Executive summary This is a report on Collateralized Debt Obligations (CDO’s). The report defines collateralized debt obligations, identifies the features and operations of CDOs. The report defines liquidity risk and also examines how collateralized debt obligations help the bank to avoid liquidity risk, and also how CDOs create more assets...
Advantages for AMSC to forgo their debt financing and take on equity financing Permanent capital Equity financing is a permanent source of capital because ordinary shares are not redeemable; therefore the funds raised from this source are available for use as long as the company is in existence. It also...
Shareholder value analysis It has been argued that Shareholder Value analysis is flawed in that there are too many steps in the model and too many variables attached to them. However, this essay is concerned with analyzing this statement and in doing so, evaluating the need for each step in...
Introduction The money market is a market in which its life usually lasts for the short term. Securities which are in form of monetary terms are used by traders and businessmen in the money market. That usually mature within a year are commonly traded in the money market. This paper...
Abstract This research has the main objective of determining why project funding is preferred to corporate finance in financing high-profile projects. The economic problem experienced by the world economies marred with the world economic crisis, financing of high-profile projects or large-scale projects is more difficult in this kind of situation....
Introduction A capital market is defined as a market in which a government, a business organization, or a financial institution can accumulate funds to carry on its functions and long-lasting investments. Capital markets have grown in importance to such an extent that they are looked upon as the suppliers of...
Introduction This project analyses the bank and financial sector in Saudi Arabia. It aims at advising a prospective investor on the best stock to invest in. The selected bank for analysis are Al Bilad, Al Jazira and Al Rajhi which are all public owned companies and their shares are listed...
Executive Summary This report focuses on the role of deposit insurance in the financial system. A deposit insurance scheme is a strategy whereby depositors are paid their money by the government or the organization that runs the scheme if a financial institution becomes insolvent (Gracia, 2002, 12). Using secondary data...
Introduction Background to the study Money is defined as any substance that acts as a medium of exchange (Holdsworth 5). Before the acceptable use of money, it was Barter trade where people exchanged goods for goods. This trade had many shortcomings such as lack of double coincidence of wants that...
Introduction Saudi banks were affected by the global economic crisis which was experienced in the year 2008. This affected most operations of the bank and resulted in a decline in its returns. Returns to the bank are sensitive to the economic performance of the country and thus this is one...
Mergers and Acquisitions represent one of the best business opportunities for any company that intends to expand rapidly as well to increase its market share; it is also one of the most delicate processes that can easily lead to bankruptcy of even the most stable companies that have solid base...
The difference between financial stability and monetary stability Monetary stability refers to the stability of the value of money. That is the ability of a country’s currency to maintain its value in the world markets. Money usually loses its value due to high rates of inflation whereby a country has...
Abstract Financial derivatives have been used by investors to make a profit for centuries. Contracts made under financial derivatives are often risky and based on uncertainty. The use of financial derivatives is increasing with time. More than 20 percent of the total population of the world is made up of...
Finance is defined by finance dictionaries as the science of managing financial resources that include money, and money equivalents (Keown et al., 2005). Money equivalents include all organizations assets such as security, bonds, shares and other tangible and intangible assets. In addition, finance concept imply supply, raise or providing of...
Quality control is one of the key aspects of successful business development. It requires extensive control of the manufacturing process, as well as maintenance of the qualification level of the personnel. The aim of this paper is to analyze the case study of Master Plumbing Corporation associated with the increase...
Introduction Sukuk is an Arabic financial certificate and is also regarded as an Islamic bond. As per the Islamic laws of Shari’ah, it is Haram – banned to charge or pay Riba – interest. Hence Sukuk securities are structured in such a way that Islamic laws that are against interest...
The world of business is expanding each day especially with the emerging technological advances, thus making the world like a global village. In their running of daily businesses, financial institutions face various risks and thus must derive ways on how to counter them (Schroeck, 2002). The following paper covers the...
