time Value of money

Class book:  Fundamentals of Corporate Finance by Brealey, Myers, and Marcus Cost of Capital. Why do financial managers refer to the opportunity cost of capital? How would you find the opportunity cost of capital for a safe investment?

Over the last, the two decades, there has been rapid transformation within the financial system, this has brought about in its wake series of new risk challenges, explain what type of risk management policies a typical policies a typical financial institution will put in place to effectively manage the risks listed below (a) (b) Market risk Interest rate risk Credit risk (d) Operational risk

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Please help explain 23 and 24

Perform the task below. Suppose you have savings in the bank that you want to invest in stocks and bonds instead of setting up in a new business. Write one to two paragraphs discussing what method you can use to make the investment and explain the reasons for your decision.

1. Please explain the Michael Porter- 5 Forces of Model.2. Explain the Advantage and Disadvantage of Michael Porter- 5 Forces of Model.3. Give examples how Michael Porter- 5 Forces of Model affect the Capital Markets.   An

6) Some people have said that the Soviet Union saved too much. Explain the benefit of saving in the long run and how over-saving could be possible. 7) Give an example of a government policy that could change savings behavior and an example that could change the productivity in an economy. 8) Explain why the Federal Reserve’s goals of lowering inflation and unemployment creates a time consistency problem. Explain using the short and medium run Phillip’s curve. 9) Show a liquidity trap situation on an IS-LM graph. Explain the possible policy changes to end this situation. ************* SHOW WITH GRAPHS PLEASE*********************

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uestion The company's bank won't lend it any more money than it already has, and investment bankers have said that debentures are out of the question. The treasurer has asked you to do some research and suggest a few ways in which bonds might be made attractive enough to allow the company to borrow. Explain how to secure the bonds with owned assets in great detial. In what ways does it make the bonds more attractive to allow  the company to borrow?

Discuss the Three main concepts of the time value of money : (1)The future value of the dollar. (2)The future value of an annuity. (3)The present value of an annuity, and give example of each of them,Thank you

B Why do lenders need liquidity? to qualify for FHA insurance so they can put their money in long- term assets so they have the funds to originate more loans so loans can be packaged together to create MBSS 19:31 ✓

Dicuss some current trends in financial risk management?

Banks are in the business of managing risk Risk is a fundamental element that drives financial behavior. Without risk, the financial system would be vastly simplified. However, the risk is omnipresent in the real world. Financial Institutions, therefore, should manage the risk efficiently to survive in this highly uncertain world. The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for the long-term success of a banking institution. Credit risk is the oldest and biggest risk that a bank, by virtue of its very nature of the business, inherits. This has, however, acquired a greater significance in the recent past for various reasons. Foremost among them is the wind of economic liberalization that is blowing across the globe. India is no exception to this swing…

Why do lenders need liquidity? so they have the funds to originate more loans so they can put their money in long-term assets to qualify for FHA insurance so loans can be packaged together to create MBSS

Scenario Your corporation has just approved an 8-year expansion plan to grow its market share. The plan requires an influx of cash in each of the 8 years. Management wants to develop a financial plan to ensure the cash needed for the expansion will be available at the beginning of each of the 8 years. The corporation has the following investment options: Security Price per unit Return Rate (%) Years to Maturity 1 $1,200 10.255 5 2 $1,000 6.7550 6 3 $1,175 12.110 7 Savings Account   5.500     Each unit of security 1, 2, and 3 guarantees to pay $1,000 at maturity. Investments in these securities must take place only at the beginning of year 1 and will be held until maturity. Any funds not invested in securities will be invested in a savings account that pays the annual interest rates noted above. The following table summarizes the cash needs for the expansion plan for each of the 8 years: Year 1 = $250,000 Year 5 = $295,000…

I missed this question on my exam.  I would like to know how did they arrive at 35%.  Please show me how.  Thank you!

Use the following information to prepare the Juy cash budget for Acco Co. It should show expected cash receipts and cash payments for the month and the cash balance expected on July 31. Question 1 What is net income after taxes? Question 2 What is the amount of total assets? Question 3 What is the amount of retained earnings?

