Explain the process of securitisation as carried out by banks and discuss its role in the 2008 global financial crisis

Q: mahagement ốf Révcó Products is exploring four different investment opportunities. nformation on the…

A: Profitability Index is the measure of the profitability of the project Profitability Index = Present…

Q: 1. 3. Envestment required Present value of cash inflows at a $(560,000) $(510,000) $(410,000) $(350…

A: Profitability index is the ratio of present value of cash flow to the initial investment and it must…

Q: A company estimates that a certain piece of machinery will have to be replaced in five years' time…

A: Future value of growing annuity = [P/(r-g)] *((1+r)^n - (1+g)^n / (r-g)) P = Initial payment = 2000…

Q: the standard deviation for part c are all wrong. could you please check it again?

A:

Q: purc nvestment, which am ptions is best to tak purchase of Php1,00C Which is the worst? E

A: Best option would be that option which is having less cost of finance and worst will be having more…

Q: A $1000 bond with a coupon rate of 6.5% paid semiannually has eight years to maturity and a yield to…

A: Bond Current Price  = C*(((1-(1+r)-n)/r)) + (Mv * (1+r)-n) Where C = Coupon amount  Mv = Maturity…

Q: Knight Inventory Systems, Incorporated, has announced a rights offer. The company has announced that…

A: Here, No. of Right is 3 Price before ex right date is $80 Price after ex right date is $60…

Q: Discuss whether a Mortgage Reducing Term Takaful can be taken for coverage of a conventional housing…

A: MRTT or Mortgage Reducing Term Takaful is referred as the takaful plan, which offers the home…

Q: It is likely that airplane tickets will increase 5% in each of the next 5 years. The cost of a plane…

A: Data given: Cost of a plane ticket at the end of the first year = ₱10720. Increase in airplane…

Q: Advanced Products is considering the purchase of a computer-aided manufacturing system that requires…

A: Solution:- Present value means value in today’s terms.

Q: pany sold a P9,500,000 issue of 20-year bonds with a total face value of P10,000,000. The bonds pay…

A: For payment of bonds there is need to create the sinking fund required semiannually so that bonds…

Q: Suppose that the price of a Treasury bill with 85 days to maturity and a $25,000 face value is…

A: Bond equivalent yield can be calculated by using the below equation. Bond equivalent yield =(face…

Q: (a) Discuss the two opposite views towards regulating financial markets/institutions. (b) Discuss…

A: Commercial banks, investment banks, insurance companies, and brokerage firms are the most frequent…

Q: EXPLAIN THE ADVANTAGE OF offshore trust?

A: Offshore trust is the planning tool to protect your assets, This trust is created in abroad, It is…

Q: An investor makes a single deposit of 10,000 into fund A for 10 years which earns a 6% effective…

A: Given, The amount invested is 10,000

Q: Chrustuba Inc. is evaluating a new project with an after-tax cost of s8.0 million at t = 0. There is…

A: Data given: NPV if successful (50% chance) Year Cash Outflow ($) Cash Inflow ($) 0 -8000000…

Q: In the fourth and final year of a project, XYZ expects operating cash flow after taxes of P440,000.…

A: The cash flow of the year is what is received after payment of all operating expenses and all…

Q: forecase sales for the period of April to August using the weight as given

A: An important part of financial management is budgeting and forecasting future sales. Forecasting is…

Q: . Faith is taking out an $7,500, 1½-year loan with an APR of 8.75%. What is the monthly payment for…

A: Loans are paid by the monthly equal installments and these carry the payment for principal and also…

Q: he exchange rate, you are confident that the spot exchange rate will be USD 1.62 / EUR in 3 months.…

A: A forward contract is a tailored agreement to acquire or sell an item at a certain price at a future…

Q: since its competitor opened a shop right in front of Hail's store. To increase its sales, is…

A: The company gives more credit period to increase the sales but the new credit policy will be cost…

Q: PBB Company has a net operating income of $15 million. Further, the company has $100 million of debt…

A: Value of a company is summation of value of equity and value of debt where value of equity can be…

Q: Sue is a customer account representative for ABC Company. She recently acquired several new accounts…

A: Sue should contact all parties who will underwrite the public offering if the company is planning an…

Q: Contrast and compare sources of business finance and assess various determinants of the cost of…

A: There are different financing options available to the firm. It includes, preference shares, debt,…

Q: What was the earning per share on Abercrombie & Fitch for the year July 7, 2015 through July 7,…

A: Earnings Per Share: It represents the earnings made by the company relative to each share…

Q: firm has zero debt in its capital structure.  Its overall cost of capital is 10%.  The firm is…

A: Weighted average cost of capital = (weight of Debt * Cost of debt) + (weight of Equity * Cost of…

Q: Joe Levi bought a home in Arlington, Texas, for $141,000. He put down 25% and obtained a mortgage…

A: Solution:- When a loan is taken, it can be either be repaid as a lump sum payment or in instalments.…

Q: q7 Lightening Bulk Company is a moving company specializing in transporting large items…

A: The quantity of funds generated by an investment after all revenue items have been collected and…

Q: Smart Company is expecting temporary idle cash. Hence, it is considering investing in marketable…

A: Here, Per Transaction Cost id P10 Interest Rate is 6% Cash Payment is P12,000,000 monthly

Q: Question Answer What was the closing price for McKesson on July 7, 2016? 191.20 The high for…

A: The terminal of stock exchange provide the real time data of the market and open price, closing…

Q: Luis won the lottery; however, the lottery company gave him the following two options to receive his…

A: Given,  Amount earns 4.5% p.a simple Interest  So, Per month Interest = 4.5%/12 = 0.375% Two months…

Q: 5151.5, should not the 0.5 go in and become 5152?

A: In the given case, when decimal is greater than or equal to 0.5, then it is rounded off to next…

Q: an you show the calculation without using exce

A: Value of a bond today is the sum of present values of all future cash flows from that bond. Cash…

Q: 25) What is the present value of the following set of cash flows, discounted at 15% per year? Year 1…

A: Present Value=Future value/(1+r)n rate=15%

Q: Jefferson's recently paid an annual dividend of $2 per share. The dividend is expected to decrease…

A: The Gordon growth model is used to determine the stock price based on a future series of dividends…

Q: Company A will pay a dividend at the end of each year at 150Php for the next 3 years for Stock A…

A: Share price: Share price is the current market price of the share. It is the price of the share at…

Q: Explain how a mortgage company’s degree of exposure to interest rate risk differs from that of other…

A: Commercial banks, investment banks, insurance companies, and brokerage firms are the most frequent…

Q: (1)Use the graph to answer the question that follows.  Based on the chart above, if the product…

A: Marginal revenue is referred as the revenue, which usually leads from the sale of an one additional…

Q: |Company 2019 Gross $4,250,000 Revenue Company 2019 Gross $1,620,000 Profit Annual Retention Rate…

A: Customer Lifetime value = M(1+d/1+d-r)where,M= Margin d= discount rater = retention ratio CLV =…

Q: 33. A transport company has been looking for a new tyre for its truck and has located the following…

A: Here, To Find: Equivalent Annual Cost (EAC) =? Which tyre to buy =?

Q: Company 2019 Gross $4,250,000 Revenue |Company 2019 Gross $1,628,000 Profit Annual 58% Retention…

A: Customer lifetime Value = M(1+d/1+d-r) where,M=Margind= discount rater = retention ratio Customer…

Q: Lukow Products is investigating the purchase of a piece of automated equipment that will save…

A: Net Present value is present value of cash flow minus initial investment

Q: Bostian, Inc. has total assets of $520,000. Its total debt outstanding is $185,000. The Board of…

A: Debt-to- asset ratio is the percentage of the debt with respect of total asset   Debt-to-assets…

Q: You just graduated with MBA in Accounting and Finance from the University of Professional Studies…

A:

Q: If you want $3,000,000 saved by the time you retire in 40 years and you earn 8% interest on your…

A: Amount required $3,000,000  Time is 40 years Interest rate is 8%

Q: Derivatives are used both to hedge against risk and to acquire risk, both of which are geared…

A: The answer is Option B. Both are false.

Q: Fran has made a taxable gift of one-half of the value of the residence because Stan paid no…

A: Gift tax charges on the value of large gifts which is transferred and affect the wealth without any…

Q: See the "Madoff Securities" case for this question. Professional auditing standards discuss the…

A: GAAS are a set of principles that auditors follow while analyzing a company's financial records.…

Q: You’ve been offered $3000 in 4 years for providing $2000 today into a business venture with a…

A: This is a problem involving time value of money. That is the purchasing power of $2000 today will be…

Q: 15. Sarah is taking out a $15,300 four-year new-car loan with an APR of 5.15%. What is the finance…

A: Finance Charge: It  is an expense charged for the utilization of credit or the expansion of existing…