months or less without prepayment penalty. Which strategies for equipment acquisition were chosen? Explain why. High Speed CT Scanner – Refurbished Equipment Loan – Useful life of 10 years‚ would probably need to upgrade in about 5 years; low interest rate for a refurbished equipment. X-Ray machine – Capital Lease – Useful life is 15 years; Option of buying the equipment at a bargain price later Ultrasound System – Operating Lease – Useful life of 5 years. Will ensure having the latest technology
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BIG HEART FINANCING COMPANY‚ LTD Big Heart Financing Company‚ LTD is a financing company composed of five(5)members‚ namely; Krizzia Mae Baldonasa‚ Ivory Deramos‚ Ro-Ynn Balunan‚ Catherine Canaway and Ever Lumawag. The company is located at 78A Lopez Jaena Street‚ Jaro‚ Iloilo City with a starting capital of P7‚000. The mission of the company is to provide reasonable monetary lending services especially to the deprived Filipinos. At Big Heart‚ we aim to aid Filipinos who are in need of financial
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loan him $175‚000.00 on short term promissory notes which all the owners of S.B.H. Farms had to sign. While all the owners of S.B.H. Farms were at the bank‚ they had an oral discussion about the long-term loans for the farm. With no set amount‚ no interest rates‚ or how much to pay when the long-term loan is due. When the promissory notes were due the S.B.H. Farms did not make their payment as they said‚ and the loans went into default. The McIlory Bank and Trust put in a claim to take the collateral
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Crisis of 2008 What happened? Is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s. It threatened the total collapse of large financial institutions‚ which was prevented by the bailout of banks by national governments‚ but stock markets still dropped worldwide. In many areas‚ the housing market also suffered‚ resulting in evictions‚ foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses
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Internship Report on Consumer Credit Scheme of Commercial Banks in Bangladesh –A case Study on Janata Bank Ltd. Submitted By ANZUMAN ARA ID #50815036 15th Batch Supervised By Shibli Rubayat Ul Islam Professor Department of Banking University of Dhaka Department of Banking Faculty of Business Studies University of Dhaka October27‚ 2011 DECLARATION I do hereby declare that this internship report
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FINAL EXAMINATION: BUSINESS 312 Instructions: This examination is open book and open notes. Time limit is exactly 3 hours‚ no extensions. Return this question sheet with your answers. 1. (10 marks) Consider two firms that are identical other than their share prices‚ their dividend growth rate‚ and their rates of return on equity. Which of these two firms has the greater dividend yield? Explain. Use no numerical examples in your answer. 2. (10 marks) A public firm is considering
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those of debt capital. The most common types of hybrid instrument are: • Convertible bonds are unsecured fixed-interest bonds that give their holders the right‚ at some future date‚ to convert the bonds into equity stocks of the company‚ at a fixed rate of conversion. If the bonds are not converted into equity‚ they must be redeemed on or before maturity by the issuer. The coupon interest rate‚ that is fixed‚ is usually lower than the coupon that would have to be paid on a similar issue of straight
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bond in response to a given change in interest rates. c. You hold two bonds. One is a 10-year‚ zero coupon‚ bond and the other is a 10-year bond that pays a 6% annual coupon. The same market rate‚ 6%‚ applies to both bonds. If the market rate rises from the current level‚ the zero coupon bond will experience the smaller percentage decline. d. The shorter the time to maturity‚ the greater the change in the value of a bond in response to a given change in interest rates. e. The longer the time to maturity
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Investors of asset backed securities (ABSs) are subject to interest rate risk. When interest rates rise‚ the prices of ABS fall‚ and vice versa. The risk of rising interest rate will affect yields because it may influence the pace of prepayments of the underlying loans. This is normally in the case of mortgages consumer asset backed securities. The underlying borrowers of asset backed securities may fail to make interest and principal payments when due and unable to meet other obligation such as
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considering making handmade wreaths as well. Which one of the following is the best example of incremental operating cash flow related to the wreath project? a) Storing supplies in the same space currently used for materials storage b) Planning on lower interest expense by assuming the proceeds of the wreath sales will be used to reduce the firms currently outstanding debt c) Utilizing the basket manager to oversee wreath production d) Hiring additional employees to
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