Student Name: Ahmed Othman Professor Watnik Management 306 12/05/2012 Margin Call In 2008‚ an economic hurricane hit the world. The origin of that hit was the United States. Many countries were affected by that hit. Including a rich spot like Saudi Arabia and the United Arab Emirates. I have experienced‚ while I was working at Emaar Saudi Arabia branch‚ that the real estate market in the gulf region was damaged as no one would invest in the market at that time‚ and the prices declined
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“In Praise of Margins” “In Praise of Margins” by Ian Frazier‚ the author argues that marginal places and activities are the necessity of life. For Frazier‚ marginal places are where you can be yourself and be free. As a kid‚ Frazier and his friends explored the woods‚ where they picked blackberries‚ and crunched ice underfoot. Eventually‚ Frazier and his friends grew up and no longer found the aimless joy that the woods once provided. However‚ Frazier reconsiders the woods and explorations he
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Bonds and Their Valuation After reading this chapter‚ students should be able to: • List the four main classifications of bonds and differentiate among them. • Identify the key characteristics common to all bonds. • Calculate the value of a bond with annual or semiannual interest payments. • Explain why the market value of an outstanding fixed-rate bond will fall when interest rates rise on new bonds of equal risk‚ or vice versa. • Calculate the current yield
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CONTENTS Introduction of bonds……………………………………………..01 Characteristics of Bonds…………………………………………01 Types of Bonds…………………………………………………… 06 Bonds Market……………………………………………………… 08 Introduction of Pakistan bond market……………...................08 How Bonds Trade……………………………………………….….09 Bond Price Variations……………………………………………..09 Bond valuation…………………………………………..................09 Types of bonds trade in Pakistan……………………………….10 Government Debt Securities……………………………………..10 Characteristics of MTBs and PIBs………………………………12
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perpetual bond is currently selling for RS. 95/-. The coupon rate of interest is 13.5%. The approximate discount rate is 15%. The value of the bond and the YTM is: (a) Rs. 90/- and 14.2% Value is (13.5*15%=90) and YTM is ((13.5/95)*100=14.21%) (b) Rs. 100/- and 13.5% (c) Rs. 90 and 15% (d) Rs. 90/- and 13.5% 902. In 2001‚ Meridian Ltd. has issued bonds of Rs. 10‚000/-each due in 2011 with a 14% per annum coupon rate payable at the end of each year during the life of the bond. If the required
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and a commission of $ 6.00 for each haircut. In this case Andre wants to know how much is going to be the new contribution margin per haircut‚ the annual break-even point in number of haircuts. On our evaluation‚ Andre requested to find the following information. 1. Find the contribution margin per haircut. Contribution Margins Definition "Contribution margin (or margins) refers to the amount of revenue per product that is available to "contribute" towards the fixed costs and the profit of the
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NAME: MASSAWE BARAKA‚ REG. NO: 2010-04-03894. 12 FINANCE 202 INDIVIDUAL ASSIGNMENT UDBS Consider a 10 year bond that has a face value shs 1000‚ a coupon rate of 6% and pays interest once a year. (a)Suppose person A bought this bond at par when it was initially issued and sold it 1 year later to person B for shs 1024.What is B’s total return? Soln Total return =[ Interest paid +(selling price – buying price)]/buying price Given; Annual interest paid = coupon rate x par value‚ coupon
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market. Profit Margin Anal ysis A company’s stock price‚ in large part‚ is driven by the company’s ability to generate earnings. Therefore‚ it is useful for investors to analyze the profitability of a company before investing in it. One way to do this is by calculating and tracking various profit margins‚ which reflect how efficiently a company uses its resources. Profit margins are expressed as a ratio‚ specifically “earnings” as a percentage of sales. By expressing margins as a percentage
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Chapter 1 The Goals and Functions of Financial Management Discussion Questions |1-1. |How did the recession of 2007–2009 compare with other recessions since the Great Depression in terms of length? | | | | | |It was the longest
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$800‚000 Variable costs (380‚000) Contribution margin $420‚000 Contribution margin ratio = $420‚000/$800‚000 = 0.525 Annual break-even dollar sales volume = $210‚000/0.525 = $400‚000 b. Annual margin of safety in dollars: Sales $800‚000 Break-even sales dollars (400‚000) Margin of safety $400‚000 c. To determine the variable and total costs lines‚
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