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!
Q. Risk of default influence the rate of interest?
The bank offering the loan to Blin will make an assessment of the risk that the company might default on its loan commitments and charge an interest rate that reflects this risk. Ever since Blin is listed on a stock exchange it will be seen as less risky than an unlisted company and will pay a lower interest rate as a result. The period of time so as the company has been listed may as well be an influential factor.
Since Blin has expanded sales considerably and relies heavily on overdraft finance it may be in an overtrading situation. This could raise the risk of default and so increase the rate of interest charged on the loan. The bank would require to be convinced through financial information supporting the loan application such as cash flow forecasts that Blin would be able to meet future interest payments and repayments of principal.
Functions of Financial Management Traditional function of financial management has been limiting the role of finance toraising and administrating of funds required by the compa
Second-Round Financing This is the introduction of further funding through original investors or new investors to enable a new organization to deal with finance growth or unexp
Illustrate the structure of financial markets? Structure of financial markets: Financial markets can be categorized onto the basis of several parameters as follows: the n
Determine the Preference Shares - Equity Instruments Sandwiched between equity share holders anddebt holders, preference share holders have promise of an assured dividend from
Settlement of the Index Options Contract In the index options contract, the premium to be paid or to be received is calculated for each CM after netting the positions at the en
The price volatility properties of bonds with the help of the graph of the price/yield relationship. Let us now, with the help of a graph, illustrate how duration estim
Performance of Mutual Funds The performance of Mutual Funds can be evaluated by calculating the rate of return earned during the relevant comparison period. The return will inc
Explain the term- Trade receivable days (turnover) [Yearend trade receivables/Credit sales (or turnover)] x 365days It is the average length of time taken by customers t
After the calculation of cash flow yield and the average life of the asset-backed and mortgage-backed security based on default, prepayment and recovery ass
Secondary Market The major participants in secondary market are banks, brokerage firms and bond houses. They buy and sell T-bills on behalf of customers and themselves. The cus
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd