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  • Growth and Development of Islamic Banking in the UK

    It is only in the last five years that the growth of Islamic finance and banking in the UK has taken place but according to Ainley et al (2007), the sharia-compliant transaction in the London financial markets existed even in the 1980s. The Middle Eastern institutions attained liquidity through Murabaha type transactions. Retail Islamic products such as home finance had also started in 1990s. However, due to the absence of any regulatory framework, the consumers of Islamic banks did not have protection as consumers of traditional banking.The UK government has played a proactive role in developing Islamic finance in the country. The government pursued a policy of financial inclusion as…

  • International Cocoa and Commodity Trade

    Cocoa produced in tropical or semitropical areas. Such climates found in Asia, Africa, and Latin America who form the principal producers of cocoa. The types of cocoa production are small-scale or large-scale production. An estimated 70% of world cocoa production comes from small-scale farmers. The number of small-scale farmers estimated to be 2.5 million with a yield of about 350kg per hectare. In this case, every farmer owns around 3 hectares (Interfax, 2011). Only 30% of cocoa production comes from large-scale farming. The leading countries in cocoa are West African countries like Ghana, Côte D’Ivoire, and Indonesia, forming 70% of the total coffee production. The other 30% collectively come from…

  • The Capital Structure of the Organisation Maximize Firm Value and Minimize Average Cost of Funding

    The Modigliani-Miller theorem is a significant arena of contemporary corporate finance. At its centre, the theory refers to an irrelevance proposition. The Modigliani Miller theory offers cases under which the financial decision of a firm does not have an effect on its value. According to the theorem, with well-functioning markets … and rational investors, who can ‘undo’ the corporate financial structure by holding positive or negative amounts of debt, the market value of the firm – debt plus equity – depends only on the income stream generated by its assets (Villamil, n.d., p.1). As per Modigliani, the firm value should not be dependent on the portion of debt within the…

  • The Influence of Macroeconomic Conditions on the Property Market Development in the UK

    The dynamic model based on historical data for UK property development by Barras and Ferguson (1987a, 1987 b) establishes an endogenous development cycle mechanism. This model identifies the level of user activity and the level of investment activity as the two major economic factors affecting property cycles. This model, however, explicitly includes an endogenous cycle mechanism, which is problematic. Further, the homogeneity assumption for variables like rent, capitalization rates, building costs etc is also questionable. Several explanations based on irrational behaviour of valuers, developers and lenders like slowness of these agents to respond to clear market signals and failure to learn from experience are also given to property cycles (Baum…

  • Poverty in Rich Industrialized Nations

    There usually exists a gap between the poor and the rich in both, though the poor in the industrialized countries do not live in abject poverty. This gap results in the inequalities that many sociologists endeavor to eliminate. They view it as an undesirable aspect amongst humans (Evenett and Keller 1998 p. 18). This essay is a critical evaluation of the causes and consequences of poverty in the rich and industrialized countries, possible solutions as well as an evaluation of the various explanations which Sociologists have given for this phenomenon. Statistics on poverty have been acquired from reliable published materials in regard to earlier research.Research indicates that industrialization and economic…

  • The Development of Travel and Tourism in Mozambique

    Since the inception of the general management board in 2008, the authority was being funded partly by the Government of Mozambique through the Council of Ministers and partially self-funded as a result of ventures with private companies both local and international (Williams 2004, p. 54). The authority has solid financial autonomy, making it easier for the management board to venture in a broad range of tourism-oriented activities. Since the inception of the general management board in 2008, the authority was being funded partly by the Government of Mozambique through the Council of Ministers and partially self-funded as a result of ventures with private companies both local and international (Williams 2004,…

  • How to Maximize Club Capital

    Soccer is one the most common games worldwide that is played with the feet and a ball and consists of two teams with each 11 players battling it out to score goals of which the one with most wins. They obviously follow a set of rules and regulations laid down by the worlds soccer governing body FIFA (Federation Internationale de Football Association) whose memberships consists of 209 national associations ( Discussion Soccer is usually played for fun as a sport but when clubs are associated, this is where finance and soccer get into crossheads. Friends, workmates or just groups of people with the purpose of having fun initially formed soccer…

  • The monetary and fiscal policy implemented in the United States during the Great Recession and determine the short run and long

    These subjects affect all players in the economy. In addition, some concepts will be explored and discussed in relation with the depression. II. Crowding Out The concept of crowding out pertains to the increase in government borrowing leading to reduction in consumption and investments (Blanchard, 2008). When the government decides to bolster spending, the best ways to raise funds are increased taxes and borrowing. In periods when depression is imminent, raising taxes is not a practical strategy. Government will have a hard time convincing the labour force to pay more taxes when community prices continue to rise and jobs become hard to maintain. The logical approach for the government to…

  • Derivative Markets

    There are several limitations in the price of future contracts and it is ensured by future arbitrage. The existence of price limits help to minimise the instability of prices by defending organizations against market overreaction. However, price limit can also make future contracts less liquid. Future arbitrage makes future contracts more valuable. Arbitrage generates a strong connection among the futures and commercial values (New York University, n.d.). Limit of arbitrage is significant for behavioural descriptions of irregularities and wider revision of asset valuation. Limit of future arbitrage is a portion of finance plan to clarify variances based on investors’ emotional prejudices. Arbitrageurs can face the following price limitations: Fundamental and…

  • Financial Crises The Causes Consequences and Cure

    What is more is that the crisis poses a serious challenge to the future transnational community’s sustainable development. Yardney, M. 2007. What does the American sub-prime mortgage crisis mean for Australia? 30 The financial crisis is a scenario in which the demand for money supersedes money supply – there is the rapid withdrawal of available money from banks evaporating liquidity as well as constraining banks to either collapse or else, to vend other investments in endeavoring to reimburse the deficit. One can as well define financial crisis as an acute decline of a set of financial indicators including asset prices plus short‐term interest rates among others, which come with…

  • The Devastating Unequal Distribution of Wealth

    Beyond abstract indicators that confirm that those who have more, increasing accumulate wealth, while the poorest seem doomed to never migrate out of this condition, the consequences ofthis dynamic eventually permeate the daily life of millions of people.Apparently, there is a model, which currently governs the finance and markets, designed to dilute any possibility of transforming as suggested by the tens of failed revolutions, philanthropic oriented systems lighten the consequences but not to change the bases, etc (Hoch, and Sumaria Mohan-Neill, p. 31). The study of Oxfam indicates that, despite multiple complaints about campaigns and seen little or no effect in determining the current reality, levels of inequality have grown…

  • Transit finance project

    Within federal jurisdiction, it represented the policies and programs of the municipal governments of Canada since 1901. The FCM ensures that its 1200 members representing larger cities to small rural communities work sincerely for improving the quality of life of the communities they represent. The municipal institutions of Canada are efficient, strong and accountable and they ensure that their services are affordable, reasonable and beneficial for both the people and businesses in Canada. In fact, the municipal institutions of Canada reflect its character and they deliver their services to the citizens and play a key role in social cohesion and economic sustainability in Canada.The report aims to analyse the taxing…

  • Finance Excell Sheet

    Boutique Hotel Introduction The hospitality industry is very diverse. It has a number of income generating activities that are viable. The first way that Boutique hotel can generate revenue is buy-selling rooms. The rooms can be used by revelers who visit Barcelona for business or leisure. The hotel can also earn some revenue by selling foods and drinks. That means that the hotel will take the form of a hotel and restaurant that has accommodation. The sale of food and drinks will be profitable because it will be a source of additional income. The other source of income for the hotel will be the hotel offering conference services. The hotel…

  • Finance SLP5

    The stock market in Japan peaked after the 1980’s when Japan gained dominance over the United s in the car marketplace and other high technological sectors. At the time one would think that good times would continue, but they did not. For over 15 years the Japanese securities marketplace has been on a downturn. In March 2004 the Nikkei stock index reached a 7909 value, which is the same value the index was in the year 1982 (International, 2008). The stock market in Japan has not done any better during the last five years with continuous struggles. The depletion of the stock market has hurt the nation’s banking system. The…

  • Evaluate Sainsbury plcs financial strategy

    In spite of these speculations, it has risen to be the leader for the last two decades.Sainsbury has relied heavily on equity capital to finance its operations in the recent past. The management consists of the contributors of the needed capital. Being a company based in United Kingdom, where a company with more than 50% of its capital is considered highly geared, the management made a move in the year 2006 to incorporate high level gearing for the following reasons:This is another significant source of funds for Sainsbury Company. This dividend reinvestment plan allows stakeholders to reinvest their cash dividends through purchasing more shares in the market through a significant…

  • Report of Firm Investigated by the SEC

    SEC Investigation: Suit Filed against Martha Stewart Insider trading laws and their enforcement came into being in the1990’s (Bhattacharya and Daouk 2006, 91). Insider trading is the act obtaining information that is not available to other stockholders in order to have an unfair advantage. It is illegal since stockholders depend on information in the audited financial statements and other publicly available information. Investment advisors and analyst pay keen attention to certain investment ratios. Investment ratios provide information that analyst use to inform their clients. These ratios help investors to decide whether they should invest in a company (Fraser and Armiston 2012). On June 2003 the SEC (2009) a reported that…

  • Procurement Finance and Inventory Control

    The financial analysis of a company is done in order to evaluate and interpret the financial data along with the other information in order to plan an assessment of the present and future financial condition of the company. The supplier with whom the organization is dealing has been experiencing cash flow problem. So, to deal with the problem, the income statement analysis and the balance sheet analysis has been done. The main objective of the income statement analysis is to make the adjustment to the income statement in order to arrive at sufficient cash flow. It focuses on the revenue growth, earnings and net income of the company. Balance sheet…

  • Islamic Banking vs Conventional Banking

    As widely known, Islamic banks requires strict compliance with Islamic Shariah, mainly based on its fundamental principle of ‘prohibition of riba-interest-‘ whereas interest plays significant roles in making conventional banks competitive in the market. Islamic banks normally provide almost all services that conventional banks used to offer to its customers except that Islamic banks don’t accept or pay interests on lending and deposits and indulge with haram (Prohibited in Shariah) businesses or unethical business practices. The major functions of a commercial bank include safeguarding customers’ money, supplying money, lending functions, investment function, and other financing services. Islamic banks also provide all these services and moreover. Both Islamic banks and conventional…

  • Corporate Finance and Derivatives

    Market risks arise because of the exposure to market variables (Prasanna Chandra, 2008). Risk management is the umbrella term used to define the process that includes identification, assessment, prioritization, and management of risks in such a way so as to minimize or eliminate, if possible, the adverse impacts of the risks (I.M.Pandey, 2006). A multi-national corporation operating in different countries of the world is exposed to foreign exchange risk. The multi-national corporation receives and makes payments in different currencies of the world. Transaction risks arise because of the possible gain or loss of existing foreign currency denominated transactions (Boumlouka, Makrem (2009)). Take an example of firm A. Firm A, headquartered…

  • Call Center Report from a cultural perspective (includes communication)

    The organization acquired necessary property for the call centre and a number of key management employees having British citizenship will supervise the call centre.A UK based company extended the business into the finance and insurance sector with a banking and finance division which was incorporated with around 50,000 customer accounts in mid 2000s. Overtime it became costlier to provide services to the customers. hence to achieve financial savings – in 2011, a decision was taken as part of the five-year strategic plan to open an inbound call centre outside the UK. afterward Manila, Philippine was chosen. The aim of this call centre is to achieve financial savings as well as…

  • HIS334 History of the U S Civil War Final Exam

    While the Confederates were fighting for secession, the Republicans opposed it and hence on April 12th 1861, fighting commenced with the Confederates attacking a United States military installation in Fort Sumter in South Carolina.Both parties raised large armies and fought many wars at Antietam and Shiloh, but what gave a major turn to the events was Lincoln’s Emancipation Proclamation. The freeing of the slaves in the South lent a moral goal to the war and allowed the Union to recruit African Americans to their army for reinforcements. Event European immigrants joined the Union in large numbers.Robert E. Lee, Confederate General gained many victories in the East with the Battle of…

  • Foundations of Finance

    The explanation states that the utility function formed for wealth is concave in shape. A person who is wealthy has lower marginal utility for any additional wealth. In contrast to it the person who is poor has higher marginal utility for additional wealth. The economist who model risk aversion based on expected utility theory, do so as they arise solely because utility function over wealth is concave. The diminishing value of marginal utility of wealth theory of risk aversion appeals to psychological intuition and helps in explaining some of the large scale risk aversion of humans. The theory also implies that people become risk neutral when stakes are not high.…

  • Summary of the Your College Major May Not Be As Important As You Think by Bissonnette

    Bissonnette talks about the common belief that a person’s economic success is greatly affected by his choice of major in college. This, as the essay points out, is a misconception based on actual surveys relating one’s college degree to his earning capacity that concludes, it’s really not all that important (Bissonnette para.6) The most common point of comparison lies among business majors and liberal arts majors. Most parents urge their children to take up something related to business such as Finance based on the belief that an education geared towards the fine arts would lead to a lifetime of poverty. The author gives four reasons why going for liberal arts…

  • Maximising Project Value

    Every business project is profit oriented and returns on capital employed stand as the main goal. That is why I consider that Finance perspective should focus on the cost control to ensure that in the long run income is more than the input. In a business process, the steps of what to do are provided to ensure that the end goal of profit making is achieved. It works with a target of minimizing cost so as to maximize returns. The ways of cost minimizing are wage cutting, reduction of advertising cost and reduction of employees.This is the level of deployment of the best practices an organization has defined for its…

  • Money Banking&amp

    Finance71750 The present prices of the bonds would help in the determination of the market rate of interest, or the price that would be paid for the use of the money for a period of time. There exists a functional relationship between the rate of interest and the time of the bonds. The term structure of interest rates or the yield curve shows the relationship between the rate of interest and the yields of the bonds with the terms to maturities. The curve is a representation of the various opportunities that may exist for the arbitrage as well as the expectation of the markets about the interest rates that may…

  • Museum of Contemporary Art

    Teacher Without question, the Museum of Contemporary Art in Los Angeles was operated in a reckless manner that one’s household must not be operated the way the institution was operated. By putting art before finances, the museum nearly killed itself. In the last eight years of operation, it operated on loss for six years where its endowment fund shrunk to about $6 million from $42.7 million in 1999. To get the museum back in the black there are several recommendations that the museum must implement. First, let the state agency finish its audit. In addition to the determination if the present leadership has any criminal liability in the manner it…

  • Why is money supply not under the tight control of central banks

    spite this clear relationship between money supply and banks, there are other factors that influence the control of national and international money supply and take away the full control of banks. these include personal account holders, foreign investors and various businesses and corporations.Ancient Babylonian records dating from the 18th century BC show that a rudimentary form of banking was established at that time (Leick 161). Although these early storehouses could not necessarily equate with modern banks, they did serve the purpose of storage of wealth in the form of grain, gold and other valuables. From these immense storehouses, people chose to lend and borrow based on agreements made on a…

  • Corporate Finance Concepts

    NEM is considering the proposed investment and production to begin from 2015 onwards and expected the cost of investment is estimated at $200m out of which 40 percent would be requiredin early 2013 and remaining 60 percent will be required in early 2014. The cost of investment includes construction, insurance, operating assets and working capital worth $20m. Fifty percent of $200m will be financed from overseas buyers. The present issue that the management is facing a selection of the discount rate for computation of NPV of the project. According to the VP of operations, the discount rate of NESA (new project) should be the cost of capital of parent entity…

  • The Need for Variance Analysis

    The Need for Variance Analysis The need for variance analysis Introduction Adhering to the budget is imperative in any organizationin order to prevent overspending. In many cases, budget implementers find themselves spending more than the projected amounts in the initial budget. To determine the possible causes of overspending, variance analysis is inevitable (Baker and Baker, 2014). This paper describes the value of variance analysis in decision making and the next steps that i would need to take after variance analysis using a given case study. Value of variance analysis in decision making Before delineating the value of variance analysis in decision making, it is important to define variation and variance…

  • Cradle Will Rock

    Teacher Cradle Will Rock Despite mounting government budget deficits, it is still possible to embark on large-scale government-sponsored national arts program in today’s United States if the government really wanted to. America today is entirely different from the 1930s when Cradle Will Rock was created. These differences from 1930s and today would make the development of a large-scale government-sponsored national arts program possible. The obvious differences include government economic capacity to spend, absence of government paranoia against communism and people’s greater awareness for the arts that it would surely gain public support. Developing large-scale government-sponsored national arts program is already possible today because government can afford it now compared to…

  • Intermediate coporate finance

    But of late the U.S. has become to a lesser extent reliant on China’s funding of its deficits predominantly as the U.S. classified saving rate has increased and the current account shortage has decreased. However, the mere scale of the U.S. shortage funding need which is approximately $1.6 trillion budget deficit in 2010 and forecast of almost $9 trillion of shortages over the next decade in the markets of bond and currency are delicate (Prasad, 2010).On the other hand an abrupt activity by China to move uncompromisingly out of U.S. dollar designated instruments, or even a declaration to such an extent, would work as a set off around the jumpy…


    Finance Questions a) US Treasury is a risk-free security. It is issued by the US government, thus bears no default risk. My discount rate forthis type of security will be close to the US Treasury actual rate. As of March 17 2006, US six-month treasury had yield t maturity of 4.775% (Wall Street Journal, 23). b) A CD of a South American bank paying in local currency bears a number of risks. Country risk, exchange rate risk, default risk of this particular bank should be embedded in my estimation of discount rate for this security. It will certainly be above 10%. c) This security should bear country risk and default…

  • Nike vs underarmour

    Nike V. Under Armour Nike and Under Armour are two sports clothing companies and they both are competing against each other in terms of customers as well as endorsements. The customers of both these companies include those individuals who love sports and are fans of various sports clubs and activities. These companies even compete against each other in terms of financial health and both of them are trying to take away each other’s share of the market. The main difference between these two companies is that Nike is a much larger company with Nike having almost 5 times more market capitalization as compared to Under Armour (NKE Key Statistics 1).…

  • Assess the role of ethics and compliance in pepsicola financial environment and procedures they have in place to ensure ethical behavior

    Ethics and Compliance in PepsiCo Ethics and Compliance in PepsiCo Ethics and compliance are essential ingredients in building asuccessful organization. They are crucial in building organizational trust and transparency. Adherence to the two values helps in minimizing risks and establishes a culture of transparency and commitment to the organization in all functions and structures. Pepsi-Cola is committed to enhancing sustained growth through training and maintenance of empowered personnel capable of acting responsibly and ensuring trust (PepsiCo Inc.,2010a). Compliance and ethics are ensured through focus on six guiding principles namely: prioritizing the welfare of the consumers. ensuring the quality of the products they sell. ensuring the integrity in all business dealings…

  • Strategic Corporate Finance

    There are several capital budgeting techniques that can be used by companies.NPV can be defined as the difference that exists between the present value of cash outflows and the present value of cash inflows. The technique is applicable in capital budgeting in the analsyiss of the profitability that is associated with an investment. The analsysis is usually sensistive to ythe future cashflows that are reliable that a project is likely to yield. The technique usually compares the value of a dollar at the current moment in regard to the same dollar in the future. The values must be inclusive of the effects of inflation and the rate of returns that…

  • Corporate debt in India

    Corporate debt in India From this article it can be learnt that, due to the reducing in the inflation level in India the government through the ministry of finance and the reserved Bank of India, have decided to maintain the banks interest rates at 8%. Also, the Indian government is looking for a way of dealing with the deficit in the country for the coming years.Despite the effort that the India has put in containing its economic standard still, it faces some implications that lead to drop of the economy level. It is seen in the weak credit growth and poor investment. The projection of debt causes all this. According…

  • Potential and Possible Consequences of Systemic Financial Crisis

    The paper now outlines the principal theoretical approaches to the financial crisis. The first two sections cover, respectively, the concept of contagious runs on financial institutions and markets, and the aspects of financial regulation, which seek to protect against such events. I then assess two ‘traditional’ views of the financial crisis, which attempt to explain exclusively the totality of financial crises, namely the financial fragility and monetarist approaches. These are followed by more recent paradigms, which seek to clarify the mechanisms involved in crises, namely uncertainty, credit rationing, asymmetric information/agency costs, and aspects of the dynamics of dealership markets. It is important, to begin with, an argument of contagious runs…

  • Financial Accounting Questions

    Answering Questions about Financial Accounting Answering Questions about Financial Accounting Q The financing period is a time that the company has before the payments of current liabilities become due. The current liabilities are those loans that have to be paid off within one year. Nevertheless, the company may have a negative financing period, if it has failed to clear the payment in time and the greater value of negative financing period means that the company is delaying the payment even further. The debtors often provide incentive to the companies by offering them a discount in case of the early payment whereas, they tend to charge interest when the company does…

  • Finanical Management

    manufactures time series photographic equipment. It is currently at its target debt-equity ratio of 1.3. It is considering building a new 45million manufacturing facility. This new plant is expected to generate after-tax cash flows of 5.7 million to perpetuity. There are three financing options.It will be noted that the flotation charges made from issuing common stock has caused the shortage on the required investment for the new building. Initially, the firm has considered raising funds to finance new building construction, but it seems this option needs some mix re-alignment or additional financing either thru bonds or bank borrowings.Flotation cost is defined as the costs associated with issuance of new securities.…

