...All of finweb.com ------------------------------------------------- Top of Form Bottom of Form * Mortgage * Loans * Banking & Credit * Investing * Retirement * Insurance * Taxes * Financial Planning * Real Estate * Finance Directory home → Banking & Credit → Banking & Credit 101 → 4 Types Of Bank Accounts Explained Subscribe to news about Banking & Credit 4 Types Of Bank Accounts Explained Share comments There are many types of bank accounts for consumers to choose from and each will be able to provide benefits for his or her circumstances. Ads by Google Open A Demat Account Get a Demat, Savings, Trading & MF All-in-1 Kotak Account. Sign Up! www. KotakSecurities. com Checking Account A checking account offers a quick and convenient way for people to access their money as often as they need. You cannot earn interest with most checking accounts, however. Savings Account A savings account offers a simple, hassle-free way to save money. Banks usually set a minimum balance to open and/or maintain these types of bank accounts. The benefit of a savings account over a checking account is that money in the account accrues interest. The downside is that the number of allowable transfers or withdrawals is limited. Money Market Account A money market account combines the benefits of a checking account and a savings account. You can withdraw funds from the account, and you benefit from a high interest...
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...2011 Loss on sales tax payable 60,000,000 ($50 million taxes + $ 6 million interest + $4 million penalties) Sales Tax Payable 60,000,000 It seems unethical for eVade to consider the liability as not probable and that State X will not detect the risk. eVade should consider it probable because it is a court ruling. What is unknown is when the court ruling was publically announced (CON 6 b) and c)) making it probable that eVade will have to pay the sales tax and incur a loss. Besides, why would they make an estimate if they truly thought it not probable? Under nexus eVade is obligated to collect and pay sales tax under a prospective basis as stated in the problem. eVade will incur a loss because they will not be able to collect sales tax prior to 12/31/2011. 2. It was accrued as a contingency in Question 1, so we need to reverse the total estimate of $60 million and record a gain on the contingency of $35 million ($60 million - $25 million) by debiting the liability on contingency, crediting a gain on the contingency, and reclassifying the debt as sales tax payable. A disclosure statement should also be issued. (405-30-25-5, 450-25-25-5, and 450-20-25-2) No journal entry is necessary 3. Clear the adjusted liability from Questions 2 to credit cash for $25 million in accordance with 405-20-40-1. J/E: June 15, 2011 Sales tax...
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...Debt Policy at UST Case Questions Group members: Wei-Ting Liao; Cong Ren; Gerald Nyiti; Beidan Wang 1- ) Give a brief summary of the company background UST Inc. is a smokeless tobacco company which enjoyed a long tradition and a recognizable brand name. It is the leading producer of moist smokeless tobacco products and widely known for its conservative debt policy and uninterrupted cash dividend payout since 1912. The company is the major player in U.S. smokeless tobacco market. For example, it holds the maximum market share (77%) as a whole, and dominates especially in the growing segment of moist smokeless tobacco. Additionally, it has widely recognized brand and competitive positon in the market by constant innovation and new product innovation. Finally, UST has historically been one of the most profitable companies not only in the smokeless tobacco market but also in the corporate America. Although the above advantages, UST now faces with continuous threat from price-value competitors, a softening smokeless tobacco market, investors’ concern about over-investment on non-core operations and negative effect of public and political sentiment towards the tobacco industry. 2- ) Evaluate UST’s attributes/Risks from view point of bondholder The following factors weave into the risks and attributes of the company from the creditors’ point of view (“” and “” represents advantage and disadvantage, respectively): Widely recognizable brand Name UST has widely recognized...
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...bankruptcy case under chapter 7. The monthly current income which is received by the debtor in reference to bankruptcy code is defined as the average monthly income which is received on average over the last six months prior to commencement of the bankruptcy case. This average income includes contributions directed towards household expenses received from non-debtors which includes debtors’ spouse when the petition if filed jointly. However, this note does not include any proceeds and income received by the debtor from social security income as well as certain payments made due to the debtor been a victim of certain crimes (United States Courts 1). In order to determine whether a presumption of any kind of abuse arises, every debt that holds a consumer debt and files a bankruptcy case under chapter 7 is statutory required to complete an official bankruptcy form B22A. This is a vital and indispensable document for use in the case known as “Statement of Current Monthly Income and Means Test Calculation” and forms the case of bankruptcy under chapter 7. A bankruptcy case under chapter 7 may also be commenced in various circumstances especially a petition filed by creditors who hold unclear dues and claims against the debtor. However, when the bankruptcy case commences in a joint petition (husband and wife), either can claim for an exemption allowed under the federal...
