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incorporated. Capital Pty Ltd appointed three directors, all of whom also sit on the board of…
Countrywide Financial was a mortgage-banking firm. They had one of the largest market shares in the early 2000s, when the mortgage market was booming. “No company pursued growth in home loans more aggressively than Countrywide” (NY Times 12/10). They were the leader of their industry, with 500 billion in home loans, 62,000 employees, 900 offices, and $200 billion in assets. Everything had been going well for the company and its employees, until the mortgage crisis began to unfold at the end of 2006. In June 2009, the SEC filed a civil suit against the founder of the business and some of his top management for fraud and insider trading. This came at the height of the mortgage crisis in the US. The founder of Countrywide, Angelo Mozilo, finally agreed to pay $45million in profits and $22.5 million in civil penalties, in which he still admits no wrongdoing.…
This document is to describe the Information Security requirements of Online Application Services and Application Service Providers that engage in business with McBride Financial Services. This policy applies to any use of Online Loan Applications (OLA) and any outsourcing to Application Service Providers (ASP) by McBride Financial Services, independent of where hosted.…
Which of the following is not a consideration for investing in real estate investment trusts (REITs)?…
4) Did subprime mortgage loans contribute to the housing bubble? Why did the bubble burst? What were consequences of the housing bust to borrowers, loan originators, and MBS and CDO holders? Did subprime mortgages contribute to the U.S. financial crisis of 2008?…
| Maximize the stock price per share over the long run, which is the stock’s intrinsic value.…
Week 7 Chapter 6: Investors in the Share Market True/False QUESTIONS 1. Investing in shares of publicly listed corporations should, on average, over time provide a higher return than investing in fixed-interest securities. a. True b. False 2. Investments through a stock exchange are limited to ordinary shares issued by listed corporations. a. True b. False 3. Portfolio theory contends that a diversified share portfolio enables an investor to significantly reduce the portfolio’s exposure to systematic risk. a. True b. False 4. A share that has a beta of one is twice as risky as an average share listed on a stock market. a. True b. False 5. Shares that typically demonstrate a negative price correlation will usually move in the same direction if new economic information comes to the market. a. True b. False 6. With dividend imputation, a shareholder with a marginal tax rate that is lower than the company tax rate will pay no tax on a fully franked dividend received, and the excess credit can be applied against other assessable income. a. True b. False 7. A company’s liquidity, that is, its ability to meet its short-term financial obligations, may be measured using the current ratio and the liquid ratio. Of the two ratios, the latter is the more stringent measure. a. True b. False 8. It can be safely inferred that a company with a low current ratio is a riskier investment than a company with a high current ratio. a. True b. False…
Analysis of the banking industry, specifically with respect to Zions Bancorporation suggests that the competition in the banking industry is relatively high. While market presence, brand and pricing are key differentiating factors for attracting new customers, relationship and trust are important in retaining them. Zions Bancorporation has presence in 11 states.…
Question 1.1. (TCO D) Which of the following statements concerning common stock and the investment banking process is NOT CORRECT?…
1. Are subprime loans an Unethical financial instrument, or are they ethical but misused in a way that created ethical issues? In my opinion I think subprime loans is an ethical in some ways but for the most part it’s got misused. One way that I think subprime was misused was the fact that when the economy began to slow down, people started working more and earning less money, subprime lending continued to lend to increasingly risky buyers. Another cause of misusing subprime lending was the fact that they allowed real estate appraisers to inflate the value of a home to insure loans would go through…
The Bank of the United States was designed to make money and build an economy. It was designed by men like Alexander Hamilton and Robert Morris, but did not benefit the common citizen as much as wealthy investors. Why did a fledgling government need to borrow millions from overseas in order to invest in a “national” bank, to turn around and then borrow the same money back and pay interest on it? The banking system developed by Alexander Hamilton and Robert Morris was prime pickings for speculators, and laid the groundwork for a history of unscrupulous activity regarding our nation’s money supply that continues to this day. The signatures on the Constitution were barely dry before corruption and greed laid their roots in our country’s economic foundation.…
Which classification system is available with EQS as a criteria for your screen of equities?…
6. Who is the company’s transfer agent and where are they located? – Bank of New York Mellon Shareowner Services located in New York…
Summary: the mortgage mess happened in 2008 when there was a decreased homing price. However, their mortgage payment by homeowners were soon greater than the price of house. As a result, they forced the repurchase policy of many mortgage agreements, and let the subprime lenders to take over their houses. Subprime lender like New Century became the bankrupt because of the high lost associate with the mortgage cancelation. To maintain earning, the management modify the estimate of its reserve. However, KPGM, the auditor of the New Century is question of their work. KPMG lost its independence due to its afraid of lost business.…
IntroductionLinda Best, a Certified Financial Planner (CFP) from Sarnia, Canada is the founder and sole shareholder of Best Financial Services Inc. which was established on January 1, 2001. Sarnia, the largest city in South Ontario, bordered the United States and was heavily populated with aging baby boomers and blue-collar workers. Best Financial earned its revenues mainly from blue-collar workers nearing retirement. Best financial had formed strong relationships with many clients throughout Sarnia and managed over 1000 financial plans allowing a steady revenue and profit growth. The key services provided by Best Financial are risk management, tax preparation and professional money management. The company’s Assets under Management were $22 million on as January, 2008.Gerald Young, one of the top clients of Best Financial had informed Linda Best that he would be moving his assets to one of Best’s competitors, Scotia McLeod. The loss has forced Best to think about the future direction of her company. Best needs to complete an assessment of the industry and Best Financial’s past performance, followed by projected financial results of her new strategy. She must decide whether to hire a new advisor or purchase a block of business from another financial planner. Q1. Perform a size- up of the industry. Identify the threats or opportunities.Answer:Financial planning is one distinct segment among many within financial services industry. The aim of the financial planners is to assist people to maximize the potential of their financial assets. Financial planners evaluate a client’s goals, personal circumstances and risk tolerance to help them grow and preserve their wealth, minimize taxes , complete estate planning and determine insurance needs.The financial planning has a prescribed six step process for financial planning outlined by FPSC(Financial Planners Standard Council).The industry offers various products suited to different needs of the different customers. A variety…