Financing your education The cost incurred in attending a college or university can be quite expensive if a student does not utilize all resources to aid in covering the cost of their education. A student can apply through FAFSA for financial aid and it is disbursed from the Federal Government, and because it is a grant it does not need to be repaid. Grants are typically referred to as free money and are based on the need of the student. A student can reduce the amount that they need to borrow
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remain fixed as a matter of the company’s policy? 2. What happens to Gainesboro’s financing need and unused debt capacity if: a. no dividends are paid? b. a 20% payout is pursued? c. a 40% payout is pursued? d. a residual payout policy is pursued? Note that case Exhibit 8 presents an estimate of the amount of borrowing needed. Assume that maximum debt capacity is, as a matter of policy, 40% of the book value of equity. 3. How might Gainesboro’s various
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THE CHALLENGES OF GLOBALIZATION FOR SMES IN TANZANIA Prepared by Tanzania Chamber of Commerce Industry and Agriculture 1 1. Introduction: Definitions Globalization: Every one of 2,822 academic papers written on globalization and 589 new books published on the subject in 1998 had different definitions of globalization. An economic phenomenon, involving the increasing interaction, or integration, of national economic systems through the growth in international trade, investment and capital
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flows of a financial instrument will fluctuate due to changes in market interest rates. The company manages interest rate risk by reference to pricing intervals spread across different periods of time with the proportion of floating and fixed rate debt managed separately. The mix of fixed and floating interest rate funding is managed by using three types of financial instrument: interest rate swaps, forward rate agreements and options. The other risks of market risk are foreign exchange and fuel
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without a third party involvement. A very good illustration of direct financing is individual lending money to his friends who would repay the individual later with or without an interest rate. There is no other party involved in this fund transfer. Debts markets, securities traded on stock exchanges are examples of direct financing. Indirect finance is a method of financing in which financial intermediaries such as banks, insurance companies are involved in the funds transfer between borrower and lender
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FIN 701 Reading #2 – Confusion runs deep about Cdor amid suspicions rate is brokenCaroline Kubrak Maciel - #500302704 | The Canadian investment industry’s self-regulatory organization has found that the process for setting Cdor, the Canadian version of Libor, is murky, complex and could be manipulated, but stopped short of making concrete recommendations on how to fix it. Cdor, or the Canadian Dealer Offered Rate, is supposed to reflect the rate at which banks lend to one another and, like Libor
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25% owner with Oil Company, paid back certain creditors of Oil Company when the Oil Company went bankrupt. The taxpayer is also a partner of an architectural firm whose primary customers were also creditors of Oil Company. The taxpayer deducted the debt repayment as a business expense of the firm. The IRS argues that the repayment is not an “ordinary and necessary” expense of the architectural firm and therefore cannot be deducted. It is determined that this case will be ruled in favor of the taxpayer
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Her monthly payment on an automobile loan is $375. What is Louise’s debt payments-to-income ratio? Is Louise living within her means? (LO 5.3) Louise’s Gross Income | = | $3,000 | Less: Income taxes | = | -700 | Less: Social Security Tax | = | -250 | Less: IRA contribution | = | -100 | Net take-home pay | = | $1,950 | Her monthly payments on VISA, MasterCard, and a car loan add up to $500 per month. Louise’s debt payments to income ratio is 500 to 1,950, or 25.6 percent. This ratio
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ACCOUNTING TRANSPARENCY Charles Katoroogo Prof Brandy Havens ACC 303 12/1/2013 ACCOUNTING TRANSPARENCY Accounting is mainly concerned with general rules, concepts and principles that are established with the purpose of governing different fields of financial reporting. Accounting principles are also known as accounting principles and guidelines, these acts as the base on which more complex and critical rules are based. The authority responsible for issuing the accounting standards (i.e. financial
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bank loans actually consist of two different loans: $5 million in straight unsecured debt, plus another $4563000 in loans that are subordinate to the $5 million loan. In recent times, with the financial markets strengthening up, more and more people entering this financial market as players, there arises the need to further increase the scope of the financial markets which primarily dealt in stocks and debt. This lead to the rise of the product: derivatives. Derivatives are those financial instruments
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