QUESTION Enron is one the enduring legacies of corporate fraud in thelast 10 years. It erupted due to the incompentencies ofCalifornia in failing to truly deregulate electricitygeneration.What techniques did the wizards at Enron use to inflate earningsand their stock price? How did they manipulate cash Jeffrey Skilling was hired as the president, he developed a […]
QUESTION Your neighbor is a security analyst. He has conducted his researchabout some stocks in Karachi (name of city) StockExchange (KSE) and his findings are as follows:Stock A will have a return of 18%, stock B will have a return of20 % and stock C will have a return of 22%, but his findings do […]
QUESTION Overton Incorporated is prepared to report the following incomestatement(shown in thousands of dollars) for the year 2006. Sales   All figures are in ‘000 a. The company had a 40 percent dividend payout ratio in 2005. IfOverton wants to maintain this payout ratio in 2006, whatwill be its per-share dividend in 2006? Ans. Dividend […]
QUESTION Mr. Sami, Chief Financial Officer (CFO) of SNTCompany, is planning to change the working capital policy of thecompany. Currently, the company is employing conservativeworking capital policy but Mr. Sami has plannedto set the working capital policy as aggressive. What would b Liquidity: Ability to meet financial obligations as they comedue -Conservative policy would yield […]
QUESTION The following table shows teh marginal private cost (MPC and themarginal social cost (MSC) of a chemical factory.Tons ofChemicals MPC 1) The marginal cost of the factorys externality is $20 and isconstant.2) Since the market is perfectly competitive, the firm shouldproduce the quantity of units where MPC=MR. When MR equals130, the firm should produce […]
QUESTION Question:AST Company is attempting to select among the two mutuallyexclusive projects both ofwhich cost Rs. 100,000. The firm has a cost of capital equal to13%. After-tax cashinflows associated with each project are shown in the followingtable :Year Pr Answer: i) Calculate the Payback Period for eachproject. Initial Investment = 100,000 Payback Period for Project […]
QUESTION This work is about the banking system and its uses for different individuals and businesses. Chosen a bank to discuss its functionality. The selected bank is the Abu Dhabi Commercial Bank which was founded in 1985. It discusses various business loans , personal loans and other financial services provided by the bank. 1. Presentation […]
QUESTION PQR has the following financial instruments in its financial statements for the year ended 31 December 20X5: (a) An investment in the debentures of STU, nominal value $40,000, purchased on their issue on 1 January 20X5 at a discount of $6,000 and carrying a 4% coupon. PQR plans to hold these until their redemption […]
QUESTION Reco r ding Bond Issue and Fi r st Inte r est P ayment with Discount (Effecti v e-Inte r est Amortization) On January 1, 2009, Hyde Corporation sold a $600,000, 7.5 percent bond issue (8.5 percent market rate). The bonds were dated January 1, 2009, pay interest each June 30 and December 31, […]
QUESTION 1. Why was leasing chosen as a financial intervention in Bulgaria? Whatconstraints to finance existed in themarket? 2. What preconditions needed to be addressed for the leasing company tobe launched? 3. What are the sources of funding for the leasingcompany? Document Preview: EQUIPMENT LEASING FOR BULGARIAN AGRICULTURAL BUSINESS Please read the case study carefully […]
