The Value Of A Companys Earning And Profitability

QUESTION 1: RELATIVE PROFITABILITY There are several ways to measure a company’s earning and profitability. Return on Equity (â€Å"ROE†) and Return on Assets (â€Å"ROA†) are, historically, among the most widely used measures to assess relative profitability in the banking industry. The technique used in this paper is based on Dr. Cole’s ROE Model. This model helps â€Å"demystify† ROE and ROA; and focuses and analyzes the main factors that are driving profitability for a bank. For this paper, selected financial data for East West Bank (â€Å"EWB† or the â€Å"Bank†) and its Peer Group (â€Å"peers†) was obtained from the December 31, 2013 Uniform Bank Performance Report (â€Å"UBPR†) and various EWB documents ; and from interviews conducted with EWB management .†¦show more content†¦Thus, EWB’s Equity Multiplier (â€Å"EM†) is also higher than peers (10.09x vs. 8.88x). EWB’s higher ROE compared to peers highlights a higher rate of return on shareholder’s equity; nonetheless, it does not provide the complete picture in itself. Decomposing the ROE to better understand the reason for change, it was determined that 42% of EWB’s 2013 ROE was due to leverage, i.e., lower relative equity. Since ROA growth itself will not yield important insights, nine variables have been identified, reflecting variances (Bank vs. Peer) for each in Exhibit 1. The following four key drivers out of the nine have been examined below, to provide a more detailed picture: 1. PROFIT STRENGTHS (HIGHEST POSITIVE VARIANCE) A. YIELD ON EARNING ASSET (â€Å"EA†) Over the past 3 years, EWB’s yield on EA has decreased 66 bps from 2011 to 2013 (Exhibit 2). This is essentially owing to the â€Å"low interest rate environment† and the lower average yield on non-covered loans . EWB’s average yield is above peers (Exhibit 1), as EWB used funds more efficiently; placing a larger proportion of EA (82.47% vs. 68.63%) in higher yielding assets (i.e., Gross Loans and Fed Funds Sold Resales); as illustrated in Exhibit 3. EWB’s higher yield on gross loans was attributable to the interest income from the â€Å"covered loans† portfolio, which is due to the additional accretion accounted for under ASC 310-30. As the covered loan balance continues to decrease, the overall yield will

Spunk Play Review - 1400 Words

Spunk Kenny Leon’s True Color Theatre Company’s production of Spunk: Three Tales by Zora Neale Hurston at the 14th Street Playhouse on September 25, 2013, presented the audience with a very culturally embellished version of Hurston’s original three tales: â€Å"Sweat,† â€Å"Story in Harlem Slang,† and â€Å"The Gilded Six Bits.† Zora Neale Hurston strived to portray the reality of life as an African American in the early 1900s through native dialect in her short stories and novels. Her most notable production, Their Eyes Were Watching God, is a prime example of her effort to illustrate the life of the everyday Negro in search of a better life. Each of the short stories portrays a different, yet comparable view on African American culture in separate†¦show more content†¦Longing for her husband’s forgiveness, Missy May promises to obey and fulfill his every desire henceforth. After silent days and nights, Missy May decides to rid Joe of her presence, believing that to be his wish. Reluctantly, she stays to prove her determination and love for her husband. The conception of their first child really sparks the match in Joe’s head that Missy May never meant to do him wrong; after many months of neglect, Joe traveled down to Orlando for errands and took a detour to his favorite candy store. With Otis Slemmons’ gilded coin, Joe spent â€Å"all dat in kisses.† While there, he though of his â€Å"lil boy chile [at] home now. Taint a week old yet, but he kin suck a sugar tit and maybe eat one them [molasses] kisses hisself (p. 11). The True Colors Theatre Company take advantage of their minimal stage space and set to immerse the audience into the era of Spunk and create the illusion of an enormous space. Although the stories focus mainly on dialogue between the players, True Colors used an upper stage for the narrator to oversee the action as it unfolds downstage, or close to the audience. All players in the company acted as narrators, which displayed to the audience the feeling and importance of community during the Harlem Renaissance and Black Migration. So much unhappiness and desire for change and improvement consisted throughout the play. This circles all three of the stories back to spunk, which is defined as courage,Show MoreRelatedCharacter Analysis Of Spunk By Zora Neale Hurston1154 Words   |  5 PagesMs. Collom Comp II: 1123.01 25 August 2017 Spunks masculine personality description After recently read a short story titled â€Å"Spunk† by Zora Neale Hurston about two men fighting for the woman that they love. Some stories end in happily ever after, but others end up in a tragic, like â€Å"Spunk†, one may say â€Å"fight for the person that you love†. In this story the two main characters are Spunk and Joe, they are both in love with the same woman, Lena. Spunk has a physical appearance that makes the villageRead MoreFilm Review : Legally Blonde1997 Words   |  8 Pagesthe film led Hache to begin her next project, adapting the hit film Legally Blonde into a Broadway musical. The project took over four years to complete, but when it was tested at a San Francisco theater in 2007, it received nothing but positive reviews. Hache took the beloved characters and gave them all a new form of life, each with more distinct personalities and interesting quirks. She took her personal experiences and embedded them into the characters, making them appe ar even more realisticRead MoreXs Energy Drink Marketing Plan5461 Words   |  22 PagesXS Energy Drink collection. XS Black Cherry Cola: We brought together the classic taste of cola with a vibrant black cherry to give you a powerful infusion of delicious energy. XS Black Cherry Cola Blast packs the punch so you can work all day or play all night without crash and burn. 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The “High Court Ruling Only Tweaks Sarbanes-Oxley Act” Article Free Essays

