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Underfunded Investors: AIG

AIG was effectively the largest unfunded investor in the super-senior tranches of the Abacus 2004 deal. This means that AIG: A) Owned all of the underlying subprime collateral of the Abacus CDO B) Effectively would sell the underlying subprime collateral as the mortgages began to default. C) Was committed to buy defaulted


1.After 2005, Securitization was a huge cost to banks and offered very little benefit. This is why the Federal Government had to promote securitization. True or false? Why? 2. Securitization is effective at enabling financial institutions to diversify risk. True or false? Why?

2008 Financial Crisis and Business

Regulatory arbitrage as it relates to securitization in the 1980s stems from the fact that financing mortgages was less costly in the capital markets than on the balance sheets of thrifts True or false? And please tell me why.

Dumpster Diving: Protecting Information

One of the things a security analyst must consider when protecting their infrastructure and information is the ability of an attacker to access information about an organization, systems they utilize, and the information their protecting. One of the techniques an attacker uses is reconnaissance. Reconnaissance is the first pha

Return on Investment in Real-World Organizations with examples

I am trying to find online information, journal articles or textbook references regarding a business approach to evaluation using ROI in a real-world organization. Then, I need to write a 2-3 page APA-formatted paper explaining their use and effectiveness.

Financial Terminology and Health Care Finance

Locate at least two articles about one of these financial terms: balance sheet, shareholder's equity, EBITDA, EBITDAM, financial ethics, financial benchmarking, financial trend analysis, and ratio analysis. Write a 1,000- to 1,400-word paper discussing the financial term you have chosen and its application to health care fina

Advise the Board on Appropriate Funding Sources

Assume that you have recently joined a family owned renewable energy company in the UK and your first task is to advise the board on appropriate funding sources to secure the 100m that the company requires to fund a new investment project. You have been asked to provide a report detailing the various funding sources available

Financial Analysis of Investment Purchases

1. Mario just invested 12K into an interest bearing account that yields 11.0% Inflation is 6.6% a) What is the actual dollar value of Mario's investment be after 9 years b) What is the inflation-free interest rate (round to the nearest .01 percent) c) What will the constant dollar value of Mario's investment be after 9 years

Internet Security

1. Descibe ciphertext and explain how you would test a piece of ciphertext to determine quickly if it was likely the result of transposition? 2. Describe how a VPN works. 3. Describe how a DMZ is used to protect a network but remain open for business. 4. Describe the difference of how a HIDS and NIDS work. Please spell out th

Principles of Finance - The Cost of Capital

1) (Cost of Debt) Belton is issuing a $1,000 par value bond that pays 7 percent annual interest and matures in 15 years. Investors are willing to pay $958 for the bond. Flotation costs will be 11 percent of market value. The company is in an 18 percent tax bracket. What will be the firm's after-tax cost of debt on the bond?

Target Corporation Financial Analysis and Interpretation

The ability of a business to meet its short-term cash requirements is called liquidity. It is affected by the timing of a company's cash inflows and outflows along with prospects for future performance. Efficiency refers to how productive a company is in using its assets, and it is usually measured relative to how much revenue i

Financial Performance of Lowe's

A. Evaluate the organization's financial performance during the past 2 years, using financial ratios. Calculate the following ratios for 2011 and 2010 for Lowe's. o Current o Debt o Return on equity o Days receivable Here are the websites with sound info about Lowe's: SEC Filings: http://investing.bus

Responsibility income statement preparation

RESPONSIBILITY INCOME STATEMENT PREPARATION HAPPY LAND is segmented into two sales departments: software and video games. During April these two departments reported the following operating results: Software Video games Sales

Alternative Proposals for Modernizing Production Facilities

Micro Tech is considering 2 alternative proposals for modernizing its production facilities. To provide a basis for selection the cost accounting dept has developed the following data regarding the expected annual operating results for the 2 proposals: P

Finance Terms

Match the following finance terms with the solutions below. If none fit, indicate it. A. The examination of differences among revenue, costs and cash flows under alternative courses of action. B. A cost incurred in the past that cannot be changed as a result of future actions. C. The process of planning and evaluating propo

Payment Terms

A supplier is offering Longley Hospital a new supply contract of 3/20, net 60. a. When does the system have to pay its suppliers? b. Should the hospital take advantage of the discount offered? Provide calculation to prove your position. Assume a 360 day business year.

Finance - WACC

MT 217 can manufacture the new PDA for $200 each in variable costs. Fixed costs for the operation are estimated to run $4.5 million per year. The estimated sales volume is 70,000, 80,000, 100,000, 85,000, and 75,000 per each year for the next five years, respectively. The unit price of the new PDA will be $340. The necessary equ

Corporate Financial Management - Relationship between reported trading price

Suppose buy orders are placed for twice as many shares of a stock as the number of shares offered for sale in a one-hour period. What would be the relationship (higher, lower, or the same) between the reported trading price just before and just after that one-hour period, assuming no other events occurred? What kind of experi

Making Encryption Unbreakable

What CHARACTERISTICS would make an encryption absolutely unbreakable? What CHARACTERISTICS would make an encryption impractical to break?

Public vs. Private Financing

List the advantages and disadvantages of Public versus Private Financing. Explain why companies go to private and leveraged buyouts. The advantages and disadvantages of going public is an area worthy of consideration. While it seems that the ultimate goal of every small firm is to grow large enough to one day be public, th

Preparing a Monthly Cash Budget

Cash in bank: $20,000 Receivables(net of allowance for doubtful accounts): $160,000 Merchandise inventory: $90,000 Total current assets: $270,000 Accounts payable(including accured operating expenses): $150,000 Working capital: $120,000 (the above breakdown is of the financial statement of june 30 and shows the current w

Stock Conversion

Scenario: The tsetsekos Company was planning to finance an expansion. The principal executives of the company all agreed that an industrial company such as theirs should finance growth by means of common stock rather than by debt. However, they felt that the current $42 per share price of the company's common stock did not refle

Price Supply Equations and Equillibrium

For a farm commodity, rye grain in 2002, the price-demand and price supply equations are given by: price - demand equation p= -0.01x + 26.38 price - supply equation p= 0.005x - 9.02 where price is dollars per bushel, and x is in billions of bushels. a. find the quantity of grain supplied at equilibrium. b. Find the pr

Valuation of a Company with a New Product Launch

A company is on the verge of a new product launch. Depending on how well the product does in the marketplace, three possible outcomes for next years valuation are: $210m, $150m or $60m. The risk is diversifiable and the outcomes are equally likely. Assume that the risk free interest rate is 5% and ignore all other market imp

Discussing Finance Companies

Please provide some assistance with this assignment. Considering the following three companies: i) eBay ii) The Clorox Company (CLX) iii) Alaska Air Group, Inc. (NYS: ALK). Upon reviewing total debt/equity ratios, company betas, profitability ratios, company revenue, assets, and liabilities, and the nature of the o

Investment in a Capital Project

Telecom Italia is considering the investment in a capital project. The initial cost in year 0 is $149,000 to be depreciated straight line over 5 years to an expected salvage value of $15,000. The firm's tax rate is 35% and it has an 11% cost of capital (the firm's discount rate, or "hurdle" rate). For this project an additional