If you have the following information Discounted Cash Flow Year Cash Flow Discounted Cash Flow 0 $ - 22 million   1 $2 million   2 $2 million   3 $8 million   4 $8million   5 $12 million   The discount rate is % 5 Calculate the NPV

A company had the following accounts and balances as of December 31:  Account Debit Credit Cash $ 20,000  Accounts Receivable 2,000  Supplies 1,500  Prepaid Insurance 1,400  Accounts Payable $ 4,000 Total equity 14,900 Lodging Revenue 7,000 Salaries Expense 500  Utilities Expense 500  Totals $ 25,900 $ 25,900 Using the information in the table, calculate the total assets reported on the balance sheet for the period. Multiple Choice $23,400. $25,400. $25,900. $22,500. $24,900.

3:25 ull 1 Search A moodle1.du.edu.om Topic: Ch 3 ): Assume you are the finance manager of Methanol Company, and the company is considering investing in one of the two projects. The life for both the Projects X and Project Y is 6 years. Project X costs OMR. 20500 and Project Y costs OMR.20500. The discount rate/cost of capital is 3.55%. Required: Use the following techniques to help company to decide which Machine is better and justify why? a) Payback period b) Discount payback period c) Net Present Value d) Present value index -Profitability index. Year Project X Project 1 9876 9300 2 7056 7609 3 9676 4508 7050 8905 9900 9904 3490 1239 : What factors should you keep in our mind as a financial manager when selecting methods of capital budgeting? and Why is rebalancing between methods of capital budgeting are important? II

1.Discuss the attractiveness of Treynor Black methodology to an investor in developed market large and medium cap equities?                   2. The stock market falls by 33 percent in one day: is this necessarily inconsistent with the market hypothesis? Explain your reasoning        3. New information hits a company share such that the share price rises from 100 pence to 120 pence and then the share price rises gradually over the following 6 months to 150 pence despite any further news. Is this evidence of market efficiency? Explain your reasoning.

Please answer along with the excel formulas - 1. Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding? $205.83 $216.67 $228.07 $240.08 $252.08 2. Suppose you have $1,500 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures? $1,781.53 $1,870.61 $1,964.14 $2,062.34 $2,165.46 3. Last year Rocco Corporation's sales were $225 million. If sales grow at 6% per year, how large (in millions) will they be 5 years later? $271.74 $286.05 $301.10 $316.16 $331.96

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"When constructing a Statement of Cash Flows, which of the following actions would be considered a source of funds?" a. increase in fixed assets b. increase in long-term bonds c. decrease in accounts payable d. increase in the cash account e. increase in inventory

Thrifts invest in mortgages for which of the following reasons? I. Regulatory incentives to remain concentrated in mortgages II. To reduce interest rate risk III. Managerial expertise in mortgages IV. To engage in matched funding O II and III O I and II O II and IV O I and III.

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The table below, shows the balance sheet of the Bruins Bank. Liabilities/Equity Assets Reserves $40 Demand Deposits Loans 300 Shareholders' equity $450 50 Securities 100 Fixed assets 60 Total 500 Total 500 By how much is the Bruins Bank over- or under-reserved if the target reserve ratio is as listed below. a. If the target reserve ratio is 4.0% the Bruins Bank is (Click to select) by $ b. If the target reserve ratio is 8.0% the Bruins Bank is (Click to select) by $ c. If the target reserve ratio is 12.0% the Bruins Bank is (Click to select) by $ d. If the target reserve ratio is 14.0% the Bruins Bank is (Click to select) by $

Discuss the following Discuss the current Federal Funds rate and the prime rate and explain how they are related. Explain how the prime rate is used to set other interest rates by banks. Why are some interest rates below the prime rate? Why are some above? How are LIBOR, prime rate, and discount rate different in their calculations and in their uses? What is the difference between interest rateLinks to an external site. and usuryLinks to an external site.? Is it wrong to borrow or charge interest for business? How does the Bible relate to this subject?