Unethical Behavior Involved In 2002, CitiGroup Inc. and other top Wall Street securities firms were accused of misleading investors. This misconduct was done by the securities firms’ research divisions. The analysts used biased research to sell stock that they knew were not good buys. The analysts ignored the legitimate research because of concern over from backlash from their investment bankers. They were encouraged to do this by the investment sections of their companies in return for bonuses
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leverage = 2*2 m = 4,000,000 million (total market value) b. Suppose you borrow 1 million. According to MM, what fraction of the firm’s equity will you need to sell to raise an additional 1 million you need? “ As long as the firms choice of securities does not change the cash flows generated by its assets must have the same total market value” ( Berk & DeMarzo, 2010, pg. 455). Therefore, the total value of the firm is still 4 million dollars. Because they borrowed 1 million they have 1 million
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000 dividends pd in July Beginning cash on 6/1/10 is $20,000. Minimum cash balance is $15,000. Maximum cash balance is $50,000 (excess cash over $50,000 invested in marketable securities) In case of cash shortfall, marketable securities are liquidated before any borrowing takes place. Assume that there is no marketable security balance and no short term loan balance as of June 1 Required: Prepare the following schedules (for months of June - Sept): - round to even dollars a. Cash receipts, monthly b
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over the network and open the door for criminals to steal your valuable personal information. Knowing how to stop these thieves is important. The purpose of this report is to address a few of these security issues and discuss ways to prevent attacks from occurring. Users pose the largest security threat to a pc. Users go out on the internet, haphazardly clicking away on links that could open their pc for an attack. Malware, phishing scams, bot herding, viruses, and worms are just a few of the
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i [pic] RISK ANALYSIS Project or System Name U.S. Department of Housing and Urban Development Month, Year Revision Sheet |Release No. |Date |Revision Description | |Rev. 0 |1/31/00 |SEO&PMD Risk Analysis | |Rev. 1
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we are accepting online payments for purchases made using our e commerce web site, we will need to let our customers know in the Security Policy of our ecommerce web site, how we will protect their credit card details and personal information. We will also need to have a policy that requires all sensitive data to be encrypted. We should also include this in our security policy. We also need to insure that our ecommerce site and any other portion of our site that asks for personal information is
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TOKYO AFM Case Study 1. I would recommend to Matsumoto to change the way he recognized revenues by recognizing the revenues on a monthly basis for the period or straight-line method for the time of the contract. So for a five-year contract I would recognize 1/60th of the revenues each month for 60 months. So for this question I would recognize Y1,666.67 each month for 60 months. 2. I would recommend to Matsumoto to capitalize all acquisition costs incurred during the acquisition of the
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significant financial asset of U.S. households in terms of total value. A. real estate B. mutual fund shares C. debt securities D. life insurance reserves E. pension reserves See Table 1.1. Difficulty: Easy 3. In 2007, ____________ was the most significant asset of U.S. households in terms of total value. A. real estate B. mutual fund shares C. debt securities D. life insurance reserves E. pension reserves See Table 1.1. Difficulty: Easy 4. In 2007, ____________ was
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There has been a flood of capital being poured into technology firms at a rate that have some fearing another bubble is ready to burst and a repeat of the “dot.bomb era” of a decade ago may soon repeat. How valid is this concern? Using the recent LinkedIn initial public offering as an example, the shares soared on first day of trading last week from $45 per share to over $94, that’s 100% plus increase (this too followed a last minute decision to raise the initial offering price from around $35 to
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Journal of Financial Economics 00 (2002) 000-000 When a buyback isn’t a buyback: Open market repurchases and employee options Kathleen M. Kahle* Katz Graduate School of Business, University of Pittsburgh, Pittsburgh, PA 15260, USA (Received 20 September 2000; accepted 6 June 2001) Abstract This paper examines how stock options affect the decision to repurchase shares. Firms announce repurchases when executives have large numbers of options outstanding and when employees have large numbers of
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