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FNMA, FHLMC and Lehman

FNMA and FHLMC were operating with inadequate capital in the years leading up to the financial crisis. In 2008 just after Lehman failed FNMA raised significant capital by selling shares to the Chinese government. True or false. and why?

Financial Crisis and Securitization

Securitization of mortgages enabled various dimensions of risks embedded in pools of mortgages to be distributed to investors with varying degrees of tolerance for credit and interest rate risk and with differing expectations about the future path of economic valuables. Before securitization, the bank that originated a pool of m

Fannie Mae and Freddie Mac

Fannie and Freddie had a single mission: support the mortgage market. They did not originate mortgages; they purchased them from banks, thrifts, and mortgage companies and either held them in their portfolios or securitized and guaranteed them. True or false and why?

The Financial Crisis and Goldman Sachs

Goldman Sachs lost billions of dollars in arranging, underrating, selling and trading synthetic CDOs between 2004 and 2007. This was one of the main causes of the financial crisis. True or false and why?

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