Do you believe that this is an acceptable practice

Assignment Help Finance Basics
Reference no: EM131131026

Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and nonquantitative factors best predict bond defaults. Furthermore, some of the raters invest time and money to meet privately with corporate personnel to get nonpublic information that is used in assigning the issue's bond rating. In order to recoup those costs, some bond rating agencies have tied their ratings to the purchase of additional services. Do you believe that this is an acceptable practice? Defend your position.

Reference no: EM131131026

Questions Cloud

Calculate the probability that the first event : (a) Suppose that we round off the time by taking the integer part. Calculate the probability that the first event from to will be a birth.
What would be the benefit of your policies : How would your policy have affected interest rates and real output during the period in question? What would be the benefit of your policies?
An exponential distribution with parameter : The lifetime of a certain machine is a random variable having an exponential distribution with parameter λ. When the machine breaks down, there is a probability equal to p (respectively, 1 - p) that the failure is of type I (resp., II).
Write a short plot of the film : Write a short plot of the film, Write what the most remarkable part of the film--and use a specific scene to explain (remember, "remarkable" does not have to be good or the best--just something that stands out.)
Do you believe that this is an acceptable practice : In order to recoup those costs, some bond rating agencies have tied their ratings to the purchase of additional services. Do you believe that this is an acceptable practice? Defend your position.
Summarize notable theories and previous research on topic : Summarize notable theories and previous research on this topic, including at least three peer-reviewed studies. Discuss societal views of your topic and whether they have changed over time.
Write journal on amadeus film : Need a 300 word journal on Amadeus film. need you to talk about the lighting, setting, visual effect, sound effect, cinematographer whatever related to the film
Who is the protagonist of the play : In Shakespeare's "Merchant of Venice" it is a difficult play in many ways, and one of those ways is the simple question: who is the protagonist of the play? Write 200 words and make your claim about which figure is this main, focal character, and ..
The process wide-sense stationary : Suppose that {X{t),t ≥ 0} is a Wiener process with drift coefficient M and diffusion coefficient σ2 = 1, where M is a random variable having a uniform distribution on the interval [0,1].

Reviews

Write a Review

 

Finance Basics Questions & Answers

  The standard deviation of einstein is 026 and the standard

the covariance of the returns between einstein stock and bohr stock is 0.0087. the standard deviation of einstein is

  What maximum growth rate can drazi achieve

The firm has no plan to raise funds externally, only counting on its own retained earnings to support growth. What maximum growth rate can Drazi achieve?

  Assessable income as a result of the sale

Residence and source Kit is a permanent resident of Australia. He was born in Chile and retains his Chilean citizenship. Kit spends most of the year working off the coast of Indonesia on an oil rig for a United States company.

  How much total interest is paid over the life of the loan

Prepare an amortization schedule for a three-year loan of $108,000. The interest rate is 9 percent per year, and the loan agreement calls for a principal reduction of $36,000 every year. How much total interest is paid over the life of the loan?

  Use derivatives as a means to manage risk and enhance return

How does the company use derivatives as a means to manage risk and enhance returns?

  What is jowers cost of capital

If the cost of common equity for the firm is 20.2%, the cost of preferred stock is 11.7% and the before tax cost of debt is 10.9 %, what is Jowers cost of capital? The firm's tax rate is 34%. Round to 3 decimal places.

  What is the projects discounted payback

Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the project's discounted payback? Round your answer to two decimal places.

  Computing dividend payout ratio

Axel Telecommunications has a target capital structure that consists of 70% debt and 30% equity. The corporation anticipates that Axel capital budget for the upcoming year will be $3,000,000.

  Purchase a mercedes benz roadster

Q. 1 (Total Marks: 13)Timothy Smith is looking to purchase a Mercedes Benz Roadster, whichhas a total cost of $340,000. Timothy plans to deposit $130,000 and willpay the rest by taking on a 7.5% 5-year loan. Required: a) What is the monthly payment o..

  Clculate the value of a bond with a face value of 1000 a

bond values. calculate the value of a bond with a face value of 1000 a coupon interest rate of 8 percent paid

  Relevant and irrelevant costs

An airline is planning a new promotional campaign to attract college students by offering them the right to fly stand-by at low rates when seats are not otherwise filled.

  Which one of the following will increase net working capital

Which one of the following will increase net working capital? Assume the current ratio is greater than 1.0.

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!

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