Explain how securitization can be used to change illiquid assets into liquid assets. a. Define what LIBOR is, and how its computation is governed. b. Give two examples of interest-rate derivatives that derive t
Here is your first question: Explain what current assets and fixed assets are and give as many examples as you can for each. What is the difference between tangible and intangible assets? Liabiliti Define the words assets, liabilities, and stockholders' equity. How are the three words related...
That’s why I define net worth as simply: Assets – Liabilities = Net Worth This means (literally) adding up all the assets a person owns and subtracting all the liabilities they own. It seems like a pretty simple formula and concept. And BTW, it’s not just me. Google “net worth d...
The quick ratio, sometimes called the "acid test" or "liquid" ratio measures the extent to which a business can cover its current liabilities with current assets readily convertible to cash. Only cash and accounts receivable would be included, as inventory and other current assets would require ...
Define completely and give examples: Interest rate premiums Describe the origin of a loan discount. Explain how zero coupon securities differ from coupon securities. Which are more liquid, in general? Which are more price sensitive? What is the advantage of a zero coupon security in terms of to...
Use examples that will demo a. Explain the meaning of premature death. b. Identify the costs associated with premature death. c. Explain the economic justification for the purchase of life insurance. Why are the discounts on shares and deb...
Money: It is defined as anything widely used and accepted as the medium of exchange for transactional purposes in the economy. Money has a limited supply to prevent inflation and is also portable; thus, it is easy for everybody to...
Financial Markets: It refers to a type of market facilitating the trade of various entities, including debentures, currencies, derivatives ad shares. The financial market plays a substantial role as it determines the prices of assets at any given...