Suppose you have been appointed as afinancial advisor for an upcoming business in Oman which requires OMR 90,000 as Capital. Your job is to organize the finance required for the company from different types of available finance. Explain in detail how much amount of funds you will take from each type of finance source and why. Discuss in detail which type of finance is good for the company. Note / solve it by using the Financial Institutions &
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- Suppose you are in charge of the financial departmentof your company and you have to decide whether toborrow short or long term. Checking the news, yourealize that the government is about to engage in amajor infrastructure plan in the near future. Predictwhat will happen to interest rates. Will you advise borrowing short or long term?(1) Do you think you currently have the disciplineneeded to control your spending in order to free upcash for regular investing? If not, what changes couldyou make? (2) If someone gave you a “hot tip” on astock, how would you go about researching theopportunity before making an investment decision?Bank Risks] Banks sometimes issue large, mark etable certificates of deposits when other deposits declin e. The chart below exhibits the ratio of large time deposits to the total deposits in commercial banking industry in the US from 1995 to 2008. As you can o bserve, large time deposits had become increasingly important source of funds for banks. Note that a time deposit is an in terest-bearing bank deposit wi th a specified period of maturity. It is a mon ey deposit at a banking in stitution that cannot be withdrawn for a specific term or period of time. FRED - Large Time Deposits, Al Commercial Banks/Deposits, Al Commercial Bariks 0.32 0.30 0.28 0.26 0.24 0.22 020 0.18 a16 014 0.12 1996 1998 2000 2002 2004 2006 2008 Source Board of Governors of the Federal Reserve System (US) mytredig/F2kV What type of bank risk(s) (Liqui dity risk, credit risk, interest-rate risk, trading risk) does more likely account for this increase in large time dep osits and why? B. of U.S. S/BIl. of U.S. S
- What are some ways that someone looking for a loan might reassure a bank that is faced with imperfect information about whether the borrower will repay the loan?O Chapter 14 + A Not secure | learninghub.upm.edu.my/blastdk/pluginfile.php/161772/mod_resource/content/2/ECN%203014%209_Monetary%20Policy%20and%20Federal. E Apps 4 Marketing Strategy. NGDATA | How to R.. G how to keep custo... W Promosi Dalam Pe. e Bijak keewangan da. e OH! My Assignmen. 2 The 4 Ps Definition O Other bookmarks Chapter 14 14 / 29 Principles of Money Supply Determination Currency held by the nonbank public, CU $1,575.9 billion Bank reserves, RE S $2,022.5 billion Deposits, DEP $12,395.1 billion What is the money multiplier? + 9:43 PM P Type here to search G 4») ENG 19/01/2021a) Suppose you put $350 into a bank account today. Interest is paid annually and the annual interest rate is 6 percent. What is the future value of the $350 after 4 years? b) Suppose you are deciding whether to buy a particular bond from your local municipality. If you buy the bond and hold it for 4 years, then at that time you will receive a payment of $10,000. Assume the interest rateis6percent. Underwhatcircumstanceswillyoubuythebond?Meaninguptowhatpriceareyou willing to pay.
- Submit All Question 28 of 30 Suppose Jon decides to purchase either a long-term Treasury bond or a share of stock from a company in the Dow Jones Industrial Average. Assume that either one will behave similarly to the average security in their class, and ignore the effect of market conditions. Which security is more likely to lose most of its value in the next year after Jon purchases it? O the probabilities of major loss are the same they are both guaranteed to increase in value the stock the bond Based on historical returns, which security is likely to grow more significantly in value after Jon purchases it? the bond 8:27 PM a 46°F E 4) 12/15/2029:48 O O 90% iwe-nnoq-seu ► PROBLEM SOLVING LA bil for a motorbort indicates a cost of P2, s00 dur in 100 deys. but promites a % tistounti Pimbursed within 30 days What is the highest umple interest rate at which the buyer can berrow money in orter to henete trom the tiscnunt? 2. The salling prica ot a TV sat it doutlu that at its net cant, It the TV sut li solit te a ustomer at a profit of 25% af the net cot, how much discount was gven to the customer? 3. A salestady's morthly come at Jessie's Department Stare s partly fied and partiaty variabke, dependng on the value uf her sales for the month When the manthly value uf her salen b P10c00.00, her montiy salary PSOL.cO. Her moothiy income increases to FLO00,00 when hur mnnthiy vales reach PIL00U D0 What must the value of her monthly sales be in order for her monthly salary to reath 4, You re buyng new televnien, From pant experience you estimate future repair cont es S00 during the fiest year, P1800 during second year, P2700 during the…4. Ted Baxter runs a small, very stable newspaper company insouthern Oregon. The paper has been in business for 25 years.The total value of the firm’s capital stock is $1 million, which Tedowns outright. This year the firm earned a total of $250,000after out-of-pocket expenses. Without taking the opportunitycost of capital into account, this means that Ted is earning a25 percent return on his capital. Suppose that risk-free bondsare currently paying a rate of 10 percent to those who buy them.d. How much excess profit is Ted earning?
- A6. Which of the following provisions can an insured use lo pul a policy in force that has lapsed as a resull of nonpayment of premium? A.Reinstatement B.Regal Actions C.Grace Period D.Time Limil on Certain Defenses4. Ted Baxter runs a small, very stable newspaper company insouthern Oregon. The paper has been in business for 25 years.The total value of the firm’s capital stock is $1 million, which Tedowns outright. This year the firm earned a total of $250,000after out-of-pocket expenses. Without taking the opportunitycost of capital into account, this means that Ted is earning a25 percent return on his capital. Suppose that risk-free bondsare currently paying a rate of 10 percent to those who buy them.a. What is meant by the “opportunity cost of capital”?b. Explain why opportunity costs are “real” costs even thoughthey do not necessarily involve out-of-pocket expenses. c. What is the opportunity cost of Ted’s capital?d. How much excess profit is Ted earning?$10,000 $9,800 $9,600 $9,400 $9,200 $9,000 $8,800 $8,600 $8,400 $8,200 $8,000 $7,800 $7,600 $7,400 $7,200 $7,000 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $million The graph above shows the market for a one-year discount bond with a face value of $10,000. The new government promises to reduce the inflation rate by 7.25 percent. People have strong trust in their government and, so, they expect the inflation rate to decrease by 7.25 percent. According to the Fisher effect, the the price of this bond will (approximately) change to: Bond Price