Sources of Finance There are various sources of finance for business to get cash for both its short term and long term requirements. Each source is applicable in a certain situation and has its advantages and disadvantages. Ordinary Shares This requires issuing of new shares to raise funds in order...
The bull spread is described as a reliable investment strategy whose goal is to help an investor realize profit resulting from an increase in the price of given security according to Bull spread (Madura 2010). It is created by choosing to purchase at times of low price and then selling...
Introduction As with every credible language, Accountancy also has its own rules and syntax which comprises the principles on which the system is based, known as the Generally Accepted Principles (GAAP), International Accounting Standards, and US GAAP, etc. forming the theoretical base of Accountancy, and the Double Entry bookkeeping for...
Bonds Bonds are securities that establish a credit relationship between the purchaser (creditor) and the issuer (debtor). The issuer receives a certain amount of money in return to the bond, and is obligated to repay the principal at the end of the lifetime of the bond (maturity). Typically, bonds also...
In accounting for regular serial bond debt service funds various issues come into play. The regular serial bond debt is usually self-amortizing, thus there is no need to create a sinking fund. They also mature in annual installments (Henderson, Peirson and Herbohn, 2008, p. 236). Amortization is the process of...
Since last three decades, there have been dramatic increases in the number of private equity, and the increase in the number of the listed private equity has been due to the increase in the they have outperformed in stocks. (Schmidt,2004). Typically, private equity trades in recognised stock exchanges, and private...
Introduction The impact of enterprises and financial institutions is the best solution for developing economies that considerably contributes to generating jobs, and raising incomes. The soundness of banking systems in developing countries and economies in transitions are usually more important than in industrialized countries since banks tend to dominate the...
Discussion Every firm needs funds to operate, as a result, corporate finance seeks to acquire and manage these funds. Corporate finance refers to the activities that involve money in a business environment (Megginson, 2008, p. 10). Five basic functions are involved in the practice of corporate finance: raising capital to...
This paper gives a critical analysis of the article “Putting Strategy into Shareholder Analysis”, by George S. Day and Liam Fahey, published in the Harvard Business Review in March, 1990. The article talks primarily about the strengths and weaknesses of the Shareholder Value Analysis method of analyzing alternate strategy options...
Abstract Over recent times, Sovereign wealth funds (SWFs) have been increasingly growing as a dominant force in the financial world. However, so far, very little has been documented about the SWFs (Fotak et al., 2008, p.2); and in the sporadic writings where they have been mentioned, they are mostly portrayed...
Introduction Any financial institution aims to make a profit with minimum cost possible. Banks and other lending agencies get a lot of profit from the interest they charge their customers who borrow money from them. Interest rate is the percentage of additional cash that a borrower should pay on top...
Introduction Bradley Corporation is a rapidly expanding specialist photocopier manufacturer in the UK. The sales budget of the company for the next year reveals a growing trend in the business. The company is expecting that the sales budget estimates will be met or exceeded through proper business policies and strategies....
Introduction The idea of implementing the new type of Boeing airplane by the Boeing Commercial Airplanes Company was rather controversial when it was expressed in 2003 (Bruner, 2008, p. 233; Smith, 2003, p. 42). On the one hand, the officials from the Boeing Company and the market analysts all claimed...
Definition A financial system refers to a complex system dealing with a vast variety of financial activities, but mainly allows the transfer of money between savers and borrowers. The systems are crucial in informing on organization’s planning and action plans and helping different players in the sector to track and...
Introduction The financial ratios are very important to investors and nursing facilities can be able to make comparison of its company’s performance in relation to other firms. Most of the ratios are usually calculated from the information that is given by a company. These ratios can be used to assess...
Introduction Weather derivatives are the financial instruments used by either individuals or organizations as a partial strategy to risk management aimed at reducing the risk or risks associated with unpredictable adverse weather conditions. The cardinal difference between weather derivatives and the other derivatives is that the aspect in question bears...
Introduction This paper is about the ongoing economic meltdown caused by the credit crunch in the US and UK economies since the winter of 2007. The paper explains what the credit crunch is all about as well as what caused the credit crunch. It has been said that the post...
Financial fraud can be defined in so many ways by different scholars and financial analyst but the most common ones include (Gioia p.6). Manipulation of accounting figures, this normally happens when managers of an organization intentionally understate or overstate the company financial information in order to favor the firm financial...
In the banking sense, this is a bank’s exposure to the possibility of becoming insolvent. This is a situation in which the bank’s creditors and/or regulators compel it to cease trading until it is recapitalised, taken over or wound up. In other words it is the risk of ultimate financial...
Introduction It is important to look at the problems that venture capital and private equity firms face. Many firms have had numerous problems in conducting their business. Pinnacle ventures came into existence in 2002 with its headquarters in Palo Alto, California. It mostly aimed to specialize in the unusual hybrid...
Introduction Capital structure refers to the manner in which a corporation finances its assets using a composite of equity, debt or another form of funding. Hence restated, the capital structure is the composition of a firm’s liabilities. Capital structure is derived from determining the ratio of total assets of a...
Executive Summary This dissertation aims to examine the effects of the global financial crisis on the Saudi market and to find out the solution to save the economy from this credit crunch. Firstly, this report concentrates on the significance of the study, research objectives, background of the problems, scopes of...
UK Base Interest Rate General Notions The notions of interest rate and exchange rate are interconnected and vitally important for the economies of different countries. To better understand the meaning of interest rate increase for the dynamics of the exchange rate it is first of all necessary to define and...
He comes unfailing for the loan We give and then forget; He comes, and probably for years Will he be coming yet,— Familiar as an old mistake, And futile as regret. ~ Edwin Arlington Robinson In a time when the economic crisis is at its apex, more and more industries...
Introduction A Financial market is a very paramount system that enables people to trade financial securities. In addition, it also trades commodities like agricultural goods and fungible items like currencies and crude oils at relatively transaction outlay and at reasonable prices in an efficient market hypothesis. Financial markets have grown...
Introduction It is deemed necessary to consider the nature of the financial systems of two Asian countries – Japan and China and dwell on how this has impacted the behaviour and performance of these two countries. Japanese financial systems The first country of choice is Japan. It is seen that...
The development of the current society shows that people have refused to pay cash even buying a cup of coffee. Moreover, they are reluctant to use usual credit cards since they are limited in possibilities. So, that there is a force coming tendency of using prepaid credit cards. Speaking about...
There are several factors that should be considered in the new lease agreement between the lessor and the lessee. As the lessee is seeking for a longer lease period than provided for by the lessor, the lessor should factor in various issues before signing the new deal. One of the...
Introduction The relationship between capital structure and dividends policy in Saudi companies is often regarded to be one of the most crucial matter for those who are planning to start running business in Saudi Arabia, or for those who are dealing with Saudi companies, and would like to know more...
What is CDS? A credit default swap (CDS) is “a contract that provides insurance against the risk of a default by a certain firm,” (Hull, 2006, p. 67). The firm that issues CDS is referred to as the reference entity whereas the default is referred to as a credit event....
Nowadays it is not a must for spouses to have a common savings account. Savings accounts are managed by private financial organizations and are strictly used for investments. This is because debts that have not been paid by one party may affect the couple. By having a separate personal account...
Introduction Overview Establishments offering Islamic banking services comprise a noteworthy and rapidly growing share of the overall financial system in several nations (Rose & Hudgins 27). Since the commencement of Islamic banking and finance (IBF) in the decade of the 1970s, the number and reach of Islamic banking establishments globally...
The business world has witnessed several massive frauds during the 21st century. Foremost among them is the Enron debacle of 2001 {which resulted in one of the Big Five world auditors, Arthur Andersen LLP, being obliterated from the world scenario}, the WorldCom scandal of 2005, and the recent sensational collapse...
Literature Review Money laundering is one of the organized crimes of modern times that all economies in the world face (Henry & Sills 2006, p.263). There are many varied definitions of money laundering that have been advanced to understand its organization, execution, and its effect on the economy. However, the...
Introduction Liquidity refers to the ease with which a firm can sell its assets for cash to meet its obligations. Eljelly (48) has clearly defined liquidity as the capability of a business enterprise or a firm to meet its financial obligations when required. Liquidity acts as a measure of individuals’...
Balance sheet The balance sheet of financial intermediary has the following features. 2008 Cash & balances with reserve bank xx Due from other banks xx Investments xx Loans and advances xx Investment in associates xx Net Property, Plant & Equipment xx Other Assets xx Total Assets xx Due to banks...
Introduction Economists use the term “price elasticity of demand” (PED) when talking about how prices respond to the supply and demand of a product. A product is defined as “elastic” when it reacts to price changes, which technically means that there is a relationship between the price of the product...
Introduction The global financial crisis of 2007-2012 has been well-thought-out as the worst financial crisis by several economists (Savoma, Kirton & Oldani 2011). The crisis resulted in the collapse of monetary institutions, downturns in delivery markets, unemployment, evictions from homes, and a dented financial market. The decline in consumer power...
The international monetary system is a mechanism that allows international companies and investors to perform financial transactions. In other words, it refers to the environment in which global entities deal with each other and carry out business and other activities. Thus, a comprehensive definition of the international monetary system is...
Definition and Concepts A cash flow statement represents significant financial declarations for a business or project. It provides information about cash receipts and payments of a venture for a given time frame (Profit, p. 33). The document is crucial for determining a firm’s stability in the business. Cash flow statements...
TANF was enacted in 1996 and set 4 goals for the states using the program: “provide assistance to needy families so that children may be cared for in their own homes or the homes of relatives; end the dependence of needy parents on government benefits by promoting job preparation, work,...
Introduction What a humbling confrontation of morality and business would Mr. Tomlinson observe if he ever gave it a deeper thought – although, according to the author’s plan, he never did. It is the readers that should think, and Stephen Leacock’s “The Wizard of Finance” easily provokes thinking. The author...
The problem of airport funding is exceptionally crucial in the circumstances of globalization. The laws about the budgetary were created in the last century and do not correspond to the needs of these organizations nowadays. Moreover, the topic of monetary sources also has to be taken into account as there...
Introduction The Chinese banking system has grown from the centered model to the current vital conduit for the financial system to the macroeconomy. China has been practicing a fixed exchange rate financial system. However, in the recent past, this has been replaced by the floating financial system which has ensured...
Public libraries continue to attract millions of users as demonstrated by their heavily trafficked websites and ability to remain among the most trusted public institutions not only in the United States but also globally (Clark & Davis, 2009; Goodman, 2008). Allen (2003) employs the public choice theoretical framework to demonstrate...
Creating the environment in which financial operations can flow in a free an uninhibited manner is a crucial step toward the enhancement of a bank’s overall performance. However, the identified goal requires introducing certain control tools that will allow embracing the external and internal factors, thus, modelling possible outcomes (Wu...
Introduction The contemporary business is operating under volatile conditions where the attention of stakeholders and the public predetermine the overall success of an enterprise. Voluntary disclosure, in this regard, is a way to inform the interested parties about the firm’s operations to cultivate trusting relationships. Indeed, according to Bourveau and...
Introduction Currently, Saudi Arabia is an important actor of the global economy, which indicates the relevance of its investigation. The paper will reveal trends in the economy of the country and will be organised as follows. Part 1 will show Saudi Arabia’s economic growth, unemployment and inflation. Part 2 will...
Bank performance Bank performance is seriously contingent on interest rates due to the fact that there are numerous ways to affect net interest incomes through bank operations. One of the essential issues linked to net interest incomes, for example, is that the incomes from holdings and loans do not always...
Executive summary Purpose To determine if the 2008 Global Financial Crisis was a planned or unplanned change based on government and organization reaction, to determine reasons why people and organizations resisted changes that were brought about by GFC and determine if Australian Government reaction to changes brought about by 2008...
