Bank supervisors to keep track of risks to financial system

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1. Why might growing securitization make it harder for bank supervisors to keep track of risks to the financial system?

2. A corporation is considering a $250,000 investment, they expect the investment to generate yearly savings of $75,000 in savings over 5 years. The corporation’s cost of money is 12%. Should they make the investment on a NPV basis?

What is the project’s IRR?

3. A company reports Fixed Costs of $10,000, EBIT $5,000, Depreciation $3,000, taxes $2000. What is the Degree of Leverage, DOL?

Reference no: EM131914212

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