of any financial system. Financial Institutions Financial institutions include 1) investment banks‚ 2) commercial banks‚ 3) Financial service corporations 4) credit unions‚ 5) pension funds 6) life insurance companies‚ 7) mutual funds 8) ETF’s‚ 9) hedge funds‚ 10) private equity companies. Financial institutions are regulated to ensure the safety of the institutions and protect investors (with the exception of hedge funds and private equity companies). Investment banks: help companies raise
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DIFFICULTY: BASIC Ross - Chapter 003 #28 SECTION: 3.3 TOPIC: DU PONT IDENTITY TYPE: CONCEPTS 4. A $1‚000 face value bond currently has a yield to maturity of 8.89 percent. The bond matures in 7 years and pays interest annually. The coupon rate is 9 percent. What is the current price of this bond? A. $1‚005.56 B. $989.12 C. $1‚268.95 D.
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Select the best answers for questions (2 points each for questions 1-10) 1. HSBC is a UK-based bank‚ and it holds more than 50% equity of Hang Seng which is a Hong Kong based bank. Which of the following statement is correct? A) Hang Seng is the representative office of HSBC at HK B) Hang Seng is the foreign branch of HSBC C) Hang Seng is the foreign subsidiary bank of HSBC D) Hang Seng and HSBC are two independent banks. 2. Which of the following services is not provided by a typical bank
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Question 1 Call options on XYZ Corporation’s common stock trade in the market. Which of the following statements is most correct‚ holding other things constant? Answer Correct Answer: The price of these call options is likely to rise if XYZ’s stock price rises. Question 2 Other things held constant‚ the value of an option depends on the stock’s price‚ the risk-free rate‚ and the Correct Answer: All of the above. Question 3 Which
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Week 2 problems Chapter 2 A1 (Present and future value) A. What is the future value of $2‚000 invested today if it earns 20% interest for one year? For two years? Rate 20% (1) -(2‚000)= $2‚400 one year Rate 20% (2) (-2‚000)= $2‚880 two years B. What is the present value of $2‚000 discounted at 20% if it is received in one year? In two years? Rate 20 % (1) (-2‚000)= 1‚666 discounted one year Rate 20% (2) (-2000)= $1‚388 discounted two years B4. (Present value) What is the
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1. Select an organization of your choice and discuss the cash Management system in that organization. Give your Views or suggestions on the prevailing system of cash management in that organization and any suitable changes to be brought about‚ to improve the present system? Cash management is a set of strategies or techniques a company uses to collect‚ track and invest money. Although cash by definition refers only to paper or coin money‚ in cash management‚ companies usually also work with cash
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Chapter 6: Discussion Question #4 (p. 223) 4. Why is it usually easier to forecast sales for seasoned firms in contrast with early-stage ventures? Typically‚ it is easier to forecast a seasoned firm’s sales to that of an early-stage venture because the seasoned firm will have an operational history. Basing current sales on historical data is easier to do than trying to estimate sales based on little to no historical data to benchmark from. If you are a start-up / early-stage venture and
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Homework Chapter 4‚ Week 3 1. A $50‚000 loan is to be amortized over 7 years‚ with annual end-of-year payments. Which of these statements is CORRECT? C. The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower. If the interest rate is low on a loan‚ the amount of repayment is low. 2. Which of the following statements is CORRECT? C. to solve for I‚ one must identify the value of I that causes the PV of
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commercial paper. Bank EDC agrees to sell the commercial papers that mature in 180 days at an interest rate of 9% annually. The bank charges a total placement fees of RM30‚000. Calculate the effective interest rate. (3 marks) b) Sweet Inc. needs to raise RM500‚000 in short term loan for six months. The company has a line of credit of RM800‚000 with 2.5% commitment fees on the unused fund‚ and a 9% stated interest rate. A compensating balance of RM40‚000 is to be kept in its checking account. Sweet Inc
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Shark Fin Soup Report Academic Research and Communication Skills Dr. Chris Tan Date: 19 June 2012 Rattikorn Intorncharoen Mew ID# 0002JDF111 Felita Dea Setiawan ID# 0003JDF111 Genevivie teo ID#0013PDF711 Margareth Tesalonika ID# Vineta Chugh ID#0011PDF711 Content Page Introduction 3 Shark Fin’s Procedure 4 Consumer of Shark fin soup 6 Production of shark fin 8 Effect of the shark fin soup 10 Sharks and ecosystem 11 Conclusion
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