Loan Course Works Samples For Students

The Time value of Money

Q1) Identify the steps involved in computing future value of multiple cash flows?
When there are multiple cash flows, their values are determined by finding the future value of each cash flow and then adding all the values to ascertain total future value of the multiple cash flows.

Step 1: Ascertain appropriate discount rate to discount cash flows.

Step 2: Finding Future Value for each cash flow using a discount rate ascertained in Step 1.

Step 3: Add up all the values which will be the future value of multiple cash flows.

Q2)Which economic principle is involved in finding the present and future value of multiple ...

Introduction

Using the above definition of amortization, the thesis statement for this research paper can be defined (Nellen et al. 37). It will be based on investigating how buying a car involving a bank can be beneficial or disadvantageous based on acquiring a loan and how it will be repaid by taking a real life example. Moreover, a real bank shall be chosen with an arbitrary rate which the bank shall judge a debtor. In so doing, an analysis of numbers shall be computed to illustrate more on which decision to draw concerning taking a loan for the car.

Discussion

Consider an individual called Steve. His aim is ...

Richards (2013, p. 1) first sets out to define the terms to gain a better understanding of the concepts. “Debt” is defined as “borrowing money from an external source with the promise to return the principal, in addition to an agreed upon rate of interest.” Though the terms here are often understood in the negative light, startups, or small companies just beginning to operate, often use debt financing to fund their operations. In fact, even companies with the most robust balance sheets will often times reflect some amount of debt within. In financing terminology, debt can also be ...

- This problem needs a structured and a step by step approach to solve this problem. First of all let us look at what is known and what is unknown. The interest rate is given, the monthly payment is given and since the five years have already elapsed the remaining time maturity is 20 years under the revised scenario and 25 years under the original scenario. This means that under the original scenario the total time period was 30 years.

- An important point in this problem is that since the loan payments are on a monthly basis we need to convert ...

Quinton Hariis and Till

New York

Brief summary of the presentation

The presenters introduced a topic on credit management. The lending and borrowing of funds is guided by given set of rules and standards relating to the type of credit under discussion. The credit managers have to determine the credit score, which measures the credit worthiness of the prospective borrower. The terms and conditions controlling the issue of credit funds is set by the credit department of the organization or institution offering the loan or credit funds. The credit score is the analysis of the past credit records of the borrower relating to normal ...

There is a high risk of investing in stocks compared to bonds this is because the return from bonds can come either from dividends which depends on the performance of a company such that if the a company reports negative profits it will translate to zero dividends. The second form of income in regards to stocks is capital gain from the sale of stocks which means that you can only sale stock when price go up in order to earn a capital gain the unfortunate bit is that this price of stock is determined by market forces of demand and supply which is ...

The cost a company must pay to raise funds depends on wise financing decisions with lowest feasible cost of capital. Most companies may opt for debt or equity financing depending on the budget estimates, type of funding desired, funding source and specific funding timing. Debt financing means any money borrowed from lenders repayable with interest over a specified time but equity financing means any funding e.g. money lent in an exchange of ownership and control of the company.

Most notable advantage of debt financing is that money comes as loan from investors who don’t claim ownership and control of the ...

Overview

Ethics is used to refer to the measure of how right or wrong an act is, basing on the available standards and guidelines. It focuses on human acts that affect their behavior, potential and reputation. Consciousness that an act is right or wrong stems from an aspect of morality, where the person in question is aware of and appreciates the moral norms and standards set in place. It poses concerns on how people should live, act and correlate without going against other people’s interests. There is a decision that must be made at a point that will impact either positively ...

Small and medium size businesses generally comprise about 65% of the world’s business organizations generating approximately 60% of the total revenue collected by economies in this world. This gives me the notion to hold a postulate that small businesses run about 60% of the world economy (Birch, 2007).

Looking at this general term (small businesses) I would define it as a type of business enterprise which has a capital base which is contributed by only one person or a few individuals. This type of business does not have any legal recognition. As a result, these business units are faced by a great deal of ...

