shadow banking and how does it differ from traditional retail banking? What kind  of threat does shadow banking pose to the financial system? Discuss the role of shadow  banking in the financial crisis of 2007-2008.

Q: You are promised yearly payments of 200 EUR forever from your fairy godmother. The first payment is…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: The company DstriBut.inc decides to take a technological shift by replacing its old distribution…

A: Given,  The cost of equipment is $6,000,000. Depreciation rate is 30%

Q: if martha puts in 100$ in a bank today at 6 % how much will she have in three years

A: Accumulated Value after 3 years = Deposit Amount*(1+i)^3  = 100*1.06^3 = 100*1.1910160 = 119.10160 =…

Q: Could you help me with calculation of cost of debt which is 8,13%, i can see that was made excel…

A: Cost of Debt: It represents the cost of raising debt capital for the issuer. The issuer pays the…

Q: an engineer planning for retirement settles on a P87,000 annual income ext 20 years, with the first…

A: There is need of proper planning for retirement and if you do on properly than you would enjoy good…

Q: A company is considering expanding a production line, which is expected to remain operational for…

A: For Machine A: Price of Machine A : 400 MUSD Additional cash flow for 8 years : 20 MUSD/year Cost of…

Q: Choose between the two proposals below. (i=7% APR) $1,000 NPW A # $800 1 2 $1,000 YR NPW B A=$1,200…

A: The core principle of finance explains that the value of money is more today than the value of the…

Q: In how many years will it take P18,000 accumulate t P20,000 when deposited in a savings account that…

A: Answer -  Compound interest formula -  A = P (1+ r/n)nt Given, A = 20000 P = 18000 r = 0.25%…

Q: A corporate bond's return becomes less uncertain as default risk increases.   True or False.…

A: A bond is a financial instrument that represents a loan made by an investor to a borrower (usually a…

Q: On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day…

A: Answer -    PART 1 - No Date General journal Debit Credit           1 Nov-11 Cash   $…

Q: Assume two investment opportunities have identical expected values of $60,000. Investment A has a…

A: Investors who sense potential in market volatility and are willing to take on a significant amount…

Q: Based on the information provided above, apply Gordon’s growth model to compute the dividend growth…

A: Gordon Growth Model: Such a model carries an assumption that the company exists forever and the…

Q: Goldie clothes are planning to expand their clothing business by opening a factory overseas. The…

A: After calculating all working in excel, the Net Present Value (NPV) is £4,35,640. NPV Calculation:…

Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent.…

A: To calculate the monthly payment amount we will use the below mention formula   Monthly payment =…

Q: Current Ratio = Current Assets/Current Liabilities 2020 2019 13,896,794,073/13,864,318,289 = 1.00:1…

A: Current Ratio is the ratio which shows the short term liquidity position of the company that how…

Q: As you can see in the graph below, two alternatives of A and B are compared to each other. What do…

A: Analysis of Graph: At x%, PWA and PWB intersects. At y%, PWA touches the axis      Cross over…

Q: U.S. Bancorp and Wells Fargo & Company entered into the fixed-for floating interest rate swap with…

A: Notional principal = $1,00,00,000.00 Fixed rate = 6.50% Floating rate = 4.6% + 220bps Frequency of…

Q: i) Based on the information provided above, apply Gordon’s growth model to compute the dividend…

A: Gordon Growth Model: This model helps in valuing the share of a company by discounting all the…

Q: HJK Corporation’s demand for cash during a year’s time is $500,000. Each time HJK sells securities…

A: Here, Demand for Cash is $500,000 Brokerage Commission is $10 Interest Rate is 4%

Q: What is the total return of an equal-weighted index over the holding period given the following data…

A: Given,  Three stocks A, B and C

Q: A firm with a below industry net profit margin can improve its return on total assets by:  a.…

A: Net profit margin:  Net profit margin evaluates how much net profit a firm makes per dollar of…

Q: For the Years 1,2,3,4, and 5, the index numbers are 108, 112, 116, 124, and 131 respectively. Based…

A: Index for Year 1 rebased on year 3 = Index of Year 1 / Index of Year 3 * 100

Q: Present Value of Growth Opportunities (PVGO) if the investors' required rate of return is 20%?…

A: PVGO means present value of growth opportunities. It is a method of valuation applied to growing…

Q: Suppose a mutual fund that invests in bonds purchased a bond when its yield to maturity is higher…

A: Given: When bond  yield to maturity is higher than the coupon rate.   Required:The investor should…

Q: GSM Inc. STOCK RETURN YEAR PRICE Jan-2021 P57.70 Feb-2021 P52.90 Mar-2021 P50.95 Apr-2021 P58.25…

A: Here, Total Return =? Average Return =? Standard Deviation =?

