...10/3/13 Secure Credit Card Application - Barclaycard Legal Terms and Conditions Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 22.99% This APR will vary with the market based on the Prime Rate. APR for Balance Transfers 22.99% This APR will vary with the market based on the Prime Rate. APR for Cash Advances 25.24% This APR will vary with the market based on the Prime Rate. Penalty APR and When it Applies Up to 27.24%, based on your creditworthiness. This APR may be applied to your account if you make a late payment. This APR will vary with the market based on the Prime Rate. How Long Will the Penalty APR Apply? If your APRs are increased for this reason, the Penalty APR may apply indefinitely. How to Avoid Paying Interest on Purchases Your due date is at least 23 days after the close of each billing cycle. We will not charge you interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $2.00 ($0.50 for residents of Iowa at time of account opening). For Credit Card Tips from the Consumer Financial Protection Bureau To learn more about factors to consider when applying for or using a credit card, visit the website...
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...1.0 Introduction Since early 80s, the new policy that opened China to the world had gained great impacts on this country’s economy. To have a further understanding about the China’s currency, we analyze the historical movements of the Yuan (CNY) towards its trading currency pair – the US Dollar (CNY/USD) in a 20-years period till now, argue the policies adopted and other factors that caused such movements of the Yuan in the past. In addition, how arbitragers buy and sell CNY using 2 point, 3 point and covered interest rate arbitrage to make profit in reality is also explained in this report. 2.0 Historical movements of the CNY/USD A flexible exchange rate is a system, which allows exchange rates to be affected by the supply and demand of its currency. It is unstable due to the low elasticity of import and export, which may cause depreciation in the currency, which leads higher levels of inflation. As China is a country with an undiversified export producing industry, it is unlikely that it would adopt this system as when the exchange rates rises, exporters would find it in their favor as they would be able to sell their goods cheaply aboard. However, importers are unhappy with the undervalued CNY as the price they would have to pay for goods would be more expensive and would seek to decrease the exchange rates. This would cause uncertainty with regards to investments and trade. However, Mr Guan, a senior official from China foreign exchange state that if China were to continue...
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...This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties. -Commercial and industrial loans represent the earliest form of lending that banks varied out in their more than 2000 years of history -close to 1/5 of commercial bank loans loan portfolio is classified as business or C&I loan Short-Term Business Loans • Self-Liquidating Inventory Loans- business loans, usually to support the purchase of inventories, in which the credit is gradually repaid by the borrowing customer as inventory is sold (60-90 days). o Usually related to the borrowers need for short term cash to finance purchases of inventory or cover production costs, the payment of taxes, interest payments on debt, and dividend payments to stock holders. • Working Capital Loans- loans that provide business with short-term credit lasting from a few days to one year and that re often used to fund the purchase of inventories in order to put goods on shelves or to purchase raw materials. frequently working capital loan is designed to cover seasonal peaks in the business customer’s production levels and credit needs. These loans are secured by accounts rev and by pledges of inventory...
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...Unit10- Personal Finances Marc Wilks Kaplan University MM 212 Professor Heather Bullard October 3, 2015 Having an understanding of basic financial principles is essential for anyone who wants to exercise control over their personal income. Without it, how can anyone plan how to pay for next month’s bills, much less plan for retirement? I learned that a basic knowledge of financial basics is essential if I was to have any chance of being able to make the most of my personal income (LaPonsie, How to Stop Living the Paycheck to Paycheck Lifestyle August 6, 2015). I had my first exposure to basic personal finance the last half of my senior year of high school. I learned about how balance a checkbook, income versus debt, and a little about interest. I did not start to actually use this knowledge until I was out of school and moved out of my parent’s home. When I moved into my first apartment, I was forced to create a budget. I needed to get a good idea of how much money I had coming in and the best way to make that money cover my expenses. When I was married to my first wife, I learned how to operate within a two income budget. This came with its own set of challenges as we had double the expenses to cover. My wife, well ex-wife handled most of the finances but I did manage to learn a thing or two. This experience came in handy when we got divorced and I was solely responsible for my financial matters. I think that to...
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...• The role of an originating house and a syndicate The role of an originating house plays the part in developing a loan for an individual or company. The originating house is also known to be an investment brokerage/banker. There may not always be just one firm if there is more than one investment bank. When it happens like this, then there are several firms which join together to complete the underwriting portion of the deal (Mayo). Before any stocks and bonds are issued, the investment brokers will do a thorough evaluation of the company to see what it’s worth maybe for as their assets and liabilities. Once all of the information has been gathered and is suitable to the investment brokers, they will then proceed with the process (Reference for Business). Syndication deals with joint financing by more than one bank to the same customers against a common security and they do the underwriting for the firms (All Business, 2014). According to Mayo (2012), the use of a syndicate has several advantages. The syndicate has access to more potential buyers, and using a syndicate reduces the number of securities that each firm must sell, which also increases the probability that the entire issue will be sold. Thus, syndication makes possible both the sale of a large offering and a reduction in the risk borne by each member of the selling group. Syndicate also handles any large transactions that would be challenging for the people or a business to manage by themselves. When speaking...
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...CHAPTER 14 FINANCIAL AND OPERATING LEVERAGE Q.1. A.1. Explain the concept of financial leverage. Show the impact of financial leverage on the earnings per share. The use of fixed-charges sources of funds, such as debt and preference capital, along with owners’ equity in the capital structure is known as financial leverage (or gearing or trading on equity). The financial leverage employed by a company is intended to earn more on the fixed charges funds than their costs. The surplus will increase the return on the owners’ equity. The role of financial leverage in magnifying the return of the shareholders’ is based on the assumptions that the fixed-charges funds (such as the loan from financial institutions and other sources or debentures or bonds) can be obtained at a cost lower than the firm’s rate of return on net assets. So, when the difference between the earnings generated by assets financed by the fixedcharges funds and costs of these funds is distributed to the shareholders, the earnings per share (EPS) (or return on equity, ROE) increases. EPS is calculated by dividing profits after tax (PAT) (net of preference dividend) by the number of shares outstanding. Example: All-equity Debt-equity 1. Investment 500,000 500,000 2. Equity capital 500,000 250,000 3. Debt capital @ 15% 0 250,000 4 EBIT 120,000 120,000 5. Less: Interest 0 37,500 6. PBT 120,000 82,500 7. Less: Taxes @ 50% 60,000 41,250 ------------8. PAT 60,000 41,250 9. No. of equity shares 50,000 25,000 10. EPS (5 ÷...
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...Krishnamurthy Annette Vissing-Jorgensen Working Paper 17555 http://www.nber.org/papers/w17555 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 October 2011 We thank Jack Bao, Olivier Blanchard, Greg Duffee, Charlie Evans, Ester Faia, Simon Gilchrist, Robin Greenwood, Monika Piazzesi, David Romer, Thomas Philippon, Tsutomu Watanabe, Justin Wolfers, and participants at seminars and conferences at Brookings, Chicago Fed, Board of Governors of the Federal Reserve, ECB, San Francisco Fed, Princeton University, Northwestern University, CEMFI, University of Pennsylvania (Wharton), Society for Economic Dynamics, NBER Summer Institute, the NAPA Conference on Financial Markets Research, and the European Finance Association for their suggestions. We thank Kevin Crotty and Juan Mendez for research assistance. This paper was prepared for the Brookings Papers on Economic Activity Fall 2011 issue. We have received an honorarium for the presentation of the paper at Brookings. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w17555.ack NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of...
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...Response to the Finance Questions Name University Response to the Finance Questions Response to Question 1 Liquidity premium theory states that the yield obtained from the bonds that are long term are greater than the return that is expected from short-term bonds that roll over so as to compensate long-term bonds investors for bearing the risks of interest rate. Bonds that have different maturity can, therefore, have different yields regardless of the possibility of future short rates being equivalent to the present short rate. This results in a yield curve that bends upwards even if the short rates are expected to fall if liquidity premiums are sufficiently high. However if the curve slopes downwards and an assumption is made that the liquidity premiums is positive, then we can presume that future short rates would be lower than the present short rate (Lim & Ogaki, 2013). Liquidity premium theory agrees with expectations theory since it gives the same significance to the expected future spot rates though it puts more weight on the impacts of the risk preferences that exist in the market. The main concept of this theory is to compensate an investor for the additional risk of having his capital tied up for a more extended period. It, therefore, aims at enticing investors to engage in long-term investments. Due to the uncertainty associated with long-term rates which have less marketability and greater price variability, investors, therefore, need to be given higher...