Let’s say you have a fantastic business idea that you know will make money for you. You have made your calculations, you have studied the market, you have found the perfect location and you have a good idea how you will operate and make the business happen. The product you have is unique. How to make the product will be unique. You have found the people who will help you make the product. You have emptied your wallet, gathered all your money from your savings, sold your car, you now some of the cash you need to start it all ...

Raising Capital in the UK Economy

Businesses have several financing options for their capital projects. One of the financing options is bank borrowing. There are several banks in the UK market and a business does its analysis to get the best interest rates in the market. A business may approach a bank loan to purchase assets such as machinery. With this kind of business financing, the company may have to give assets as collateral to the bank to act as security. There are two types of bank loans that offer that is secured loans and unsecured loans. The advantage of secured loans is that the interest rate ...

This paper will outline my financial plan. It will also put the plan into a budget that I will revise every year according to my financial consumption.
I am currently a graduate of Bachelor of Economics. I relied on the student’s loan and grants from both the university and charity organizations while in school to pay my school fees and meet my daily expenses. My inclination to student loans and bursaries was largely contributed by the fact that my family lived in reduced circumstances. I made it my obligation that I will pursue my education regardless of the obstacles ...

Question 1

In order to understand why people commit fraud, many companies use the fraud triangle to analyze the attributes, which make people commit fraud. The importance of the fraud triangle is to understand fraud and its significance demonstrated in the Darren Darren’s case. The explanation of why people commit fraud is examined by the use of fraud triangle. It evaluates the circumstances that make employees violate ethical standards and be involved in the fraud cases. Therefore, fraud triangle joins the perceived pressure, perceived opportunity and rationalization to facilitate fraud.
The first required attribute is Incentive, motivation, or pressure ...

The cost which the organization incurs the production and acquisition of products and services which it intends to sell is very important. The pricing strategy of the organization is significantly affected by costs. Therefore, costs designed to tackle the challenges of the economic and the noneconomic factors very efficiently. The objective of the costing models is to categorize the factors of the marketing objectives of the company and the mission of the company (Gitman, 2003).

Accurately determination of cost is important in organization to remain profitable. Costing does not only require including direct and indirect cost associated with business ...

The interconnectivity between the world’s largest stock markets is based on the world’s interdependent global economy. No longer does one country exist without interaction with other countries. No longer are countries isolated from each other. Instead, countries rely on each other for everything from raw materials to the production of goods and services. This interdependence is reflected in the stock market and other facets of counties economic systems.

I believe that Japan has the most influence on the United States’ stock market. The correlation between Japan and the United States’ high market movements is high at most ...

Businesses of all kinds need to devise a plan with which to follow as they grow and expand. Growth of a business could involve moving to a new premise, production of new and better products in larger quantities than before and so on. Kelly as an entrepreneur who has specialized in the food industry only makes lunch currently. However with a chance to expand and grow the business, she needs to plan for the growth and expansion. As her plan for growth involves shifting base and improving the business form in general, her plan for business growth should be designed to suit the ...

1) Example (Every day business) Saving for the Future

You will graduate from high school in four years and go on to college. To help you pay for college books your grandparents put $1500 in a bank account paying 4.5% simple interest. When you go to college the money will have been in the account for 12 years. How much money will you have?

Step 1. PVrt = INT where INT = Interest and PV = Present Value
Step 2. FV = PV + INT = PV(1 + rt) where FV = Future value, r = annual interest rate, and
t = years
Step 1. (1500)(.045)(12) = $810 in interest
Step 2. $1500 + $ ...

Task 1

Explain the nature and role of accounts. You need to also explain why James and Rebecca need to produce accounting information in order to make financial decisions.

Answer

Accounting is the process of identifying, measuring and reporting economic information to the owners of business and all interested parties (Joel, 2008). Business transactions have financial implication on a business in both short term and long term (Frank & Allan, 2005). Some of the transactions are sale or purchases of fixed assets or current assets, paying of business expenses, and settling current liabilities among other business transactions. Accounting involves identifying, measuring and reporting ...

