Transaction And Translation Exposure In International Finance – Essay

Foreign exchange exposure is a measure of the potential for a firm’s profitability, net cash flow, and market value to change because of a change in exchange rates. Types of Foreign Exchange Exposure Transaction exposure measures changes in the value of outstanding financial obligations due to a change in exchange rates. Translation exposure deals with […]

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Ways Of Transferring Capital From Savers To Borrowers Finance Essay

Find the most recent financial statements for two companies of same industry which are listed in KLSE (Kuala Lumpur Stock Exchange). Evaluate the financial position and performance for each of these two companies using accounting ratio analysis. You are required to compute and compare the accounting ratios between these 2 companies, and conclude the results […]

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Types And Causes Of Liquidity Risk Finance Essay

“In finance, liquidity risk is the risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).” OR Liquidity risk is the current and prospective risk to earnings or capital arising from a bank’s inability to meet its obligations when they come due without incurring […]

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Wealth Maximization and the NPV Method

It has long been an accepted perception that the objective of management is the maximization of shareholder wealth. As we know the corporate objective of a firm is to maximization share holders wealth in order to achieve this corporate goal there is a problem arising called agency problem. The corporate firms are managed by professional […]

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Types Of Banking Risks

The Federal Reserve System has established a banking risk framework that consists of six risk factors: credit, market, operational, liquidity, legal, and reputational risks. During examinations, institutions’ risk management structures are reviewed using these risk categories. Financial Institution Risk Management Programs The Fed has also identified four key infrastructure components of effective risk management programs: […]

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What happened to AIG and why did it fail

AIG and its subsequent failure are one of, if not the most well-known company failures in financial history. Of the more recent bankruptcies filed for companies like Enron and Worldcom, the effects and unforeseeable consequences of the failure of a company like AIG would be much more widespread and felt by many more Americans at […]

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The various types of Dividend policies used by companies

Dividend policy has drawn due attention from various researchers. One of the most famous studies in this respect is Miller and Modigliani hypothesis (1961), which asserted that the cash dividend policy is not important because it has no effect on the company’s value, and as such it does not affect the company owners’ wealth. This […]

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What Is Accumulator And How Does It Function Finance Essay

In 2007, accumulator or decumulator was really famous in USA and Hong Kong among every private banks. Private banks’ clients had made much benefits every day at that time. But that good time would not last forever, in the recent bear stock market, these buyers are incurring huge losses each day with these accumulator contracts during the bull […]

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Types Of Securitization Instruments Finance Essay

Securitization defined as process by which loan is made into tradable security. It becomes tradable security when against it any negotiable instrument or bill of exchange is issued which is backed by the loan or receivables “Securitization generally refers to the sale of assets, which generate cash flows, from the institution that owns them, to […]

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Understanding Inventory Management And Its Theories

Inventory management or inventory control is an attempt to balance inventory needs and requirements with the need to minimize costs resulting from obtaining and holding inventory. There are several schools of thought that view inventory and its function differently. These will be addressed later but first we present a foundation to facilitate the readers understanding […]

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