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...was enacted in 1993 (Barai et al. 1999). Industrial Promotion and Development Company (IPDC) was the first private sector NBFI in Bangladesh, which started its operation in 1981. Since then the number has been increasing and in December 2006 it reached 29. Of these, one is government owned, 15 are local (private) and the other 13 are established under joint venture with foreign participation. 1.1 Recent Development & Activities of NBFIs The major business of most NBFIs in Bangladesh is leasing, though some are also diversifying into other lines of business like term lending, housing finance, merchant banking, equity financing, venture capital financing etc. Lease financing, term lending and housing finance constituted 94 percent of the total financing activities of all NBFIs up to June 2006. A break-up of their financing activities reveals that the share of leasing and housing finance in the total investment portfolio of NBFIs...
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...Internship Report: HRMP in Standard Chartered Bank Abstract According to the universalistic perspective, organizations from different sectors, across industries, and through different time periods should use a series of select human resource management practices (HRMP). The main principle of this paper is to investgate whether i there is any relationship between HRMPs and organizational performance, regarding Standard Chartered Bank in Bangladesh. This study aims to investigate the relationship of training, employee participation, and selection with perceived organiz ational performance in the context of Standard Chartered Bank in Bangladesh. This study is co -relational in nature and it will examine the correlation among these variables. A single set of sample will be considered for this study and that will be the employees of Standard Chartered Bank. A set of structured questionnaire will be distributed among 200 respondents. Regression analysis will be conducted for the purpose of data analysis. -1- Internship Report: HRMP in Standard Chartered Bank Origin of the Report The BBA internship program is a mandatory requirement for the students who are graduating from the BBA program under the School of Business of North South University, Bangladesh. In the internship program, I was attached to a host organization named µStandard Chartered Bank¶ for 12 weeks. During this period I learned how the host organization works with the help of the internal supervisor....
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...Advances to Total Deposits Ratio were significant but negatively correlated with a bank’s performance. The Return on Assets and Return on Equity were significantly and positively correlated with a bank’s performance. The interest income to total assets ratio is statistically insignificant with bank’s performance, whereas the regression result show that INT is statistically significant with bank’s performance. The cash ratio is also showing insignificant correlated bank’s performance, whereas the regression result show that the cash ratio is statistically significant with a bank’s performance. Key wordsCapital Adequacy, Asset Quality, Management Efficiency, earnings & Profitability, Liquidity, bank’s performance (earning per share) CHAPTER 1 INTRODUCTION Financial Sector is important for the economic expansion and prosperity of the country. Financial sector works as the backbone of the financial segment that controls the money supply. The Banks acknowledge funding from surplus monetary units as deposits and give it to Business and Industries as advances. Banking is a very important sector because the development of the finance, and particularly the banking system, promote economic growth (Levin, 1997). Banks are important for the economy and organizations in particular at the time of downturns and money related crisis. Industrial, agricultural and commercial development of a country is not imaginable without a decent banking system. On some occasions, bank truly don't respond...
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...Chapter 6 Discussion Questions |6-1. |Explain how rapidly expanding sales can drain the cash resources of a firm. | | | | | |Rapidly expanding sales will require a buildup in assets to support the growth. In particular, more and more of the | | |increase in current assets will be permanent in nature. A non-liquidating aggregate stock of current assets will be | | |necessary to allow for floor displays, multiple items for selection, and other purposes. All of these “asset” | | |investments can drain the cash resources of the firm. | | | | |6-2. |Discuss the relative volatility of short- and long-term interest rates. | | | | | |Figure 6-10 shows the long-run view of short- and long-term interest rates. Normally, short-term rates are much more | | |volatile than long-term...