Q: Sora Industries has 65 million outstanding shares, $127 million in debt, $59 million in cash, and…

A: Free cash flow firm value model Under free cash flow valuation, the value of the firm is the sum of…

Q: Emek is planning to retire in 15 years. She decides to start saving toward building up a retirement…

A: Here,

Q: Directions: Compute the total returns, the average of returns, and the standard deviation of the…

A: Data given: ERGH Inc., Year Stock Price (P) Jan-21 0.088 Feb-21 0.090 Mar-21 0.097…

Q: (Ignore income taxes in this problem.) The management of an amusement park is considering purchasing…

A: To assess the annual revenue, NPV should be zero @ 12%.

Q: could you explain computation (1 i )how to find the growth rate and write the formula cle

A: The explanation about the growth rate is given as follows:

Q: A firm earns $3550 million in profits and pays $2480 million in dividends for the year. The firm…

A: The dividend is part of the profits given by the company to its shareholders. Preferred…

Q: ou are promised 5 (yearly) payments of 500 EUR from your fairy godmother. The first payment is…

A: We can compute the present value of all promised payments at the bank agreed interest rate of 3%.

Q: The EPA proposes to cap emissions of ground-level ozone promoting emissions in both Illinois and…

A: Marginal abatement cost is the cost that the concerned institution needs to incur to reduce an…

Q: The expected constant-growth rate of dividends is ______% for a stock currently priced at $66, that…

A: Under dividend growth model, price is calculated as: = Dividend at year 1 / (Required return -…

Q: Do this Alternatives Selection problem using PW method. Show calculation and select the best (or…

A: Interest rate = 7% Proposal A Year Cash Flow 1 -2000.00 2 800.00 3 1000.00 4 1200.00…

Q: An investment project has the following characteristics: Cost, P22,820; Annual cash inflows, P5,000;…

A: The answer is option A. 7 years. Useful Life of the project = 7 years.

Q: Compute the residual risk measure for portfolio A. Round off your final answer to three digits after…

A: Residual Risk: The risk that is company-specific and can be diversified away is known as…

Q: What is beta?

A: Beta is the relativeness of the stock return with market returns. If the beta is more than 1, stock…

Q: Mr Price, has no debt outstanding and a total market value of R150,000. Earnings before interest and…

A: Here, To Find: % Change in EPS when the economy expands =?

Q: Sycip was tasked to analyze the earnings performance of Alamo Transport Corporation. The following…

A: Basic earning per share is income available to shareholder after payment of all dividends and…

Q: i) Estimate Mencias Corp. total financing requirements (total assets). ii) What is Mencias Corp. net…

A:

Q: Income from sales of certain hardened steel connectors was P400,000 in the first quarter, P410,000 in…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Bond carries a part that is popular in the manufacture of automatic sprayers. Demand for this part…

A: EOQ stands for economic order quantity. It determines the economical units to be placed in an order.…

Q: MM Proposition 2: McLaren Corp is financed entirely by common stock and has a beta of 1.0. The firm…

A: here; We have Interest rate or Cost of debt is 5% Cost of equity is 12.5% Price to earning ratio is…

Q: You have 4 types of assets in your portfolio: Corporate bonds shares are valued at $250 and make up…

A: Share price: Share price is the current market price of the share. It is the price of the share at…

Q: The total assets of a mutual fund amount to ₱40M and the total liabilities of ₱8M. If you invest ₱1M…

A: Stocks are stocks of corporate capital. In some companies, stocks exist as financial assets that can…

Q: A portfolio manager creates the following portfolio: Security Security Weight Expected Standard…

A: Standard deviation of portfolio is dependent on the weight of each security in the in the portfolio…

Q: BBA Limited is a levered firm having a debt-equity ratio of 1:3. It has financed its capital via…

A: The question is related to Capital Budgeting and cost of capital. The Weighted Average Cost of…

Q: Return on asset is a term often used to express income earned on capital invested in a business…

A: The financial ratio of a company's profitability to total assets is known as return on assets (ROA).…

Q: A four-year project has an initial cost of $20 000, net annual cash inflows of $10 000, and a…

A: IRR (internal rate of return) It is a capital budgeting tool to decide whether the capital budget…

Global issues

While studying the global issues, it is important to read the following topics to get a better knowledge: