Business Analysis Of Deutsche Bank Research Paper

Business Analysis Of Deutsche Bank - Research Paper Example On the other hand, Wall Street's S&P 500 index rose only 3%. (Deutsche Bank Group Annual Report, 2005). The value of the bank therefore rose by 10 billion to 45.42 billion. (Deutsche Bank Group Annual Report, 2005) Increase firm value and increase dividends is reflecting good performance during the year 2004. The increase in stock price might also be as a result of the announcement of the higher dividends, thus signalling some positive information about the profitability of the company to potential investors who increase their bids for the stock thereby causing the rise in its price. Basic Earnings per share, the portion of the bank's profit allocated to each outstanding shareholder and which serves as an indicator of profitability also witnessed an increase from 5.02 in 2004 to 7.62 in 2005. This represents a percentage increase of The diluted earnings per share represents the earnings per share, including common stock, preference shares, unexercised stock options, unexercised warrants, and some convertible bonds. The figures for Deutsche Bank during the periods 2004 and 2005 were 4.53 and 6.95 respectively. This translates to a percentage increase from 2004 to 2005 of: The average equity shares outstanding in 2004 and 2005 were 493 and 463 respectively. This reflects a decrease in the number of shares by 493million-463million = 30million. This decrease might be attributed to redemption of shares through share repurchases. For example the company completed its share buy bank program in 2005. (Deutsche Bank Annual Report, 2005). The average shares outstanding for diluted shares, that is, taking into account preference shares and the number of shares that will be outstanding after all stock options, warrants, and convertible bonds would have been exercised in addition to ordinary shares amounted to 532million and 509million respectively. This also represents a drop in the number by 532million - 509 million = 23million. This drop might also be attributed to a redemption of some of the convertible issues such as bonds and warrants and as a result of out-of-the-money stock options at the maturity date. Deutsche Bank had a post-tax return on average shareholders equity of 9.1% and 12.5% in 2004 and 2005 respectively. This represents an increase by 3.4 which represents a percentage increase of: More revenue was generated to for shareholders, that is after paying off preference shareholders, bond holders and warrant holders in 2005 than in 2004. the company had a post-tax return on active equity of 14.8% and 21.7% for 2004 and 2005 respectively this also represents a very high percentage increase and also goes a long way to conclude that more shareholder value was created in 2005 as opposed to 2006 as can be

International Business Essay Example | Topics and Well Written Essays - 2000 words - 3

International Business - Essay Example The three major economies of the world have enjoyed massive benefits just for the basic fact of their great economic prosperity. However, it has not gone unnoticed that there are other economies of the world which are rapidly positioning themselves as new economic superpowers. These countries are posing as a serious threat to the dominance of the three major economies known as the TRIAD. This paper will discuss how the TRIAD economies have evolved and dominated patterns of international business. It will also illuminate on the evolution of these TRIAD economies as well as how TRIAD economies have sustained their dominance in increasingly global markets. On the other hand, the paper will also look upon how emerging economies have evolved and are now challenging TRIAD dominance. The concentration will also be on the characterization of the current international business dynamics resulting from the rapid growth of global supply chains as well as looking into the factors which could impa ct future patterns of international business. The TRIAD economies The economies which compose of the TRIAD are the economies of USA, Japan and Germany (Srivastava et al 2012, p.321). These economies have been placed in this bracket for being the best performing economies in the world for a substantial period of time. The measurement of the performance of the world economies led to the isolation of these world economies into clusters of super powers and super performers such as the three countries in the TRIAD and others in the categories of average performers and low performing economies. The evolution of the TRIAD economies It would be imperative to note here that the three economies of the world, famously referred to as the TRIAD in the economic circles have evolved independently and in different phases. This is more so because of the adversity and diversity of the setup of the countries economical as well as political systems. USA was the first country to become a super power aft er the country displayed a massive economic growth and development. The USA started attaining economic dominance soon after the world war one after it decided not to take sides in the war and concentrate on building itself up as a nation. When other powers such as Germany were busy in war, USA was busy remodeling itself as a world superpower. By the time the country decided to get into the world war after world war two and take side on the allies, the nation boasted of a strong economic base backed by a strong growth domestic product (GDP) of the nation. Japan could have easily topped over the USA as a super power but its involvement in the war which prompted a counter attack by the USA curtailed this development (Waheeduzzaman 2011, p. 111). Germany underwent a massive economic recession in the year 1939 during the great depression forcing it to devalue its currency. This somehow retarded its economy. Later on however, with the assistance of the USA and other nations, Germany regai ned its economic strength and even went further to overtake most nations so that it could claim its place among the three greatest economies of the world (Akroush, 2012, p. 345). The same case goes for Japan. After the bombing of Hiroshima and Nagasaki, the economy of Japan was disoriented (Sardy et al 2010, p. 12). The USA assisted the nation in the process of rebuilding itself. With a robust, huge and hardworking population of this nation, the economy of the