5 - Charles Chocolates Financial Performance Analysis-STUDENT

XYZ Corporation is trying to decide whether it should buy money market instruments or leave its funds on deposit at a commercial bank. Which of the following is an advantage of buying money market instruments over leaving funds on deposit at a commercial bank that XYZ should be aware of?   a.  ​Money market instruments offer a higher yield than leaving funds on deposit at a commercial bank.   b.  ​Money market instruments are more liquid than funds on deposit at a commercial bank.   c.  ​Money market instruments are safer than leaving funds on deposit at a commercial bank.   d.  ​Money market instruments involve a financial middleman.

Suppose the following items were taken from the December 31, 2018, assets section of the Warren Company balance sheet. (All dollars are in millions.)     Instructions Prepare the assets section of a classified balance sheet, listing the current assets in order of their liquidity. Inventory $17,000 Patents $12,500 Notes receivable—due after December 31, 2019 5,500 Buildings 21,600 Notes receivable—due before December 31, 2019 400 Cash 9,200 Accumulated depreciation—buildings 12,800 Accounts receivable 5,800     Debt investments (short-term) 2,008

List and describe key functions performed by Treasurers of Financial institutions in primary markets when they participate in a public issue.                       Explain how treasurers manage the risk of information asymmetry within their respective financial institutions.      3. Outline the main risks Treasurers and Fund Managers deal with in managing their short- and long-term                     financial obligations.

13. Stock quotes - Looking up a stock price The price of a stock is largely influenced by supply and demand. When more people want to buy a stock, the price goes _______  . By contrast, when more people want to sell a stock, the price goes_________ .   You can look up the current price for a stock, and other important numerical measures, by searching for the company (or the stock’s trading symbol) on popular financial or investing websites. Many newspapers also publish abbreviated information in the financial section for many common stocks, bonds, and mutual funds. The following table represents the format of typical price quotes for various stocks that would appear in the financial section of a newspaper: YTD 52 WEEKS       YLD   VOL   NET % CHG HI LO STOCK (SYM) DIV % PE 100S LAST CNG +9.25 56.31 39.04 Global Communications GC 0.36 0.72 23.17 58093 50.06 +1.82 +18.87 48.57 36.55 GermCorp GERM 0.14 0.30 20.48 8134 47.05…

Explain how capital adequacy requirements may affect a commercial bank’s dividend payout and growth potential. If the bank anticipates a decrease in its capital adequacy ratio (capital to total asset ratio), what options are available to prevent the decline?  What risks, if any, are there in each strategy?   Use the following balance sheet to answer questions 5-8 ($000) Cash               21                    Demand Deposits                  550 Securities       369                  Fed Funds (Borrowings)      151 Loans              400                  Equity                                       89

Let us assume that you have been asked to calculate risk-based capital ratios for Marissa Bills (MB) Bank, a regional commercial bank, with the following accounts: Cash $10 million Government securities 58 million Mortgage loans $33 million Other loans $55 million Fixed assets $ 15 million Intangible assets $2 million Loan-loss reserves 56 million Common equity $8 million Trust-preferred securities $4 million Cash assets and government securities are not considered risky. Loans secured by real estate have a 50% weighting factor. All other loans have a 100% weighting factor in terms of riskiness. a. Calculate the common equity capital ratio of MB Bank. At the year-end, if the MB Bank has $2 million in bad mortgage loans, how the common equity capital ratio would change? b Calculate the Tier 1 capital ratio of MB Bank using risk-adjusted assets. c. Calculate the total capital (Tier 1 plus Tier 2) capital ratio of MB Bank using risk-adjusted assets. d. As a manager of MB Bank, what…

Assets Fill in the blank options  (Building and Furniture OR Checkable Desposits OR Loans OR Net Worth OR Reserves)  ($450,000 OR $1,350,000 OR $1,800,000 OR $4,500,000)  Liabilities fill in the blank options  (Building and Furniture OR Checkable Desposits OR Loans OR Net Worth OR Reserves)  ($450,000 OR $1,350,000 OR $1,800,000 OR $4,500,000) .. in an overall increase of.. fill in the blank options ($720,000 OR $5,400,000 OR $7,200,000) .. in checkable deposits and a... fill in the blank options ($720,000 OR $5,400,000 OR $7,200,000)   thank you so much!!!

A company that has $70 billion in assets and $20 billion in net worth must include $50 billion in liabilities. reserves with a $20 billion surplus. $20 billion in liabilities. reserves with a $50 billion surplus.

The shadow banking system refers to Non-bank financial firms that provide profit advice to hedge fund managers. The unregulated non-bank financial firms engaged in borrowing from investors and lending to households and firms. Non-bank financial firms that acted as stock brokers by buying and selling stocks in an effort to make a profit. Non-bank financial firms that purchased government bonds.

Explain what the term "bond price elasticity" means. Would bond price elasticity indicate that zero-coupon or high-coupon bonds with the same yield to maturity have a greater price sensitivity? Why? What does this mean for the market value volatility of zero-coupon Treasury bonds vs high-coupon Treasury bonds in mutual funds?