ARTICLE SYNOPSIS The â€Å"High Court Ruling Only Tweaks Sarbanes-Oxley Act† article is about the Supreme Court ruling in Free Enterprise Fund vs. PCAOB indicating that Sarbanes-Oxley (SOX) will remain â€Å"fully operative as a law† with the exception to remove members of the Public Company Accounting Oversight Board. Prior to the SOX Act, the removal of member was said to violate the appointments clause of the Constitution. We will write a custom essay sample on The â€Å"High Court Ruling Only Tweaks Sarbanes-Oxley Act† Article or any similar topic only for you Order Now In addition to discussing the ruling, the following will explain how the Sarbanes-Oxley act affects ethical decisions in today’s business and the criminal penalties that it provides. ETHICAL DECISION The process of making decisions consists of ethical attribute that include integrity, transparency, and accountability. The Sarbanes-Oxley Act has the effect of ensuring investor confidence through the existence of regulatory provisions effective in enhancing ethical standards. In the case of Free Enterprise Fund v. PCAOB shows the extent to which the issue of separation of powers is upheld. The main argument in the case was the excess power granted to the board as it was appointed by Securities and Exchange Commission (SEC) other than the president. This means that the board had regulatory non-restricted power by the executive. According to the ruling, PCAOB has the power to continue overseeing public company audits with the intention of protecting investors interest (Jaeger, 2010). This is a major development as it relates to ensuring that proper measures supports the scope of executives ensuring that proper decisions are effective in protecting the interests of investors. The court’s ruling indicated that PCAOB board members will be removed from office by SEC at will other than for good cause (Jaeger, 2010). However, other programs of PCAOB remain unaffected by the decision of the court. It is important to note that the enactment of the SOX Act is a major development that has ensured integrity in decision-making process essential in protecting the integrity of investors. As a result of maintaining proper books of accounts and ensuring proper internal controls are in place, the SOX Act ensures ethical decisions are made enhancing the integrity and transparency. Ultimately, the impact of the SOX Act is to protect the interest of investors through prevention of accounting frauds. CRIMINAL PENALTIES The SOX Act provides for various criminal penalties under certain sections. Section 802 of the SOX Act provides criminal penalties for influencing the United States agency investigation, which is also known as proper administration. The criminal penalty punishes any person who knowingly falsifies information or document with the intention of obstructing a particular investigation. An individual can be put in jail if found guilty of this criminal offense for a period not exceeding 20 years. Another criminal penalty under the SOX Act is retaliation against whistleblowers (Jaeger, 2010). This relates to any person who takes harmful action against another person with the intention to retaliate. A fine or imprisonment for a period not exceeding 10 years can be placed if a person is found guilty for this criminal offense. Section 906 of the SOX Act provides for criminal penalties for CEO or CFO financial statement certification. According to this section, any corporate officer who fails to certify financial reports is liable for a jail term not exceeding 20 years. How to cite The â€Å"High Court Ruling Only Tweaks Sarbanes-Oxley Act† Article, Papers