User Account

All Pages

Hurt the liquidity position of financials institution

Assignment Help Financial Management
Reference no: EM132062730

1. Which of the following could hurt the liquidity position of a financials institution?

a) selling loans held on the balance sheet in the secondary market

b) replacing treasuries with A-rated corporate bonds

c) issuing additional equity

d) issuing subordinated debt

2. Which one of the following statements concerning net present value is correct?

Any project that has negative cash flows for any time period after the initial investment should be rejected.

An investment should be accepted if, and only if, the NPV is exactly equal to zero.

An investment should be accepted if the NPV is negative and rejected if it is positive.

An investment with greater discounted cash inflows than discounted cash outflows will always have a positive NPV.

An investment should be accepted only if the PI is equal to the initial cash flow.

Reference no: EM132062730

Questions Cloud

Childcare and educational services for inner-city kids : Provides childcare and educational services for inner-city kids between the ages of nine months and five years.
The report describes proposed new mine : The report describes a proposed new mine on the North Ridge of MT. A gold mine had been discovered on the land owned by MTMC.
What is company cost of common equity : What is the company's cost of common equity if all of its equity comes from retained earnings?
Lease versus buy : Assuming that the lease can be arranged, should Morris-Meyer lease or borrow and buy the equipment?
Hurt the liquidity position of financials institution : Which of the following could hurt the liquidity position of a financials institution?
Hat is holmes after-tax cost of debt : The Holmes Company's currently outstanding bonds have a 10% coupon and a 13% yield to maturity. What is Holmes's after-tax cost of debt?
Firm is evaluating two mutually exclusive projects : Suppose a firm is evaluating two mutually exclusive projects. Which of the following is not a valid option?
What do these deferred tax assets and liablities mean : What do these deferred tax assets and liablities mean and why might Procter & Gamble have these?
Drive comparison between industries-times and competitors : How do financial ratios drive the comparison between industries, times and competitors?

Reviews

Write a Review

Financial Management Questions & Answers

  What are the cash flows and payoffs in two years

A two year European call option, with a $140 strike price on a stock whose current value is $100, trades at $52 and a two year European put option with the same strike price trades at $86. The expected rate of return on the stock over the next year i..

  Branding so undervalued given the success of companies

IBM is the most valuable B2B brand of 2014 with a brand value of $107,541 million, according to The ‘BrandZ Top 100 Most Valuable Global Brands Study commissioned by WPP and produced by Millward Brown. Why is B2B branding so undervalued given the suc..

  Disregard any cross-product terms

Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 4.80% per year. What is the real risk-free rate of return, r*? Disregard any cross-product terms, i.e., if averaging is required, use the arithme..

  Dynamic pricing strategies and their impact on profit

Consider dynamic pricing strategies and their impact on profit, explain why dynamic pricing provides significant profit benefit over (the best) price strategy as: a. Available cpacity decreases, b. demand uncertainty increases, c. seasonality in dema..

  How many profit can u gain from arbitrage

Suppose u have 1 million dollars, how many profit can u gain from arbitrage? If you had 10 million pounds, how to arbitrage?

  Discuss the process of bringing a new international bond

Discuss the process of bringing a new international bond issue to market.

  Maintenance costs when purchases the tractor

How much money should Luke set aside for maintenance costs when he purchases the tractor?

  Stock repurchase is conceptually

Show that a stock repurchase is conceptually the same as a cash dividend using the following example:

  Questionpart aa number of investigations have been

questionpart aa number of investigations have been undertaken into use made by shareholders of the annual reports of

  Hedging cost in dynamic delta hedging equal the option price

Why does the hedging cost in Dynamic Delta Hedging equal the option price?

  Calculate the economic order quantity and carrying costs

Calculate the carrying costs. Calculate the economic order quantity. Calculate the EOQ number of orders per year.

  What is addition to retained earnings-operating cash flow

Daniel’s Market has sales of $36,000 costs of $28,000, depreciation expense of $3,000 and interest expense of $1,500. If the tax rate is 30 percent, what is the operating cash flow, OCF? Andersen’s Nursery has sales of $318,400, costs of $199,400, de..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd