Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The accounts of 4,500 credit card customers out of a sample of 40,000 that were reviewed did not perform satisfactorily. The credit scores assigned to these applicants when originally assessed had a mean of 70 and standard deviation of 8. The scores of the remaining customers had a mean of 87 and a standard deviation of 12. Assuming these distributions are approximately normal, if the cut-off score was revised upward to 82.
1. Complete the following table:
Creditworthiness
High
Low
Mean credit score
87
70
Standard deviation of credit score
12
8
Probability of receiving credit (%)
Probability of being denied credit (%)
(ii) The original default rate on the sample of 40,000 card holders was extremely high. What impact would be setting the cut-off at 82 have on the default rate? Show calculations. Is this adjustment reasonable? Discuss.
(iii) Based on the credit evaluation process. Complete the following table and identify the Type I and Type II errors. All quadrants need to be identified.
Analysed credit quality
Actual credit quality
Good
Bad
Calculate the 2009 debt and times-interest-earned ratios. How does D'Leon compare with the industry with respect to financial leverage? What can you conclude from these ratios?
Financial mangers make decisions today that will affect the firm in the future. What are some of the techniques that can be used to adjust for these differences?
How long do you thing it will take you to recoup this investment? Also any thoughts on what the company's return will be? What will be better or easier if anything?
As the operations manager for Valley Kayaks (as described in the previous problem), you find yourself faced with an interesting situation.
The Final Project for this course bridges the gap between theory and practice in public budgeting and financial management by focusing on what professionals and administrators actually do in the field. To this end, your task is to analyze an actual b..
Hickory Building Materials' current statement contains the following information (in millions):
Compute the expected exchange rate in one year and use it to compute the amount of dollars you must pay in one year. (A) $851,700 (B) $867,000 (C) $782,750 (D)$850,000
Do you see any reason why Marlene should switch from her present bond holding into one of the other three issues? If so, which swap candidate would be the best choice? Why?
Which one of the following terms best describes this ?firm's policy of assigning required returns
a project is estimated to generate sales revenue of 10 million with expenses of 9 million. no change innet working
Prudence buys a bond in EUR when it issued by the French government and inflation linked. It offers a 2% yearly coupon. She holds it for five years.
If the mortgage calls for equal monthly payments for 20 years, what is the amount of each payment? (Assume monthly compounding or discounting.)
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd