...Complexity of the US Financial System Michelle Bates Professor: Ahmad Zia Rawish Strayer University May 6, 2015 Principle of Finance 100 Complexity of the US Financial System How does the US financial market impact the economy? The financial market has different financial products including derivatives, bonds, and stocks among others. Derivatives are very complicated financial products that gain value from stocks and bonds (Altig, Christiano, Eichenbaum & Linde, 2011). These financial products are futuristic in the sense that they are based on future investments. Their effect on the economy is that they reduce its volatility. How does the US financial market impact business? One of the most significant impacts of financial markets on businesses is access to credit (Garbade, 2014). When the financial markets are not doing well, the general access to credit for businesses is also affected. Banks and financial institutions reduce their lending rates as a precautionary measure to avoid defaulters. As a result, businesses cannot get access to loans hence impeding their ability to continue running and expanding. How does the US financial market impact individual? When the financial markets are failing, the borrowing rates increases while the number of investors reduces (Garbade, 2014). Due to the raised borrowing rates, the prices of commodities go up reducing individuals’ purchasing power. As the prices go up, people are left...
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...Subject Code Subject Name Assessment Type Due Date Submitted via ACC 201 Finance Group Assignment (maximum 3 students) Friday of Week 11 before mid-night 1st June 2012 Email shagunkhemka@hotmail.com Weight 30% of the total assessment You are required to ANSWER THE FOLLOWING QUESTION. The assignment must be typed, and you must attach a cover sheet duly signed and dated. Students are encouraged to use excel spreadsheets for their calculations. Students are reminded to follow the Plagiarism Guidelines, and any suspicious assignments would be further investigated. The lecturer will discuss the plagiarism guidelines during the semester. If the students need any assistance with regards to referencing, or understanding plagiarism, they should contact the lecturer directly. Any queries regarding this assessment task should be directed towards your lecturer. Page 1 of 3 One year ago, your company purchased a machine for $210,000. You have learned that a new machine is available that offers many advantages; you can purchase this new machine for $260,000 today. It will be depreciated on a straight-line basis over ten years and has a salvage value of $10,000. You can expect that this new machine will produce a gross margin (revenue minus operating expenses other than depreciation) of $40,000 in the first year and this is expected to grow by $5,000 for the first 4 years (until the end of year 5) after which is expected to remain the same. The current machine is expected...
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...FIN-516 WEEK 1 – HOMEWORK ASSIGNMENT Problem Based on Chapter 14, Residual Dividends Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net Income is forecast to increase by 8%. The company’s capital structure has been 35% Debt and 65% Equity since 2010, and the company plans to maintain this capital structure in 2012. The company paid $3.0 Million cash dividends in 2011. The company is planning to invest in a major capital project in 2012. The capital budget for this project is $12.0 Million in 2012. • If Middlesex increases its cash dividends in 2012 at the same rate of growth as its Net Income rate, what will be the total 2012 dividend payout in Dollars? • What is the 2012 dividend payout ratio if the company increases its dividends at 8%? • If the company follows a residual dividend policy, and maintains its 35% Debt level in its capital structure, and invests in the $12.0 Million capital budget in 2012, what would be the Residual Dividend level (in Dollars) in 2012? What would be this Residual Dividends payout ratio? • How much additional capital (Debt and/or Equity) will the company have to raise from outside sources in 2012 if it invests in this capital project, and follows a residual dividend policy? • What would be the prudent dividend policy for 2012?: Pay dividends at the current dividend growth rate of 8%, or pay the residual dividend amount. 1. If Middlesex increases its cash dividends in 2012 at the same...
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...MANAGEMENT DEVELOPMENT INSTITUTE OF SINGAPORE IN TASHKENT (MDIST) ASSIGNMENT SUBMISSION COVER SHEET Course : Year 2 Module : Corporate Finance Lecturer : ShavkatMamatov Assignment Type : Group Due Date : 24.03.12 S/N | Student Name (As reflected in Passport) | ID Number | Student Signature | 1 | | | | 2 | | | | 3 | | | | 4 | | | | Submitted on Due Date (Yes/No) : Yes MDIS Tashkent Chilonzor district, 28, Bunyodkor Ave., Chilanzar district, Tashkent 100185, Uzbekistan MEMO Date: March 03, 2012 To: All Investment Club Members From: Board of Directors Personnel Dept. MDIS Building, Office 427 Ext. 3875 cf@mdis.uz Subject: Analysis and Recommendations for Investment Club Members The objective of the following memorandum is to find out the best proprtion of investment in two asset portfolio and give recommendations based on the calculated outcomes. To begin with, we have gathered the following information pertaining to two companies of your club’s interest. Company Name | Return | Risk | Registon Co | 15.4% | 8.87% | Sharq Co | 14.0% | 4.9% | From the above return and risk information, our investment club has also came out with three potential portfolios of how much to invest in Registon Co and Sharq Co. This is shown below: Portfolio | Proportion of fund invested in | | Registon Co | Sharq Co | A | 0.80 | 0.20 | B | 0.50 | 0.50 | C | 0.25 | 0.75 | Based on the information provided above the...
