Managerial finance short questions
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Finance involves the management of money and other assets that can be converted into cash. The goals of firms include producing goods, maintaining optimal inventory levels, achieving sales targets, gaining market share, and earning profits. Money markets involve short-term lending and borrowing of low-risk, low-return securities like treasury bills and commercial paper. Capital markets trade longer-term, higher-risk, higher-return instruments such as stocks, bonds, and retained earnings.
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Ib0010 international financial management
This document provides information about an assignment for the course MBA Semester 3 IB0010-International Financial Management. It lists 6 questions to answer related to international financial management topics like the differences between domestic and international financial management, advantages and disadvantages of fixed and floating exchange rate systems, concepts of interest rate swaps and foreign exchange exposure. It also provides short notes on international credit and bond markets. Students are instructed to answer each question in 300-400 words and submit the assignment by email or phone for grading.
Corporate Finance
There are three main types of risk associated with capital budgeting projects:
1. Stand-alone risk, which considers the risk of a single project alone without other company assets.
2. Corporate risk, which assumes a project is incorporated with other company assets and can be diversified.
3. Market risk from a stockholder perspective, which looks at how a project may affect the company's beta and a stockholder's overall portfolio.
Financial markets & the special case of money
1. Financial markets channel funds from savers to investors, promoting economic efficiency and growth while affecting personal wealth and business behavior.
2. Financial markets are classified as debt markets, which include money markets for short-term loans and capital markets for long-term loans, and equity markets for common stocks.
3. The main functions of the financial system are financial intermediation, where savers' surplus funds are channeled to borrowers through financial intermediaries like banks and non-bank institutions.
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This document contains an assignment for a 5th semester B.Com course on investment management. It includes 4 questions relating to investment:
1) The difference between an investor's and speculator's motives, and how both are important for market efficiency.
2) The key differences between fixed income securities and equities as investment avenues.
3) Distinguishing the financial and economic meanings of investment.
4) Defining risk as the unexpected variability in investment returns, and the main types of risk an investment advisor needs to understand and manage.
7.international finance exposures
This document provides an overview of managing foreign exchange exposures and exchange rate fluctuations. It discusses the different types of currency exposures that companies face, including transaction, economic, and translation exposures. Transaction exposures arise from outstanding foreign currency obligations before exchange rates change. The document outlines how changing exchange rates can affect companies and provides examples of currency risk from imports, exports, and foreign borrowing. It also discusses factors that influence exchange rate movements and the objectives of foreign exchange risk management.
Other Financial Assets
Other financial assets include stocks, money market mutual funds, and certificates of deposit. Stocks represent ownership in a company, money market mutual funds invest in short-term assets but are not FDIC insured, and certificates of deposit are bank deposits for a fixed time period at a higher interest rate. Financial assets are traded on capital markets, which involve assets that mature in over a year, or money markets, which involve assets that mature in under a year. They can also be traded on primary markets, where only the original holder can redeem the asset, or secondary markets, where the asset can be resold.
Foreign currency exposure
Foreign currency exposure refers to the risk faced by multinational corporations from fluctuations in exchange rates. There are three main types of foreign currency exposure: transaction exposure from contractual obligations, economic exposure from future cash flows, and translation exposure from consolidating financial statements. MNCs assess these exposures and use hedging tools like exposure netting and currency derivatives to minimize risks from exchange rate volatility. Key steps in the risk management process include exposure assessment, identifying hedging tools, implementing hedges, and ongoing monitoring of currency rates and hedging positions.
Ib0010 & international financial management
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
Recommended
Ib0010 international financial management
This document provides information about an assignment for the course MBA Semester 3 IB0010-International Financial Management. It lists 6 questions to answer related to international financial management topics like the differences between domestic and international financial management, advantages and disadvantages of fixed and floating exchange rate systems, concepts of interest rate swaps and foreign exchange exposure. It also provides short notes on international credit and bond markets. Students are instructed to answer each question in 300-400 words and submit the assignment by email or phone for grading.
Corporate Finance
There are three main types of risk associated with capital budgeting projects:
1. Stand-alone risk, which considers the risk of a single project alone without other company assets.
2. Corporate risk, which assumes a project is incorporated with other company assets and can be diversified.
3. Market risk from a stockholder perspective, which looks at how a project may affect the company's beta and a stockholder's overall portfolio.
Financial markets & the special case of money
1. Financial markets channel funds from savers to investors, promoting economic efficiency and growth while affecting personal wealth and business behavior.
2. Financial markets are classified as debt markets, which include money markets for short-term loans and capital markets for long-term loans, and equity markets for common stocks.
3. The main functions of the financial system are financial intermediation, where savers' surplus funds are channeled to borrowers through financial intermediaries like banks and non-bank institutions.
