recognizes the asset under his property‚ plant and equipment. The amount that should be debited is the Lower of asset’s fair value and present value of minimum lease payments. The present value is determined by discounting minimum lease payments using interest rates implicit in the lease. Also‚ initial direct cost that the lessee incurs in relation to the lease is added to the cost of recognized asset. On the credit side of the entry should be lease liabilities‚ which is in fact‚ some kind of a loan.
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Banking Introduction What is a bank ? A banker or bank is a financial institution that acts as a payment agent for customers‚ and borrows and lends money. In some countries such as Germany‚ banks are the primary owners of industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. Banks borrow money by accepting funds deposited on current account‚ accepting term deposits and by issuing debt securities such as banknotes
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market account? (0.5 points) An account that invests your money in low risk investments with predictable interest rates. 2.What is a liquidation policy? (0.5 points) A policy that tells you when and how you can remove money from an account. 3.What is simple interest? (0.5 points) Interest gained only on the principle amount of an account. 4.What is compound interest? (0.5 points) Interest that is added to the principle of an account. 5.What is the time value of money? (0.5 points) The assumption
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them for a couple of new services from the bank. The first new service that they have requested is a bank loan that would be used to pay down their trade debt. Their current interest rate on the trade debt is 13.5% and the owner of Lawson‚ Paul MacKay‚ feels that he can secure a bank loan that would in turn have a lower interest rate. The second new service that they have requested is a line of credit‚ the line of credit would be used to help‚ when the sales are down and cash flow is short. Paul feels
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PREFACE This project report pertains to the making of a project SUMMER TRAINING OF M.B.A curriculum. The purpose of this project is to make the student have through knowledge of the topics given to them. I learned a lot from the hard work I put in to collect information regarding the same‚ which would be of great use in my near future as a professional. Justification can not be done to whatever I have learnt within a few days but I have still tried my best to cover as much as possible about “Retail
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Introduction and background We are conducting an analysis of Marriott Corporation for calculating the hurdle rates at each of the firm ’s three divisions--lodging division‚ restaurant division and contract service division. Marriott uses Weighted Average Cost of Capital (WACC) as the hurdle rate‚ and use it to discount the appropriate cash flows when evaluate an investment project. Our goal is to determine the WACC at every division base on the information that the case has provided. First
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MATHEMATICS OF INVESTMENT Simple Interest If you borrow a car from a car rental company or if you live in someone else’s house or apartment‚ you have to pay rent. Like paying rent for the use of a car or a house‚ you also have to pay rent for the money you borrowed. This is called interest. People like Marco earn by charging interest on loans. Banks earn most of their income from the interest that people pay for the amounts they borrow. How much interest one has to pay depends on three factors:
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Please read all questions and instructions carefully. Note that you only need to enter answers in terms of numbers and without any symbols (including $‚ %‚ commas‚ etc.). Enter all monetary answers to the nearest dollar (no decimal/cents) and all interest rates to the nearest on hundredth of a percent (two decimal places). Read the syllabus for examples. The points for each question are listed in parentheses at the start of the question‚ and the total points for the entire assignment add up to 100
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score? (0.5 points) A credit score is a number based on a level analysis of a person’s credit files‚ to represent the creditworthiness of that person. 3. What is installment credit? (0.5 points) Loan repaid with interest owed‚ in equal periodic payments of principal and interest 4. What is revolving credit? (0.5 points) a credit plan that imposes regular repayments and a predetermined spending limit 5. What is noninstallment credit? (0.5 points) a system of credit that is payable
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expected returns on equity of two firms‚ Macrosoft and Microsoft‚ that operate in the same industry are 10.50% and 12.60%‚ respectively. What is the return on assets in this business if Macrosoft has no debt? (No more than two decimals in the percentage interest rate‚ but do not enter the % sign.) Your Answer | Score | Explanation | 10.50 | 10.00 | Correct. You understand that return on assets in a business connot vary for different forms. | Total | 10.00/10.00 | | Question Explanation | | |
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