Essays on Depreciates

Mike Mayo takes on Citigroup (A) and (B)

Do you agree with Mike Mayo’s concerns about the extent of Citigroup’s DTA’s? Why or why not? I agree with Mike Mayo’s concern about Citigroup’s Deferred Tax Assets (DTA’s). Citigroup’s DTA’s increased from $4.7 billion at the end of 2006 to $38 billion by the third quarter of 2009. Citigroup would use the huge DTA’s to shield future profits from taxation to a tune of $38 billion. However, the accounting rules require that a firm can only carry the DTA’s if it is reasonably probable that the firm would ...

Sources of currency values

These currency values have been obtained from several sources. The first source is Bloomberg. This site offered the values of these currencies for comparison purposes. There was a need for computation and conversion in order to obtain accurate values. Bloomberg offers currency values for international financial markets (Watson, 2013). The other source for these currency values is yahoo finance. This platform provides currency values on a historical trend basis. It provides charts and trends depiction for a clear and illustrative comparison. Yahoo Finance has been a key source for financial values; aiding financial analysts in their analysis (Elliott, 2012). The final source for ...

Introduction

Globalization and other factors are driving international businesses and trade. In that respect, multinationals are increasingly becoming subject to factors that are not only born in their home country, but also from host countries as well as markets within which they sell their products. One such factor is the exchange rate that determines the value of the payments that exporters receive for their international sales as well as the value those importers pays for their purchases from foreign markets. In that view, it is becoming crucial for managers and business leadership to establish suitable strategies for managing the risks ...

Monetary system in India

Abstract Banks and central banks have a great role to play in the development of a country’s economy. In essence, banks provide and create money through credit, a scenario that provide a country with the much needed where withal to implement major policies. Banks have emerged as the new fore front of development across the world with institutions and government agencies turning to banks for support and growth. Yet, the banking sector remains prone to external shocks such as business cycles and political turmoil. Furthermore, banks require a secure and flexible legal structure to offer services to people. The control of Central ...

BUSINESS REPORT

Executive Summary Corvette sells luxury sports cars and has just signed a contract to sell some of the cars to various customers around the globe. The selling prices for the cars are fixed and are set at the local currencies of the countries where the cars are being sold. However, there is uncertainty in the exchange rates in different countries. The Bank of America has provided them with estimates of the mean and standard deviation. HSBC has offered to pay a sum of $2,150,000 in return for the revenue in local currencies and the management of Corvette is ...

Introduction

The currency of a nation is used as a medium of exchange and reference in all domestic financial transactions of a country. With globalisation and integration of economies, international business has become a common phenomenon. International business requires buying, selling and exchange of money between two nations. Since, economies across the world have their own currencies and value of each of these currencies vary at any given point in time, relative value of one currency with respect to another becomes an important aspect during international financial transactions. This has concerted international focus on the concept of foreign exchange, which deals with the relative ...

International Finance

A floating currency refers to a system of currency valuation where by the exchange rate of a country’s currency depends on the supply and demand of that currency relative to foreign currencies. Floating rates of exchange usually vary freely because they are determined by trade activities in the forex market. A floating system of currency valuation is the complete opposite of the fixed rate of exchange. The fixed rate of exchange regime is where by the rate of exchanging the currency in relation to other foreign currencies is set at a constant rate. Countries can either choose the fixed rate ...