checkbook or calculating your monthly expenditures on espresso requires only arithmetic, when we start saving, planning for retirement, or need a loan, we need more mathematics. Simple Interest Discussing interest starts with the principal, or amount your account starts with. This could be a starting investment, or the starting amount of a loan. Interest, in its most simple form, is calculated as a percent of the principal. For example, if you borrowed $100 from a friend and agree to repay
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What Is a Bank? • The Financial System and Competing Financial-Service Institutions • Old and New Services Offered to the Public • Key Trends Affecting All Financial-Service Firms • Appendix: Career Opportunities in Financial Services Chapter Outline I. Introduction: Powerful Forces Reshaping the Industry II. What Is a Bank? A. Defined by the Functions It Serves and the Roles It Play: B. Banks and their Principal Competitors C. Legal Basis of a Bank D
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|June | | | | |Current Assets | | |Cash in Bank |20,000 | |Cash Value of Inventory |12,000 | |Prepaid Expenses (insurance)
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history of commercial banks from a general perspective then narrows down to Kenya’s context. It looks at the importance of commercial banks in Kenya, the roles/functions of commercial banks. It then focuses on the regulations that govern the commercial banks. Lastly it looks at the contribution of commercial banks to Kenya’s economy. TABLE OF CONTENTS Abstract 2 Table of contents 3 Introduction 4 The history and development of commercial banks 5 Importance of commercial banks 9 Roles of commercial
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A STUDY ON FINANCIAL RATIOS OF MAJOR COMMERCIAL BANKS Dr. Y. Sree Rama Murthy Director Research & Senior Faculty Member College of Banking & Financial Studies Sultanate of Oman RESEARCH STUDIES 2003 _______________________________________________________ College of Banking & Financial Studies PO Box 3122, PC 112 Sultanate of Oman CONTENTS Chapter 1 INTRODUCTION Chapter 2 PROFITABILITY MANAGEMENT RATIOS Chapter 3 LIQUIDITY RISK MANAGEMENT Chapter 4 INTEREST RATE
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$10 million Long-Term Debt: $30 million Common Equity: Common Stock (1 million shares): $1 million Retained Earnings: $39 million Total claims: $80 million The current liabilities consist entirely of notes payable to banks, and the interest rate on this debt is 10%, the same as the rate on new bank loans. The long-term debt consists of 30,000 bonds, each of which has a par value of $1,000, carries an annual coupon interest rate of 6%, and matures in 20 years. The going rate of interest on new long-term
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- Accumulated Depreciation for Capital Assets - etc. Accounting Equation- Assets = Liabilities + Owners Equity Assets | Liabilities | Equity | | | | -Cash- Accounts Receivable- Notes Receivable- Prepaid Expenses-Land- Building- Equipment- Furniture & Fixtures | -Accounts Payable- Notes Payable- Accrued Liabilities- Mortgage Payable | - Capital- Withdrawals- Revenue - Expense | 4 Financial Statements- Order Of Preparation 1) Income Statement – presents a summary of the revenues
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Case Analysis - Answers Case no. 22 – City Shops, Inc. Question No. 1 – Evaluate the financial position and performance of City Shops, Inc. Presented below is the financial evaluations of the City Shops Financial Statements in Terms of Liquidity, Leverage, Profitability and Efficiency. The company has large amount of current assets making its current ratio good enough to satisfy short term obligations. However, the company has low acid test ratio which is below 1:1 standard ratio because the
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THE LIBYAN ASSET FREEZE AND ITS APPLICATION TO FOREIGN GOVERNMENT DEPOSITS IN OVERSEAS BRANCHES OF UNITED STATES BANKS: LIBYAN ARAB FOREIGN BANK v. BANKERS TRUST CO. Corinne R. Rutzke* INTRODUCTION United States asset freezes are political weapons invoked in response to international crises.' Traditionally, United States asset freezes have blocked foreign government assets within the jurisdiction of the United States.2 Following the 1979 Iranian hostage crisis, however, United States peacetime asset
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short terms financial assets that are close substitute for money, facilitates the exchange of money in primary and secondary market”. * 2. It doesn’t actually deal in cash or money but deals with substitute of cash like trade bills, promissory notes & It includes all individual, institution and intermediaries.govt papers which can converted into cash without any loss at low transaction cost. * 3. In Money Market transaction can not take place formal like stock exchange, only through
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