Bank can be a source of short-term funding in terms of credit card applications. These fundings on credit cards make sure that regular payments should be made.
Q: Hedging of positions and portfolios is accomplished via the use of both kinds of contracts.
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one...
Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following ...
A: The beta of A is 0.45 Beta of B is 1 The SD of A is 0.28 SD of B is 0.21 SD of market is 16%. Weight...
Q: What is the coupon rate on a 10-year quarterly coupon corporate bond with a 5.1% YTM and a price of ...
A: Par value (FV) = $1000 Coupon rate = C Quarterly coupon amount (P) = 1000*C/4 = 250C Years to matur...
Q: Suppose you receive cashflows of $10 at year 1, $12 at year 2, $14 at year 3 and $16 at year 4. What...
A: Solution:- Value of cash flows at year 2 = Future value of year 1 cash flow for 1 year + Year 2 cash...
Q: M&M Corporation just paid a dividend of $1.55. It is expected to increase its dividend by 2% per ye...
A: Solution:- As per Dividend Discount Model (DDM) , Stock price = [Expected Dividend after one year /...
Q: Emma runs a small factory that needs a vacuum oven for brazing small fittings. She can purchase the ...
A: Lease or buy decision is one of the important capital budgeting decisions that the management has to...
Q: Question #2 (45 marks) This question consists of 2 independent sub-questions 1. 25 marks On January ...
A: Since question involves multiple subparts , we will answer 1st sub 3 parts for you as per prescribed...
Q: Problem 1: Below is the financial information for Justin Bieber's Merch pany for the year 2020: Cash...
A: Financial leverage ratio is ratio of the total debt to the total equity of the company. It indicates...
Q: On June 25, 2021, the futures price for the June 2021 bond futures contract is 118- 23. What is the ...
A: Conversion Factor for any Bond is a number which is to be multiplied with the bond futures to calcul...
Q: Hybe Edu announced that BLACKPINK's exclusive Korean textbook "BLACKPINK IN YOUR KOREAN" will be rel...
A: List price = 30000 Trade discount = 5%
Q: Which TWO of the following statements are correct for a potential project with an investment followe...
A: Capital Budgeting techniques are used to know the profitability of the project. The NPV and the IRR ...
Q: Assume the following bid and ask rates of the pound for two banks as shown below: Bid ...
A: Bid rate - Bid price is referred to as that price which somebody is willing to buy something. It is ...
Q: QUESTION 1 a) A project requires the purchase of a new piece of machinery. choose between three pote...
A: Payback period is the period up to which the initial cost of the investment is recovered back. It is...
Q: Marcella päid for a kitchen set over time, signing an installment contract that required monthly pay...
A: To calculate the value on the date of purchase, it is required to calculate the present value of all...
Q: 21. Taxes and the Cost of Capital. Here are book- and market-value balance sheets of the United Fryp...
A: Firm's value is defined as the sum of claims of their shareholders as well as creditors. One of the ...
Q: What is the amount of interest earned on $2,000 for five years at 10% simple interest per year?
A: Simple Interest: It is one of the easiest method to compute the interest on a loan. Simple interest...
Q: A company borrowed $18,000 paying interest at 6% compounded semi-annually. If the loan is repaid by ...
A: For loans, outstanding balance refers to amount which is payable towards lender at a given point of ...
Q: You have a bank deposit now worth P15, 000. How long will it take for your deposit to be P20, 000 if...
A: Here the given rate of 12% is the nominal rate and we will have to find the real rate of interest gi...
Q: walue of $11.751, which O11.5% 12.2% 11.49%6 D 11.2%
A: The interest on money depends on the interest rate and period of the loan and that is added to loan ...
Q: Q1:You wish to start a sproject.Your initial investment is$100000. You generate 0cashflows for first...
A: Net Present Value: It is the present worth of the project's cash flows and is computed by reducing ...
Q: Engr Dalay is required to pay 66500 pesos at the end of 15 days of 68000 pesos at the end of 60 days...
A: While calculating the interest rate on treasury bills, only 360 days in a years shall be taken. Inte...
Q: Evaluate the purchase of existii $20000000, the building is assumed to have a 20 year functional lif...
A:
Q: Today you purchase a previously owned Tesla Model 3 for $40,000. You make a down payment of $5,000 a...
A: Given The purchase price is $40,000 Down payment $5,000 Rate is 0.25% per month payable in 60 monthl...
Q: A bond is currently trading at pond be with a -55 basis point change in the yield and a du Round vou...
A: Duration of bond show the change in price of bond with respect to change in yield on the bond.
Q: 11. hich of the following statements about hedging is (are) true? I. Hedging is a form of risk trans...
A:
Q: At age 28 you invest P 25,000 into a mutual fund. If the fund averages a 7% annual return, your inve...
A: Given, the amount invested is P25,000. Annual return is 7% Present age is 28.
Q: In the picture below, Determine whether long-term or short-term financing is required Acquisition of...
A: Long term financing is when the loan term is above 10 years. Short term financing is when the loan t...
Q: o minimize the risk from exchange rate because the U.S. firm is going to receive euro 100,000 in 90 ...
A: Bank provide two rates for currency, spot rate and forward rate Spot Rate- It is the rate for curren...
Q: What is the relationship between financial decision-making and risk and return? Would all financial ...
A: Almost every financial decision involves a risk-reward trade-off of some type. The higher the predic...
Q: Suppose Kylie has an account that will grow to $382,000.00 in 16 years. It grows at 6.4% annual inte...
A: Given: Years = 16 future value = $382,000 Future value required = $559,000 Interest rate = 6.4%
Q: The continuously compounded interest rate is 5% p.a. and the storage cost for copper is 8% p.a. What...
A:
Q: Jhar Industries has borrowed $125,000 under a line-of-credit agreement. While the company normally m...
A: Borrowed Amount is $125,000 Amount to be maintained in lenders account is $15,000 Compensating balan...
Q: Problem 2 Assume that you own a building in downtown Laredo that you want to lease for $100,000 per ...
A: The current value of a future sum of money or stream of cash flows given a specified rate of return ...
Q: Data Back-Up Systems has obtained a $10,000, 90-day bank loan at an annual interest rate of 15%, pay...
A: In order to calculate the amount of interest, we are required to multiply the loan amount with the p...
Q: You are ready to buy a house. Total price is $160,105. For the remaining part, you plan to borrow th...
A: The loan amount is equal to the sum of down payment and the present value of loan. To calculate the ...
Q: LENDER LOAN PRODUCTS SIGNIFICANT FEATURES Consumer finance Automobile loans They do not accept depos...
A: Consumer Finance: When a business or retailer provides its consumer's financing choices, they can us...
Q: Compare and contrast the following: A. Primary and secondary financial markets.
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...
Q: How much money will you have to deposit now (as a lump sum) if you wish to have $5000 at the end of ...
A: Future value (FV) = $5000 Interest rate = 6% Semi annual interest rate (r) = 6%/2 = 3% Period = 8 Ye...
Q: Rainbow Inc.'s sales equal $200,000 each month. Rainbow generally permits credit purchases with term...
A: A credit policy is an arrangement in which it is defined that how much credit will be given to the c...
Q: If anl = 5 and s = 15, find the value of i.
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: The spot rate of Japanese yen is $0.008, and the spot rate of peso is worth $0.590. How many peso do...
A: 1 Japanese yen = $0.008 1 Peso = $0.590
Q: n of P 2,000.00 was made at 8% simple interest. How long would it take in years for the amount of th...
A: Simple interest is interest without compounding that means no interest on interest and only interest...
Q: Problem 2: Leni Robredo was hired as an investment analyst for XYZ Corporation. The latter asked the...
A:
Q: Which account should Scenario they use? Chris wants to put money aside so he can buy his mom a birth...
A: The main difference between a checking and a savings account is that a checking account is typicall...
Q: Two projects are being presented to your company. The presenter tells you that Project A would cost ...
A:
Q: A credit cooperative recently offers a 36-month loan at 4.15% compounded monthly for typhoon victim ...
A:
Q: ngs life of the project. The project has a first cost of P and a salvage value equal to zero at the ...
A: We know that annual worth is the equivalent annual series of cash inflows and outflow which is dete...
Q: What are savings? Multiple Choice Additions or subtractions from debt. Outlays on household ...
A: Saving is the amount set aside for future use. Savings is arise when income of an individuals are mo...
Q: What is a Financial Institution? How financial institutions are important for economic development o...
A: A financial institution is one that deals with numerous forms of financial transactions and it might...
Q: You are interested in buying a share of stock in ABC Corporation. You expect a dividend payment of ...
A: Gordon growth model assume that dividend will grow at constant rate. but rate is less than required ...
Bank can be a source of short-term funding in terms of credit card applications. These fundings on credit cards make sure that regular payments should be made.
- True
- False
Step by step
Solved in 2 steps
- Investigate the procedures in your financial institution in granting credit cards and the possible benefits and drawbacks to the institution.Investigate the procedures in your financial institution or a bank of your choice, in granting credit cards and the possible benefits and drawbacks to the institution of this instrument.Your friend Binna has a money market mutual fund account, automatic deposit of her paycheck into an interest-bearing checking account at the company credit union, and a CD from the local branch of a bank that advertises "coast-to-coast" banking. What is the benefit of "mixing and matching" financial institutions and their services?
- research two local banks in your area and compare/contrast one service that they offer. For example you may want to look at the type of checking accounts offered and compare the features between these; What are the interest rates offered? How many withdrawls are you allowed? What fees are associated with the account ? Do they offer a budgeting app, online banking etc? You could do this for savings accounts, buisness accounts, etc. Discuss what features you find most important, and which bank you would choose based on your research.If you were a wise credit card user, under which of the following conditions would you consider using a credit card to finance an expensive purchase? a. If I haven't reached my credit limit and I really want to item b.If I believe my money situation will be better (for example, a better-paying job) in the future than it is now. c.If I have the money to pay for the item in my bank account and plan to immediately pay the balance in full. d. If my card has good rewards on it.How to increase ROA and ROE in a rural bank? Explain thoroughly
- which of the following source of finance comes with a line of credit ? a. Credit card b. Mutual Fund c. Commercial Paper d. Supplier creditWhich of the following is not a common source of funds for a small business: Banks Equity in your home Margin Accounts Personal Savings A Promissory Note states which of the following: The amount of the loan The collateral for the loan The interest rate of the loan All of the aboveDirection: Match the following bank accounts to its usage or description listed below. Write your answer on the blank before the number. Choose from the following Savings Account Current Account Time Deposit UITF _________________1. The simplest form of bank account. _________________2. A bank account which cannot be withdrawn until the contract period has ended. _________________3. It is a type of bank account that pooled funds managed by experts to ensure high yield and quality returns. _________________4. It allows a limited number of withdrawals only. _________________5. It makes saving very rewarding. _________________6. It allows numerous withdrawals with a large sum of money. _________________7. The investors earn through the increase in fair value of the pooled fund. _________________8. The investors earn through interest while saving. _________________9. This bank account comes with atm or passbook. ________________10. This is evidence by a…
- Borrowing of reserve fund by Bank means a. To meet the customers need for business loans b. Overnight borrowing by banks to provide customers short term loans c. Borrowing by banks to meet unexpected rise in customers withdrawal d. Overnight borrowing by banks to meet customers depositWhat type of loan/s these banks offer? Explain how they use this type of loan among their clients.Look at these two sentences about Undeposited Funds in QBO: By posting to Undeposited Funds, you can create a single bank deposit for multiple payments, making it easy ___________. When receiving a payment, make sure _________________. Which option correctly fills in these two sentences?1. To match your bank register with your bank statement; 2. the Deposit to account is Checking2. To match your bank register with your bank statement; 2. the Deposit to account is Uncategorized Funds3. To match your expenses with your bank statement; 2. the Deposit to account is Uncategorized asset4. To match your bank register with your bank statement; 2. the Deposit to account is Undeposited Funds