Company Analysis – Bank of America Corporation FIN300: Financial Management Professors Name NAME University February 27th, 2015 NAME Company Overview Bank of American Corporation is currently one of the largest banks in the US. It currently holds the 3rd largest bank place in deposits right after JP Morgan and Wells Fargo. It has locations from coast to coast and has been in business since 1904. Bank of America was funded in 1998, however before that it was called Bank of Italy.
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SEBI guidelines pertaining to the Issue of Debentures are as follows:- * Issue of FCDs having a conversion period more than 36 months will not be permissible, unless conversion is made optional with “put” and “call” option. • Compulsory credit rating will be required if conversion is made for FCDs after 18 months. • Premium amount on conversion, the conversion period, in stages, if any, shall be pre-determined and stated in the prospectus. • The interest rate for above debentures will
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013289*5000000/1.03=64510 3.17 (a)$150 million*0.6/1.025=$87.8million (b) 200-150/50=1 Probability of losses exceeds 200million =15.87% 100million*15.87%/1.025=$154829 3.18 Since the interest rates fall 2% and the equity price is flat. So the bond price will increase, so the pension plan price will increase. 3.19 Suppose the salary of final year is X 0.70X PV=12.08X=45Xf f=26.8% 4.15 Tax is paid as though the investor owned the mutual fund investments If the mutual fund realizes
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1. What is the present value of the following uneven cash flow stream −$50, $100, $75, and $50 at the end of Years 0 through 3? The appropriate interest rate is 10%, compounded annually. In order to calculate the present value of uneven cash fellow, I would like to identify what is the present value for uneven cash flow means? Although the return or the payment of these cash flow is usually regular, the amounts in most cases is different from period to other period .when we need to determine
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Keller Graduate School of Management Accounting 540: Accounting and Auditing Research Professor: Michael Abner Course Project Week 6 April 11, 2015 Abstract In week 6 assignment, I will write a short essay to sum up my recommendation and conclusion about my finding to present to my client, the director of ABC Investment Group. Since the Director has a limited understanding the US GAAP regarding Debt security, therefore I have to be concise in my presentation. ABC Investment Group is
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Refinancing with a new high-yield bond issue Tight credit markets in the U.S. and worldwide in 2009 signaled continued trouble for companies that needed to pay off or refinance debt in 2009 and onward.19 The financial crisis in 2008 had seen a virtual stop to high-yield issuance.20 The following year, there were some positive signs, and returns on high-yield debt had been very strong in 2009 as debt prices surged back from crisis lows. However, issuance volumes remained low for European high-yield
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1. What’s the optimal price forecast for an asset when we only know this periods information? - 2. What officers are responsible for financial information under SARBOK - 3. What organization overseas insider trading * Security and Exchange Commission 4. What are the ways for dealing with information asymmetries -plums and lemons- assuming everything is a lemon or bad 5. When can privileged information be use legally -making the information public before using it 6. What
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Solutions to Chapter 5 Valuing Bonds Note: Unless otherwise stated, assume all bonds have $1,000 face (par) value. 1. a. The coupon payments are fixed at $60 per year. Coupon rate = coupon payment/par value = 60/1000 = 6%, which remains unchanged. b. When the market yield increases, the bond price will fall. The cash flows are discounted at a higher rate. c. At a lower price, the bond’s yield to maturity will be higher. The higher yield
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Corporation of Canada (TCC) is based in Ontario. It has a callable outstanding bond issue, which was issued five years ago at a coupon rate of 6%, with a face value of $100 million, and with 20 years remaining to the maturity date. Interest rates at the time of the issue were considerably higher than they are now, and the company would now like to refinance the bonds. TCC’s investment banker assures the CFO that the bonds could now be issued for a 20-year maturity at a coupon rate of 4.5%. The following
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A Case Study of Gary Halper Menswear Limited Decision Dilemma Name Institution Gary Halper Menswear Limited Case Study The Company The company is a medium- sized manufacturer of high-quality men’s jackets and suits in Canada. It is also known as GHM, established in 1995 by Garry Halper, who is the Chairman and President, using proceeds he got as an inheritance. In particular, it is located in Montreal, Canada in a 15 years leased premises and manufactures men’s suits and jackets for both
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