  • Compare and contrast perfect competition and monopolistic competition Also Explain how equilibrium is determined in the Keynesian Income Expenditure

    Essay One Monopolistic Competition Monopolistic competition as the signifies is a blend of monopoly and competition. It is systematic and realistic theory of price analysis in this imperfectly competitive world. Monopolistic competition is a market situation in which there are relatively large numbers of small firms, which produce or sell similar but not identical commodities to the customers.The number of firms in Monopolistic competition is fairly large. Under the Monopolistic competition, the firms sell differentiated products. Product differentiation may be real or imaginary. Another very important characteristic of the Monopolistic competition is that each firm tries to create difference in its product from the other by advertising, propaganda, attractive packing,…

  • What are the most important factors that influence the National Health Service in Modern Britain

    Factors Influencing the National Health Service in Modern Britain Details: al Affiliation: Submission:Factors Influencing the National Health Service in Modern BritainThere is no doubt that the National Health Service (NHS) has been one of the most cherished institutions in modern Britain (Hewitt, 2005). So it is that the former British Prime Minister Tony Blair had to contend sometimes back that it is among the greatest achievements the country has had this far (DoH, 2004a). Indeed, the huge political controversy that regularly surrounds NHS during elections underscores its great importance to the electorate (Appleby, et al., 2011. Klein, 2010). The World Health Organization institutional rankings put NHS among the best healthcare…


    Among the 22 people in the IT department, there is an overlap of roles as was revealed during Carol’s interview with the staff. This calls for the need to change the type of leadership to the department if the new outfit of a CIO organization is to yield intended results. The most appropriate leadership style given the facts is Transactional Leadership. This style has the fundamental concept that. team members agreed to remain obedient to their leader at the time of accepting the job. It follows the principle that the members are paid for their effort and compliance with the rules, failure to which the leader is at liberty to…

  • Blog Reflection Post for personal branding

    Blog Reflection Post for personal branding Blog Reflection Post for personal branding Introduction Conformity involves an individual’s adjustment in belief or behavior so as to fit a particular social group. Some consumers choose brand loyalty because they are motivated to do so while others opt for brand stereotypes .These affects the decision consumers take on customized purchases. A good personal branding model is dependent on one’s passion, dreams and uniqueness (Rampersad, 2009). OverviewConformity is a threat to innovation as outlined by Jonathan Lewis, a brand expert. As long as it makes individuals acquire the sense of belonging, it has negative impacts in the overall marketing environment. Lewis presents five classification…

  • Management of Decision Making

    SSM being a user centered design approach concentrates mainly on the people involved with the problem and focus on the specific problems secondarily. It also aims at analyzing the problem from different perspectives. SSM provides an effective and efficient way to carry out an analysis of the processes in which technological processes and human activities are interdependent. This paper envisages making a case study of the problems faced by stake holders and various other entities dealing with a particular branch of a Local bank and how SSM approach provides a solution to the problem identified:SSM involves various key stages in its implementation like, identifying and defining the problem situation and…

  • Being the Bridge

    It is widely believed that the CIO can be a bridge between enterprise finance, marketing, and sales functions. This person oversees the operations ofthese departments and he also acts as a central point of exchange of information. The CIO can communicate directly with representatives from different departments which helps to promote the smooth flow of information. The CIO can also play a pivotal role in solving disputes or conflicts that may exist among different people within the organization. More importantly, the CIO plays a pivotal role in explaining company policies to different people from different departments. The CIO can also engage representatives from other departments to discuss pertinent issues that…

  • Green &amp

    Competitive QsGreen amp. Competitive Qs Several major corporations have recently launched major green initiatives. What do you make of GEs Ecomagination initiative? General Electric (GE) company is one of the American largest conglomerate corporations that operate under the five major segments namely. energy, industrial, technological infrastructure, consumer and finance segment. However, in 2000, the political economy research institute released some data that indicated that General Electrical Company as one of the fourth largest environment polluters in the United States. Due to its bad reputation, the General electrical company had launched major green Ecomagination initiatives in order to cover its bad toxic image. The Ecomagination initiative is a program was launched…

  • The financial performance of Marks and Spencer

    etail outlets also sell mid to high priced apparel, food, and household items under the companys private label brands, including Autograph, Classic, per una, and Portfolio. The British retail icon operates in about 330 Mamp.S department stores and some 340 Simply Food shops throughout the UK. Beyond Britain, it spreads across over 325 locations, mostly franchises, in about 40 countries, including China, India, Indonesia, and South Korea (Google Finance n.d.). The company recorded revenues of £9,536.6 million ($15,272.9 million) during the financial year ended April 2010 (FY2010), an increase of 5.2% over 2009 (JP Morgan 2011).Past financial performance of the firm or an organization is an important indicator for predict…

  • Week 2 ( Starbucks ) Assignment’S Annual Reportthere Is A Very Important Relationship Between The Strategic And Financial Planning Which Helps To A Great Extent In Order To Survive In A Highly Competitive And Volatile Economy

    the company selected for the Week 2 (Starbucks) assignment’s annual reportThere is a very important relationship between the strategic and financial planning which helpsto a great extent in order to survive in a highly competitive and volatile economy. The goals ofthe…Finance

  • Can You Please Help Me Answer The Attached Question!A What Is The Firm’S After Tax Cost Of Debt On The

    (Individual or component costs of capital) Compute the cost of the following:a. A bond that has $1,000 par value (face value) and a contract or coupon interest rate of 6 percent. A new issue would have a floatation cost of 8 percent of the $1, 125 market value. Thebonds mature in 5 years. The firm’s average tax rate is 30 percent and its marginal tax rate is 33 percentb. A new common stock issue that paid a $1.50 dividend last year. The par value of the stock is $15, and earnings per share have grown at a rate of 9 percent per year. This growth rate isexpected to continue into…

  • B Par

    Yield to maturity What is the yfl of each of the following bonds, 3 if interest (coupon) is paid annually? 3. What is the 31% of the following bond if interest (coupon) is paid annually? (Round to two decimal places.) Years to Yield toPar Value Coupon Rate Maturity Maturity Finance

  • Jacinto &Amp

    Jasmine Group (JJG) is considering a capital restructuring to allow $500 million in debt. Currently,Page :Income statement ( debt $30o mittion )( $ in million)EBIT380Less – Interest @ 10 -f. 20002 00180Leg – Tax @ 35%63earning aftertax (EAT)117Value of the firm =11711. 3 810= $…Finance

  • Question Cvs3

    Paper Mechanics Please complete your Interpretation of ChartThe general movement of CVS returns follows that of Samp;P 500 returns. The price todayis significantly higher than the price 5 years ago. At the beginning of the…Finance

  • A) What Is Common Par

    Bonds Par Value vs. Bond Market Value (3 points each):a) What is the most common par value amount for corporate bonds?b) What conditions have to be met for a bond’s market value (i.e., price) be equal to thebond’s par value?Finance

