what are the causes and concern of shadow bank. please answer in detail

Q: Green Fire Company has a debt-equity ratio of 1.7. Return on assets is 14.25 percent, and total…

A: Here, Debt Equity Ratio is 1.7 Return on Assets is 14.25% Total Equity is $350,000

Q: What is meant by Short-term financing?

A: Finance refers to the study of money , currency as well as the capital assets.There are basically…

Q: HW-Chp-8-1: A company is considering the following projects. If the MARR is 1 % / monthicompounded…

A: Capital budgeting is the process by which a corporation examines potential large projects or…

Q: 9. Given the following information: Total assets S Total liabilities S 360,000,000 18,000,000…

A: Net asset value is calculated in the case of mutual funds. It is the value per share after the…

Q: The Red Sun Corporation has ending inventory of $250,000, and cost of goods sold for the year just…

A: The inventory turnover ratio is a financial ratio which is calculated using the amount of goods that…

Q: With an interest rate of 5 percent per year, what is the present value on December 31, 2020 of…

A: Present value= amount/ (1+r)^n Therefore, Present value = 400/(1.05)^1 + 400/(1.05)^2 +…

Q: ssume that three years ago, you purchased a 10-year corporate bond that pays 8.0 perce urchase price…

A: The value of bond is the present value of coupon payment and present value of par value of bond…

Q: The Federal Reserve recently shifted its monetary policy causing Lasik Vision’s WACC to change.…

A: The question is related to Net Present Value. Net Present Value is calculated with the help of…

Q: The Foreman Company’s earnings and common stock dividends have been growing at an annual rate of 5…

A: Answer -  a. 10 percent Po = D1/(ke - g) g = 0.05 Do = $5 ke = 0.10 Dl = Do(1 + g) = 5(1 + .05) =…

Q: years and a t for the firs 201

A: On a financial statement, a capitalised cost is an item that is added to the cost base of a fixed…

Q: For a Federal Credit Union that provides a compounded quarterly interest rate of 8 percent per year,…

A: Federal credit union is referred as the credit union as per the regulatory comprehension of National…

Q: Calculating the geometric and arithmetic average rate of​ return) Marsh Inc. had the following​…

A: (a) Annual Rates of Return for each year Annual Rate of Return defines the amount earned during an…

Q: Two payments of $9,000 and $5,300 are due in 1 year and 2 years, respectively. Calculate the two…

A: Payment due in Year 1 is $9,000 Payment due in year 2 is $5,300 Interest rate is 9% Compounded…

Q: 3. Beverly and Kyle Nelson currently insure their cars with separate companies paying $450 and $375…

A: Future value of the savings can be calculated as: = Annual savings * Future Value Annuity Factor…

Q: (a) A sum of $2000 is deposited in a time-deposit account that pays interest at a rate of 3% per…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: 10. Mary Canfield purchased the All-Canadian Compound bond fund. While this fund doesn't charge a…

A: When an investor purchases an investment the broker company charges a commission known as a…

Q: cently paid a dividend, D0, of $2.50. It expects to have nonconstant growth of 20% for 2 years…

A: Present value of dividends and present value of horizon value would give the value of stock today on…

Q: annual premiums. What would be the future value of the annual savings over ten years based on an…

A: Future Value: It represents the future worth of the present amount of cash flow and is estimated by…

Q: X company is considering investing P1,800,000 in a new machine that could give the company an annual…

A: 1. The Net Present value is calculated with the help of following formula Profitability Index =…

Q: The following table shows information about return of stock and bond. Suppose that your Portfolio…

A:

Q: Explain the term Collateral.

A: Assets refer to those resources which have some economic value held by a corporation, individual or…

Q: Sean expects to receive $300,000 in 5 years from a trust fund. If a bank loans money at an interest…

A: In the given case, Seam is expected to receive $300,000 in 5 years from a trust fund. He can borrow…

Q: Investment A: 5 % annual interest, compounded quarterly. Investment B: 4.7% annual interest,…

A: The more is compounding of interest more is effective interest rate and more is interest accumulated…

Q: Lannister Manufacturing has a target debt-equity ratio of 0.66. Its cost of equity is 16 percent,…

A: Weighted average cost of capital can be calculated as: = (Weight of equity * Cost of equity) +…

Q: [CLO-5] Determine the value of X for these two investment alternatives to be equivalent at an…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Describe indexes within the international securities context. What are indexes, and why are they…

A: Index reflect the overall performance of stocks in the market.  A company has to fulfill certain…

Q: Your investment portfolio consists of $150,000 invested in only one stock - Pocemon. Suppose the…

A: Better alternative portfolio is invested in market portfolio and risk free rate   Let w be the…

Q: firm is considering two projects and the cash flows associated with them are shown in the following…

A: Pay back period is the number of years required to recover the initial investment and it must be…

Q: What is the Macaulay duration of a semiannual-pay 7.39 percent coupon bond with 12 years to maturity…

A: Here, To Find: Macaulay Duration =?

Q: Exercise 4 (it's only one question) In 2016 the company FinTech.Inc had a capital structure which is…

A: Weighted Average Cost of Capital: It is  is the  average cost of capital from and  are based on…

Q: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its…

A: WACC can be calculated as: = (Weight of equity * Cost of equity) + (Weight of debt * Cost of debt)

Q: Round all answers to the nearest cent. 1. Chris is 33 years old. He wants to retire when he is 60.…

A: We will have to use the concept of time value of money. As per the concept of time value of money…

Q: Problem 6-28 Discounted Cash Flow Analysis [LO1] The appropriate discount rate for the following…

A: Present worth or value (PW) of money/cash flow refers to the current value of any future sum of…

Q: What would be the spot price if a stock index futures price were $75, the risk-free rate were 10…

A: Futures price is $75 Risk free rate is 10% Dividend yield is 3%

Q: board of dir company s preferre issues. Also, assume that the corporation's board of directors votes…

A: Preferred Stock: These are stocks providing ownership in the firm and have a higher claim on…

Q: escribe the necessity, purpose and potential makeup of a board of director

A: For public companies having a proper board of directors is important. This is because public…

Q: If 2400 dollars is invested in an account for 10 years. Find the value of the investment at the end…

A: Future value is the value of initial investments at a future date after compounding it with a rate…

Q: According to the Capital Asset Pricing Model (CAPM), an asset with negative beta:   a. Cannot…

A: Capital Asset Pricing Model (CAPM): CAPM is the method of calculating the expected return on…

Q: 16) Find the gaps in the following table: Item Capital (S) 12,350 a. b. ?? C. 33,266 d. ?? e. 11,900…

A: Solution:- Capital employed means the amount invested in the business. So, Capital = Assets –…

Q: 3. Beverly and Kyle Nelson currently insure their cars with separate companies paying $450 and $375…

A: Initially savings per annum shall be calculated and multiplied with the future value annuity factor…

Q: Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at…

A: Cost of debt = 11% current price of stock = 34.75 Current dividend = 2.50

Q: The dividends and earnings of Company ABC are expected to grow as follows: - 20 percent a year for…

A: We will first calculate the dividend considering all the growth rates, thereafter we will calculate…

Q: 6. Renzo borrowed P 4,000 for 5 years at 6% simple interest rate. How much interest he needs to pay?

A: Simple interest is paid on the principle of a loan or the first deposit into a savings account.…

Q: You graduate and receive a $3,000 cheque from your grandparents. You decide to save it toward a down…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: determine the sum of money that must be deposited including the initial cost of the die.

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: The present value of a $1,000 per year perpetuity at an annual rate of 10% is $10,000.  What is the…

A: Answer:

Q: 2) Consider the following information Billions of BHD Transfer Payments Made by Household 50…

A: Personal savings : Personal Savings refers to the money that a person has left with after…

Q: Jason purchased a car for $32,000 and arranged the monthly financing at 6.85% compounded…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: (Calculating rates of​ return)  The​ S&P stock index represents a portfolio comprised of 500 large…

A: As per Bartleby honor code, the expert is required only to solve those parts of questions which are…

Q: pays a 9.75% nominal rate on deposits, with monthly compounding. What effective annual rate (EFF%)…

A: The effective annual rate can be computed as follows :- EAR = (1+i / x)^x - 1  = (1 + 0.0975/12)^12…