Introduction - Types Of Financial Institutions And Their Roles A financial institution is an establishment that conducts financial transactions such as investments‚ loans and deposits. Almost everyone deals with financial institutions on a regular basis. Everything from depositing money to taking out loans and exchanging currencies must be done through financial institutions. Here is an overview of some of the major categories of financial institutions and their roles in the financial system.Commercial
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SunShine Systems (trends‚ ratios stock performance) (LO3) SunShine Systems is a leading supplier of computer related products‚ including servers‚ workstations‚ storage devices‚ and network switches. In the letter to stockholders as part of the 2012 annual report‚ President and CEO Scott G. McNealy offered the following remarks: Fiscal 2012 was clearly a mixed bag for Sun‚ the industry‚ and the economy as a whole. Still‚ we finished with revenue growth of 16 percent—and that’s significant. We
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compromised. Acid Test Ratio The acid test ratio is 0.43 in year 12 which was 0.64 in year 11. This indicates a very high proportion of stock in trade in total value of total assets. The average of industry was 0.9 and higher quartile was 1.6. This indicates the liquidity position of the company is not good and the current liabilities may not be met as stock in trade is considered to be a slow moving asset. Therefore‚ it is a weakness for the company. Inventory Turnover The inventory turnover
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A stock market or equity market is a public entity (a loose network of economic transactions‚ not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion at the beginning of October 2008.[1] The total world derivatives market has been estimated at about $791 trillion face or nominal
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With Preferred stock‚ there are of a variety of features that can be added to in order to either increase its attractiveness to investors‚ or to make it easier for the issuing company to buy back. Some company uses this to gain access to cash fast and they can control their payback. Preferred stock can have a lot of features add to it but here are the four major categories they will fall into: Callable this feature gives a company the ability to buy back preferred stock on specific dates and at
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Many years ago stock options were rarely used as incidental benefits for top executives. Nowadays‚ compensating employee whit stock options has become an increasingly common practice. Before the year 1996‚ only the intrinsic value method was used to record these transactions. This method distorted the issuer’s reported financial condition and results of operations‚ which could lead to inappropriate decisions taken by investors. Followed by the increased use of employee stock options and the surrounding
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There is a market for partial ownership of companies where buyers and sellers come together it is called stock market. Capital is always flowing to companies that show themselves to be successful by ensuring high returns at a low risk for their investors. Therefore‚ when the stock market goes through its daily fluctuations‚ it is moving resources from areas of low yield to areas of high yield. As capital moves away from companies that cannot guarantee investors returns‚ it moves toward companies
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AUTOZONE Q#1. How has AutoZone’s stock price performed over the previous five years? What other financial measures can you cite that are consistent with the stock price performance? AutoZone’s shareholders had enjoyed strong price appreciation since 1997‚ with an average annual return of 11.5%. Over the previous five years‚ AutoZone’s stock price has increased dramatically. On February 1. 2012 the stock price was $348 compared to the $125 on February 1. 2007. The strong price appreciation
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Problem Solving and Analysis. Problem A. Given the following balance sheet‚ income statement‚ historical ratios and industry averages‚ calculate the Cedric‚ Deniece‚ and Vhong‚ Inc. financial ratios for the most recent year. Analyze its overall financial situation for the most recent year. Analyze its overall financial situation from both a cross-sectional(전체를 대표하는 단면) and time-series viewpoint. Break your analysis into an evaluation of the firm’s liquidity‚ activity‚ debt‚ and profitability.
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If you bought a share of stock‚ what would you expect to receive‚ when would you expect to receive it‚ and would you be certain that your expectations would be met? 2. If most investors expect the same cash flows from Companies A and B but are more confident that Company A’s cash flow will be close to their expected value‚ which should have the higher stock price? Explain. 3. When is a stock said to be in equilibrium? At any given time‚ would you guess that most stocks are in equilibrium as you
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