2. By use of examples, distinguish between: a. Debt and equity securities. b. Primary and secondary markets. c. Money markets and capital markets. d. Aggressive and conservative working capital management. (5 marks) (5 marks) (5 marks) (5 marks)

a) Calculate the equity (total asset – total liability) to asset ratio of the bank (Hint: equity to asset ratio = total equity/total asset) %3D b) Calculate the duration and convexity of the both asset and liability sides

2 - Which of the following is a Short Term Source of Finance? a. Bank Credit b. Equity Shares c. Preference Shares d. Debenture

Equity is generally classified into two major categories: Select one: a. earned capital and contributed capital. b. contributed capital and appropriated capital. c. retained earnings and unearned capital. d. appropriated capital and retained earnings.

q1-  Which of the following item is not used in equity-based valuation models? Select one: a. Working capital b. Dividends c. Earnings d. Cash flows

Q: Choose all that apply: The following ratios may be impacted by the adoption of the new standard: A. Revenue growth B. Net margin C. Return on equity D. Price to earnings multiples E. Return on assets F. Debt to equity G. Current ratio The Question is: Why "Debt to equity" and "Current ratios" may be impacted?

What does the market value of debt and equity refer to? O A. The values at which debt and equity are traded in the financial markets O B. The values at which debt and equity are carried on a balance sheet C. The par values of common stock and the maturity values of debt O D. The intrinsic values of debt and equity

3. Which of the following categories of investments are reported at their fair values on the balance sheet and have unrealized holding gains and losses included as a separate component of stockholders' equity? a. held-to-maturity debt securitiesb. marketable securitiesc. available-for-sale securitiesd. trading securities

Prepare a classied balanced sheet in good form    1. Common Stock  2. Discountedd on Bonds Payable  3. Treasury Stock (at cost) 4. Notes Payable (short-term) 5. Raw Materials  6. Prefered Stock Investments (long-term) 7. Unearned Rent Revenue  8. Work in Process. 9. Copyrights   10. Buildings 11. Notes Recievable (short-term). 12. Cash. 13. Salaries and Wages Payable. 14. Accummlated Depreciation--Buildings 15. Restricted Cash for Plant Expansion  16. Land Held for Future Plant Site  17. Allowance for Doubtful Accounts  18. Retained Earnings  19. Paid-in capitial in Excess of Par -Common Stock  20. Unearned Subscriptions Revenue  21. Receivables--Officers (due in one year) 22. Inventory (finished goods) 23. Accounts Receivable  24. Bonds Payable (due in 4 years) 25. Noncontrolling Interest

Which of the following is TRUE? I. Internal rate of return (IRR) is a major method for determining the cost of equity. II. The cost of capital depends on the source of the funds. Group of answer choices I and II II only Neither I nor II I only