...spend money to pay for our tuition, pay for electric bills, and buy new furniture and many more. On the other hand many companies provide financial assistance depending on the creditor. Some companies offers high amount of loans to attract more customers and also provides good amortization plans to each type of creditors. Due to rapid growth of population people lacks money because they spend too much above their monthly income. Some people do have own reason to apply for a loan such as opening their own business in order to have a stable livelihood. In some other cases they applied a loan in order to pay other debts to other people. Moreover spending money is a very crucial part of human existence. III. Objectives The main objective of this research is to develop an Asialink Loan Mangement System in Calbayog City * To provide services through web applications. * To monitor each client’s status on a centralized system. * To promote the business popularity. * To promote accessible services to user. IV. Implementation In this phase we will try to add new data to the system. After that we will now update that we will update the users status. In order for the researcher to evaluate its performance evaluation. A.)SOFTWARE REQUIREMENTS: NAME | FUNCTION | Windows xp, Windows 7 | It is the operation system of the Computer unit. | Microsoft visual studio 2010 | It is use...
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...[pic] |INDEX | |CHAPTER No. |Particulars |Page no. | |1. |Introduction, meaning & defination. |3 | |2. |Modus operandi, terms and condition |4-6 | |3. |Function, types, beneifits of factoring |7-10 | |4. |Cost of factoring |11-14 | |5. |Factoring in India, international factoring, factoring in other countries |15-16 | |6. |Introduction & defination of forfaiting |17-18 | |7. |Working of forfaiting & cost of forfaiting |19 | |8. |Beneifts & drawbacks of forfaiting |20-21 | |9. ...
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...time to make sure even the company default; the bond holders can get the par value back from insurance company. We will look at the CDS spread of Delphi for this question. After we plotted in the data, we find out that the overall CDS spread are abnormally large during the year of 2005 and 2008. The high CDS spreads indicates the unsuccessful operation of Delphi at that time and investors perceiving the possibility of Delphi defaulting on its bond payment. Delph is one of the world's largest automotive parts manufacturers originated in the U.S. The company originally belonged to General Motors (G.M.) and spun off in 1999 as an independent company. However, facing the increasing competition in the automotive industry, inability to repay its debt, and weakened by the high labor costs that set by the spinoff agreement with GM, Delphi filed for Chapter 11 bankruptcy protection on Oct. 8, 2005 to reorganize its struggling U.S. operations. After Delphi release the news of filing bankruptcy, the bond holders loosed confidence on Delphi and believed Delphi might default on its bond repayment. Bond holders started to sell Delphi bonds or purchase CDS to cover the bonds that they held. The CDS spread in 2005 therefore increased. The high CDS indicates the high possibility of Delphi defaulting on its bond and indicates bond holders losing confidence on Delphi ability to repay them. In 2008, the company had a plan in place to exit from Chapter 11 bankruptcy protection, in reliance on a $2...
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...Gemsales Pvt Ltd Introduction: In this case we see five people who are involve in a business of importing and supplying of jewellery as a wholesaler to retailers within the city market. The company in which the five people naming Andrew, Brian, Colin, Diana and Elizabeth are directors is named as Gemsales Pty Ltd. We shall consider this case and discussion in accordance to Australian laws as it mentions to be in Harvard referencing style. The case: The case is about a business which five people start and work upon, the business being at a competitive stage hence the directors plan to expand the business to increase sales and give good competition in the market. For the expansion of the business the directors decided to apply a loan and obtained loan of $4 million dollar from Friendly bank Ltd. Of this money the company utilized $3 million dollars for increase in stocks and the rest amount was invested in buying warehouse and showrooms. These were purchased from a company called Traders Pty Ltd. It is so said in the case that Colin one of the director did not attend the meeting in which these decisions were taken as he was hospitalised due to a severe accident, another member Elizabeth did not attend the meeting like always she use to do but had signed the agreements and papers of the decisions that were taken in the meeting which stated about the expansion and the loan for the business. Diana abstained i.e. she denied with the terms and was not very sure about...
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...Introduction Every business requires funds to operate. A company may need money to expand its business, buy assets, pay wages, or pay its debt. Others may need funds to cover the cost of unforeseen events such as accidents or natural disasters. The difficulties in obtaining these funds constitute one of the major challenges in running a business. The two major sources of business finance are internal and external funding. This paper examines the differences between internal and external sources of finance. It will also examine the advantages and disadvantages of each source. Internal sources of Finance Internal source of finance refers to funding generated within the business as opposed to financing obtained from outside sources. Internal funding can be obtained from retained earnings, sale of assets, depreciation, reduction or control of capital. Retained earnings: These are profits left over after a firm has settled its debts and paid out dividends to shareholders. The leftover funds can then be ploughed back into the business. The advantage of this method is that there is no borrowing cost associated with it. The firm has total control over the decision to use the funds and is not subjected to any vetting by lenders. The disadvantage of using retained profits as a source of funding is that the company may not have cash readily available in times of urgent need (Timimi, 2010). Sale of asset: The sale of assets is another source of internal financing. A business may...
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...| Table of Contents Part I3 Question (a)3 Transaction exposure 3 Translation exposure 4 Economic exposure 5 Question (b)5 International debt financing6 International equity financing 5 International trade financing5 Part II 4 Question (a)5 Question (b)6 Question (c)5 Question (d)6 References: 4 Part I Question (a): Transaction exposure The firm faces with transaction exposure when the exchange rate movements can affect to the financial results in international transaction after the firm is legally obligated to complete transactions (Shapiro, 2010). Typical of transactions that expose the firm to transaction exposure include sales of good and purchases, service or assets, borrowing of money and extension of credit. For example, Honda Motor Cycles in China, that company sells the cars to consumers comes with forward contract, it is included the price adjustment clauses. In order to reflect certain exchange rates changes it’s based on the adjusted price. The forward contract also brings more benefit to the consumers that helps them can get lower price. Furthermore, Honda Company has used policy such as purchasing foreign currency by using the currency swaps. This helps to fix the price of the car across currency contract in advance. In the foreign market from Japan’s Honda Co. the car is priced in Yen that means the company faces with foreign exchange risk. Thus, above solution is helpfully to protect subsidiary...
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...into voluntary liquidation. The liquidator investigations the action of Irene, Alvin and Derrick in the months leading up to the liquidation. Advise the liquidator as to whether the directors may be liable for insolvent trading. Answer Issue Have the three directors, Irene, Alvin and Derrick breached the insolvent trading provisions of the Corporations Act 2001 (Cth) (Corporations Act)? Rule Section 588G applies to impose liability upon a person if (relevantly for the facts in question): (a) the person is a director of the company when the company incurs an debt; (b) the company is insolvent when it incurs the debt, or becomes insolvent because it incurs the debt; (c) when it incurs the debt, there are reasonable grounds for suspecting that the company is insolvent or would become insolvent because it incurs the debt; and (d) the director is aware at the time of the debt that there are reasonable...
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...International Financial Crisis and reasons The financial crisis of 2007–2008, also known as the Global Financial Crisis and 2008 financial crisis, is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. Many causes for the financial crisis have been suggested, with varying weight assigned by experts. The U.S. Senate's Levin–Coburn Report asserted that the crisis happened because of: 1-High risk 2 Complex financial products 3-Undisclosed conflicts of interest 4-The failure of regulators 5-The credit rating agencies 6-The market itself to rein in the excesses of Wall Street 7-Weak and fraudulent underwriting practices 8-Deregulation 9-Predatory lending 10-Increased debt burden or over-leveraging 11-Boom and collapse of the shadow banking system 12-Commodities boom Financial crisis in Pakistan and Reasons 1-One of the immediate causes is Political instability due to Musharaf’s position as president, delay in restoring judiciary and resultantly withdrawal of PML (N) from the alliance leaving behind ‘dead’ ministry of finance. In contrast the present government is not showing strong will to cope with the situation. Though some Positive Measures. To end Load Shedding till 14th August, 2009, Benazir income Scheme programmed, Distribution of Land in Sindh, tight Tariff System against luxury items 2-Suicide attacks in the industrial cities-fear among people, disinvestment and maximum outflow...
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...Mahindra War Room 2013 " Financial Services - Insurance MAHINDRA FINANCIAL SERVICES SECTOR: ‘RURAL HEALTH INSURANCE’ CASELET Mahindra Financial Services Sector offers a range of financial products and services to the under-served customers in rural and semi-urban India. Mahindra Finance is fabled as a success story in rural penetration and poverty reduction through financial inclusion. This caselet, titled ‘Rural Health Insurance’ is one of the 3 optional caselets in this sector. BUSINESS BACKGROUND Mahindra Insurance Brokers Ltd. (MIBL) is a subsidiary of Mahindra & Mahindra Financial Services Ltd. MIBL was granted a Direct Broker Licence by the Insurance Regulatory and Development Authority in May 2004, whereby it offers Direct insurance broking services to Corporate and Retail customers in both Life and Non-Life categories. In September 2011, MIBL was granted a Composite Broker Licence enabling it to foray into Reinsurance Broking, in addition to its Direct Broking activities. MIBL is a total insurance risk solutions provider, helping customers build their risk management portfolios. It is one of the few insurance broking companies in India to have been awarded the ISO 9001:2008 Certification for Quality Management Systems. In addition to offering broking services on standard products, MIBL also provides customized solutions. For example, Mahindra Loan Suraksha is a customized life insurance solution offering Group Credit Term Cover to retail customers with auto and tractor...
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...Hampton Machine Tool Company (HMTC) is a machine tool manufacturing business whichstarted in 1915 and has been a stable company since its establishment. The company’srevenues rely heavily on military aircraft and automobile manufacturers within the St. Louisvicinity.During 1960’s until end of 1970’s, HMTC experienced highs and lows which were mainly due toincreases and decreases in production. This is influenced by the Vietnam war, economicconditions, expansion of export market and demise of competitors. Though adversecircumstances happened, HMTC has successfully survived these problems. This can beattributed to the company’s conservative financial policies.In December 1978, Benjamin Cowins, President of HMTC, requested a 1M USD loan to St.Louis National Bank to purchase stocks of several dissident shareholders. The interest rate for the loan was 1.5% to be paid monthly and the principal of the loan is to be paid on September 1979. Mr. Jerry Eckwood, Vice President of St. Louis National Bank allowed the loan requestbecause of three reasons: 1) HMTC’s submission of projected sales and forecasted financialstatements; 2) HMTC’s credibility as depositor in St. Louis Bank and 3) Mr. Cowins’ credibility inthe business community. However, in September 1979, Mr. Eckwood received a letter fromHMTC requesting to extend repayment of the loan to December 1979 and a further loan requestof 350,000USD for equipment purchases. Point of View and Problem Definition The point of view to be taken...
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...Financing your education The cost incurred in attending a college or university can be quite expensive if a student does not utilize all resources to aid in covering the cost of their education. A student can apply through FAFSA for financial aid and it is disbursed from the Federal Government, and because it is a grant it does not need to be repaid. Grants are typically referred to as free money and are based on the need of the student. A student can reduce the amount that they need to borrow by researching the opportunities for additional grants and scholarships. Many scholarships are available through many sources and are granted to students based on merit rather than need. It would also be beneficial for a student to consider paying cash for their classes if possible. If it is necessary for a student to borrow funds to pay for their education there are two different types of loans available, subsidized and unsubsidized loans. A subsidized loan is need based, usually has a lower interest rate, the government pays the interest on the loan while the student is still enrolled and working toward his or her graduation and does not require payment until six months after graduation. Unsubsidized loans are not based on need, have a higher interest rate and although repayment does not begin until six months after graduation, interest will continue to accrue from the beginning of the loan while the student is still in school. It would be in the best interest of the student;...
