IRR: It is that rate of interest that makes the sum of all cash flows…
Explain the risk exposure(s) in the subsequent financial dealings. Spot which deals are influenced by interest rates or interest income. (CAUTION: Some can be influenced by both!)…
References: University of Phoenix. (2005, 2011). McBride Financial Services. Retrieved from University of Phoenix, BSA/310 website.…
CRP received refinanced approval of its long term debt from Toronto – Dominion Bank (TD Bank) amounting to $200 million based on floating rate. The floating interest rate represents the significant risk that needs to be mitigated through hedging products. There were some hedging products that TD Bank offered to CRP, swaps, caps, or collars, or some combination? There were definite trade-offs between these hedging products in terms of flexibility, interest rate protection, and true cost.…
Monforte vulnerable to any interest rate increases and creates difficulties in obtaining financing from the…
Many of the CRAs’ ratings that “contributed significantly to the mismanagement of risks by financial institutions and investors,” demonstrating the need for “increased accountability on the part of credit rating agencies.” The provision consistently mentions the need to identify and eliminate the conflicts of interest widespread in the credit rating system and restore confidence in CRAs and the credit rating process.…
IFRS and US GAAP differ in the classification of short-term obligations that are expected to be refinanced. Under SFAS No.6, a short-term obligation may be excluded from current liabilities and classified as noncurrent obligation if the entity intends to refinance it on a long-term basis and the intent is sustained by the ability to do so as evidence either by: (1) actual refinancing prior to the issuance of the financial statements or (2) an existence of a noncancelable financing agreement from a lender having the financial resources to complete the refinancing (FASB). Contrary, under provision of IAS 1, the long-term obligation must be classified as current when due to be settled within twelve months of the end of the reporting period, despite that its original term was for a period of more than twelve months; and that the agreement to refinance, on a long-term basis is completed subsequent to the reporting period and before the financial statements are authorized for issuance (Epstein). Classifying liabilities as either current or noncurrent is very significant for financial reporting presentation and financial ratio analysis. The difference in classification…
Vancity is faced with an expected shortfall of $24 million if we do not reprice our line of credit portfolio. We must decide what actions to take to ensure our own financial viability and meet our members’ expectations while adhering to our Statement of Values and Commitments.…
Challenges facing RJR: Of the $1.5 billion that had been funded, $500 million came from cash and the remaining was through bank borrowings and commercial paper. These borrowings added to the debt that RJR had issued in 1984 and brought their debt ratings down to A. The remaining $1 billion financing would have to keep this in mind as well as the $1.2 billion of 12 year notes to be funded. To determine the financing, we need to consider the following choices:…
Gornik-Tomaszewski, S., & Showerman, S. (2010). IFRS in the United States: Challenges and Opportunities. Review of Business, 30(2), 59-71.…
I provide the list of key topics for your reference. However, the list is not exhaustive. All topics covered in the lecture notes are examinable as long as they are not labeled as "for your information/knowledge only".…
Gornik-Tomaszewski, Sylwia & Showerman, Stebe. March 22, 2010. IFRS in the United States: Challenges and Opportunities. Review of Business. St. John’s University, College of Business Administration…
in the banking industry. Using a sample of 477 large mergers from 1980 to 1994, we ®nd…
In the second half of 2007, the banking industry and financial market showed signs of considerable stress by raising the default rate of mortgage and the decline in the value of residential mortgage-backed securities. This had led to a re-pricing of many debt instruments. By the end of 2007, Citigroup declared that the fair value of its U.S. sub-prime related direct exposure could decline by 20%. This affected Citigroup’s financial results and would incur further losses in the future.…
Facilities And Services Rates Facilities and Services Rates Facility Rental Fee Remarks Theme Park w/ Hanging Bridge Php 100 per head (3ft. and above) 50% off on children below 3ft. Pay Shower/Toilet Php 30 per head per use 50% off on children below 3ft. Php 50 per head (unlimited) 50% off on children below 3ft. Zip Line Php 800 per head(walk-in) sitting Non-refundable Php 650 per head(in-house) sitting Non-refundable Php 900 per head(Superman)…