  • The Last Answer Choice Didn’T Fit It’S Collaborates

    LM 7 HW iSavedSave amp; Exit SubmitXYou received no credit for this question in the previous attempt.View previous attemptBy the end of 2011, Threadless hired Jason Macatangay as Vice President of Finance. Which of the following descriptionsPart 3 of 5best encapsulates his primary role at the firm?1.25pointsMultiple ChoiceReferencesOEnsures efficient operation, attainment of goals, and maintenance of trademark creativityOAnalyzes the market expansion and revenue growth plan for the firmOBorrows funds to sustain product innovation and growthManages the accounting of funds and inventoryMclt; Prev.of 8Next gt;GrawOCT10. ..Business

  • 19…

    Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and are priced at par value.SOLUTION Calculations relating to Band SAMSince the bond is priced at Par, the coupon rate=YTM=6.5%. Coupon per period = 1000*6.5%*(6/12)= 32.5Period : Years to maturity X 2 : 6Calculation 01’…Finance

  • Your Company Is Considering A

    Your company is considering a capital investment of $334.391 million. The project will generate equal annual after-tax operating cash flows of $52.48 million for 8 years. At the end of its life, the project will be sold for $55 million, but the project’sadjusted tax basis at termination will be $39 million. The project will require $23 million in additonal net working capital. With a 26% marginal tax rate, what is the project’s IRR? (Percent with 1decimal)Finance

  • All Help Is Greatly Appreciated! Finance Is Not My Thing And I’M Totally Lost!Thank You In

    Finance date of Adams Stores. Inc. for the year ending 2016 and 2017. Items Sales $3.Cash Other Expenses Retained Earnings Long-term debt Cost of goods sold 2.Depreciation Short-term investments Fixed Assets Interest Expenses Shares outstanding (par value = $4.60) Market Price of stock Accounts Receivable Accounts payable Inventory Notes Payable Accumulated Depreciation AccrualsTax Rate Instructions: As a group. complete the following activities using the financial information above: Part 1: Financial Statements A. Prepare the income statement for 2016 and 2017. Include statement of retained earnings for 2017 B. Prepare the balance sheet for 2016 and 20170. Prepare Common-Size financial statements of income statement and balanceD sheet. Prepare Statement of Cash…

  • This Is Related To The Equity And Debt Financing In The

    Problem 2. A firm is considering expanding into new geographic markets. The expansion will have the samebusiness risk as its existing assets. The expansion will require an initial investment of $50 million and isexpected to generate perpetual EBIT of $20 million per year. After the initial investment, future capitalexpenditures are expected to equal depreciation, and no further additions to net working capital areanticipated. The firm’s existing capital structure is composed of $500 million in equity and $300 million in debt(market values), with 10 million equity shares outstanding. The unlevered cost of capital is 10%, and itsdebt is risk free with an interest rate of4%. The corporate tax rate is 35%,…

  • Your Article Is Due At The End Of Week 6

    Instructor will post in Announcements 1.Money functionsMoney is regularly characterized as far as the three capacities or administrations that it gives.Cash fills in as a medium of trade, as a store of significant worth, and as a…Finance

  • Great Seneca Inc

    sells $100 million worth of 23-year to maturity 6.69% annual coupon bonds. The net proceeds Question Great Seneca Inc. sells $100 million worth of 23-year to maturity 6.69% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each $1,000 bond. The firm’s marginal tax rate is 40%. What is the after-tax cost of capital for this debt financing? Round the answer to two decimal places in percentage form. (Write the percentage sign in the units box) Finance

  • Interpret The Following Statements Made By Wall Street Analysts And Portfolio Managers Given

    Question Interpret the following statements made by Wall Street analysts and portfolio managers. Given the recent uncertainty about future interest rates, investors are fleeing from zero-coupon bonds. Catrell Insurance Company invests heavily in bonds, and its stock price increased substantially today in response to the Fed’s signal that it plans to reduce interest rates. Bond markets declined when the Treasury flooded the market with its new bond offering. Finance

  • Suppose You Just Bought An Annuity With 9 Annual Payments Of $15 300 At The Current Interest Rate Of 10 75 Percent

    Question Suppose you just bought an annuity with 9 annual payments of $15,300 at the current interest rate of 10.75 percent per year. What is the value of the investment at the current interest rate of 10.75 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What happens to the value of your investment if interest rates suddenly drop to 5.75 percent? Finance

  • University Of Texas Is Considering Purchasing A Power Supply System The System Costs $300 000 Has A Useful Life

    Question University of Texas is considering purchasing a power supply system. The system costs $300,000, has a useful life of 10 years, and will cost $20,000 per year to keep running. The system uses straight line depreciation and the salvage value is zero at the end of year 10. The tax rate is 30% and cost of capital is 12%. What is the (after taxes) equivalent annual cost of the battery? a. $58,095 b. $58,879 c. $59,762 d. $60,092 e. $61,891 please do no use excel. I need to this on a calculator. Finance

  • Please Show Workconsider The Following Details For A Bond Issued By Bravo

    Question PLEASE SHOW WORK Consider the following details for a bond issued by Bravo Incorporated: Issue Date 8/5/2000 Maturity Date 8/5/2030 Annual Coupon Rate (ANNUAL coupons) 9% Face Value $1,000 Suppose that today’s date is 8/5/2004. What should the current trading price be for this bond if investors want a 12% ANNUAL return? (Show your work. Label $. Two decimal places required. Highlight or bold your answer.) PLEASE SHOW WORK Finance

  • The Question Is As Follows A Project Requires Initial Investment Of $35 000 And Will Generate

    Question The question is as follows: A project requires initial investment of $35,000 and will generate annual before-tax cash flow of $4,750 for 60 years. The asset beta of the project is 0.9. The market risk premium is 6% and the risk-free rate is 5%. The project will be financed at its target debt-to-equity ratio of 0.25. The cost of debt is 8%.The tax rate is 30%.. Assume the debt will be paid off at the end of year 60 when the project ends. Find the amount of debt to borrow. Finance

  • Which Of The Following Factors Reflect

    puremarket risk for a given corporation?(You may Question Which of the following factors reflect pure market risk for a given corporation? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Finance

  • Compare The Cost Of The Following Leasing Agreement With The Finance Charge On A Loan For The Same Time Period

    Question Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period. The price of the car is $14,000, and its projected residual value at the end of four years is $3,000. Monthly payment$250 Capital cost reduction $1,000 Disposition charge $200 Other things being equal, one would want to finance this car rather than take this lease if the finance cost were less than 2,200 2,450 200 1,550 Finance

  • An Allequity Firm Is Subject To A 30% Tax Rate Its Total Market Value Is

    Question Magnus Inc. has earnings before interest and tax (EBIT) of $10 million. There is $50 million of debt outstanding with a required rate of return of 6%. The required rate of return on assets in the industry is 12%. The corporate tax rate is 28%. There are no personal taxes. Compute the value of Magnus assuming that the present value of bankruptcy costs is $10 million. Finance

  • To Calculate The Wacc Let’S Go Back To The Paley Products Inc Financial Statements For 2016 On P 300 Of The

    Question To calculate the WACC let’s go back to the Paley Products, Inc. financial statements for 2016 on p. 300 of the text. Paley has a pre-tax cost of debt of 5%, a cost of equity of 9.8%, 10,000 shares outstanding at a market price of $129.08 each and a tax rate of 35%: 1. What are the weights of debt (all debt, the Bank Notes and the Mortgage) and equity for Paley? Paley Products, Inc. Forecast Balance Sheet Actual 2016 Cash 5 20.400Accounts Receivable 388.000Inventory 826.200Current Assets 51.1 34,600Gross Book Value $326,300Accumulated Depreciation (505,800)Net Book Value 230.500Total Assets 51.461100Bank Notes 5 286,000Accounts Payable 306,000Accruals 77.500Current Liabilities $ 669.500Mortgage 36,700Common…

