Investment banking

QUESTION (2): Explain why the costs of selling equity are so much larger than the costs of selling debt. ANSWER INTRODUCTION When a company requires raising capital for new investment, may has two real selections. Option one is to selling equity and option two is to selling debt from financial institutions (Stephen Ross, David Hillier, 2012). The cost of selling equity is greater than the cost of selling debt because when the firm sells equity to individuals, because company and other…

Positive correlation: If the increase or decrease in one variable affects the increase or decrease in another variable, we say that the two variables are positively correlated. Negative correlation: If the increase or decrease in one variable affects the decrease or increase in another variable, we say that the two variables are negatively correlated. Correlation coefficient: It studies about the degree of the relationship between the two variables. Or it studies about the strength of the two…

The Bahamas, a developing small island state comprised of over 700 islands and cays is confronted with the demand for sustainable growth and development. While The Bahamas remains one of the wealthiest countries in the Western Hemisphere because of strong economic performances, trends in the tourism and financial sectors (the country’s leading industries), increasing unemployment rates, poverty, skill gaps, and incidences of crime threatens the country’s overall development and prosperity.…

This study attempts to address the issues, securities and circulation of money in pawnshops. What is pawnshop? According to Caskey and Zikmund (1990), ”Pawnshops are one of many financial institutions supplying consumer credit, yet they do not compete directly with other financial institution for customers”. It provides variety services such as credit system between the creditor and debtor, mortgage and even money exchange. There are two parties in pawnshops; the lender and the borrower.…

2.2. Concept of Madhab’s Hat curve of Reliability By using the above data, Mean Time Between Failures and the Reliability for each year has been calculated as shown in the Table 2. As explained earlier the reliability has been calculated by using failure data method. Like Bath Tub curve we can put the data of Reliability for all the years in MINITAB software and after putting the data we got a curve which is shown in the figure - 3. If we observe closely we can mark the curve looks lika a Hat.…

An ABC for Baby Patriots (1899) The British Empire lasted for over 300 years and at its peak it was the largest empire that the world has ever known. It covered more than a quarter of the Earth’s total land area, and controlled more than 500 million people. The British Empire spanned the globe, and the famous phrase "the empire on which the sun never sets" was often used to describe its expanse around the World. The colonies and the colonized people are portrayed in a very discriminating and…

Preparation is the key to successful in negotiation. The work done after the negotiation pays off substantially. The Pareto rule (80-20) applies to negotiation: about 80% of the effort should be done during preparation, while 20% should be actual work involved in the negotiation. The most important aspect of negotiation occurs before sitting at the negotiating table. Most people realize the importance of preparation, yet they do not prepare well in an effective fashion. Often faulty preparation…

1.1.1 Threats from Competitors Affordable Art Fair: Affordable Art Fair is held twice a year at the F1 Pit Building over three days. The first Affordable Art Fair was in 2009 and has done very well over the years. The most recent one was in November 2014 which drew in S$2.8 million in sales. There were 13 400 visitors at the event. This was a drop considering the May 2014 edition of Affordable Art Fair which drew in S$ 3.7 million in sales with 13 300 visitors. This could be due to the art…

Employee Share Options, which entitle the holder to buy shares in a company at a future date for a pre-determined price, are an integral part of employee compensation in the start-up scene. It’s a way for privately held companies that may be large on ideas and growth but short on cash fight for and retain fresh talent. ESOs also incentivize employees as their payoff through exercising their options will be directly tied to the performance of the company. Deliveroo is no exception to this…

Q3) For demographic segmentation, it is appropriate to apply the income variable to compare the likely target market segments between the two watches. A smartwatch will likely to attract customers earning an annual income of USD$20,000 - USD$1,000,000. Meanwhile, a luxury watch is expected to entice customers earning an annual income of USD$1,000,000 and more. According to TechTimes.com, the most expensive smartwatch in the market belongs to LG’s G Watch R which costs around USD$400…