Managerial Accounting Paper Coursework Example | Topics and Well Written Essays - 4000 words

Managerial Accounting Paper - Coursework Example An investor would invest in the company when he finds it profitable for the long term or the short-term period. A company is profitable for the long term or the short term if it uses the available resources efficiently. To find that whether a company is using the resources efficiently or not, a researcher has to analyze the financial statements of the company. Along with this, the strategies taken by the company will also need to analyze. The vision, mission and goals of the company tell about the strategies that they are going to take in the future. Analyzing the financial position and the strategies taken by the company, an analyst can suggest the investor about his investing strategies in future. For investing in a company, the investor has to check the current trends in the industry. ... The researcher will analyze the performance of the company of past few years, the strategies taken by the company and the company’s performance from the industry perspective. The Investor’s Objective There are many types of investors in the market and their objectives are not same all the time. Some investors only aim for the short-term growth. For short-term gain the investors may trade inside a single day, i.e. they may buy and sell the stock in a single day. They can trade the stocks monthly basis. Their decision mainly based upon the movement of the stocks prices in a short term and the decision of the mass. When a huge number of investors sell a stock then these type of investors speculate that the stock price is likely to decrease and he also sells the stock. However, there are also other types of investors, who invest in a company for the long term. The objective of the investors is growth of the stock. They invest in a company for the long term. In this case, th e client of the researcher is the second type of investor. He prefers to invest for the long term. The researcher has selected the company BHP Billiton for analyze whether to invest more in the company or not. The researcher will analyze two situations i.e. the investor already holds the share of the company and the investor has not invested in the company until now. It will be recommend to the investor whether or not to invest in the company. BHP Billiton BHP Billiton is a company, which has formed in the year 2001, headquartered in Melbourne, Australia. The company was the merger of Anglo-Dutch Billiton Plc and the Australian Broken Hill Proprietary Company Limited. The company has a major office in the United Kingdom for the management purpose. The company is in the metals and mining