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...increasing dividend payouts and share repurchase decisions. This case can follow a treatment of the Miller-Modigliani[1] dividend-irrelevance theorem and serves to highlight practical considerations to consider when setting a firm’s dividend policy. Suggested Questions 1. In theory, to fund an increased dividend payout or a stock buyback, a firm might invest less, borrow more, or issue more stock. Which of those three elements is Gainesboro’s management willing to vary, and which elements remain fixed as a matter of the company’s policy? 2. What happens to Gainesboro’s financing need and unused debt capacity if: a. no dividends are paid? b. a 20% payout is pursued? c. a 40% payout is pursued? d. a residual payout policy is pursued? Note that case Exhibit 8 presents an estimate of the amount of borrowing needed. Assume that maximum debt capacity is, as a matter of policy, 40% of the book value of equity. 3. How might Gainesboro’s various providers of capital, such as its stockholders and...
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...THE CHALLENGES OF GLOBALIZATION FOR SMES IN TANZANIA Prepared by Tanzania Chamber of Commerce Industry and Agriculture 1 1. Introduction: Definitions Globalization: Every one of 2,822 academic papers written on globalization and 589 new books published on the subject in 1998 had different definitions of globalization. An economic phenomenon, involving the increasing interaction, or integration, of national economic systems through the growth in international trade, investment and capital flows. It also includes a rapid increase in cross-border social, cultural and technological exchange as part of the phenomenon of globalization. 2 Definitions: Small and Medium Enterprises (SMEs): There is no consensus of SME definition as various countries had different definition depending on the phase of economic development and their prevailing social conditions. In this, various indexes are used by member economies to define the term such as number of employees, invested capital, total amount of assets, sales volume (turnover) and production capability. 3 2. SMEs in Tanzania In the context of Tanzania, micro enterprises are those engaging up to 4 people, in most cases family members or employing capital amounting up to Tshs.5.0 million. The majority of micro enterprises fall under the informal sector. Small enterprises are mostly formalized undertakings engaging between 5 and 49 employees or with capital investment from Tshs.5 million to Tshs.200 million...
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...Group manages this risk by targeting a minimum liquidity level, ensuring long-term commitments are managed with respect to forecast available cash inflows, maintaining access to a variety of additional funding sources including commercial paper and standby facilities and managing maturity profiles. The Qantas Group has indicated its market risk in the following areas: interest rate, foreign exchange and fuel price. For interest rate risk, it refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The company manages interest rate risk by reference to pricing intervals spread across different periods of time with the proportion of floating and fixed rate debt managed separately. The mix of fixed and floating interest rate funding is managed by using three types of financial instrument: interest rate swaps, forward rate agreements and options. The other risks of market risk are foreign exchange and fuel price risks which are emphasised on this report. Foreign exchange risk is the risk that fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The factors that raise this risk are from operations, capital expenditures and translation risks. Fuel price risk management focuses primarily on when and how the entity can best hedge against costly exposures to fuel...
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...Global Financial Crisis: Likely Impact on Bangladesh [Abstract: The current financial crisis that originated in the United States and quickly spread to Europe and Asia could be a global crisis soon. Reckless lending by banks and financial institutions and slack regulatory system were at the root of the crisis, which is perhaps the gravest since the Great Depression of the 1930s. Amid a severe credit crunch, the rich economies have entered into a deep recession. IMF economists predict the global economic growth to fall from 5.6% in 2007 to 3.9% in 2008, and to 3.0% next year. Billions of dollars pumped by the rich and the emerging economies to bail out the distressed banks or to boost their economies have failed to stop the rot. Bangladesh is apparently immune from the crisis, its economy not being very tightly linked with the rest of the world. It has been enjoying a relatively healthy growth of exports, industrial activity and remittances. Yet, a prolonged recession in the rich countries may cause a slowdown in exports, inflows of remittances, foreign aid and FDI, thereby hurting GDP growth. IMF has said that GDP growth in Bangladesh this year will be lower – 5.5% instead of the officially projected 6.5%, if the global recession lingers. Bangladesh policy makers will need to stay alert to the possibility of the economy being hit by the global slump and adopt appropriate mitigating measures.] Introduction The United States economy is now experiencing a severe credit...
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