As compared to the right issue, the fund collection through bonds or loan notes is cheaper and quicker for the management of the business. Investors can sale or purchase bonds or loan notes issued by the listed companies in the stock exchange or bond markets. Therefore, the issuing of bonds on short term or long term basis is the most attractive ways of raising funds. However, in the calculation or estimation of the bond face value and the coupon rate, the market interest rate plays an important role. There is a strong relationship between bond prices and market interest rates. If ...

Introduction

In part 1 of The Ascent of Money, Harvard University’s Professor Niall Ferguson explains how the concepts of money and banking came into existence. He explains this in the context of the 2008 global financial meltdown. This part of the documentary lays the groundwork that will enable the narrator explain how the effect of bankruptcy of a few institutions could impact so heavily and widely on the financial system. The existence of banks in the financial system as a link between lenders and borrowers is critical to the survival of the concept of money. Yet the strength of the financial ...

Introduction

The report includes a speculative summary which is highly rendered by the project submitter. The report includes the rules and exemption to work with an accommodated job in United Kingdom. The summary and the report includes the rules and regulations which are necessary as per working in the UK company, and it also discuss about the Tax redemption charges as per the incomes basis of an individual. The report even includes the taxation of any employee working in a UK based company. The rules and regulations are also jotted down to make the project analyst know about the main factual finding ...

Part 1

- In what ways did the video "The Crisis of Credit" demonstrate the failure of the banking industry's Fiduciary Relationship to investors and home owners?

The video explains a worldwide financial disaster that effected everyone. It started on the burst of the dot com bubble when the federal reserve of the United States decreased the interest rate to 1%. This value dramatically dropped the investment level because of the reduced ROI. This action made banks to take more and more loans from the Federal Reserve. The leverage increased as it became very easy to return a loan, so the demand for credit increased rapidly.

The banks took a lot of credit, and they were easily able to payback and made a lot of profits. Investors saw this as ...

An organization’s financial structure is the mix of debt and capital employed by the management for purposes of financing its activities. In the healthcare sector, there are three main categories of organizations that provide health services. These categories are for profit, not-for-profit and government organizations. The categorization is based on organizational ownership and motive. Each type of organization has its own unique financial structure which is attributable to the financial environment it operates in. This paper examines three specific organizations, one in each category, and describes the financial structure, practices and policies unique to the category.

For-profit organizations ...

Social entrepreneurship is where a business aims to achieve a certain social goal other than that of making a profit. Social entrepreneurs are usually concerned about making a positive impact on the society other than their objective of making a profit. For instance in the video entitled “Tom’s shoes”, Blake Mycoskie focuses on improving the lives of the children in Argentina. He observed that most of the children in Argentina were walking bare footed and made it his priority to change this situation.He was keen on making a profit on his sale of Tom’s shoes but also wanted to make a contribution in ...

In the past few years, price properties all over the world have been skyrocketing. This is the same with the Eastern Arabia region. From 2008 to currently, house properties have surged 600% and according to developers, some parts of Bahrain have seen a 400% increase in the prices of houses. Increased revenues from foreign investments and oil has led to an increased demand for housing. This is further enhanced by the fact that housing laws are more liberal, little to no tax in the housing tax and very easy and non-stringent home financing. In this paper I will explore the ...

INTRODUCTION

Small businesses face many issues in comparison to the well established organizations. However, among several issues one of the major issues that small businesses face is to raise capital. Many small businesses and entrepreneurs may have the ability to make their organization a big organization however because of lack of investment they are not able to do so. With the increased risk in the market, banks and venture capitals have also become very much risk averse instead of accepting the risk and growing their investment. This has also lead to such situation where small businesses face different issues in raising ...

Introduction

US economy experiences adverse effects occasioned by the recent deadly economic recession that hit the entire world. This economic recess arose as a result of complex factors such as energy crisis and political instability in oil producing and exporting companies. US government stance on war against terrorism led to a sour relation between the US and Middle East countries. This further has hit the US economy hard. This paper attempts looking at the current state of US economy in various sectors of the economy according to St. Louis Federal Reserve Economic Data (FRED). These sectors include housing, investment, and employment, and ...