  • Blue Buck Ltd Reported The Following Amounts In The Shareholders’ Equity Section Of Its December 2014 Statement Of

    Question 875000 During 2015,blue buck Ltd took part in the following transactions concerning shareholders equity: paid the annual dividend on the preferred shares and a $2 dividend on the common shares.These dividends had been declared on 28 December 2014. Issued 500 preferred shares at $105. Received equipment with a market value of $77600 for 7500 common shares Appropriated retained earnings for plant expansion $200000 use journal entries to record the transactions .Narratives are not required. Finance

  • Gogreen Has Made The Following Projections In The First Year 2 000 Units Will Be Sold Growing At 10%

    Question GOGreen has made the following projections: In the first year 2,000 units will be sold, growing at 10% per annum. The price for each unit in the first year will be AU$50,000. This price will increase each year by 5%. Variable costs are 60% of the sales price, which will grow by 3% each year. Fixed costs are $5 mil pa, which are expected to grow by 2% each year. The project is for a term of 5 years. The projected growth of the EV line is expected to outgrow the plant at this time, hence the plan will be sold at the end of 5 years. Initial investment…

  • Hi I Need Help On These 3 Equationsconsider A $1 000 Par Value Bond With A 6% Coupon Rate

    Question Hi, i need help on these 3 equations Consider a $1,000 par value bond with a 6% coupon rate paid semiannually, and has 9 years to maturity. What is the price of the bond if it is priced to yield 7%? Linebacker Co. has 7 percent coupon bonds on the market with 9 years left to maturity. The bonds make annual payments. If the bond currently sells for $1,080, what is its YTM? Caribbean Reef Software has 8.4 percent coupon bonds on the market with 9 years to maturity. The bonds make semiannual payments and currently sell for 95.5 percent of par. What is the YTM? Finance

  • Which Of The Following Is A Conclusion Of Agency Theory?A Managers May Accept Excessive Financial Risks To

    Question Which of the following is a conclusion of agency theory? A. Managers may accept excessive financial risks to increase the returns to shareholders. B. Managers tend to avoid high-risk, high-return investments that may jeopardize their positions if successful. C. Managers will always use the least expensive source of funds to finance investments. D. Managers will tend to put the stockholders interests before their own security and ambitions. Finance

  • True Or False1 ) When Calculating A Firm’S Weighted Average Cost Of Capital The Cost Of Debt

    Question True or False 1.) When calculating a firm’s Weighted Average Cost of Capital, the cost of debt is based on the weighted average coupon rate of all debt issues outstanding. 2.) Your firm has a project that has an NPV of $500,000 when excluding the cost of research and development that has already been completed. However, the research and development cost the firm $700,000 implying that the project will lose shareholders value overall. Therefore, the firm should not proceed with the project at this stage. 3.) A firm’s Weighted Average Cost of Capital is the appropriate hurdle rate to be used for all of its projects given it captures…

  • Help Answering What The Payback Period The Payback Period Of Two Years And If The Movie Has A Positive Npv If

    Question Help answering what the payback period, the payback period of two years, and if the movie has a positive npv if the cost of capital is 10.1 You are considering making a movie. The movie is expected to cost $10.8 million up front and take a year to produce. After that. it is expected to make $4.2 million in the year it is released and$1.6 million for the following fouryears. What is the payback period of this invesh’nent‘? If you require a payback period of two years. will you make the movie? Does the movie have positive NWif the cost of capital is 10.1%? What is the payback period…

  • A Company’S Management Is Determining How Many Employees To Hire For The Customerservice Department Over

    Question A company’s management is determining how many employees to hire for the customer service department over the next year. Which part of the management process is this? – Operational planning – Process improvement – Strategic planning – Decision making ——— In which step of the capital budgeting process should a firm determine where it intends to position itself in the future? – Post-implementation audit – Project implementation – Accept or reject decision – Strategic planning ——— A company is required to budget for a large piece of machinery Where should this be itemized? – Budgeted income statement – Factory overhead cost budget – Direct materials purchase budget – Capital…

  • The Following Statements Relates To Bond Relationships Please Insert The Following Phrases To Complete Each

    Question The following statements relates to bond relationships.please insert the following phrases to complete each statement. Increase,decrease,par,discount,premium,less than,more than,greater,less A.If the current interest rate exceeds the bond’s coupon rate, the bond will sell at a ______________. B. The value of a bond will increase if there is a/an___________in interest rates. C.A bond’s coupon rate is more than the interest rate,therefore the bond is selling at a ____________. D.As interest rate increases the value of a bond will__________. E.If the bondholder’s required rate of return equals the coupon interest rate,the bond will sell at________. F.A premium bond sells for _____________as maturity approaches. G.The discount bond sells for __________as maturity approaches. H.A…

  • Which Of The Following Statements About Investments Are True?(More Than One Option)I Unsystematic Risks

    Question Which of the following statements about investments are true?(more than one option) i. Unsystematic risks are usually nor evident in portfolios of more than 25 stocks; ii. Sensitivity of a stock to systemic risks is measured by a beta-coefficient; iii. Active investment can be described by strategic allocation of funds following analysis of the past price trends; iv. Risk cannot be considered as a major consideration in well-diversified portfolios. Finance

  • Which Of The Following Is Typically Not An Input To A Decision Model?

    Which of the following is typically not an input to a decision model? A.decision Question A)Which of the following is typically not an input to a decision model? A.decision points C.uncontrollable inputs D.decision options B)Models that involve chance or risk are called A.deterministic B.probabilistic C.risk-oriented D.none of the above C)Interquartile Range, Variance, and Standard Deviation measure the A.reliability of a data set B.association within a data set C.shape of a data distribution D.dispersion in a data set Finance

  • 16) Your University Is Running A Special Offer On Tuition This Year’S Tuition Cost Is $16 000 Next Year’S

    Question 16) Your university is running a special offer on tuition. This year’s tuition cost is $16,000. Next year’s tuition cost is scheduled to be $16,640. The university offers to discount next year’s tuition at a rate of 4% if you agree to pay both years’ tuition in full today. How much is the total tuition bill today if you take the offer? A) $33118 B) $32,981 C) $32,080 D) $32,000 20) You are paid to teach graduate-level classes for the university and want to determine how much money the university makes from your graduate-level classes. Based on historical data, you estimate that your graduate classes for the next six…

  • Bond X Is Noncallable And Has 20 Years To Maturity An 8% Annual Coupon And A $1 000 Par Value Your Required

    Question Bond X is noncallable and has 20 years to maturity, an 8% annual coupon, and a $1,000 par value. Your required return on Bond X is 9%; if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 7.5%. How much should you be willing to pay for Bond X today? (Hint: You will need to know how much the bond will be worth at the end of 5 years). Thank you!! Finance

  • Your Company Will Receive Usd10 000 000 In 3 Months’ Time And Will Keep The Funds For A 3month