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...ASSIGNMENT 1: DUE SEPTEMBER 23, 2014 Problem 1 (a) “The fact that firms so heavily rely on their internal capital market as a source of financing is strong evidence that internal markets are more efficient than external markets.” ANSWER Although internal capital is preferable to external capital based on the reasons below: * According to the pecking order theory (Myers, 1984; Myers & Majluf, 1984), firms follow a hierarchical financing pattern. Thus, firms would prefer internal funds (retained earnings) to external funds because: * External capital would result in higher cost of capital, due to direct costs such as underwriters’ fees and indirect costs such as under-pricing. * Using internal capital is much easier for managers because the cost of capital is lower and investment decisions do not need to be scrutinised by investors. * Reliance on internal capital/funds is the cheaper source of financing. However, it does not indicate that external markets are less efficient than internal markets in any way. (b) “The stock price of a company paying out a regular dividend can be expected to fall on the payment date, not on the record date or the ex-dividend date.” This statement is false. Investors begin to trade their shares on the ex-dividend date after a company has declared its dividend policy, and this is when the stock price of a company can be expected to change or fall. Thus, stock prices fall on the ex-dividend dates to reflect...
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...Assigment 1 Problem 1 a) “The fact that firms so heavily rely on their internal capital market as a source of financing is strong evidence that internal markets are more efficient than external markets.” Firms use internal capital because it is much easier for managers to use profits from previous years to finance their investments, management don´t have to prove their investment decisions to investors. If management would need to finance investment with external capital, the cost of the capital would much higher than using internal capital. Issues would cause direct costs for (järjestämisestä) and take time and effort from the management. Indirect costs could also (accure) when management would need to underprice the issue to make sure it would succeed. Firms rely on their internal capital because it is easier and cheaper way to finance investments. It does not mean that external markets are more unefficent than internal and the (väite) is false. b) “When underwriting equity or bond issues, investment banks are merely acting as financial intermediaries without taking any risk of their own. Therefore, they are charging unrealistically high fees for their services.” Underwriters act in three different roles. Firstly, they provide financial advisory and make careful analysis what the issue is likely to be worth. Underwriters also have dialogies with the potential investors to find out how high the demand is with different prices. Secondly, underwriters will...
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...Finances HSM/240 November 24, 2013 These past few weeks, the organization that I have focused my time and effort on would be the Department of Human Services (DHS). This is an organization in Michigan that focuses purely on helping the communities around it. They have many different programs to fit many different needs such as cash assistance, medical assistance, food assistance, even assistance with child support. They strive to reach and help all those that are in need in the area, no matter what the person needs help with. The DHS stretches to help a lot of people as often as it can, so it’s safe to say that they go through a lot of money each month, and this leads back to the question of where the funding comes from. The DHS is a state agency, so it is government funded. They are given an allowance, or budget, from the government. This budget is split up between the programs so that each program is able to thrive and move properly. This agency’s funding comes from what I would consider to be a pretty reliable source. The government sends out the money to the company so unless it was voted that the organization wasn’t needed and didn’t need the funding, the money automatically goes to them. The next question that was asked of us to include the answer to in this paper was regarding the funds. The question was whether or not the organization implemented financial accountability measures to ensure that funds were being used properly. This is a tough one, I spent around...
