Environmental Impacts of Tourism - 1563 Words

AAP Report: Environmental Impacts Due to Tourism By Olivia Hazell Year 11, Dundas Due Date: 10/05/12 INTRODUCTION Environmental impact refers to the direct effect of socio-economic activities and natural events on the components of the environment. These impacts can be planned such as afforestation or due to tourism can be totally accidental such as littering. Environmental impact is the change in the environment culturally, and physically which can be due to tourists both negatively and positively. PURPOSE OF REPORT The purpose of this report is to determine the positive impacts on the environment tourism has, while also making aware the negative impacts tourism has on the environment. In this report negative impacts will†¦show more content†¦Tourists on expedition leave behind their garbage, oxygen cylinders and even camping equipment. Such practices degrade the environment with all the accumulation typical of the developed world, in remote areas that have few garbage collection or disposal facilities. Solution In order for the problem of solid wastes and litter to decrease, there needs to be rules and regulations put in place. The Maldives are already putting in rules and regulations to decrease solid wastes and littering. As incinerators, bottle crushers and can compactors are installed in hotel grounds. While, some resorts even insist that visitors to fly their own garbage home with them. In order to reduce such wastes, waste separation and recycling need to be really pushed and developed further, as this will reduce the amounts of wastes generated. Wastes are disposed of in various ways, such as in landfills or by means of composting, incineration, open burning or indiscriminate dumping on open land or in rivers and coastal waters. Composting is not only a useful mechanism for reducing the amount of disposed organic waste but it also produces a valuable replacement for artificial fertilizers. Incineration is generally used for the destruction of medical wastes, unused chemicals and other combustible hazardous materials. Disturbance Of Wildlife There has been a rising trend in tourist arrivals in National Parks and Sanctuaries. It causes disturbance to wildlife in their regularShow MoreRelatedEnvironmental Impacts of Tourism6014 Words   |  25 PagesENVIRONMENTAL IMPACTS OF TOURISM | | he quality of the environment, both natural and man-made, is essential to tourism. However, tourisms relationship with the environment is complex. It involves many activities that can have adverse environmental effects. Many of these impacts are linked with the construction of general infrastructure such as roads and airports, and of tourism facilities, including resorts, hotels, restaurants, shops, golf courses and marinas. The negative impacts of tourismRead MoreEnvironmental Impacts of Tourism in Bhutan1978 Words   |  8 PagesEnvironmental Impacts of Tourism in Bhutan The concept of tourism development in Bhutan took place in post 1974 period during the reign of late majesty, King Jigme Dorji Wangchuk in national assembly. However, tourism business begun its operation with 274 tourist in 1974 at the time of coronation of fourth king, His Majesty Jigme Singye Wangchuk and since then tourism business started growing in Bhutan. Tourism is now recognized as having considerable potential as a tool for development and as aRead MoreEssay on The Environmental Impact of Skiing and Tourism1718 Words   |  7 PagesIt is extremely easy to forget the impact imposed by skiing on the mountain environments. Most people believe the only effect that they have on the environment within mountain regions are the tracks in the snow left by their skis. However, there is strong evidence that skiing has both a social and more noticeably, environmental impacts that influence the natural environment. Some experts of the Alpine region suggest that tourists directly affect over half of the Alps entire surface area. It can thereforeRead MoreEnvironmental Impact of Tourism on Antarctica Essay3602 Words   |  15 PagesEnvironmental Impact of Tourism on Antarctica This essay discusses the environmental impact of tourism on Antarctica. The subheading Description will give an overview of the continent, highlight the unique landscape, weather patterns and research stations making up some of the tourist attractions of this continent. The subheading Tourism in Antarctica gives an account of the type of tourist Antarctica attracts and their primary motive identifying scientific research staff as tourists as wellRead MoreEnvironmental and Social Impacts of Tourism in the Uk1801 Words   |  8 PagesDiscuss the environmental and social impacts of tourism in the UK and consider whether the benefits exceed the costs. Tourism is a fast growing industry and a valuable sector, contributing significantly to the economy (â€Å"The Social amp; Cultural Impacts of Tourism†, n.d.). It has been generally accepted that tourism is, for the most part and with relatively few exceptions, beneficial to both generating and destination countries (Holloway, 2009, p. 114). Some researchers are less sure that thisRead MoreThe Impact of International Tourism on Global Environmental Change1429 Words   |  6 PagesIntroduction International tourism can now be recognised as one of the biggest contributing sectors for many countries’ GDP. Moreover, it has transformed them in many aspects such as economic, socio-culture, and environment. International tourism involves activity of inbound and outbound tourist of a country and resident or non-resident visitors within the country (World Tourism Organisation 2014). The World Tourism Organisation has predicted the growth of tourism activities to increase by an averageRead MoreEssay about Social, Economic and Environmental Impacts in Tourism2275 Words   |  10 PagesThe large scale impacts of Tourism include environmental, socio-cultural and economic impacts. Impacts can be positive, as well as negative, but should never be underestimated. The concept of sustainability is factored into these tourism impacts, when the size of the impacts become large enough to drastically alter economic, socio-cultural and environmental areas of a tourist destination. The i mportance of these impacts will be analysed and evaluated in this essay, keeping in mind that this willRead MoreEconomic, Social and Environmental Impacts of Tourism in the Lake District2531 Words   |  11 Pages Social and Environmental Impacts of Tourism in the Lake District In the Lake District tourism is very important and has a significant impact on the local economy. But there is concern about the Lake District and how much more development it can take from the tourism industry. The Lake District remained relatively untouched until the 19th century when railways allowed the large urban population of Northwest England to visit the National Park. Tourism and trade roseRead MoreDescribe and Evaluate the Negative Social, Cultural or Environmental Impact Caused by Tourism in a Destination of Your Choice. Analyse the Causes of This Impact and Judge to What Extent Sustainable Tourism Strategies3344 Words   |  14 Pagescultural or environmental impact caused by tourism in a destination of your choice. Analyse the causes of this impact and judge to what extent sustainable tourism strategies and methods could eliminate or ameliorate them and thereby secure the long term future of the destination. The negative effects of tourism are widely publicised in a number of destinations worldwide; however it is often underdeveloped nations that are home to natural wonders of the world which attract huge tourism levels. ThisRead MoreSustainable Approach to Tourism Management1129 Words   |  4 PagesDiscuss how the adoption of a sustainable approach to tourism management in the tourism and hotel industry is considered today to be a necessary strategic intent for all operators. Section 1: Introduction Deforestation can have a negative impact on the environment. In the case of tourism and the hotel industry, these challenges have become more extreme. This is because tourists will typically use more natural resources than when they are at home. At the same time, different activities will destroy

Should Drugs be Legalized - 1007 Words

Should all drugs be legalized? Suppose that someone has some life threatening illness and suppose that a drug that has not yet been approved by the FDA can cure this illness. Should he have to die just because some government bureaucrat tells him that he cannot have this drug? There are millions of AIDS patients in similar tragedy. The two most harmful and dangerous substances are alcohol and tobacco. Yet, they are legal, only because they are popular. Marianne Apostolides of the pro-legalization Lindesmith Center wrote in the Wall Street Journal: Marijuana is safer than other substances such as nicotine and steroids. Most people who use marijuana have no problem with it. â€Å"The question about legalized drugs is the defining point for a Libertarian. If you are opposed to legalizing all drugs, then you are not a Libertarian, by definition.† Sam Sloan But if we analyze did alcohol use decrease when it was legalized? Answer is No. When abortion became legal, did abortion s decrease? No. When an action becomes legal, the number of people carrying out that action increases. Drugs are not different Drugs Abuses, Crimes and Legalization Crimes will also not be reduced by drug legalization. Studies show a correlation between drug use and crime - violent crimes such as homicides, assaults and domestic violence. Why is this? Its quite simple - drugs cause violent behavior. In actuality, crime will rise when drugs are legal because more people will be taking drugs. Crime is highShow MoreRelatedShould Drugs Be Legalized? Essay1203 Words   |  5 Pageslegalization of drugs is among the most polarizing issues faced by the US government today. The increase in organized crime related to drug trafficking has forced authorities to reevaluate their stance on their legalization issue, and yet there are those in the civil society that oppose such legalization vehemently. Though there is evidence that many of the banned and scheduled substances can be attributed t o a range of health benefits and treatment of diseases, the American experience with drugs has beenRead MoreShould Drugs Be Legalized?1005 Words   |  5 Pages Drugs are upon the most controversial topics in the world, they are known for many reasons for bringing evil among the communities. They affect lower class families who struggle to make living in the world. The drug trade industry has lead politicians to corruption, because it makes them have more power. Drugs have made a huge impact in today’s society, although people will argue and agree that drugs can make the world a better place if they were just to be legalized. If drugs were to be legalizedRead MoreShould Drugs be Legalized?1187 Words   |  5 PagesDrug laws apply on state and federal levels. In federal circumstances, â€Å"convictions are from drug trafficking† and in the states, it’s for â€Å"drug possession.† The federal punishments are longer sentences and harsher punishment while t he states place the arrestee is charged with misdemeanor and is put on probation, short jail term, or a fine. However, in court, if the criminal pleads guilty, they keep a clean criminal record and take a prescribed substance abuse program†¦vacated†¦and [18 months later]Read MoreShould Drug Be Legalized?1358 Words   |  6 PagesShould Drugs Be Legalized? Drugs are actually kind of brilliant products as they bring a lot of advantages to our society especially in medical area except when someone misuses them. Because of these abuses, certain drugs have been designated as illegal articles in lots of countries across the globe. Thus, we can see that in these recent decades, our society has involved in holy drug wars with the aim to strike against this disastrous drug abuses trend. However, a new phenomenon occurs when someRead MoreDrugs Should Be Legalized?1934 Words   |  8 PagesIt seems that drugs should be legalized because, â€Å"the existing evidence suggests that net costs for drugs are higher under probation-substantially higher in some cases† (Miron, 839). Miron is proposing that prohibition leads to significantly high prices for drugs which creates incentives for suppliers to develop a black market and make enormous profits. By legalizing drugs, he argues that the price will be driven down so that the black market will be eliminated because the profits will not beRead MoreShould Drugs Be Legalized?1801 Words   |  8 PagesShould Drugs Be Legalized? What can be considered by far the most terrible evil, exciting an increasing number of very young people who cannot in consequence of the normal full life? Evil, which first brings joy, then life turns into a nightmare? Evil that breaks the health and life of the person obeyed it, all his family and friends? Evil, which spreads very quickly, while hitting not only the body but also the soul of person? Some people want to earn money from this evil, others - are trying toRead MoreShould Drugs Be Legalized?1239 Words   |  5 Pages80-90% of all inmates are incarcerated due to drug related crime or robbery to help pay for their drugs that they owe money on. For these inmates dealing with drugs is something very normal in their lives. Drugs being involved in prisons is also something that is very similar to the world. Prison guards find an inmate trying to smuggle in drugs at least once a week. As seen on Orange is the New Black in many episodes in season 2 and 3 the inmates smuggled in tobacco for cigarettes and Nicky got inRead MoreHard Drugs Should Not be Legalized937 Words   |  4 PagesKurt Cobain once expressed the idea that, â€Å"drugs are a waste of time. They destroy your memory and your self-respect and everything that goes along with your self-esteem†. The issue of drugs has always been a very controversial issue, the debate on whether or not all abusive substances should be legalized. There are many sides to this argument and in the United States this issue draws two types of people to the debate: those for the legalization of hard drugs and those against it. Ever since our earliestRead MoreShould Drugs Be Legalized?2054 Words   |  9 Pages â€Å"Drug misuse refers to the use of a drug for purposes for which it was not intended or using a drug in excessive quantities† (Powell, 2011). It is a widely discussed topic in contemporary society. The argument as to whether drugs should be legalised has been ongoing for many decades. Legalisation and regulation of some illicit drugs are now on the agenda. Statistics have shown that in 2014-2015, around 1 in 12 (8.6%) adults aged 16 to 59 had taken an illicit drug (Home Office, 2015). Illicit drugRead MoreShould Marijuana Drugs Be Legalized?932 Words   |  4 PagesThe subject of drugs has certainly been an issue that has been widely discussed. Over the years, it has always boiled down to whether all drugs should be legalized or not. While the United States has been arguing over the topic of for many years, countries, such as Portugal, have taken an alternative and very unique way to fight the war on drugs. In 2001, the Portuguese government decided to flip its war on dru gs strategy entirely: It decriminalized them all (Aleem). At first, this strategy was greatly

Definitions of Intellectual Property - 993 Words

Definitions Intellectual Property Name Institutional Affiliation Date: Definitions Intellectual Property Definitions of intellectual property, its legal protections, and the impact of the moral justifications that exist in cyberspace Intellectual property defines a wide range of the property created by investors, artistes, authors, and musicians. The law governing intellectual property naturally includes the copyrights, trademarks, and patents law. Its main intention is to motivate the development of art, sciences, and information giving defined rights of property to all the artistes, who include inventors of science and art. These rights assist artists to safeguard themselves from violation, unauthorized misuse, and use of their creations. Service marks and trademarks safeguard distinguishing characteristics (such as a package and name design) that are linked with certain products and services that display commercial source (Blakley, Johanna 2010). Laws safeguarding copyrights have strong links with the England law of the eighteenth century. Complete patent laws may be tracked from the seventeenth-century in England, but they have always been part of the law of United States from the colonial period (Spinello, 2004). The concepts of patent and copyright were all included in the constitution of the United States. The congress has the power to encourage the development of useful art and science. It does this by safeguarding constraint time to inventors and authors theShow MoreRelatedIntellectual Capital Comparison Paper1077 Words   |  5 PagesIntellectual Capital Comparison Paper Intellectual capital is the combined knowledge of employees within an organization (Intellectual, 2013). This knowledge is to add value to the organization in ways such as increase profits, provide products or services to customers, gain competitive advantage, improve processes, or other types of capital. This paper will show five different types of intellectual capital that adds value to an organization. It will provide examples of each intellectual capitalRead MoreComing Up With The Big Idea920 Words   |  4 Pagesfor the test. Who has the right to intellectual property at this point in time? This is the big dilemma and depending on the ethical view point of you or the company you work for, it could become a sticky situation. During the course of this class my answer to this question has, for the most part, has stayed the same. The issue of who has intellectual property rights in a very delicate topic and it truly depends on the situation at hand. Intellectual property is â€Å"something (such as an idea, inventionRead MoreIntroduction. After Reading Over The Current Service Level1064 Words   |  5 PagesManagement, the chief concern is to provide guidelines within the SLA that address data protection, authorized use, sharing of data, and retention/destruction of data. Furthermore, Finman is devoted to protecting intellectual property, patents, and copyright while also safeguarding physical property. Statement of Intent Modifications The processes above will rely on risk management as a critical tool for changes to ensure its compliance to national and international data protection laws that has been putRead MoreThe Current Service Level Agreement1223 Words   |  5 Pagesthe chief concern is to provide guidelines within the SLA that address data protection, authorized use, sharing of data, and retention/destruction of data. Furthermore, Finman is devoted to protecting intellectual property, patents, and copyright information while also safeguarding physical property. Statement of Intent Modifications The processes below will rely on risk management as a critical tool for changes to ensure compliance to national and international data protection laws that haveRead MoreWhat is Open Source Licensing Essay782 Words   |  4 Pagesof this paper was to observe if and how the open source software licensing regime has challenged the protection granted to software under the intellectual property rights. In general, the outcome is that the distinct production and distribution model of open source licenses, while different, can be compatible with the legal framework of intellectual property rights protection and serve different purposes. However, a number of remaining uncertainties around the open source licenses leave room for improvementsRead MoreEntrepreneurial Ecosystem in Academic Organization827 Words   |  3 PagesEntrepreneurship in Europe† (2003) it defines entrepreneurship as â€Å"the mindset and process to create and develop economic activity by blending risk-taki ng, creativity and/ or innovation with sound management within a new or an existing organization†. Definition about entrepreneurial ecosystem is a system of entrepreneurship that is formed by the interaction of a community of organisms within the environment. Refer to the book â€Å"Fundamental of Entrepreneurship† â€Å"innovation can be defined as the processRead MoreOverview Of Intellectual Property Rights1651 Words   |  7 PagesOverview of intellectual property rights and how it relates to Computing The purpose of the following essay is to discuss inttelectual property rights and its relation to software, I will then futher discuss the patentabillity of software. Since the use of the first computer, software has been considered as an addition to the hardware. The law was adapted to treat software as such. and as such law was made to treat it rightfully like so I.e. Example law (insert quote here ). An ongoing opening isRead MoreWhat Are Piracy And Intellectual Property?1012 Words   |  5 Pagessystems in the world are strongly influenced by the western civilization values. Laws for copyright, piracy, intellectual property somehow find the origins in the socio-economical system of our world. In the following essay, we will try to explore the different characteristics of the worlds which may engender the need for copyright. We will next explain what are piracy and intellectual property vis-à  -vis the notion of copyright. Several characteristics of today’s world and its business made copyrightRead MoreIntellectual Property in India909 Words   |  4 Pagesadvancement à ¶f the arts. The cà ¶ncept à ¶f â€Å"intellectual prà ¶perty† in India à ¶ver the last few years has taken à ¶n sà ¶me epic prà ¶pà ¶rtià ¶ns fà ¶r a number à ¶f reasà ¶ns. à ¶ne à ¶f the primary reasà ¶ns, attributable tà ¶ the grà ¶wing awareness amà ¶ng the urban Indian pà ¶pulatià ¶n, is à ¶f the significance and, mà ¶re impà ¶rtantly, the cà ¶mmercial benefits in prà ¶tecting its intellectual prà ¶perty rights bà ¶th within and à ¶utside India. And under traditià ¶nal principles à ¶f intellectual prà ¶perty prà ¶tectià ¶n, patent law is tà ¶ encà ¶urageRead MoreEssay about Legal and Ethical Leadership in Management1549 Words   |  7 Pagescounterfeit items are being sold, and has requested that Normandale stop selling the imitation product. Normandale has not complied. This pap er will discuss if Normandale’s behavior was ethical or not, state or federal laws in relation to intellectual property, and if Mathis has incurred any damages. The paper will also cover social responsibility, implementation of ethical codes, and personal and criminal liabilities. Ethical Behavior Ethics is the study of good and bad behavior; while business

Investment and Portfolio Management Financial Position

Question: Discuss about theInvestment and Portfolio Management for Financial Position. Answer: Introduction Portfolio Management is the process of making decision for the purpose of investment in companies stocks and shares by the individuals and other institutions to generate maximum return. It represents the art of selecting and investing in the optimum shares of the companies based on the market capitalization, performance of the company, financial position of the company and other related factors (Income 2015). Among all the factors, market capitalization and price earnings ratio are the most significant factor that measures the companies efficiency of trading in the stock market. Market capitalization represents the market value of the organizations outstanding securities that is used to determine the organizations size and current position in the stock market. However, many a times the market valuation does not represent the accurate and correct value of the companys shares as the price of the shares are either overvalued or undervalued (Andriosopoulos and Lasfer 2015). The following assignment presents the analysis on the undervaluation and overvaluation of the companys shares that is listed on Australian Securities Exchange (ASX) included in the top 200 stocks. The analysis has been conducted by selecting an Australian company Myer Holdings Limited (Schall 2015). Currently the company has reported revenue amounted to AUD 3.3 billion while operating income is AUD 113.5 million during the financial year 2016. The company is engaged in the retailing business of clothing for men, women and children including the accessories, cosmetics, footwear and other electronic and general stuffs. The organization has been reported as the largest departmental store in Australia considering its revenue and count of the store number. Discussion An organizations share price depends on several factors that determine the companys efficiency in trading and providing expected returns to the investors. Several methods used to value the securities of the company to determine the overvaluation or undervaluation of the shares in the current market industry. Overvaluation of the stock states the shares are being sold in the stock markets at a price that is higher than its actual intrinsic value. On the other hand, undervaluation of the stocks represents the selling price of the organizations shares that is essentially below its actual intrinsic value. Factors that are considered to determine the correct valuation of shares are current price of the securities, dividend on each share and earnings per share. On the contrary, valuation of shares is also determined by using the methods of Net Asset, Market Value, Earning Yield, Dividend yield and capacity of earning method (Lauterbach and Pajuste 2015). As per Net Asset Value Method, Companys share valuation is determined by dividing the net asset value from the number of companys shares. Considering the Myer Holdings Limiteds current financial details, net asset of the company is $863 million and total number of outstanding shares is 585.69 million. Therefore, companys price of share as per the net asset value method is $863 million/585.69 million = $1.47 per share whereas the current trading price of the companys share is $1.22. Hence it can be said that the stock of Myer Holdings Limited is underpriced as per the method of Net Asset value. Accordingly, investors are recommended to go long on the securities of the company. It can be interpreted from the valuation of shares through net asset value method that the intrinsic value of the Myers share is higher than the actual trading price. So, the investors have good acquisition target for the companys securities because the price of the shares may rise in near future by providing th e good rate of return (Duke, Nneji and Nkamare 2015). Valuation of shares can also be determined by using the market value method or yield value method which denotes the expected return of the individual or institutional investors. Rate of return is a return that the investors earn on the amount of their investment that may be in terms of either earning yield or in terms of dividend yield. According to the earning yield method, the valuation of shares is determined by considering the expected return and normal prevailing return rate (Amanatidis et al. 2015). It is determined by using the formula as follows: (expected rate of return/normal rate of return) * paid up equity securities value. Where, expected rate of return is determined as (profit after tax/ paid up equity securities value) * 100. As