Explain why operational risk is important. Though the cost of implementing a new operational risk management system is expensive, determine why it could also improve the efficiency of financial institutions from a business perspective.
Please help with the following problems. a) National Bank Asia wants to hire fresh young graduates to work in their Market Risk Management department. As you are preparing your interview, you need to understand some key questions, such as why do we use 500 days or more to evaluate the VaR in a historical simulation? b) Th
1. The current price of a stock is $65.88. If dividends are expected to be $1 per share for the next five years and the required return is 10%, then what should be the price of the stock be in 5 years when you plan to sell it? If the dividend and the required return the same, and the stock price is expected to increase by $1, w
Predictions of inflation or deflation can lead you to make completely different investment decisions. For example, if you think inflation will increase dramatically it is a good idea to invest in real estate. Your home will be worth a lot more in the future, and the amount you owe will shrink quickly as a result of inflation.
You are trying to establish a PMPM rate for Primary Care Physicians. Actuarial estimates project 2,500 visits per 1,000 members per year. You have contracted with a Primary Care Medical group at $45.00 per visit with a $5.00 copayment that you will receive. What PMPM rate should you set? A. $11.25 B. $9.38 C. $1
How might everyday low pricing affect Superior Supermarkets' competitive situation in Centralia, Missouri
Use Excel if possible. 1) (Amortization Schedules - Straight Line) Spencer Company sells 10% bonds having a maturity value of $300,000,000 for $2,783,724. The bonds are dated January 1, 2012, and mature January 1, 2017. Interest is payable annually on January 1. 2) (Amortization Schedules - Effective-Interest) Assume the s
A hospital incurs $10 million of cost to treat Medicaid patients and receives $7 million in payment. Actual charges for these Medicaid patients were $20 million. The net community benefit expense that would be reported in Schedule H of IRS Form 990 would be? A. $10 million B. $7 million C. $3 million D. None of
Write a 4 page case review that assesses hospital financial performance from attached table. Review should also interpret the hospital's statements of cash flow; present an overview of the hospital's financial position using the Du Pont equation as a guide; Use ratio analysis to identify the hospital's specific financial streng
I need help creating overview analysis of Subway restaurant and its competitors? -Overview of the Corporation (Subway) -Subway's financial status and financial statements -Recommendations regarding of the future Company
I need help creating 5-6 tables/graphs/charts of Subway finance including: Financial Statements, Income Statement, Balance Sheet, Cash Flow Statement, Key Statistics, Ratio Calculation and Analysis The information is in these links below! http://www.moneycontrol.com/stocks/company_info/cash_flow.php?sc_did=SFA01 http://money.
In the real world, is it possible to construct a portfolio of stocks that has an expected return equal to the risk-free rate? Provide examples.
1) Determine the amount to be paid within the discount period for purchase with an invoice price of $7,745, subject to credit terms of 2/10, n/30.
John has just started investing, and one of his friends was mentioning how he could use short selling as an effective method to drive up his returns when the market started to go down. John decides that this idea is worth a try and decides to sell 100 shares of Stock A for $125 per share. -What is John's maximum loss risk he
(Analytical procedures) The following data was taken from the production and accounting records for Casuccio Manufacturing, Inc. From the book, Modern Auditing 8th Edition, Part 4: Auditing the Transaction Cycles. Chapter 15: The Expenditure Cycle (Pages 729-730) Q15-23 and Chapter 14: The Revenue Cycle (Page 675) Q14-26.
How and why is the functional area of finance important in the four phases of strategic management discussed?
Community Hospital has annual net patient revenues of $150 million. At the present time, payments received by the hospital are not deposited for six days on average. The hospital is exploring a lock-box arrangement that promises to cut the six days to one day. If these funds released by the lock-box arrangement can be invested a
A client asks his stockbroker to invest $100,000 for maximum annual income, subject to the three conditions: 1. Spread the investment over no more than three different stocks. 2. Put no more than 40 percent of the money into any one stock 3. Put a minimum of $10,000 into an oil stock. The broker has identified three stock
1. Company is purchasing new equipment for $120,000. You estimate the life of this equipment is 6 years and you will depreciate it in a straight line over 5 years to be conservative and assume no terminal value. The administration, maintenance and insurance cost for the equipment to be estimated to be $8,000 per year. If your co
As the cash manager of your company, you wish to buy $1,000,000 in 30-day Treasury bills. You obtain the following bid/ask quotes from three dealers: -Dealer A 3.01 3.00 -Dealer B 3.02 3.01 -Dealer C 2.99 2.98 Which dealer should be selected? State the appropriate quote and calculate the price
Your daughter is a beginning freshman in high school. By the time she enters her freshman year in college, you would like to have savings accumulated to pay her tuition for her next four years of college. Assuming the annual tuition is paid at the beginning of the college year and you expect her freshman annual tuition to be $20
The Fast Track Sports Company was started by John Ross early in 2012. Initial capital was acquired by issuing shares of common stock to various investors and by obtaining a bank loan. The company operates a retail store that sells sporting goods and related apparel. Business was so good during the first year of operation that Jo
Scenario: Roger has just been hired as chief portfolio officer of Bear United Capital. As part of this new position, he has been asked to assemble a model portfolio from a set of assets. The assets in the model portfolio include the following: Please see attached word document for data set. Using the above assets from th
"Some crooked top management companies are tempted to falsify their financial information in order to look better than they are. Therefore it is essential for financial reporting to have integrity. This makes the integrity of financial reporting a fiduciary duty and an ethical issue". The Sarbanes-Oxley Act (SOX) was signed
See the attached file. Build a water treatment plan to serve a growing community. New data has to replace the old one, I marked the new one it in RED( Project-Q.docx). Take liberties with whatever you think need to be changed: Such as: a) Current rate for water is $1.83/100 the old one used $1.56/1000 gallons. c) Peak
I need help with the following two questions regarding financial management: (a) Explain what the information needs of various stakeholders are for their respective decision making needs. (b) Explain the effects of the different types of financing on the financial statements.
ABC Construction LLC is a construction company owned by Mr. Mohammad (a civil engineer by profession). Mr. Mohammad established the company seven years ago in Dubai. Now it has branches in other Emirates. The company is doing well in terms of business but Mr. Mohammad is not satisfied with the financial matters of the company as
Identify in each of the FOUR situations given below, the best method of finance. Situation one: Alpha Waffles need to expand and increase their market share by 40% in the next 2 years. They would need to improve their packaging and spend money on advertising. We know that the current interest rate is 15% and banks are reluct
Article critique: - I need to summarize authors arguments - Evaluate facts or data pertaining to finance and value - Summarize the validity of the arguments - Determine whether the arguments are supported using elements of financial persuasion - Determine whether the author omits important financial data - Evaluate the fin
23.6. Holder in Due Course On December 10, 1987, National Financial Services (National) issued a check to Patrick J. Doherty for $62,812.36. The check was drawn on National's account at the Bank of New England. The next day, Doherty took the check to his bank, the M & I Marshall & Ilsley Bank (M & I), and properly indorsed it. T