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Accounting for Decision making
Part 1:
Introduction:
Investment is one of the most important aspect that is needed which helps in fulfilling different
future needs of the investor. There are different assets in which an investor can invest so as to
have a future benefits from the required investment. Every investment entails an amount of some
isk which is associated. Investment helps in promising the return of the original amount along
with an adequate return. So, investment is very important as it helps in fulfilling different future
needs of the investor.
Investment is called as ‘the cu
ent commitment of dollars for a period of time in order to derive
future payments that will compensate the investor for (1) the time the funds are committed, (2)
the expected rate of inflation, and (3) the uncertainty of the future payments’ (Frank Reliey,
2008). An investor can be said a person who is making an investment an investor can be an
individual, a government body, or a corporation. Investments can be done in different stocks,
commodities, bonds, or real estate. The investor focuses on trading the known amount of dollar
in the cu
ent date with an anticipation of a getting a future benefit in the future.
Investment in shares:
The shares in which the investment will be done in Wesfarmers Limited and Woolworths Ltd.
the investment done in both the shares will be equal and will sum to $5000 worth of shares each.
With investment in these stocks the investor will be able to increase the return on its portfolio.
Company Overview:
Woolworths Ltd. Wesfarmers Ltd.
Products and Services Food, general merchandise
and specialty retailing through
chain store operations
Food and Staples retailing
CEO Mr Grant O'Brien Richard Goyer
Salary of CEO $3111750 $3170173
Profit/loss after tax 2124.50 $1922
Latest dividend paid 0.67 0.95
Dividend per share 122 150
Dividend paid 0.67 0.95
Total Assets 6845.8 40814
Number of Employees
52 week high and low 29.15 – 29.42 28.25 – 35.97
Performance Graph of the company;
The share prices of the company Wesfarmers has increased by 8.46% in last three weeks and is
expected to grow more.
Share performance - Wesfarmers
Date Share Price
8/10/2012 32.27
8/13/2012 32.52
8/14/2012 32.58
8/15/2012 32.49
8/16/2012 33.72
8/17/2012 34.67
8/20/2012 34.71
8/21/2012 33.9
8/22/2012 34.18
8/23/2012 34.4
8/24/2012 33.91
8/27/2012 34.1
8/28/2012 34.3
8/29/2012 34.41
8/30/2012 34.19
8/31/2012 34.52
9/3/2012 35.25
9/4/2012 35
9/5/2012 35.34
9/6/2012 35.42
9/7/2012 35.06
The share prices of Woolworth has increased in last three weeks and has increased by 7.65%.
Date Share
Price
8/10/2012 28.11
8/13/2012 28.22
8/14/2012 28.14
8/15/2012 28.28
8/16/2012 28.6
8/17/2012 28.9
8/20/2012 29.03
8/21/2012 29.48
30.5
31
31.5
32
32.5
33
33.5
34
34.5
35
35.5
36
8
1
0
2
0
1
2
8
1
2
2
0
1
2
8
1
4
2
0
1
2
8
1
6
2
0
1
2
8
1
8
2
0
1
2
8
2
0
2
0
1
2
8
2
2
2
0
1
2
8
2
4
2
0
1
2
8
2
6
2
0
1
2
8
2
8
2
0
1
2
8
3
0
2
0
1
2
9
1
2
0
1
2
9
3
2
0
1
2
9
5
2
0
1
2
9
7
2
0
1
2
Share Price - Wesfarmers
Share Price
8/22/2012 29.45
8/23/2012 29.49
8/24/2012 29
8/27/2012 28.73
8/28/2012 28.94
8/29/2012 29.24
8/30/2012 29.21
8/31/2012 29.62
9/3/2012 30
9/4/2012 30.25
9/5/2012 30
9/6/2012 30.56
9/7/2012 30.26
Trend analysis:
Considering the trend of the shares of both of the companies we can say that the share prices of
the company has increased incredibly in last 3 weeks and have given a positive...