per the financial information of Myer Holdings Limited, earnings yield is 6.31% assuming the standard normal rate of return is 8% in the current market scenario while the paid up value of the shares is $524.75 million. Therefore, the valuation of share is 6.31% / 8.00% * $524.75 million = $413 million i.e. $0.71 per share which is less than the actual price $1.22. Hence, the equity securities of Myer Holdings Limited is said to be overpriced and investors are recommended to go short on the companys shares investment (Duke, Nneji and Nkamare 2015). On the other hand, dividend yield valuation method is used to determine the value of shares by using the expected rate of dividend and normal rate of return. The valuation of shares is measured by (expected rate of dividend/normal rate of return) * paid up equity securities value. Where, expected rate of return is determined as (profit for dividend/ paid up equity securities value) * 100. According to the current market data of Myer Holdings Limited, dividend yield of the company is 4.10% and the standard rate of return as per the assumption is 8.00%. Therefore, the value of shares is 4.10/ 8.00 * $524.75 million = $268.94 million i.e. $0.50 per share. Since the actual price is higher than the intrinsic value of shares as per dividend yield, the value of the shares can be said to be overpriced (Kokkonen and Suominen 2015). Hence, it is recommended to the individual and institutional investors to go short on companys market share. Other methods for valuation of shares include the method of earning capacity that determines the overvaluation or undervaluation of shares in current market structure. It is measured by considering the total profit attributable to the investors, which is calculated by deducting the tax expenses and amount transferred in the reserves from the net profit earned by the organization (Liu and Swanson 2016). In order to measure the value of shares through this method, capitalized value is required to be determined by the following way: (profit available to attribute to the shareholders/ normal rate of return) * 100 i.e. $29.826 million/8.00% * 100 = $372.82 million. Therefore value of each share is capitalized value/ total number of outstanding shares i.e. $372.82 million/ 585.68 million = $0.64. Since the actual price of the companys share is $1.22, the shares are said to be overvalued (Moolman and Du Toit 2015). Other than those methods over valuation and under valuation of Myer Holding Limiteds share depends on other factors PE ratio, market capitalized value relative to the GDP ratio of the industry. Considering the current market details of Myer Limited, PE ratio of the company is 15.84 while the standard PE ratio of the industries is 15.00. Since the companys PE ratio is higher than the standard industrial PE ratio, it can be said that the shares of Myer Holdings Limited is overvalued (Jensen, Quinn and Weymouth 2015). It can be interpreted from the analysis that the overvaluation of the companys securities represents the fall in price of the shares in near future therefore it is not considered to be good acquisition target. Further, if the PE ratio of the company to the EPS growth is less than one then the companys share are said to be undervalued. On the contrary, if the PE ratio to EPS growth is higher than one then the securities or stocks of the company are said to be overvalued. As per the financial details PE ratio of Myer Limited is 15.84 and EPS is $0.077 i.e. EPS growth is 7.7% therefore, the ratio between PE ratio and EPS growth is 15.84/7.7 = 2.05 that is higher than one. Hence the actual price of the companys share is overvalued and the investors are recommended to go short on acquisition of the Myers equity stocks (Hossain and Ahmad 2015). For the purpose of determining the valuation of shares of a company, it is essential to consider other factors that influence the price of the equity stocks. Such factors are market interest rate, trend of the overall stock exchange market, market capitalization value including the political and legal factors. Further, if valuation of shares is determined by net asset method the value of assets is measured by including goodwill, bad debt provision, any unrecorded asset whereas fictitious assets are required to be deducted (Goh et al. 2015). Accordingly, in case of Myer Holdings Limited, valuation of shares has been determined by considering all the sources that influence the over or under valuation of the shares in the present market trade. However, price earnings ratio is considered to be one of the important factors to determine the over valuation or under valuation of the shares for investment purpose. The current trading price of the share of Myer Holdings Limited is $1.22 while the PE ratio of the company is 15.84, therefore it can be interpreted that the stock of Myer Ltd is trading fifteen times its earnings. Hence, the shares of Myer Holdings Limited is said to be overvalued in the present market scenario (Cziraki, Lyandres and Michaely 2016). Methods that are used to measure the value of shares, used to determine the theoretical values of the organizational securities. It assists in determining the potential trading price or market value of the securities to fetch maximum return on the amount of investment. In case the shares of the companies are undervalued compared to the theoretical or intrinsic value, then the shares are recommended to be acquired. On the contrary, if the securities of the companies are overvalued then the same shall be advised to be sold (Seguin 2016). However, the over valuation and undervaluation of the securities depend on the sources and methods used to compute the fair price of the shares. Shares of Myer Holdings Limited are currently trading at $1.22 whereas the price earnings ratio 15.84, EPS is 0.077 and dividend yield is 4.10%. If the fair value or theoretical value is determined by considering PE ratio then it can be said that the securities of Myer is overvalued and investors should go sho rt on the shares of the company. But if the theoretical value of the company is measured by asset- backing approach or net asset value method then it has been noticed that the Myers securities are undervalued. Therefore the investors are recommended to go long i.e. buy the securities. Further, if the dividend yield of Myer Limited is considered it can be noted that the shares of the company $1.22 overvalued and the investors are recommended to go short on the shares of the entity. Moreover earning per share of Myer Holdings Limited is $0.077 which states that the company has the efficiency to provide $0.77 return on each share acquired by the investors. Since the trading price of the company at current date is $1.22, it can be interpreted that the investors would earn the return of $0.077 per share on the investment of $1.22 per share (Saunders and Brynjolfsson 2016). Valuation of shares is a fundamental analysis to determine the intrinsic value or fair value of the entitys shares based on the earning capacity, financial performance, potential cash flows and other legal factors. For instance, if a companys dividend payout ratio is high and the retention ratio is low then the company is said to be inefficient in investment strategy and therefore investors may not be willing to acquire the stocks. Myer Holdings Limited has earnings yield at the rate of 6.31% whereas dividend yield is 4.10% which means that the companys retention ratio is 2.21%. It can be said that company has efficient investment strategy as well as the distribution of income hence; the investors can acquire the securities of the company in view of its potential growth (Damodaran 2016). The over or under valuation of the securities of the company can also be determined by using the method of discounted cash flow that is expected to be earned by the investors from investment in futur e. However, in case of Myer Holdings Limited it is difficult to ascertain the future cash flows therefore the intrinsic value of the securities through discounted cash flow method cannot be ascertained. Therefore, as the main component to measure the fair value of the stocks is price earnings ratio, over valuation or under valuation of Myer Holdings Limiteds stocks is considered on the basis of PE ratio. From the above discussion it has been interpreted that the stocks of Myer Limited are overvalued therefore investors should go short on the companys securities (Cornell 2015). Conclusion Decision of investment in a companys shares depends on the several factors primary of which is the fair value of the securities in the current market trend. As discussed above, it is important to determine the correct valuation of securities trading on the stock exchange with respect to the companys financial performance and financial position. If the securities are found to be overvalued then the investors should sell the securities while if the securities are undervalued then the investors are required to acquire the company stocks. However, the most important factor to measure the fair value or theoretical value of the securities is the price earnings ratio of the company and the value of net asset value. Considering the price earnings ratio of Myer Holdings Limited, the stocks at current market is overpriced therefore it is recommended to go short on the companys investment. On the other hand, if the net asset value method is considered for the securities of Myer Holdings Limited then the value of the securities has been determined as undervalued with respect to the theoretical value. Hence, the investors of are recommended to go long on the shares of the company. Moreover, the fair value of shares of the company also depends on the earnings growth as well the dividend yield for the current year as well as for the past years. For the purpose of fair valuation of the shares, market capitalization value also plays an important role since it determines the value of the enterprise. Considering the market cap of Myer Limited value of shares can be said to be overvalued. In view of the earning yield as well as the dividend yield of Myer Limited in the current market trend, stocks of the company are overvalued since the dividend yield and earning yield are higher than the standard industrial rate. Similarly, if the earning per share of the company is taken into account for measuring the correct valuation of shares, it can be concluded that the shares are overprice d. Hence considering the main valuation factors of share valuation it is to be concluded that the shares of Myer Holding Limited are overvalued. Reference List Amanatidis, G., Markakis, E., Nikzad, A. and Saberi, A., 2015, July. Approximation algorithms for computing maximin share allocations. InInternational Colloquium on Automata, Languages, and Programming(pp. 39-51). Springer Berlin Heidelberg. Andriosopoulos, D. and Lasfer, M., 2015. 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