relevant. By issuing debt when they did, Apple took advantage of the low interest rates the market is offering. Furthermore Apple is a safe investment because of the low liabilities and high assets the company possesses. Apple’s 10-year corporate bonds are currently
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A)Identify the devices (controls) that Al Fiorini used to control his business both before and after he went back to school. Classify each control as a results, control, or personnel/cultural type of control. Action control Before he went back to school i. Al monitored the activities of his loan offers by tracking the number of credit inquiries each requested. ii. Al closely monitored the loan application/lead ratio depending on the skill of the loan officer. After he went back to school i
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FINANCE 305 : ESSENTIALS OF INVESTMENTS CHAPTER 1: Investments: Background and Issues. REAL ASSETS – assets used to produce goods and services. FINANCIAL ASSETS – claims on real assets or income generated by them. FIXED INCOME (DEBD) SECURITIES – are securities that pay a specified cash flow over and specific period. EQUITY – an ownership share in a corporation. DERIVATIVE SECURITIES – securities providing pay offs that depend on the value of other assets. AGENCY PROBLEMS – conflicts of
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financial markets and financial intermediaries through which firms acquire funds from households. Economics growth is impossible without a well-functioning financial system. Financial markets: markets where financial securities, such as stocks and bonds, are bought and sold. A financial security is a document that states the terms under which funds pass from the buyers of the security (the lender) to the seller (the borrower). One type of financial market is the stock market. Stock: a financial
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A Tax-Free Bond Fund is a mutual fund that seeks to provide consistent prudent portfolio management. The Maryland Tax-Free Bond Fund has the highest level of income exempt from federal, Maryland state, and local income taxes by investing primarily in investment-grade Maryland Municipal Bonds. This bond fund has high risk, high returns, and little, if any tax implications. The main risk one may have to face when investing in a tax-free bond fund is t he interest rate risk, credit risks, non-diversified
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1. Deposit-taking institutions that accept and manage deposits and make loans 2. Insurance companies and pension funds; 3. Brokers, Underwriters and investment funds Financial institutions deal with various financial activities associated with bonds, debentures, stocks, loans, risk diversification, insurance, hedging, retirement planning, investment, portfolio management, and many other types of related functions. With the help of their functions, the financial
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Introduction Debt watcher Moody’s Investors Service is now reviewing for upgrade the local and foreign currency deposit ratings of four Philippine banks after announcing the same decision on the country’s credit rating. These banks are the Sy-led Banco de Oro Unibank (BDO), Ayala-led Bank of the Philippine Island (BPI), government financial institution Land Bank of the Philippines (Landbank) and Ty-led Metropolitan Bank & Trust Company (Metrobank). These banks local and foreign currency deposits
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Redemption of Debentures: A company may issue redeemable as well as irredeemable debentures. But debentures issued by companies are usually redeemable debentures. There are two important ways of redeeming the debentures according to the term of the issue. Redemption of Debentures on a Fixed Date: In this method, payment to debenture holder is made at the expiry of the stated period. A "Sinking Fund" is created by debiting the "Profit & Loss Appropriation Account". The amount so credited in
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Chapter 6 Q.7 Use the rate-of-return data for the stock and bond funds presented in Spreadsheet 6.1, but now assume the probability of each scenario is as follows: severe recession: 0.10; mild recession: 0.20; normal growth:0.35; boom: 0.35. (a) Would you expect the mean return and variance of the stock fund to be more than, less than, or equal to the values computed in Spreadsheet 6.2? Why? The variance is expected to increase because the probabilities of the extreme outcomes are now higher
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Lobbing of commercial and political interests in the establishing of the standards is a fact, which leads to believe that there might be large groups of the financial information users, who are interested in the particular way of reporting. If it is beneficial to them and to the market without compromising any ethical issues related to the financial reporting, if the market gains from such interests, than the standards should be formed under such influence. The question is who is going to decide
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