Introduction The term “microinsurance” refers to low-cost insurance products designed to satisfy the interests of poor communities by making financial risk management more affordable. Because it necessarily targets low-income communities, microinsurance has attracted the international attention of development policymakers as a tool for mitigating the worst effects of poverty.1 By...
Introduction In 2007-2008, a significant economic disaster was referred to as an international financial crisis. It occurred because of several reasons such as deregulation, securitization, and the involvement of banks (the growth of subprime mortgages and the raised rates on subprime borrowers), which will be thoroughly discussed in the paper....
Introduction Morris and Morris (2007) in the Standard & Poor’s dictionary of financial terms have defined an emergency fund as one intended to endow with economic support for unanticipated expenses or for a time when one is not in gainful employment yet requires an income. Given that in life every...
In the recent past, there has been an outpour of inquisitive literature on the causes of exchange rate fluctuations and all these are because researchers, decision-makers, and policy analysts desire a much better understanding of relationships as well as causal factors of important and deterministic statistics values in economics. Almost...
Introduction TARP or “Trouble Asset Relief Program”, as it is known in full, was a cleverly figured out scheme by the government of the United States of America (Dimsdale, 2), unlike the construction of area 51. Honestly, much credit should be given to the then government for this ingenious plan....
Abstract Financial language is the language used in business, primarily the language used by investors. A number of investors currently have problems with understanding their financial advisors due to the special language that they speak. There are a number of factors that contribute to this lack of understanding. One of...
Introduction Dubai is one of the cities in the United Arab Emirates that has in recent years been highly regarded across the world as a business hub, more so due to its strategic location and growth. The city is headed by the municipality; however, it has autonomy from the rest...
Introduction The government of developing nation X is prepared to allocate $2 billion in support of policy measures to grow per capita Gross Domestic Product (GDP) in the medium term, over a fifteen-year period. The two policy measures under scrutiny: devote the earmarked funding to raising the secondary school enrolment...
Introduction Cash is the amount of funds that is dispensable either in the bank; at hand or in the business but does not include accounts receivable or the value of property. This is the case because it takes cash either in the bank or at hand; to pay expenses like...
Introduction The cost of healthcare has been on increase for a considerable length of time. The total expenditure on health in the US has gone beyond two trillion dollars in the past two years. The expenditure trend has been going up steadily for the past two decades. It’s against this...
A budget deficit in any country normally arises when government expenditure exceeds tax revenue thus placing a nation in a position where it needs to borrow in order to stay afloat. The UK is currently going through one of the worst budget deficits in history and in response to these...
Tax Considerations regarding business credit Tax policies must be put into consideration when planning on the mode of business financing, since tax policies influences the capital structure decisions taken by the company. For instance the percentage of money generated from the ploughing back of profits or the release of certain...
Introduction This paper is aimed at deriving a framework for a study budget. According to the protocol (2008), it is a randomized, placebo-controlled trial of asthma drug in acute severe asthma in children. In particular, it is necessary to do the following tasks: 1) to identify types of costs associated...
Introduction Generally, ethics is concerned with the behavior of human beings that is deemed to be right and acceptable in society and that behavior that is deemed to be wrong and therefore not acceptable based on conventional morality. The ethical norms compose of such behaviors as respect for other people,...
Introduction Most students especially those at the university suffer from financial mismanagement. They mostly receive funding in termly payments and these funds are expected to maintain the student till the end of a given semester. Below is a budget planner for a university student for four months beginning September to...
What is IMF, and what is its purpose? The term IMF (International Monetary Fund) is an acronym used in reference to a global organization that is charged with the responsibility of watching over global financial systems. In addition, it is the responsibility of the IMF to oversee the various macroeconomic...
Introduction According to Bodie et al (2008), “Finance is a scientific discipline is a study of how to allocate scarce resources over time under conditions of uncertainty”. Financial details have to be specified with good decision-making. Scarce resources attribute to the finances related to the costs that an economy possesses....
Introduction An analysis of financial performance of Liberty International Plc has been carried out for a period of three years. The basic financial tools used for this analysis are financial ratios. The analysis has been made from the point of assessing performances on account of liquidity, profitability, activity efficiency, and...