    Question Your company will receive USD10,000,000 in 3 months’ time and will keep the funds for a 3-month period to cover a payable 6 months from today. Your analysts think that interest rates may fall from their current level at 6.1% and you want to protect the return you will get until you need the funds. BNP-Paribas, a French bank, offers a FRA with an interest rate of 6% to cover the extra funds for the 3-month period 3 months from today. Your company decides to take the FRA offer from BNP-Paribas. What will happen to both parties if interest rates 3 months from now are at the following rates?…

  • The Time Value Of Money Is The Economic Principal That A Dollar Received Today Has Greater Value Than A Dollar

    Question The time value of money is the economic principal that a dollar received today has greater value than a dollar received in the future. In a professional setting, understanding the time value of money is necessary for financial decisions such as business loans, investment analysis, capital budgeting, and many more crucial decisions needed to run a successful company. All students studying finance should understand the importance of different concepts of time value of money and be apply them to a real situation. This discussion will help us to describe and explain different concepts of time value of money. This discussion will answer the following: Finance

  • Africa Industries Is An Industrial Conglomerate Is Currently Evaluating A Project To Produce A New Electronic Lock

    Question Africa Industries is an industrial conglomerate is currently evaluating a project to produce a new electronic lock mechanism recently developed by the company. The project will require an immediate outlay of NOK 100 000 on production machinery. The machinery would have a zero scrap value at all times and would not be allowable expense against tax (as working capital but with zero value at project end). The project is expected to have a 3-year life and produce a net annual cash flow of NOK 61 000 in each year. This amount would be subject to corporation tax. Although the project only has a debt capacity of 30% of cost,…

  • 1 In The Following Discussion Question You Will Evaluate Long Term Financing Options And Their Effects On

    Question 1. In the following discussion question you will evaluate long term financing options and their effects on the organization. If you were considering long-term financing alternatives for your organization, what are your options? How will you decide? What will you need to consider? How do you determine the correct balance between debt and equity? How do you decide between long-term and short-term financing? 2. In the following discussion question you will evaluate long term financing options and their effects on the organization. In considering the various form of long-term financing, how is the cost of each determined: debt and the various forms of equity? How does the cost of…

  • The Cost Of New Common Equity Willquestion 1 Options A)

    Increase as flotation Question The cost of new common equity will Question 1 options: a) Increase as flotation costs increase b) Decrease as flotation costs increase c) Increase as flotation costs decrease d) Increase as the tax rate increases Question 2 (2 points) Assuming no change to a company’s overall risk level, if a project’s return equals the company’s cost of capital Question 2 options: a) It should increase the company’s stock price (build shareholder wealth) b) It should maintain the company’s stock price (maintain shareholder wealth) c) It should decrease the company’s stock price (destroy shareholder wealth) d) We can’t predict its impact on the company’s stock price Question…

  • Healthy Foods’ Balance Sheet Shows A Total Of $25 Million Longterm Debt With A Coupon Rate Of 8 50% The Yield To

    Question Healthy Foods’ balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. The yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. The company has 10 million shares of stock, and the stock has a book value per share of $5.00. The current stock price is $20.00 per share, and stockholders’ required rate of return, rs, is 12.25%. The company recently decided that its target capital structure should have 35% debt, with the balance being common equity. The tax rate is 24%. What is the effect of the capital structure change on…

  • 2 Its Wacc Is 15 Percent And Its Cost Of Debt Is 6 Question Olliab Inc

    olgtltligtAB, Inc. has a debt-equity ratio of 2. Its WACC is 15 percent, and its cost of debt is 6 Question olliAB, Inc. has a debt-equity ratio of 2. Its WACC is 15 percent, and its cost of debt is 6 percent. The corporate tax rate is 30 percent. What is the firm’s unlevered cost of equity capital?/li/ol Finance

  • How Do You Calculate Intrinsic Value Aka Expected Price Aka Pv?Problem Fyi Bonds Have A

    Question How do you calculate intrinsic value aka expected price aka PV? PROBLEM: FYI bonds have a par value of $1,000. The bonds pay an 8% annual coupon and will mature in 11 years. i) Calculate the price if the yield to maturity on the bonds is 7%, 8% and 9%, respectively. ii) What is the current yield on these bonds if the YTM on the bonds is 7%, 8% and 9%, respectively. I understand how to calculate the current yield (PMT/PV) if the PV is given, but how do you calculate it when it is not given, like in this problem? Finance

  • Mulligan Manufacturing (Mm) Is A Fast Growing Firm With Expected Earnings Of $3 Million Next Year Mm Expects

    Question Mulligan Manufacturing (MM) is a fast growing firm with expected earnings of $3 million next year. MM expects earnings to grow 10% per year indefinitely and MM’s cost of capital is 14%. MM has creative accounts, so it pays no taxes. What is the market value of MM? If MM has no debt, then what is its P/E ratio? If MM has $25 million in debt with an interest rate of 8% (cost of capital (WACC) remains 14%), what is the new P/E ratio? Finance

  • Restex Maintains A Debtequity Ratio Of 0 85 And Has An Equity Cost Of Capital Of 12% And A

    Question Restex maintains a debt-equity ratio of 0.85, and has an equity cost of capital of 12% and a debt cost of capital of 7%. Restex’s corporate tax rate is 40%, and its market capitalization is $220 million. a. If Restex’s free cash flow is expected to be $10 million in one year, what constant expected future growth rate is consistent with the firm’s current market value? b. Estimate the value of Restex’s interest tax shield. Finance

  • Nine Years Ago The Templeton Company Issued 21year Bonds With An 12% Annual Coupon Rate At Their $1 000 Par

    Question Nine years ago the Templeton Company issued 21-year bonds with an 12% annual coupon rate at their $1,000 par value. The bonds had an 8% call premium, with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places. ? % Why the investor should or should not be happy that Templeton called them. Since the bonds have been called, interest rates must have risen sufficiently such that the YTC is greater than the YTM. If investors wish to…

  • Yield To Maturity And Future Pricea Bond Has A $1 000 Par Value 8 Years To Maturity And

    Question YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 8 years to maturity, and a 6% annual coupon and sells for $930. What is its yield to maturity (YTM)? Round your answer to two decimal places. ?% Assume that the yield to maturity remains constant for the next 4 years. What will the price be 4 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.Finance

  • The Most Recently Issued 4 Week Tbill Is Quoted At A Discount Of 1 91 A What Is The Price Of This

    Question The most recently issued 4 week T-Bill is quoted at a discount of 1.91. a. What is the price of this T-Bill? b. What is the bond-equivalent yield? Assume 4 weeks is 30 days, and the par value is $10,000. Express your answers rounded to two decimal places. Question 3 2 pts The most recently issued 4 week T-Bill is quoted at a discount of 1.91. a. What is the price of this T-Bill? :lb. What is the bond-equivalent yield? E Assume 4weeks is 30 days, and the par value is $10,000. Express your answers rounded to two– M M d‘ 0decimal places. fl Finance

  • Enter Your Answer Rounded Off To Two Decimal Points

    company is considering investing in a new equipment that will cost the company $2,260 at time=0. The after-tax Question A company is considering investing in a new equipment that will cost the company $2,260 at time=0. The after-tax cash flows are expected to be $672 each year for 17 years. What is the payback period? Enter your answer rounded off to two decimal points. Finance

  • A Tbill With Face Value $10 000 And 82 Days To Maturity Is Selling At A Bank Discount Ask Yield Of

    Question A T-bill with face value $10,000 and 82 days to maturity is selling at a bank discount ask yield of 2.9%. Face Value $10,000.00 days to maturity 82 days Asked yield 2.90% a. What is the price of the bill? (Use 360 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is its bond equivalent yield? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Finance

  • Which Of The Following Statements Is​ False?A The Actual Cash Flow That

    Question Which of the following statements is​ false? A. The actual cash flow that the investor will get to keep will be reduced by the amount of any tax payments. B. The right discount rate for a cash flow is the rate of return available in the market on other investments of comparable risk and term. C. The equivalent after – tax interest rate is r​(1-tau). D. To compensate for the risk that they will receive less if the firm​ defaults, investors demand a lower interest rate than the rate on Treasury Bills of the Government of Canada. Finance

  • A Finance Company

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  • Question 5you Are Given The Following Information By Apple Plcspot Exchange Rate ($

    Question Question 5 You are given the following information by Apple PLC Spot Exchange Rate ($ / ¥) $1.00 / ¥100.00 USA Interest Rate 7.5% Japan Interest Rate 2% USA Inflation Rate 4% Japan Inflation Rate 1% a) Using the interest rate parity theory, determine: i. Whether the $ will appreciate or depreciate ii. The new $ / ¥ exchange rate after depreciation or appreciation b) Briefly explain whether at equilibrium, investing in Japan will generate more profit for a US investor than investing in the US. Finance

  • Apple Plc The Globallydominant Californiabased Ustech Giant Is Worried That Despite Its Bigmarket Share

    Question Apple PLC, the globally-dominant California-based US-Tech giant is worried that despite its big market share across all market segments, changes in the global economy and the geo-political 6 environment is negatively affecting its profitability. Depreciating currencies from its major markets and the volatile global political environment has resulted in falling profitability despite an increased market-share, increased revenues and falling operational costs. 2006 2010 2012 2014 2016 2017 Market Share 25% 30% 35% 40% 45% 55% Revenues $500 bn $750 bn $1.000 tn $1.500 tn $2.000 tn $2.500 tn Operational Costs $200 bn $250 bn $225 bn $200 bn $175 bn $150 bn Net Income + Extraordinary items $350 bn…

  • Samuelson Inc Has Just Purchased A $650 000 Machine To Produce Calculators The Machine Will Be Fully

    Question Samuelson, Inc., has just purchased a $650,000 machine to produce calculators. The machine will be fully depreciated by the straight-line method over its economic life of four years and will produce 41,000 calculators each year. The variable production cost per calculator is $11, and total fixed costs are $900,000 per year. The corporate tax rate for the company is 40 percent. For the firm to break even in terms of accounting profit, how much should the firm charge per calculator? Finance

  • You Are Advising Several Individual Investors Who Are Interested In Investing In Portfolios Comprised Of Both

    Question You are advising several individual investors who are interested in investing in portfolios comprised of both stocks and bonds. In preparation for meeting with these various investors, you plot the investment opportunity set for stocks and bonds. Given this information, why might you advise some of the investors to invest in a portfolio other than the minimum variance portfolio? Finance

  • Simplified Circular Flow Diagram For

    Question Simplified circular flow diagram for the economy of Micronia. ( no investment in Micronia.) a. what is the value of GDP in Micronia? b. What is the value of net exports? c. what is the value of disposable income? d. Does the total flow of money of of houses holds the sum of taxes paid and consumer spending equal the total flow of money into households? e. How does the government of Micronia finance its purchases of goods and services? forno.Government purchases ofgoods and services = $100GovernmentTaxes = $100ConsumerHouseholdsWages, profit,spending = $650interest,rent = $750Markets for goodsFactorand servicesmarketsGrossWages, profit,domesticeinterest,productrent = $7500FirmsExports = $20Imports = $20Rest of worldpurchases ofrvices = $150Government…

  • What Is The Yield On 2year T Securities Real Risk Free Rate Of Interest Is 4% Inflation Expected To Be 2%

    Question what is the yield on 2-year T securities. Real risk free rate of interest is 4%, inflation expected to be 2%, during next two years 4%, maturity risk premium, par value is $1,000. I got 7.00%; What is the yield on 3-year T securities. I got 6.00% can you please tell me if that is the right answer? reat risk free rate4%inflation of year 12%inflation of year 22%Maturity Risk Premium4%Yield for 2 Years4%+ ( 2%+2%)/2+4%Yield for 2 Years10.00%reat risk free rate4%inflation of year…Finance

  • The Bonds For Company A Have A 4 5%

    coupon rate, a $1000 par value, and 12years to maturity. The bonds are Question The bonds for Company A have a 4.5% coupon rate, a $1000 par value, and 12 years to maturity. The bonds are currently priced at $905.40. What is the yield to maturity for this bond? Finance

  • Looking To Buy A Home With An Asking Price Of $225 000

    Since the market is hot, you plan to put in an offer for Question Looking to buy a home with an asking price of $225,000. Since the market is hot, you plan to put in an offer for full asking price. You also plan to put a $45,000 down payment and finance the remainder. Your bank is offering you a 30-year loan at 4.125% APR (compounded monthly). Assume first payment is made one month from today and you make all of the payments on time, calculate the total amount paid to your financial institution. Finance

  • Find A Recent News Event From South Africa You Believe Would Affect That Country’S Currency Value (Stronger Or

    Question Find a recent news event from SOUTH AFRICA you believe would affect that country’s currency value (stronger or weaker). Post a link to the article. Brief summary of the article; make sure to include the date of the article. Also, discuss how the news event would affect the exchange rate or other issues that might affect a firm if they were considering expanding in SOUTH AFRICA. Finance

  • Provided Within Correct Answer Plz That Would Be Perfect If Background Of Yours Info Are Given Endlessly

    Question Provided within correct answer plz, that would be perfect if background of yours info are given. Endlessly thankful 1.​Which of the following action/s is/are considered as source/s of cash? ​A.​Decrease in asset account ​B.​Increase in liability account ​C.​Decrease in equity account ​D.​Only A and B 2.​Which of the following action/s is/are considered as use/s of cash? ​A.​Decrease in asset account ​B.​Increase in notes payable balance ​C.​Decrease in liability account ​D​Decrease in equity account 3.​Change in cash flows comes from three major categories. EXCEPT: ​A.​Operating Activity ​B.​Investment Activity ​C.​Capital Activity ​D.​Financing Activity 4.​Common-Size ________ compute all accounts as a percent of total assets. ​A.​Balance Sheets ​B.​Income Statements ​C.​Standardized Statements ​D.​Both…

  • Question 1please Help Me To Answer This Question With Formulas And

    Question Question 1 Please help me to answer this question with formulas and explanations. a) Halliford Corporation expects to have earnings this coming year of $3 per share. Halliford plans to retain all of its earnings for the next two years. For the subsequent two years, the firm will retain 50% of its earnings. It will then retain 20% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 25% per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford’s share count remains constant and all earnings growth comes from the investment…

  • Cms Corporation’S Balance Sheet As Of Today Is As Follows Longterm Debt (Bonds At

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