A help desk can either be centralized or decentralized. The centralized IT support provides help to every user in the company irrespective of location or even department. Conversely, a decentralized support has several helpdesks within an institution.

In choosing the right help desk model, there are various considerations taken into account in determining to choose either centralized or decentralized systems; since each model has inherent advantages as well as well as disadvantages.

The centralized systems usually offer sizeable economies of scale advantage. Also, centralism of tasks eliminates redundancy of responsibility, which offers a united front to completion of duties ...

Self-Determination of use of Market Value by Banks: Good or Bad?

As per the new Exposure Draft of FASB, financial institutions are now relaxed from the use of fair value in their financial statements. As per this new rule, if the bank intended to keep the asset until it was paid off, it would be carried on the financial statements at cost price, and the value will not fall or rise when the market prices are changed. The proposal was welcome by the banks which were once unhappy with the proposal of 2010 regarding use of market value as they(banks) contented that since market values of financial securities had ...

Introduction to Part II

Welcome to Part II of the Research Assignment for HIST 105. In Part I you used contemporary primary sources (an e-newspaper article) and tertiary sources (encyclopedias) to help select and learn about your chosen contemporary issue. You analyzed these sources, learned how to properly cite such sources, and used them to create initial research questions.
In Part II, you will begin to investigate the historical roots of that contemporary issue using secondary sources. More specifically, you'll be locating a monograph, or full-length book.
After you've completed Part II, your instructor or your teaching assistant will reassess ...

Uganda

As a country well endowed with many substantial resources, Uganda, an African country, is blessed with great economic potential. However, years of self ruling and unstable economic management has made this country one of the least developed country, with a high percentage of poverty. The current president of Uganda, Museveni, helped in rebuilding the economy by negotiating a policy framework paper with the IMF and the World Bank. According to World Bank’s Worldwide Governance Indicators, the country annually loses 768.9 billion shillings or $286 million due to the severe problem of corruption. However, Uganda has maintained a stable debt position due to ...

Introduction

British Telecom and Vodafone are two giants in the telecom industry. After the financial burst of 2008 in the US Economy and the financial troubles in Europe, the telecom sector got badly impacted. In fact the whole sector instead of growing has slid into a negative growth which has affected almost all the telecom companies. British Telecom and Vodafone are trying to diversify their portfolios by making efforts to come up with innovative product packages to fuel growth. So far the initiatives have not shown much improvement in the results. In such conditions it is becoming very difficult for those ...

The late 1970s and especially 1980s were years of major market changes in response to new deregulation policies. The presidency of Richard M. Nixon and afterwards of Ronald Regan was an era of federal government permissiveness and abandonment or relaxation of several laws. It was thought that turning the focus away from laws and regulations would create a motivation for competitiveness, thus bringing higher productivity, efficiency and lower prices.

Deregulation affected a broad spectrum of industries and markets like airline, railroad, telecommunications and banking. All these businesses were hugely affected by the new deregulation policies, but most of all the monetary ...

PART A: Description of work related experience

SITUATION

At the time of the subsistence of the Make an Impact Week, our course instructor required me from a group alongside my colleagues with a view to meeting the requirement of the coursework in executing a task. We were charged with the responsibility of raising a total of $ 200 to help fund the activities of the Environmental Club in the school. Alongside my colleagues, we formed a group of five persons so that we could execute the task as a group as required of the coursework. We met on a record three times to discuss and pitch our idea of raising the necessary cash where ...

Assets are usually owned by the business. Businesses use these assets in order to generate revenue by selling goods and services. Assets are both tangible and intangible. Normally tangible assets include cash in hand, furniture and fixture, plant, machinery etc. while intangible assets include goodwill of business, trademark or patent etc. (O'Keefe, 2010)
According to GAAP, either the owner of the business owned the assets of business or subject to the claims of creditors. Creditors are those persons who have given loans to another person or businesses. Such loans or credits are called liabilities. Such portions of ...

Introduction

Datax Tutoring Service exists in its legal form as a legal proprietorship in the form of the business's ownership with mingling of rights of the owner as well as liability and responsibility in combination with business rights. In this case Matt Thomas exists as the owner of the business as well as in legal representation with the responsibility of transaction and management of the activities of the business. There is no legal distinction between the Matt Thomas as the owner and his tutoring business. In addition he is the recipient of allow profits that are subjected to certain taxation ...

Quote ‘one man’s trash is another man’s treasure’ aptly suits Canada’s asbestos exports and its support for asbestos industry in developing countries. Canada is a country of ten provinces and three territories out of which only Quebec has asbestos mines. Quebec was the world’s first province to start a commercial mine in 1879 whose mines are still operational today. 97% of their production is exported to developing countries. Canadian citizens want asbestos banned due to its cancer causing factors but the government is dragging its feet on the policy. Within the country if closing these mines ...

Social Responsibility: The case of Bank of America’s Expansion

Introduction

With the emergence of the global world, businesses the world over have been compelled to offer competitive services. In the same strain, the protectionist systems adopted by countries have since been replaced by open market concepts that necessarily encourage capital flight and cross border investments. In addition, it has become easier for businesses to engage in capital borrowing at the international level. It is on this premise that this paper seeks to recommend for the Bank of America’s expansion into the international financial arena and more specifically to the BRICS nations which have been confirmed as having colossal ...

Introduction

In a typical investment setup companies are often faced with a number of investment options. In these situations, the companies usually have limited capital to invest in all the investments. The natural approach often is to invest in any project that promises a positive return at the end of the day. However, in cases where these investment projects are diverse and numerous, the company ought to settle for the best investment that would address their short and long term interests. Capital budgeting refers to the promise through which the companies select the investment option and undertake the implementation of the projects. The ...

Discuss how the principles of internal control apply to cash receipts. 

The principles of internal control apply to cash receipts because of the need to monitor and control it. Since cash receipts are one of the most important assets of a company, it is essential that there be policies and formal procedures to monitor and control it. Several principles of internal control are applicable to cash receipts such as assigning a person or persons responsible for the cash receipts and the maintenance of its records, making sure that the person/s assigned to the custody of cash receipts is different from those who keep the accounting records. Moreover, technological controls like cash registers, ...

Chapter 1

1. Some of the factors that affect investors’ interests in foreign investment are the region of the world, the maturity of the hotel industry in that region, and the varied real estate and capital markets throughout the world. Among these, the first two are the ones most related to the host country.

2. Hotels are considered high-risk international investments because unlike the products of manufacturing companies, unsold hotel rooms cannot be stored for later use. In addition, real estate and construction costs constantly increase. Still, other risks include natural disasters, political instability, terrorist activities, fluctuations in exchange rate, and ...

Brief Summary of the Presentation

The title of the presentation was “What Every College Should Know about Credit Scores but No One will tell them.” The main resource persons were Quinton Harris and Tim Gill who were both Area Managers for the Bank of England and Daniel Halverson who is a credit manager. A credit score is a benchmark for a creditor for determining whether a person is worthy of credit. A credit score also shows a person’s ability to manage finances and meet obligations. The presentation highlighted the importance of having a good credit score to gain trust from employers, creditors, business partners and other interested parties.

Leadership Skill, Traits and Abilities Identified

The ...

1. Bevan Industries’ current cost of capital

Discussed hereunder is the step by step calculation of Bevan Industries’ current cost of capital (Barber, 2004).

Cost of Debt (Cd)
Cd = I (1 - TR)

Where I is the Interest Rate on Debt

TR is the Tax Rate
Cd = {(30,000,000 X 0.06) / 25,000,000} X (1 – 0.28)

= 0.072 X 0.72 = 0.05184

= 5.184%

Cost of Common Stock (Ccs)

Based on the given information, the cost of common stock is calculated using the formula
Ccs = Cd + risk premium
rf = (20 X 8) / 160 = 1 (rf is the risk free rate)
Ccs = 5.184 + 0.75(1)

= 5.934%.

Cost of Preferred Stock (Cps)

...