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...Week 2 Assignment: Understanding Effective Money Management Assessment A, Part 1: Creating a Personal Financial Statement - Assets | 1 point | Car: Bluebook value $1250.00Cash: $378.00Savings Accounts: $826.00 | Assessment A, Part 2: Creating a Personal Financial Statement - Debts | 1 point | Rent: $750.00Electric/ Gas bill: $131.75Cable/ internet/ Phone bill: $80.42Credit Card: $31.00Cell phone bill: $72.37 | Assessment A, Part 3: Identify Money Management Tool | 1 point | Explain to Monica how the money management tools were identified. | Students should explain how they evaluated various cash management products and services. | Assessment A, Part 4: Creating a Personal Financial Statement – Steps | 1 point | Drag the steps listed on the right into their correct sequences on the left. When done click the Send button | Step 1: I got all my financial stuff together – bills, loans, bank statements, etc. | Step 2: I balance my checkbook. | Step 3: I decided what were my assets and what were my debts. | Step 4: I enter my assets in the program. | Step 5: I enter my debts in the program. | Step 6: The program gave me a Net worth figure at the end. | Assessment B: Creating a Monthly Cash Flow Statement ...
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...Diagnostic Algebra Assessment Definitions Categories Equality Symbol Misconception Graphing Misconception Definition Concept of a Variable Misconception Equality Symbol Misconception As algebra teachers, we all know how frustrating it can be to teach a particular concept and to have a percentage of our students not get it. We try different approaches and activities but to no avail. These students just do not seem to grasp the concept. Often, we blame the students for not trying hard enough. Worse yet, others blame us for not teaching students well enough. Students often learn the equality symbol misconception when they begin learning mathematics. Rather than understanding that the equal sign indicates equivalence between the expressions on the left side and the right side of an equation, students interpret the equal sign as meaning “do something” or the sign before the answer. This problem is exacerbated by many adults solving problems in the following way: 5 × 4 + 3 = ? 5 × 4 = 20 + 3 = 23 Students may also have difficulty understanding statements like 7 = 3 + 4 or 5 = 5, since these do not involve a problem on the left and an answer on the right. Falkner presented the following problem to 6th grade classes: 8 + 4 = [] + 5 All 145 students gave the answer of 12 or 17. It can be assumed that students got 12 since 8 + 4 = 12. The 17 may be from those who continued the problem: 12 + 5 = 17. Students with this misconception may also have difficulty with the idea that adding...
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...Team B Calorie Count Tool PRG/211 May 5, 2014 Team B Calorie Count Tool PROBLEM STATEMENT Team B was asked to develop a program which would calculate the user’s daily intake of calories and measure those calories against the overall calories expended. The core purpose of this program will do two primary functions. First, it will record the user intake of calories as acquired through meals throughout the day. Second, the user will record caloric output associated with physical activity. This information will be calculated together to determine the caloric surplus or deficit for the user. In order for the program to execute accurately, and provide customized results, the user will be required to input personal data to include gender, age, weight, and height. This additional information is essential to determine the user’s default caloric burn rate, otherwise known as the basal metabolic rate (BMR). The BMR and the calories burned as a result of physical activity will be calculated against the intake of calories to determine the overall success for the user. As the program is executed it must: * Record user name, age, height, weight to enable more accurate calculations * Record the users specific caloric values entered for each meal * Record the user activity and caloric burn values for that activity * Calculate the basal metabolic rate (BMR) for the individual * Subtotal the total caloric values for the day * Combine the physical activity and...
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...Problem Solving with Computing Homework - WEEK 2 [30 points] This is a review of some of the material from Chapter 2 and lectures from class. No credit for answers that are copies or near verbatim transcripts – please use your own words1 and document sources where appropriate. 1 This will apply to all assignments in this class. Answer the following questions: Chapter 2 1. Short Answers [1 point each, 2 points total] 1. What does a professional programmer usually do first to gain an understanding of a problem? The first thing that a professional programmer usually do first to gain an understanding of a program is to closely relate customer (Interview ) to inquire or gather information about the problem. 2. What two things must you normally specify in a variable declaration? The two things normally specified in a variable declaration are the variable type and identifier. 2. Algorithms / Pseudocode [1 point each, 5 points total] 1. Design an algorithm that prompts the user to enter his or her height and stores the user’s input in a variable named height. Declare height Display “Enter Your Height” Input Height Display “Height” 2. Write assignment statements that perform the following operations with the variables a and b. - Adds 2 to a and stores the result in b. - Subtracts 8 from b and stores the result in a Set b=2+a Set a=b-8 3. Write a pseudocode statement that declares the variable cost so it can hold real numbers. Floating Point-Variable...
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...11108944 Name: ASHWINI KUMAR Roll No. : RE3R02B32 PART- A 1. Ans :- (a) unary and ternary operator Unary operator:- It pecedes an operand . The operand (the value on which the operator operates ) of the unary operator must have arithmetic or pointer type and the result is the value of the argument. Example:- If a=5 then +a means 5 If a=0 then +a means 0. If a=-4 then +a means -4. Ternary operator:- It precedes an operand. The operand of the unary operator must have arithmetic type and the result is the negation of the operand’s value. Example:- If a=5 then –a means -5 If a=0 then –a means 0 If a=-4 then –a means 4. (b) Assignment and equalto operator Assignment operator:- Equal to operator: An assignment operator assigns value In this we put the To a variable. value as it is. Example – Example- a*=5 means a=5*5. Int a; a=5 means a is initialized with 5 if(a==5) { return true; } return false; (c) Expression and statement Expression:- An expression is any valid combination of operators , constants , and variables. Example:- ...
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...Selection statements Selection is used to select which statements are to be performed next based on a condition being true or false. Relational expressions In the solution of many problems, different actions must be taken depending on the value of the data. The if statement in C I used to implement such s decision structure in its simplest form – that of selecting a statement to be executed only if a condition is satisfied. Syntax: if(condtion) statement executed if condition is true When an executing program encounters the if statement, the condition is evaluated to determine its numerical value, which is then interpreted as either true or false. If the condition evaluates to any non-0 value (positive or negative), the condition is considered as a “true” condition and the statement following the if is executed; otherwise this statement is not executed. Relational Operators In C Relational operator | Meaning | Example | < | Less than | age < 30 | > | Greater than | height > 6.2 | <= | Less than or equal to | taxable <= 200000 | >= | Greater than or equal to | temp >= 98.6 | == | Equal to | grade == 100 | != | Not equal to | number !=250 | In creating relational expressions, the relational operators must be typed exactly as given in the above table. Thus, although the following relational expressions are all valid: age > 40 length <= 50 temp >= 98.6 3 < 4 flag == done day != 5 The following are invalid: length =< 50 ...
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...AFIN310 Issues in Applied Finance Financial Planning Assignment: Questions & Answers General Questions 1. Is an introduction / executive summary and conclusion required? No. You are to answer each question and keep to a total maximum of 15 pages, excluding cover page. No marks will be provided for anything written on page 16 or beyond. Students are recommended to refer to the mark allocation when answering each question. 2. Is specific formatting required? Eg The font you can use is Calibri, size 12. The document should have 1.5 spacing There are no specific formatting requirements, unless there are standard university or department formatting criteria of which students should be aware. 3rd year students are expected to submit assignments which are easy to read and look professional. 10 marks are allocated to presentation, length, references and bibliography. Question 1 3. Question 1(a) are real-life examples required or I can simply make-up an example? Personal and/or made-up examples will not be sufficient. There are numerous Australian real cases that can be referenced. The preamble to the question refers to "Australian scandals involving financial planning firms, practices and advice". You are required to limit the use of examples to publically available information about the provision of financial advice in Australia. 4. Question 1(a) How many examples will be considered sufficient? Marks are not allocated based on the number of examples provided, rather on the quality of...
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...STUDY HABITS OF SECOND YEAR BS-AVTECH STUDENTS OF PATTS COLLEGE OF AERONAUTICS S.Y 2013-2014 An Undergraduate Research Presented to The Languages Department of PATTS College of Aeronautics In Partial Fulfillment of the Requirements for the course ENGL 211 – Technical Report Writing By Guevarra, Giorgio Martin C Guevarra, Lorenzo Miguel Jang, Jose, Yosalina, Leo Xander March 2014 ACKNOWLEDGEMENT The researcher would like to express our thanks to the lord. Our God for his guidance towards everything we do In life, including this study that we had made, and for being an inspiration for us all to do our best in life. We give our thanks to Ms. Karen M. Millano, our adviser for ENGL 211, for carefully and patiently guiding us so that we may finish the thesis research, and for supporting us and believing in us, that we can accomplish our task finishing the thesis. To the respondents of this study, we express our gratitude because without them, this thesis research would not have been completed, we thank them for allowing us to conduct a survey during their spare time, and their patience and integrity in answering the survey. To our parents, for their support and everlasting patience and understanding for us. And lastly to our classmates, since they have been with us since the beginning of the semester and they had been our companions in everything we do for the subject ENGL 211. ABSTRACT STUDY HABITS OF...
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