Rate Cost of Debt ; Equity FiguresParticulars| ICICI Bank| Axis Bank| HDFC Bank| Interest (Interest Expenses)| Rs. 8,50,44,350. 00| Rs. 1,79,32,646. 00| Rs. 2,29,99,060. 00| Total Debt| Rs. 1,40,16,49,073. 00| Rs. 34,07,16,721. 00| Rs. 23,84,65,086. 00| Corporate Tax Rate| 30. 00%| 30. 00%| 30. 00%| Cost of Debt (kd)| 4. 25%| 3. 68%| 6. 75%| Equity Capital| Rs. 1,15,27,683. 00| Rs. 41,32,039. 00| Rs. 46,93,377. 00| Proposed Equity Share Dividend| Rs. 1,90,20,400. 00| Rs. 77,00,725. 00| Rs. 1,17,27,733. 00| Number of Shares| 13565154| 41,32,03,952| 23,36,704| Dividend Growth R ate (g)| 17. 95%| 14. 87%| 30. 06%| Cost of Equity (ke)| 18. 11%| 14. 87%| 31. 02%|Weighted Average Cost of Capital Calculations Comparative Analysis Leverages The leverage analysis consists of: 1) Operational Leverage defined by Degree of Operational Leverage. 2) Financial Leverage defined by Degree of Financial Leverage. 3) Total leverage defined by Degree of Combined Leverage. Operational Leverage (DOL) = % change in EBIT % change in Sales Financial Leverage (DFL) =% change in EPS% change in EBIT Total Leverage (DCL) = % change in EPS% change in Sales = DOL* DFL Leverage Figures Graphical Representation for Leverages P/E Ratio Analysis P/E ratio is calculated using the formula: P/E RATIO=Current market price of share EPSP/E Ratio Figures Dividend Policy Analysis Dividends paid by a firm are measured using one of two measures. 1) Dividend Yield: Which relates the dividend paid to the price of the stock. Dividend Yield=Annual Dividend per Share Market Value per Share 2) Dividend Pa yout Ratio: Relates dividend paid to the earning of the Firms. Dividend Payout Ratio=Dividend Distributed Total Earnings Dividend Yield and Dividend Payout Ratio Particulars| ICICI Bank| Axis Bank| HDFC Bank| Dividend Paid (000's)| Rs. 19,013,434| Rs. 6,697,611| Rs. 7,695,463| Number of shares| 13,565,154| 413,203,952| 2,336,704| Dividend per share| 1. 402| 0. 016| 3. 293|Intrinsic value per share| 890. 2| 1146. 2| 519. 85| Dividend Yield| 0. 157%| 0. 001%| 0. 634%| Earnings (000's)| Rs. 103,860,000| Rs. 74,308,700| Rs. 89,504,000| DP Ratio| 0. 183| 0. 090| 0. 086| Retention Ratio| 0. 817| 0. 910| 0. 914| Conclusions and Inference Return As one can see from the above chart , Axis Bank offers the highest returns per annum at 33% , followed up by ICICI and HDFC Bank at 16% and 8% respectively. It can be safely concluded that Axis Bank is the best option to invest in. Let us now have a look at the Risk analysis before we go any further. Risk The following chart depicts the Risk witness ed by each of the Banks.As one will notice, each of the three Banks i. e. ICICI , Axis and HDFC Bank belong to the same risk class. Risk of ICICI and HDFC Bank is equal at 58%, while that of Axis Bank is little lower at 54%. There is not much to choose between the Banks when it boils down to Risk. Choice based upon Risk and Return Based upon Risk and Return Assessment Axis Bank stands out to be a clear choice. On one hand it offers returns which are twice that of ICICI Bank and four times in comparison to HDFC Bank, on the other hand, its risk is marginally lower than that of the other two Banks, which makes AXIS Bank to be the standout choice.Cost of Capital The Cost of Capital of each Bank is depicted in the following chart: As one can see from the above chart The total cost of Capital for ICICI Bank averages out to be 8. 42%, Whereas Axis Bank has a WACC of 8. 15 % and HDFC bank has its cost of capital in excess of 20%. HDFC Bank needs to substitute its Equity and reserves with m ore of Debt, if it wants to lower down its WACC. Cost of Capital for HDFC Bank is high primarily owing to its huge Cost of Equity which is more than 30%. It needs to substitute more of debt in its Capital Structure if it wants to reduce its hurdle rate.Choice Based on Cost of Capital If one is viewing the affairs og the company based on the Cost of Capital, HDFC gets eliminated without any second thought. It needs to bring down its Cost of Capital if it wants to sustain in the long run. While on the other hand there is not much to choose between ICICI and Axis Bank , as both of them have almost the same hurdle rate close to 8%. PE Ratio Analysis The PE Ratio of ICICI and Axis Bank is very much comparable. ICICI Bank has a PE ratio of around 15 , whereas, the same for Axis Bank Hovers around at 11.One can easily draw a conclusion that investors are willing to pay more for ICICI Bank and also expect a higher growth rate in its earnings in the future. Following Chart depicts the compar ative analysis of ICICI Bank along with HDFC Bank and ICICI Bank. It can be clearly seen that the PE ratio of ICICI Bank and Axis Bank are Comparable. But, the PE Ratio of HDFC exceeds 120. One can safely draw a conclusion that the Market Price of HDFC Bank is highly overpriced compared with the Industry average and one can expect a downfall in its share prices in the near future, because such high level of PE Ratio cannot be sustained in the long run.Leverage The Position of Leverages for each of the Banks depict the same story. Following chart will substantiate it: Each of the Banks has a operating leverage lower than 1 , which implies that EBIT is not increasing in the same proportion as the sales of these Banks. Even the degree of financial leverage and the degree of combined leverage of each of these three Banks is comparable and there is not much to choose from when it comes to leverages. Dividend Policy When it comes to total dividend Paid by the Bank, ICICI Bank exceeds the two other Banks with quite a margin.The following Chart depicts the situation more comprehensively: As one can see from the Chart ICICI Bank is the clear leader when it comes to the amount of dividend paid, while there is not much to choose between Axis Bank and HDFC Bank. Total Amount of Dividend Paid doesn’t show the true picture as , it has not been adjusted for number of shares. In other words , Dividend per share will show the appropriate picture. Following chart will depict the amount of dividend paid by each bank per share.As one can see clearly from the graph above , it is the HDFC Bank which is more liberal while declaring the dividend vis-a-vis ICICI and Axis Bank. HDFC pays dividend in excess of Rs 3 per share. ICICI pays a dividend just exceeding a rupee on a share. While, Axis Bank doesn’t even pay 50 paisa on a share. From Investors point of view who wants a steady flow of Income, HDFC stands out to be the most logical choice of Investment. Such an Invest or should obviously resist and desist from investing any amount of money in AXIS Bank.

Anxiety and Related effects - Free Essay Example

Sample details Pages: 6 Words: 1672 Downloads: 6 Date added: 2019/04/01 Category Psychology Essay Level High school Tags: Anxiety Essay Did you like this example? Many people have questioned, hypothesized, and sought to ascertain if anxiety impairs memory. The answers are almost unanimously yes, but there is fluctuation in the severity, type of memory impairment, and noted lasting effects. In this paper I have compiled research from various sources related to the study of anxiety and how it impairs memory by both type and to what degree throughout multiple stages of life and how that affects overall quality of life and functioning. Don’t waste time! Our writers will create an original "Anxiety and Related effects" essay for you Create order The research I found oftentimes considered the comorbidity of anxiety with other chronic diseases such as depression and whether or not that came into play with the degree of impairment observed. The research either focused on people ages 9-20 years of age or 18-80 years of age. Frequently it was noted that the impairments occurred only when symptoms were active and the effects were not sustained at other times which is important to know and communicate to people who might fear their memory will be lastingly compromised if they suffer from anxiety and/or other disorders. The confirmation of the existing link between anxiety and cognitive functioning implores that these findings be properly communicated and understood by teachers, individuals, and care-givers so that appropriate treatment, patience, and concern be shown to ensure quality of life. Anxiety and Memory Impairment and Implications for Potential Anxiety is something that affects many people and it affects people of all ages. Since it is prevalent in our society I sought to better understand how this condition positively, negatively, or neutrally impairs the essential function of memory in both children, adolescents, and adults. As I began researching I soon realized that many others before me have wondered the same things as I have regarding the association of memory deficits and anxiety. Study of Anxiety in Children Since we are children before we are adults and our childhood experiences play a role in our adult understanding of the world I started researching anxiety in children first. What I found is that there has not been as much professional research done on the relationship between anxiety in children and memory deficits. As a teacher I also recognize that the ability to better characterize the neuropsychological correlates of these disorders [can] provide insights for novel therapeutic interventions (2007, p.85) which can help all students reach their full learning potential. One group of researchers wondered if there was connection between parents having anxiety disorders and children having memory deficits and could that constitute premorbid risk factors for childhood anxiety disorders (2007, p.86). It had two aims. The first aim was to see if memory deficits were present in all anxiety disorders or not. Along with that they sought to evaluate whether memory deficits are trait cognitive features that occur even when anxiety disorder in inactive or if they exclusively relate to ongoing disorders. The second aim was to see whether or not parental panic disorder (PD) or parental major depressive disorder (MDD) were independently associated with memory deficits in children. Findings and Implications In the one study mentioned previously verbal and visual memory was assessed. Variables such as IQ and time delays were included to allow for more thorough analysis of results. The results showed that verbal memory did not differ between the children with and without anxiety, but visual memory was affected in children with social phobia, but not generalized anxiety disorder. There is evidence however that test anxiety, when extreme, can impair performance on memory test (2007, p. 91) and this could certainly affect children who take state exams and other assessments that greatly influence success in education. It was concluded that parental psychopathology did not directly influence offspring memory performance and that should come as a relief to parents that suffer from PD or MDD. Although the memory deficits identified were not extreme, it is important that any knowledge be shared with parents and teachers so that they may have awareness of associated complications of anxiety and he lp their child or student(s) reach their potential without seemingly invisible hurdles inhibiting them. Anxiety in Adults As I mentioned earlier, anxiety and related effects has been studied quite little in children and the focus has been on anxiety in adults. Psychology Today lists insomnia, tiredness, headaches, muscle tension, irritability, and more as symptoms of anxiety. Clearly people realize that anxiety has a lot of negative and potentially harmful side effects, but being irritable and having trouble remembering things seem to be slightly unequal in significance over the long-term. It has been found that trait anxiety has a negative association with memory performance on tasks such as word recall. Even with depression symptoms, age, gender, and health [ ] all controlled for [as well as] a highly varied sample of people tested (e.g., age range of 18-97, various careers, levels of education, etc.) the negative association remained. However, some people, such as a man named Kizilbash and colleagues (2002) did not find an effect of trait anxiety when he did studies of memory with Vietnam veterans. H owever, they did find that those with co-morbid anxiety and depression had significantly reduced performance. Unfortunately, this study had relatively few participants who were only trait anxious (n = 47) and far more participants with comorbid anxiety and depression (n = 416) which means that there may not have been enough participants to make the effect of trait anxiety alone significant (p. 15 Dellman ). Although overall literature is not in complete in agreement on the relationship between anxiety and memory there have been many studies that confirm the negative association. One person, a thesis student named Bethany Dellman, conducted thorough research that involved three experiments related to anxiety and memory as well as confidence levels. Dellman reported that it was consistently found that the anxious group had poorer memory, lower confidence and/or greater hesitation when evaluating memory decisions (Dellman 53). Another paper focused on the effects of anxiety on something called the shifting function of the central executive. According to Miyake et al. (2000), shifting refers to the ability to switch attention flexibly between tasks or mental sets (see also Monsell, 2003). Evidence exists to show that anxiety affects efficiency costs on tasks that require attentional shifting. In an experiment done by previous researchers, participants were instructed to complete math problems with task-shifting and single-task conditions. Participants solved problems that involved simple addition or subtraction as well as problems that involved both. Findings and Implications The experiments conducted by the Dellman uncovered what she claimed was some interesting new evidence (Dellman 54). She discovered and then confirmed that when participants are given time to evaluate responses through confidence ratings or deciding to change an answer, there is not a processing speed deficit in anxious participants for the recognition response (Dellman 54). Her findings that anxious participants are able to make recognition decisions from long-term memory as quickly as their low-anxious peers can provide relief for people who many worry about their anxiety (Dellman 54). However, an increased hesitation was observed in post-memorial evaluation. Knowing that it seems reasonable that anxious individuals may require greater amounts of time when completing tests as they need more time to reflect on their memory classifications (Dellman 54). College students are young adults that take many tests, and there are plenty of older adults that return to school for further learning or maybe even attempting to change careers or go to higher-level school for the first time. What the Dellman revealed is that while many anxious adults may exhibit normal processing speed for memory responses, perhaps on a test an anxious person would take longer moving from one question to another because they would be evaluating the accuracy of their previous response (Dellman p. 59) and additional time should be allotted to ensure they are provided fair opportunities to show their knowledge. The gathered results from the mental shift experiment indicated that highly anxious individuals were significantly slower to perform the operations in the switching than in the single-task condition, and people with little to no anxiety had response times that were about even across the different types of problems. Since it is clear that anxious people are not as efficient at flexibly shifting mental sets than people with little to no anxiety, it seems logical that these individuals might require additional time to complete certain things both at school and at work as well. It has been found that people with high anxiety are more sensitive to negative appraisal. This knowledge is especially important for parents and teachers to keep in mind when offering constructive criticism to a child or student. Keeping negative comments to a minimum can inadvertently increase memory function by keeping anxiety levels low. Further Study When studying children with and without anxiety disorders IQ also was a significant, positive predictor of visual memory so that need be considered if future research is conducted to be sure it doesnt skew results. It is known that memory declines with age and it is likely that many older adults fear the potential loss of cognitive capabilities or believe their memory has declined perhaps more that it really has. Complainers frequently attribute memory difficulties to their advanced age and worry about the onset of Alzheimers dementia (Foos, Paul W., Educational Gerontology, 03601277, Apr/May97, Vol. 23, Issue 3). Since this anxiety about memory loss could greatly limit enjoyment of final years of life it seems necessary to ascertain in what ways the anxiety can be alleviated. Research done by many others has has yielded A large body of data [confirming] that anxiety is associated with performance deficits in a range of cognitive tasks, including, for example, reading (Calvo Carreir as, 1993), mathematics (Miller Bichsel, 2004), analogical reasoning (Tohill Holyoak, 2000), spatial reasoning (Markham Darke, 1991), grammatical reasoning (Macleod Donnellan, 1993), inferential reasoning (Richards, French, Keogh, Carter, 2000), and on tasks requiring attentional processing (for a review see Eysenck, Derakshan, Santos, Calvo, 2007).(Effects of trait anxiety and situational stress on attentional shifting are buffered by working memory capacity). Since anxiety has such an influence on quality of cognitive functioning it is imperative that further study be done for future learners of all ages.