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This document contains an assignment for a 5th semester B.Com course on investment management. It includes 4 questions relating to investment:
1) The difference between an investor's and speculator's motives, and how both are important for market efficiency.
2) The key differences between fixed income securities and equities as investment avenues.
3) Distinguishing the financial and economic meanings of investment.
4) Defining risk as the unexpected variability in investment returns, and the main types of risk an investment advisor needs to understand and manage.
7.international finance exposures
This document provides an overview of managing foreign exchange exposures and exchange rate fluctuations. It discusses the different types of currency exposures that companies face, including transaction, economic, and translation exposures. Transaction exposures arise from outstanding foreign currency obligations before exchange rates change. The document outlines how changing exchange rates can affect companies and provides examples of currency risk from imports, exports, and foreign borrowing. It also discusses factors that influence exchange rate movements and the objectives of foreign exchange risk management.
Other Financial Assets
Other financial assets include stocks, money market mutual funds, and certificates of deposit. Stocks represent ownership in a company, money market mutual funds invest in short-term assets but are not FDIC insured, and certificates of deposit are bank deposits for a fixed time period at a higher interest rate. Financial assets are traded on capital markets, which involve assets that mature in over a year, or money markets, which involve assets that mature in under a year. They can also be traded on primary markets, where only the original holder can redeem the asset, or secondary markets, where the asset can be resold.
Foreign currency exposure
Foreign currency exposure refers to the risk faced by multinational corporations from fluctuations in exchange rates. There are three main types of foreign currency exposure: transaction exposure from contractual obligations, economic exposure from future cash flows, and translation exposure from consolidating financial statements. MNCs assess these exposures and use hedging tools like exposure netting and currency derivatives to minimize risks from exchange rate volatility. Key steps in the risk management process include exposure assessment, identifying hedging tools, implementing hedges, and ongoing monitoring of currency rates and hedging positions.
Ib0010 & international financial management
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
Basic18
This chapter discusses long-term financing options for multinational corporations (MNCs), including issuing bonds denominated in foreign currencies. It explains that MNCs must forecast exchange rates and interest rates to evaluate the costs and risks of foreign currency financing. The chapter also covers how MNCs can use techniques like hedging with currency swaps or interest rate swaps to reduce exchange rate and interest rate risks from long-term financing denominated in foreign currencies.
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Investing and the Financial System
The financial system allows savers to provide money to borrowers through financial institutions like banks. Savers deposit money in savings accounts or invest in assets, and banks use this money to issue loans to businesses and individuals. Borrowers use the loans to make purchases or investments and pay interest to the bank. The bank then shares some of its profits with savers in the form of interest to incentivize saving. When making financial decisions, savers must consider the tradeoff between return, liquidity, and risk - higher potential returns generally come with higher risks.
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The document discusses money market instruments. The money market enables short-term borrowing and lending of liquid assets with maturities of less than 1 year. Common money market instruments include treasury bills, certificates of deposit, commercial paper, money market mutual funds, and repurchase agreements. Treasury bills are zero-coupon bonds issued by the government at a discount that are purchased by banks and redeemed at full value at maturity. Certificates of deposit are promissory notes issued by banks that pay interest until maturity. Commercial paper is an unsecured promissory note issued by companies to finance short-term credit needs. Money market mutual funds invest in short-term debt and are regarded as safe but offer higher yields than bank deposits.
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Structured financial products are created through the securitization of assets like mortgages and other loans. Mortgages are pooled together and interests in the cash flows from the pool are sold to investors in the form of mortgage-backed securities. Securitization allows originators to convert illiquid mortgages into tradable securities, replenish funds for further lending, and remove assets from their balance sheets. Common types of mortgage-backed securities include mortgage passthrough securities and collateralized mortgage obligations, which divide the cash flows from mortgage pools into different classes or tranches.
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This document defines and describes various types of security and non-security marketable and non-marketable financial assets. It discusses equity shares, preference shares, bonds, debentures, convertible securities, hybrid securities, derivatives, and various money market instruments. It also covers non-security assets such as fixed deposits, gilt-edged securities, and post office savings schemes.
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1) a. How do commercial banks alleviate the problem of liquidity ris.pdf
1) a. How do commercial banks alleviate the problem of liquidity risk that investors would face
if they were to directly loan funds to individuals and corporations?
b. What are the main differences between money markets and capital markets.
Solution
1b.Main differences between money markets and capital markets are as follows-Basis for
comparisonMoney marketsCapital marketsMeaningA segment of the financial market where
lending and borrowing of short term securities are done.A section of financial market where
long term securities are issued and traded.Risk factorLowComparitively HighReturn on
investmentLessComparitively highFinancial instrumentsTreasury Bills, Commercial Papers,
Certificate of Deposit, Trade Credit etc.Shares, Debentures, Bonds, Retained Earnings, Asset
Securitization etc.TimeWithin a yearMore than a yearMeritIncreases liquidity of funds in the
economy.Mobilization of Savings in the economy.LiquidityThe money market instruments are
rich in liquidityThe instruments of capital market are not that much liquid.
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This chapter discusses long-term financing options for multinational corporations (MNCs), including issuing bonds denominated in foreign currencies. It explains that MNCs must forecast exchange rates and interest rates to evaluate the costs and risks of foreign currency financing. The chapter also covers how MNCs can use techniques like hedging with currency swaps or interest rate swaps to reduce exchange rate and interest rate risks from long-term financing denominated in foreign currencies.
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This chapter discusses various forms of multinational restructuring that multinational corporations undertake, including international acquisitions, divestitures, alliances, and shifting production among subsidiaries. It explains how MNCs evaluate and value potential foreign acquisition targets, which can vary depending on estimated cash flows, exchange rates, and required rates of return. The chapter also covers other methods of multinational restructuring such as partial acquisitions and privatized businesses, and treats restructuring decisions as real options problems.
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This slides deals with financial engineering. It is an innovative financial service. it also deals with different financial services rendered by the forex and domestic market.
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This document provides information about an assignment for an International Banking Management course. It includes the course code, title, assignment code, and coverage. It lists 5 questions related to the role of the IMF, Basel III norms, functions of a bank treasury, risk management processes, and differences between options, futures, and forward contracts. Students are instructed to answer all questions and submit the assignment by April 30th, 2013.
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Structured Products
Structured financial products are created through the securitization of assets like mortgages and other loans. Mortgages are pooled together and interests in the cash flows from the pool are sold to investors in the form of mortgage-backed securities. Securitization allows originators to convert illiquid mortgages into tradable securities, replenish funds for further lending, and remove assets from their balance sheets. Common types of mortgage-backed securities include mortgage passthrough securities and collateralized mortgage obligations, which divide the cash flows from mortgage pools into different classes or tranches.
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This document defines and describes various types of security and non-security marketable and non-marketable financial assets. It discusses equity shares, preference shares, bonds, debentures, convertible securities, hybrid securities, derivatives, and various money market instruments. It also covers non-security assets such as fixed deposits, gilt-edged securities, and post office savings schemes.
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This document discusses key metrics for analyzing bank performance. It defines core deposits as stable deposits that are less sensitive to interest rates, including demand deposits and small time deposits. It also defines volatile funds as large, rate-sensitive liabilities over $100,000. The document outlines the components of the income statement and discusses interest income, noninterest income, and noninterest expenses. It then explains how to calculate key metrics like return on equity, return on assets, expense ratio, and asset utilization that provide measures of returns, income generation, and expense control. The document concludes with discussing asset quality ratios and non-performing assets that are important indicators of a bank's financial health.
Asset and liability management
The document provides an overview of the key components of a bank's balance sheet, including assets and liabilities. It discusses the various line items under assets (such as cash, investments, advances) and liabilities (such as capital, reserves, deposits, borrowings). It also summarizes the components of a bank's profit and loss statement and provides details on liquidity management, asset liability management and interest rate risk management. The document is intended as a presentation on managing a bank's assets, liabilities, liquidity and interest rate risk.
Investment Alternatives
The document describes various types of financial assets including money market securities like treasury bills, commercial paper, repurchase agreements, and bankers' acceptances. It also discusses fixed income securities like bonds and their characteristics. Additionally, it covers equity securities such as preferred stock, income trusts, and common stock. The document also briefly outlines derivative securities including options and futures.
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This document provides an overview of financial risk management. It discusses key concepts such as risk, risk stratification, risk management approaches, interest rate risk, and term structure theories. The key points are:
1. Financial risk management involves monitoring risks and managing their impact on a firm. It uses modern finance theories to balance risk taken with expected reward.
2. Risk can be stratified into known probabilities, known parameters but uncertain quantification, unknown causation/interactions, and undiscovered or unmanifested risks.
3. A risk management approach involves identifying, measuring, and adjusting risks through behavior changes, insurance, hedging, and other means. Managing core business risks internally and hedging economic risks
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This document discusses direct foreign investment and international diversification. It outlines various motives for direct foreign investment, including revenue-related motives like entering new markets and cost-related motives like using cheaper foreign labor. The document also discusses how international diversification can reduce risk for multinational companies by locating projects in economies with low correlations. It provides an example showing how a company could achieve more stable returns by locating a new project in the UK rather than the US. Additionally, the document discusses host country perspectives on foreign investment and decisions companies must make after initial foreign investment.
