Bond University

cash and can be bought or sold with little effect on the price of the securities. Furthermore, short term investments usually provide a firm with an increase in return on investments (ROI). Additionally, some short term securities include treasury bonds, stocks, mutual funds, money market funds or even certificates of deposits, in which a company may use to earn quick cash. Some firms have a short term investment account, if their financial position is strong; whereas the company makes…

pay dividends, and reduce debt G. What is the weighted average cost of capital? A calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All capital sources - common stock, preferred stock, bonds and any other long-term debt - are included in a WACC calculation. All else equal, the WACC of a firm increases as the beta and rate of return on equity increases, as an increase in WACC notes a decrease in valuation and a higher risk. H. How…

Adding the risk-free government securities would result in a lower beta for the new portfolio. The new portfolio beta will be a weighted average of the individual security betas in the portfolio; the presence of the risk-free securities would lower that weighted average. q. The comment is not correct. Although the respective standard deviations and expected returns for the two securities under consideration are equal, the covariances between each security and the original portfolio…

Greater warmth in the heart rather than the home In the play A Doll’s House written by Henrik Ibsen, Nora, the main character is the epitome of the oppressed women. During the time the play was written women were under the control of men. Ibsen uses the stove, an ordinary household item, as a tool for Nora to free herself from being restrained. Initially she uses the stove for comfort and stability, but as the play unfolds its symbol turns threatening. The first encounter between the stove…

158. State Bank of Hyderabad Personal Loan EMI Calculator State Bank of Hyderabad is a subsidiary of State Bank of India. The bank offers personal loans at low interest rates that can be paid back over a period of time. These loans can be taken for meeting all immediate expenses such as weddings, education, medical emergencies, travel and other unexpected expenses. All that the applicant needs to do is check their eligibility, submit the documents and avail the loan. Features of State Bank of…

5. Financial ratio analysis – Interpretation (External analysis) Current Ratio The current ratio of Dutch Lady in year 2013 is 1.91 times. It means that it has RM1.91 in current asset for every RM1 in current liability. It also means that Dutch Lady has its current liability covered 1.91 times over. The current ratio of Nestle in year 2013 is 0.90 times. It means that it has RM0.90 in current asset for every RM1 in current liability. It also means that Nestle has its current liability covered…

Compare/Contrast Essay Outline—Point by point Method Introduction: λ General Topic: Comparison of working for different investment banks λ Specific Topic: Comparison of working for JPMorgan and Morgan Stanley λ Areas to be covered: career interests, location preferences, endurance of working Topic 1: λ Topic Sentence: JPMorgan caters to applicants with an intention to work at the frontline of community banking and commercial banking businesses while Morgan Stanley fits for those who are…

Fungible Treasury Bills (T-Bills) Product sheet Fungible Treasury Bills (T-Bills) are government short-term debt securities issued by way of invitation to tender. A fungible security can be issued, the first time, in form of a fixed size then subsequent issues are matched. Every new security issued is attached to the previous with the same characteristics (nominal unit, maturity date, basis for interest calculation). Only rates and issuance dates change. Fungibility increases the size of…

Risk can be measured in two ways namely, the market risk and specific risk. The market risk and specific risk are the components that make up the total risk of any investment. Market risk and specific risk are two different forms of risk that affect assets. Market risk is also referred to as systematic risk and it affects a large number of asset classes (Nickolas, 2015). Market risk is the risk inherent to invest in a specific market. Each of the markets has their own inherent risks and the…

In response to Rip Curl’s inquiry to issue bonds in Switzerland, this report aims to cover the positive and negative aspects of such a solution and attempt to determine a solution that will be the most feasible. Although the interest rates in Switzerland are relatively low compared to those in Australia, by issuing these bonds overseas, Rip Curl are inherently taking in risks associated with the market that may include: - Foreign currency risk - Inflation risk By relying on the exchange rate…