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...price the two deals to determine which is more expensive, and must decide whether avoiding the constraints of government ownership is worth the extra cost. Learning objective: The class begins with a discussion of why, if the bank is required to raise capital, none of the instruments being offered look like equity? Why do regulators force banks to hold a certain amount of equity against their assets? Why do these instruments (which are more like preference shares and convertible debt) count as equity? Should they? We then discuss the pros and cons of accepting government versus private investment. Students generally conclude that other things being equal, it would be better to avoid government ownership, leading nicely to a discussion of... What is the relative cost of the two deals? Students must lay out the cash flows to the government preference shares versus the ""reserve capital instruments"" (debt) instruments, and the ordinary shares versus the ""Mandatory convertible notes"" (convertible debt) that the government and private deal will entail, respectively. The private deal involves granting various warrants for free, and these must also be priced using option pricing. Conclusion: Case teaches: Why is bank capital necessary? What sort of instruments do banks use as capital? How should we price them? What are the costs for a bank of being state-owned? Barclays Bank and Contingent依情况而定的 Capital Notes, 2012 In 2012, regulatory changes following the financial crisis mean...
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...IWhat is International Marketing? Marketing a product or service across national boundaries in order to satisfy the needs of customers and the objectives of the organization. Different Terms: Multidomestic marketing: adapting product and marketing programs to each foreign market independently. Global marketing: marketing activities in multiple country markets are coordinated and integrated. Foreign marketing: loosely refers to marketing a product in a market outside the home market. International Marketing Environments Global Economic Environment Cultural Environment International Marketing Global Competitive Environment Political/Regulatory Environment Systems Global Systems Global Financial Systems International Monetary Systems and Foreign Exchange Market Global/regional Trading Systems (WTO, EU, NAFTA, ASEAN,...) Importance of International Marketing • • • • World trade has risen from $2 trillion to $18 trillion in last three decades. International trade grows twice as fast as domestic trade. Global marketing is a “must” for firms to achieve sustained growth. Marketing success will be defined on a global scale. Domestic and International Trade Growth Percentage of Growth 12% 10% 8% 6% 4% 2% 0% Year International Trade Domestic Trade Financial Statistics Yearbook Source: International 2011, International Monetary Fund, Washington D. C. Uniqueness...
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...A quote from The Philosophies and Opinions of Marcus Garvey: Africa for the Africans states “The world ought to know that it could not keep 400,000,000 Negroes down forever."Even with all trials and tribulations African American ancestors went through one well-known phrase is “Forty Acres and a Mule”. The thought of repayment for the injustice of slavery has been around for many years. This thought of reparations is a controversy topic in existence in political discussions, school systems, and newspapers. The ideas of reparations for slavery have different perspective from a white and black point of views. According to: Reparations: Pro & Con which states “As table 1.1 shows, whites overwhelmingly oppose reparations payments, and a majority of blacks support them”( Brophy 4). People believe that the reparation for slavery was Forty Acres and a Mule, which was supposed to given to each former slave family. However, it was never given to any of them. Will it ever be given? Was this concept used to pacify the cries for justice? The Reconstruction era of slavery begin when the slaves were being abolition of slavery and the final ends of the Civil War. The blacks were in need of economics independence . The need for money forced the former slaves to work for the white landowners to make a living. William T. Shermanwas a West Point graduate. He soon volunteered his services for the American Civil War when it first arose. While the Civil War was going on, he later became...
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...William Polk Mr. Taborn ENG. 100 July 25, 2012 William Polk Mr. Taborn ENG. 100 July 25, 2012 ------------------------------------------------- Pro Capital Punishment ------------------------------------------------- Pro Capital Punishment ABSTRACT Capital Punishment is a highly controversial and emotional issue which most people seem to have strong arguments for and against. In the United States, controversy over capital punishment began in colonial periods when, against the consents of the English Crown, some settlements enacted only a few capital laws. Soon after the War for Independence and the adoption of the Constitution, America’s death penalty debate started in earnest. Capital Punishment is a subject that must be addressed with today’s violent society. The use of Capital Punishment in America has become a controversy among Americans. Controversy whether to ban Capital Punishment or not has become a top priority for most politicians. On one hand it brings justice, yet on the other its taking a life. After examining the benefit of capital punishment, one will likely conclude that the benefit of capital punishment outweighs the harm of expenditures, deterrent compensations, and retributions. The economic argument that people must always consider is the cost of the death penalty opposed to life imprisonment. According to California state records, the operating expense to finance the penalty costs...
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...It is a company with one owner and it is not registered with the state. Starting a sole proprietorship requires no formal paperwork or license, all you do is create it and go into business. The tax advantage of them is that any profit earned is treated as your personal income, and not treated separately by the IRS. Thus, you do not need separate or special taxes prepared each year for the business. These are the advantages of sole proprietorships. The largest and most daunting disadvantage is that any debts or legal judgements against your business are your personal responsibility. Your personal assets are fair game if you are ever sued or run into financial issues while doing business. Corporations are another form of business with several pros and cons to it. A corporation biggest pro is that it protects its owners from legal liability. Once the business is incorporated, the law sees it as a separate entity, and the owner’s legal liability for the business’s debts and activities becomes limited. Corporations are also able to issue stock, so it is a strong selling point for investors. They also have a large management structure typically, with directors, officers, and shareholders. This is an important point if the business is a large global company. Not a small side business that someone is running as a secondary income. Some of the downsides of corporations are in the time and cost of forming them. The actual incorporation process can be costly and time...
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...Session 2 Week 2 - FNCE 90062 Capstone Studies in Finance Session 2 Comparator Analysis “Comps” An opinion of value • A valuation is a well-founded opinion of value. It should be based on market evidence, but it is not a market result itself. • In some cases, the asset is not traded in an active market or exchange. e.g., privately held companies, real estate. Here, the concept of value may be different, depending on the type of valuation. (e.g., valuation for tax vs valuation for listing) • In other cases, the asset is traded in an active market or exchange. Here, you must provide a reason why the market value does to represent the ‘correct value’ for the purchaser. e.g., listed companies Valuation methods Method Comparable Companies DCF Cash Flows Accounting Risk Adjustment Prevailing market evidence Expected CFs Expected CFs RADR Separate RADR for different classes of CFs Separate RADR for different risk classes of CFs Risk free Complexity Adjusted DCF Sum of the Parts Expected CFs Certainty Equivalence Risk adjusted Use Steps in Comparable Company Analysis 1. Select Universe of Comparable Companies 2. Locate Necessary Financial Information 3. Determine Key Statistics, Ratios and Trading Multiples 4. Benchmark the Comparable Companies 5. Determine Valuations Step 1: Select Universe of Comparable Companies • What is a comparable company? You are looking for a company that similar to the company being...
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...the law says that you would not only have to pay the taxes back to the IRS, but you would also have to assume the late payment penalty to the government. After all the information given, I would suggest that if you have been given the option to choose, you should choose annuity payments since this case is concerning large settlements, in order to avoid any lawsuit taxation. b. How is the $25,000 treated for purposes of Federal tax income? In the case of the $25,000, they are not taxable; they should be treated as expenses, meaning that they can be deducted as expenses for that year. c. What is your determination regarding reducing the taxable amount of income for both (a) and (b) above? As previously mentioned in answer number 1, Mr. John Smith should choose the annuity payments options, in order to reduce the chances of lawsuit taxation in the case of the large settlement for the $300,000. In regards to the $25,000, as mentioned before, they need to be treated as expenses and deducted from his income tax. 2. Jane Smith tax issues: a. What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for Federal income tax purposes? Paying down the mortgage or assuming a...
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...with the sole proprietorship is that there is no partnership agreement and the disadvantage is that personal assets are open to attack in legal cases (Ohio Government, 2012). Financial statements The main financial statement that would benefit a sole proprietorship is the statement of cash flow. Since, this statement shows where the cash came from and where it went during the period and how much the company has on hand is very important for the company (Kimmel, Weygandt, & Kieso, 2009). This allows the sole proprietor to have great cash management because it is crucial for the survival of the business. Consequences Since, the sole proprietorship is directly linked to the individual who started the business this means that any debt of...
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...As an aftermath of the 2007-12 global financial crisis the International community unanimously opted to protect the global financial system through preventing the failures of SIFIs. The Basel Committee on Banking Supervision introduced new regulations (known as Basel III) that also specifically target SIFIs. The main focus of the regulations is to increase bank capital requirements and to introduce capital surcharges for systemically important banks. However, some economists have warned that the tighter Basel III capital regulation, which is primarily based on risk-weighted assets, may further negatively affect the stability of the financial system. Adding to the already intense regulations in the banking sector, the Federal Reserve intends to impose new stricter norms on the U.S. banking giants. On Tuesday, Fed Governor Daniel K. Tarullo released a statement, giving an update on the Fed's advancement towards the Dodd-Frank Act that started over four years back and outlined some important forthcoming "regulatory and supervisory priorities" to act upon the concerns arising from the "too big to fail" banks and systemic risk. The testimony was prepared for a hearing before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate. Of the 29 global systemically important banks ('GSIBs') identified by the Financial Stability Board ('FSB'), there are 8 U.S. banks - The Goldman Sachs Group, Inc. ( GS ), Citigroup Inc. ( C ), Bank of America Corp. ( BAC ), Wells Fargo &...
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...James Haskins Managerial finance November 5, 2006 TABLE OF CONTENTS List of Figures 3 List of Tables 4 Executive Summary 5 Introduction 6 Statement of Opportunities and Problems 7 Methodology and Analysis 8 Summary and Conclusions 24 Recommendations 25 Works Cited 27 Appendix 28 LIST OF FIGURES Figure 1: NPC’s yield curve 10 Figure 2: Project evaluation 10 LIST OF TABLES Table 1: Bond yield and cost of debt 9 Table 2: Sinking fund cash flow 11 Table 3: Own-bond-yiel-plus-risk-premium 12 Table 4: Cost of Equity, CAPM 14 Table 5: Cost of Equity, DCF 15 Table 6: Issuance of new common stock 18 Table 7: PNC’s WACC 18 Table 8: Capital budget 19 Table 9: Project evaluation 20 Table 10: Capital structure (weights) 21 Table 11: Capital structure (costs) 21 Table 12: Euro-denominated bonds 22 Executive Summary The cost of capital consists of three parts: cost of debt, preferred stock, and common equity. For bond evaluation we find the yield on the bonds and deduct the taxes, for preferred stock we consider the dividends and flotation costs and for cost of equity there are three different ways to estimate that is described in this report. For PNC the best is to use CAPM, because it considers market risk and that makes more informative to investors. To obtain the cost of weighted average cost of capital we multiply the cost of the above...
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...[pic] United Postal Service [pic] [pic] UPS [pic] S&P 500 Original Purchase Rational The Educational Investment Fund (EIF) purchased 500 shares of United Parcel Service, Inc. (NYSE: UPS) on March 10, 2000 at a price of $53 5/8 per share. Nicholas Finn, the EIF analyst who brought UPS to the EIF cited the following reasons supporting his buy recommendation: ▪ Largest and most profitable carrier ▪ Most global reach ▪ Offers the most diverse product mix ▪ AAA/Aaa credit rating by Standard & Poor and Moody’s In November of 2001, EIF analyst Ajay Jamuar added the company’s ability to perform during a difficult economy, the growth in the logistics segment of the company, risk management of fuel costs, and a loyal customer base as reasons to hold this stock. Portfolio Considerations UPS is classified as a capital appreciation and income stock in the industrials sector. At the time of this report, the summer targets for capital appreciation have not been set, but we were satisfactorily close to our most recent target of 75% with a current weighting of 75.88%. Based on a spring target of 11% we are underweighted in our industrials sector by 180 basis points. UPS represents 33.3% of our current holdings in the industrials sector and is accompanied by Automatic Data Processing (ADP), Convergys (CVG) and Fastenal (FAST). The current portfolio holdings, date acquired, shares...
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