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The document discusses various investment alternatives including real estate, gold/silver, mutual funds, bonds, stocks, derivatives, and commodities. It provides brief descriptions of each type of investment, highlighting some key aspects. For example, it notes that real estate involves the purchase and sale of land and buildings, and gold/silver investment provides protection through diversification and potential for growth. The document also includes charts showing the percentage growth of different investment types on average each year.
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Financial markets allow people and entities to trade securities, commodities, and other assets. They serve several functions including raising capital, transferring risk, facilitating price discovery and global transactions, and transferring liquidity. There are several types of financial markets including capital markets for stocks and bonds, commodity markets, money markets for short-term debt, derivatives markets for managing risk, futures markets for forward contracts, insurance markets, and foreign exchange markets. Within capital markets, primary markets involve new security issuances while secondary markets allow trading of existing securities. Money markets specifically involve short-term borrowing, lending, buying and selling of assets with original maturities of one year or less. Common money market instruments include certificates of deposit, commercial paper, and treas
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1) a. How do commercial banks alleviate the problem of liquidity risk that investors would face
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b. What are the main differences between money markets and capital markets.
Solution
1b.Main differences between money markets and capital markets are as follows-Basis for
comparisonMoney marketsCapital marketsMeaningA segment of the financial market where
lending and borrowing of short term securities are done.A section of financial market where
long term securities are issued and traded.Risk factorLowComparitively HighReturn on
investmentLessComparitively highFinancial instrumentsTreasury Bills, Commercial Papers,
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The document provides information on the Indian financial market and its various components. It discusses the money market and capital market as the two main organized financial markets in India. The money market is further divided into unorganized and organized segments. The unorganized segment includes money lenders, indigenous bankers, and chit funds. The organized money market comprises treasury bills, commercial paper, certificates of deposit, the call money market, and the commercial bill market. The capital market provides long-term finance and consists of the industrial securities market, government securities market, and long-term loans market.
FINANCIAL MARKET NOTES.pdf
The document provides information on financial markets and how they work. It defines financial markets as markets that allow for the exchange of financial assets like shares, bonds, and government securities. Financial markets provide both short-term and long-term funds for investors and borrowers. The key types of financial markets discussed are the money market, which deals in short-term debt instruments, and the capital market, which deals in medium-to-long term instruments like stocks and bonds. Important components of these markets include primary markets for new securities issues, and secondary markets like stock exchanges for trading existing securities.
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Financial market and institutions
This document provides an overview of financial markets and institutions. It discusses the key functions of financial markets in channeling funds from surplus to deficit units. It describes the structure of financial markets, including the distinction between debt and equity markets, primary vs secondary markets, and money vs capital markets. The main instruments traded in these markets are also outlined. The document then discusses the role of financial institutions in providing indirect finance and transforming financial assets. It identifies the main types of financial institutions like depository institutions, contractual savings institutions, and investment intermediaries. Finally, it covers the rationale for regulating financial markets and institutions to increase information and ensure overall financial system stability.
Money market vs Capital market.mcb
The document compares and contrasts money markets and capital markets. Money markets deal in short term instruments of up to one year, such as bills and commercial paper, to fulfill short term credit needs. They involve banks and have high liquidity and low risk. Capital markets deal in long term instruments like stocks and bonds, to fulfill long term credit needs. They have lower liquidity, higher risk, and higher potential returns due to longer maturity periods.
financial institutions and markets
This document discusses financial markets and institutions. It begins by outlining the capital allocation process and defining direct and indirect financing. It then discusses various segments of financial markets, including money markets and capital markets. The document outlines what financial markets are, why they are important to study, and their key functions. It also defines different types of financial markets and instruments traded within them, such as money market securities, capital market securities, bonds, mortgages, and derivatives. Finally, it discusses financial institutions, defining them and their role in facilitating indirect finance between savers and borrowers.
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Managerial finance short questions
- 1. Managerial Finance Short Questions 1.What is finance ? Ans. Finance is the managementofmoneyand other valuables,which can be easilyconverted into cash 2.What are goals of firms ? Ans. These are the major goals of firms (a). The Production goal (b). The Inventory goal (c). The Level of sales goal (d). The Market Share goal (e). The Profit goal 3.Difference b/w money market & capital market ? Ans. Money Market: A segment of the financial market where lending and borrowing of short term securities are done. Its nature is informal. Risk factor is low. The instruments of this market are Treasury Bills,CommercialPapers, Certificate of Depositand Trade Credit. ButIts return on investmentis low Capital Market: A section of financial market where longterm securities are issued and traded. Its nature isformal. Its risk factor is comparatively high but also returnon investmentishigh.Itsinstruments are Shares,Debentures,Bonds, Retained Earnings,Asset Securitization etc.