Bank Acceptances

Student’s Name Professor’s Name Course Date Bank Acceptances “Banker’s acceptances, also known as a bill of exchange is a draft in a commercial bank that mandates a bank to pay the person that holds this instrument, a specific amount, at a specific time, usually a period between one day to 180 days.” (Fabozzi, Mann, and Moorad 31) In most cases, bankers cheques are provided for in discounts but are repaid in the full amount. Interest gained by the banker’s cheque is the difference between the values of the instrument at maturity versus when the instrument was issued. In cases where the instrument is submitted before the due date of maturity, then the interest accrued will not be...

Business Modeling Report

Business Modeling Report Name Institution Business Modeling Report All companies have business models. However, the way companies carry out their operations and how they create their economic value is entirely different. This is because every individual investor has their objectives to achieve in as much as maximization of output is the common goal in each case. Some companies may provide detailed information about business model while others do it in-depth explaining every bit of what it entails. In this case, the focus is going to be on Unilever and Marks and Spencer (M&S) companies. These are tow recently updated annual reports which are different from the kind of content being...

Cash Flow The direct method

Cash Flow- The Direct Method Name Institution A Statement of Cash Flows contains three main parts. The first section of the Statement is cash flows from operating activities followed by cash flows from investing activities and lastly cash flows from financing activities. This paper will focus on the direct method of preparing statements of cash flow. It will concentrate on Arden Group, Inc. and Consolidated Subsidiaries Company. The essay will give statements of cash flows for the year period giving comments on major cash flow items on the two statements of cash flows of the Company for the periods ended January 1, 2011. ARDEN GROUP, INC AND CONSOLIDATED SUBSIDIARIES STATEMENT OF...

couple question

Name Tutor Course Date of submission Fundamentals of Financial Management Question 1 Is it better for a firm’s actual stock price in the market to be under, over, or equal to its intrinsic value? Would your answer be the same from the standpoints of stockholders in general and a CEO who is about to exercise a million dollars in options and then retire? Explain Answer The best price of a firm’s shares is when stock’s worth of the company equals its intrinsic value as at a rate, there is no pressure to either buy or sell the shares in a hurry. In theory, the inherent worth and the actual trading value should equal although the intrinsic values are considered as the long run concepts....

Investment diversification

Investment Diversification Student’s Name Course Number and Name Name of Institution Name of Instructor Date of Submission Investment Diversification People invest their current surplus earnings to reap profits in the future. There are various kinds of investments. In the same manner, multiple rules guide and inform investment approaches. Diversification is one of the central principles to govern people with many investment interests. The doctrine of diversification discourages investors against concentrating their investments in one area such as an industry, a bond, stock, or country (Duarte, 2014; Hirt, Block & Basu, 2006). The principle urges individuals to spread their capital in...

Portfolio diversification

Portfolio diversification Name Institutional affiliations Portfolio Diversification Portfolio investment is aimed at reaping maximum benefits. However, during this process, the risk of making losses exists. This keeps financial experts and investors on their toes to minimize and manage risks in the guarantee of benefits. To manage risk, experts have resolved in the investment in an array of portfolios; portfolio diversification. The objective of Portfolio diversification is to have an overall positive result after the positives and negatives that arise from the different investments have been summed up. Hence, the underperformance of one investment is covered for by another investment that...

Revise paper

Stages of Industry Life Circle Name Institution Oil well equipment: Oil is a non-polar neutral chemical substance that becomes viscous at ambient temperatures and is both lipophilic and hydrophobic. The substance has high hydrogen and carbon content and usually surface active and flammable. Since natural resources cannot be increased or decreased as per man’s wish, the resources are fixed. So oil well equipment industry is on the maturity, with slower growth further. Computer hardware: Computer hardware industry is in the growth phase since more and more technological know-how is attained by even common people. Small schools in remote villages also educate through computers, so there...

The Financial Crisis 2007-2008

The financial crisis 2007- 2008 Name Institution The financial crisis 2007- 2008 Introduction Financial crises can be dated back to many centuries, and the history has preserved the substantial literature on these old phenomena. However, despite the many evidence of financial crises in the history, the financial crisis of 2007- 2008 was a blow to the world to be regarded the worst crisis ever (Erkens, Hung, & Matos, 2012). In effect, the global financial system was threatened to the level of collapsing in totality as stock prices declined sharply. At the same time, the loans for corporate borrowers were smaller and expensive as banks declined in offering long term and short-term credit...

U.S Cross Asset Fund

U.S Cross Asset Fund Name Institution U.S Cross Asset Fund A cross-asset fund is a group of asset classes combined and utilized as an investment. These asset classes may take the form of equity, bond or cash. It makes up a multi-asset class investment where more than one assets are involved hence a group of assets. One fund that is common in the United States offering financial performance is the Growth Fund of America. This is one of the managed funds that have about 65% of the assets invested in a joint stock where about 25% of it is global. This fund has a history of compelling investors and managers for it is a good deal. Its key objective is to provide people with the growth of capital...

What are the goals of the Federal Reserve and how does the Federal Reserve attempt to control inflation? Why is low and steady inflation important?

Name: Instructor: Course: Date: Goals of Federal Reserve Through monitory policy, the Federal Reserve aims to promote and create a better and stronger economy in the United States. The Federal Reserve conducts monitory strategies with an aim to support three goals. The first goal is to ensure that there is maximum and sustainable employment in the country. Federal Reserve has the mandate to provide that there are viable employment rates at the highest level which can be sustained in by the current economy while at the same time ensuring there are stable inflation rates. The second aim is to provide that there are stable prices in the market. While both the consumers and the business owners...