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...Chapter 13 Capital Structure and Leverage LEARNING OBJECTIVES After reading this chapter, students should be able to: • Explain why capital structure policy involves a trade-off between risk and return, and list the four primary factors that influence capital structure decisions. Distinguish between a firm’s business risk and its financial risk. Explain how operating leverage contributes to a firm’s business risk and conduct a breakeven analysis, complete with a breakeven chart. Define financial leverage and explain its effect expected EPS, and the risk borne by stockholders. on expected ROE, • • • • • Briefly explain what is meant by a firm’s optimal capital structure. Specify the effect of financial leverage on beta using the Hamada equation, and transform this equation to calculate a firm’s unlevered beta, bU. Illustrate through a graph the premiums for financial risk and business risk at different debt levels. List the assumptions under which Modigliani and Miller proved that a firm’s value is unaffected by its capital structure, then explain trade-off theory, signaling theory, and the effect of taxes and bankruptcy costs on capital structure. List a number of factors or practical considerations firms generally consider when making capital structure decisions. Briefly explain the extent that capital structure varies across industries, individual firms in each industry, and different countries. • • • • Learning Objectives: 13 - 1 LECTURE SUGGESTIONS ...
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...The valuation effects of long-term changes in capital structure ABSTRACT The objective of this study is to analyze and examine the changes in capital structure that do not affect the value of the firm and we have to know the relationship between the capital structure and the firm’s value. We are try to learn the changes in capital structure that do not affected the firm’s value and want to know relationship between the capital structure and the value of firm. For this study we used five independent variable that are profitability , growth , leverages , size and intangible ratio on the other hand we have one dependent variable that are firm value. We collected data from the Karachi stock exchange (KSE) and State Bank of Pakistan. Contents CHAPTER 1: INTRODUCTION 4 1.1 Background of the study 4 1.2 Problem Statement 6 1.3 Purpose of the study 7 1.4 Significance of the study 7 1.5 Operational definitions of the variables 8 1.5.1 Leverage: 8 1.5.2 Market to Book Value: 8 1.5.3 Profitability: 8 1.5.4 Growth: 8 1.5.5 Size: 8 1.5.6 Intangible: 9 CHAPTER 2: LITERATURE REVIEWS 10 2.1 Theoretical Background: 10 2.2 Empirical evidence: 11 CHAPTER 3: METHODOLOGY 17 3.1 Research Method 17 3.2 Research Model 17 3.3 Research Hypothesis: 18 3.4 Data Collection 18 3.5 Population and Sample Size 18 3.6 Research Technique 19 INTRODUCTION ...
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...FINANCIAL SERVICES BUSINESS PLAN 2007 – 2010 C Salter Chief Financial Services Officer Audit Exchequer & Procurement Projects Revenues Development & Supplies Accountancy Service Strategic Technical Venues Accountancy Estates Accountancy Management http://web1.com/finance Issue 1 March 2007 Process Owner: Chief Financial Services Officer Authorisation: Christine Salter Page 1 of 17 FINANCIAL SERVICES BUSINESS PLAN 2007 - 10 Contents 1. Overview of Service 1.1 1.2 1.3 Service Aims Services Provided Resources Summary 2. Contribution to Corporate Plan and Service Context 3. Performance Report 3.1 3.2 3.3 Performance Indicators Customer Focussed Services Achievements Against Corporate and Service Objectives 4. Future Service 4.1 4.2 Programmes, Projects & Improvement Actions Developing Internal and External Communication 5. Aligning Resources 5.1 5.2 5.3 5.4 5.5 Finance & Assets Efficiency People IT Delivered Systems Knowledge 6. Action Plan 6.1 6.2 6.3 Risk Assessment Sustainability & Equality Appraisal Business Continuity Appendices A. B. C. D. E. F. Issue 1 Business Objectives Matrix 2007/10 Business Objectives Update 2006/07 Workforce Planning Template 2007/08 Budget Analysis (i) Sustainability & (ii) Equality Appraisal Matrix Business Continuity Template March 2007 Process Owner: Chief Financial Services Officer Authorisation: Christine Salter ...
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