Outline Public finance is involved with the study of the way government finance its activities for the benefit of general public. The money is generated from tax paid by citizens which is calculated as a percentage of the total income earned. The government can also generate funds from issuing bond...
Introduction When Chancellor Alastair Darling delivered his budget speech for 2009, he confirmed much of the speculation about the UK’s debt crisis. This was also coupled with the recognition that the severe recession is plaguing the country’s financial stability. Although there are a range of approaches that have been proposed,...
Introduction The Arab Monetary Fund is a regional organization that was founded in Rabat Morocco in 1976 by the Economic Council of League of Arab States (Anon. “Arab Monetary Fund (AMF)” 1). The fund started operations in 1977 with 22 member countries on board who constituted mainly of the Middle...
Introduction The focus concept refers to an ordered way of organizing resources with an aim of achieving a specific objective. It states that small scale firms can efficiently control their activities by concentrating in the production of a limited number of products and services. A focused firm has a limited...
Introduction Sources of China’s economic growth In the recent past, China has experienced a dramatic economic growth which has led to the improvement in the improvement in the welfare of the citizens. This can be attributed to a number of factors. The rise in the per capita income is associated...
A flat-rate tax is a kind of tax system that uses a constant tax rate. Under this system, household income and corporate profits are taxed at one marginal rate. Unlike progressive taxes which vary depending on factors such as income and usage levels, this tax system usually offers a simple...
Introduction Many benefits accrue from the successive and failed concessions through M5 and M1. At the moment there is a maximum usage of the capacity of M1 AND M5 roads in Hungary. The European road network that is being used in Hungary today is being utilized and the full benefits...
Introduction To begin with, it should be emphasized that construction of the budget for a criminal justice agency is the task, which requires incorporation and considering several factors, which form the budget, and influence the entire process of budget creation. The fact is that, the budget for such type of...
Introduction Taxation is a major practice in all countries across the world whether developed, developing, second world or third world. It forms the backbone of every economy. Taxation comes in different forms and varies widely from one country to another. The idea of the taxes of inheritances roots back to...
Introduction Unique features of Islamic finance is primarily based on the concepts of trusteeship (amanah) of the resources, freedom, justice, co-operation and brotherhood and most importantly welfare and interest of the society in general. Islam never advocates people to asceticism; rather it encourages enjoying the Mother Nature, beauty of the...
Introduction Financial intermediaries refer to firms, institutions or any other party that comes between two or more parties in the context of finances. They involve the banking institutions or other non-banking institutions that transfer finances from the agents in the economy with excess funds, to those experiencing deficits. They connect...
Financialization America has become dependent on trading and speculation and this in itself is a problem to the country. The author refers to this problem as “financialization”.He mentions that there is a friendly relationship between the Bush family and the producers of oil. The Republican Party has formed close ties...
Thesis statement Saudi Arabia economy is built up based on oil with strong government control over major economic activities. The economy is centrally planned with some private companies which are controlled by the government. Before the discovery of oil in the Kingdom, the economy was built upon nomadic production, sea...
The Federal Reserve System was created in 1931 because there were bank failures during those periods. Economies in the world rely on supply of currency within their country and it is this reason why the Federal Reserve System was created for regulating the supply of money. It was also started...
Introduction (McKinnon, 2001) found that, interest rates are manipulated by central banks that intervene with a limited enforcement power. Central bank is a monetary authority and has the responsibility to control monetary policy for its particular country as well as a group of states who are members under the control...
Income statement The statement shows that the revenue, gross profit, operating income, and net income improved. This can be attributed to successful strategies such as diversification that are implemented by the company (The Walt Disney Company, 2015). Balance sheet The balance sheet also grew during the period. There was an...
Introduction Money plays an important role in helping decide the monetary policy. Monetary policy means varying the supply of money in the market. When there is a huge demand for money in the market the central bank tends to increase the supply to meet the demand. However when the money...
