capital is very high or the resource for the business is rarely to find or extract that reducing the willingness of the shareholders to support the business. The following ratio is common use in measuring profitability 1. ROCE = Profit before interest and taxation/Capital employed x 100% 2. Asset turnover = Sales/Capital employed x 100% 3. Profit margin = Profit/Sales x 100% Liquidity is the measures of a company’s ability to pay its debts to continue trading. If it cannot cover its short-term
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If the interest is compounded quarterly with 8% APR‚ which of the following statements is CORRECT? a. The periodic rate of interest is 2% and the effective rate of interest is 4%. b. The periodic rate of interest is 8% and the effective rate of interest is greater than 8%. c. The periodic rate of interest is 4% and the effective rate of interest is less than 8%. d. The periodic rate of interest is 2% and the effective rate of interest is greater than 8%. e. The periodic rate of interest is 8% and
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Name:______________________ Final Exam Petosa Circle the correct response Part I 20 Points 1. The ratio of a bank’s interest income from its loans and security investments less interest expenses on debt issued‚ divided by total earning assets measures a bank’s: A. net operating margin. B. net return before special transactions. C. net interest margin. D. return on assets. E. None of the options is correct 2. ROE for a bank is calculated by: A. dividing
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for zero-interest-bearing note Wie Company has been operating for just 2 years‚ producing specialty golf equipment for women golfers. To date‚ the company has been able to finance its successful operations with investments from its principal owner‚ Michelle Wie‚ and cash flows from operations. However‚ current expansion plans will require some borrowing to expand the company ’s production line. As part of the expansion plan‚ Wie will acquire some used equipment by signing a zero-interest-bearing note
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facility for private uses in 2013‚ which had not recorded any overdue payment or other problems. He also did not require to extend his overdraft amount for private uses with generally only used half of the overdraft amount and able to pay monthly interest. It represents he is not an upstart and has fair ability to control his money expenses. For his personality‚ as the breadwinner of the family‚ he aged 40 and has been worked in company over ten years. The bonus of business performance also indicates
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Rate/Volume Analysis The following table presents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected our interest income and interest expense during the periods indicated. Information is provided in each category with respect to (1) the changes attributable to changes in volume (changes in volume multiplied by prior rate)‚ (2) the changes attributable to changes in rate (changes in rate multiplied by prior
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Federal Trade Commission Protecting America’s Consumers 66 Ways to Save Money THIRD EDITION For most kinds of purchases‚ you can get valuable advice and comparisons on the Internet. Ask a librarian or friends which Internet sites they think are helpful‚ or you can use a search engine like Google or Yahoo. Be aware that information you find is often biased. At many websites‚ the only products or sellers listed are ones that pay to advertise. Before buying anything on the Internet‚ check several
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sections to cover are 15.1‚ 15.2‚ and 15.4‚ which cover stocks and flows‚ present discounted value‚ and the net present value criterion respectively. You can then pick and choose between the remaining sections depending on your time constraint and interest in the subject. Each of the special topics is briefly described below. Students will find NPV to be one of the most powerful tools of the course. You will notice that this chapter does not derive the rate of time preference; instead‚ it introduces
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LENDING TO PRIORITY SECTOR At a meeting of the National Credit Council held in July 1968‚ it was emphasised that commercial banks should increase their involvement in the financing of priority sectors‚ viz.‚ agriculture and small scale industries. The description of the priority sectors was later formalised in 1972 on the basis of the report submitted by the Informal Study Group on Statistics relating to advances to the Priority Sectors constituted by the Reserve Bank in May 1971. On the basis
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Money supply transmission Credit allocation Denomination intermediation Intergenerational transfers Payment services Information costs Agency costs costs relating to the risk that firm owners and managers use savers’ funds not in the best interest of the savers Financial institutions collect funds from households in order to avoid free- rider problem (incentive for information collection and monitoring)‚ reduce costs of information collection and monitoring and to develop new secondary
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