Consider the four stock market liquidity dimensions (width, depth, immediacy and resiliency). Which of the following is generally true for the liquidity of a stock with very high information asymmetry in comparison to a stock with very low information asymmetry?   a. Width is relatively smaller   b. Depth is relatively lower   c. Immediacy is relatively higher   d. Resiliency is relatively higher   e. None of the above

The process of asset transformation refers to the conversion of（ ） 1) safer assets into risky assets 2) safer assets into safer liabilities 3) risky assets into safer liabilities 4) risky assets into risky liabilities 5) None of the answers are correct 6) More than one answer is correct

Stock prices fell throughout much of 2007 and 2008 and many investors decided to switch their funds into the bond market. What only about 30 percent of surveyed investors knew was that as bond prices rise, interest rates   a. fall in reaction to the decreased demand for bonds.   b. rise in reaction to the increased demand for bonds.   c. fall in reaction to the increased demand for bonds.   d. rise in reaction to the decreased demand for bonds.

Need help.    Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of asset-backed financial securities at a geometric rate, specifically from $4 to $8 to $16 to $32 to $64 to $128 over a six-year time period. Over the same period, the value of the assets underlying the securities rose at an arithmetic rate from $4 to $6 to $8 to $10 to $12 to $14. If these patterns hold for decreases as well as for increases, by how much would the value of the financial securities decline if the value of the underlying asset suddenly and unexpectedly fell by $6? Instructions: Give your answer as a whole number.

Future Challenges and Adaptations 16.1. Anticipated Challenges for the UK Financial System 16.2. Potential Changes in Regulatory Frameworks 16.3. Innovations and Adaptations for a Changing Landscape with a case study inclusion regarding future challenge and anticipation for uk

financial markets that function well: a. increase the ease of converting common stocks into bonds b. reduce riskiness of most assets continually c. continually increase the liquidity of most assets d. including available information in asset prices

Why is it that Bank Deposit Secrecy became a highly-sensitive issue with respect to the implementation of the Anti- Money Laundering Act ( RA#9160)? Support your answer.

Questions:   Compute the expected intrinsic price of each stock in year 5. Assume that All stocks are fairly priced such that the intrinsic and market values are equal. Dividends are paid at the beginning of the year   How many units of each stock will Stephanie buy? Support your response with relevant computations. What will be the total investment cost for shares? Show appropriate calculations.   Which bonds are acceptable for investment? Justify your response with suitable computations.   What will be the total cost of investment in bonds?                             Do the stock and bond investments fall within Stephanie’s investment guidelines? Show appropriate computations in support of your response.   Will Stephanie have enough funds for her investment in stocks and bonds, when needed? What will be the surplus / shortfall, if any? Given that Stephanie’s bank offers an interest rate of 6% per year, what additional amount should she have deposited as a fixed…

Impact of covid 19 on financial services sector in SEA Question: Does this crisis present an opportunity to enter a new market or segment at a lower valuation than pre-crisis levels?

1. Statement I. In the Philippines, financial intermediaries are restricted in what they are allowed to do and what assets they can hold.Statement II. Money supply is the availability of financial resources for deployment in the financial system. It is making the money available for use or for trade or investment. a. Both statements are true.b. Both statements are false.c. Statement I is true; Statement II is false.d. Statement I is false; Statement II is true. 2.A commercial paper is defined as, except: a. Unsecured promissory notes that are only issued by large and credit worthy enterprises. b. Directly issued to the buyer, no secondary market. c. May have stated interest rate or sold at discounted basis. d. None of the above

On January 2, Burt asked Logan to loan him money “against my diamond ring.” Logan agreed to do so. To guard against intervening liens, Logan received permission to file a financing statement, and Burt and Logan signed a security agreement giving Logan an interest in the ring. Burt also signed a financing statement, which Logan properly filed on January 3. On January 4, Burt borrowed money from Tillo, pledging his ring to secure the debt. Tillo took possession of the ring and paid Burt the money on the same day. The next day, January 5, Logan loaned Burt the money under the assumption that Burt still had the ring. Who has priority, Logan or Tillo? Explain.

Money market is name given to various firms and institutions that deal with near money. Select one: True False

State THREE roles and TWO functions of any large financial institution in the commonwealth of Dominica and discuss THREE impacts that that intuition has on the economy the country . Any financial institution excluding the Central Bank.

How does a bank adjust its pricing of a loan with high default risk? Use average historical cost of funds instead of marginal cost. Add 1.5% to the applicable cost irrespective of the risk level. Add a default risk premium to the applicable weighted marginal cost of funds. None of the above.

What are the measurement and important key points of financial instruments - presentation PAS 32?

Commercial Banks both issue (as liabilities) and invest in (as assets) different Money Market instruments.   Identify two of the money market instruments that are commonly used by Commercial Banks.  For each instrument, indicate whether Commercial Banks issue them as liabilities or invest in them as assets.  What are the characteristics of Money Market instruments that make them useful and attractive to Commercial Banks?

A bank that expects interest rates to increase in the future will wants to hold more rate sensitive asset and fewer rate sensitive liabilities. (Choose the correct option) 1. Disagree. Rate sensitivve assets will increase the revenue this holding more of them as assets while reducing them as liabilities will decrease bank profits 2. Disagree. In any case it is more profitable for banks to reduce the number of rate sensitive assets and liabilities and increase assets and liabilities with fixed interest  3. Agree. Rate sensitive assets will increase the revenue thus holding more of them as assets while reducing them as liabilities will increase bank profits  4. Agree. Rate sensitive assets will increase in value thus holding more of them as assets, while reducing them as liabilities will decrease interest rate risk