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Capital Budgeting - University of North Florida
Capital Budgeting - University of North Florida

... requires a period of time for the company to get its ‘money’ back  Time lines should show all cash inflows and outflows  Operating cash flows from revenues and expenses  Investing cash flows from acquisition and disposition ...
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... Assets as of March 31, 2017. Total AUM may differ from the sum of the underlying business AUM due to rounding. Holdings are subject to change. Asset class breakdown is based on company estimates, and subject to change. 1 Includes all assets managed by PGIM, the principal asset management business of ...
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... process/way of listing, in short, may describe as follows:  Every company intending to enlist its securities to DSE by issuing its securities through IPO is required to appoint Issue Manager to proceed with the listing process of the company in the Exchange;  The Issue Manager prepares the draft p ...
The Growing Prominence of Non-Cash Collateral
The Growing Prominence of Non-Cash Collateral

... Many borrowers hold on their balance sheets large amounts of equities and investment-grade corporate bonds that may be eligible for posting in non-cash securities lending transactions. A typical example would be a broker/dealer that can use equity and fixed income securities that are re-hypothecated ...
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annual debt financing strategy

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... This release does not contain or constitute an offer to sell or a solicitation of an offer to purchase securities in the United States or any other jurisdiction. The securities of TFG have not been and will not be registered under the U.S. Securities Act of 1933 (the "Securities Act"), as amended, a ...
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Buyers Guide to RMB Bonds

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... 5. When is it acceptable to use the average beta of the securities issued by the firm as a proxy for the risk of a project the firm is considering undertaking? When the new project has the same risk as the firm’s existing assets. 6. List two of the four conditions that must be met before a firm can ...
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... The Federal Reserve is pumping more money into the financial system with rate cuts  and by taking agency­backed securities. As long as the system is in gridlock, TIPS will  likely stay high.  "The Fed has to do a lot of easing to catch up to the market, and these products are  going to benefit," Spa ...
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... Conservative firms generally use no short-term debt and thus have zero current liabilities. A short-term loan can usually be obtained more quickly than a long-term loan, but the cost of shortterm debt is normally higher than that of long-term debt. If a firm that can borrow from its bank at a 6% int ...
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Securitization

Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs). Investors are repaid from the principal and interest cash flows collected from the underlying debt and redistributed through the capital structure of the new financing. Securities backed by mortgage receivables are called mortgage-backed securities (MBS), while those backed by other types of receivables are asset-backed securities (ABS).Critics have suggested that the complexity inherent in securitization can limit investors' ability to monitor risk, and that competitive securitization markets with multiple securitizers may be particularly prone to sharp declines in underwriting standards. Private, competitive mortgage securitization is believed to have played an important role in the U.S. subprime mortgage crisis.In addition, off-balance sheet treatment for securitizations coupled with guarantees from the issuer can hide the extent of leverage of the securitizing firm, thereby facilitating risky capital structures and leading to an under-pricing of credit risk. Off-balance sheet securitizations are believed to have played a large role in the high leverage level of U.S. financial institutions before the financial crisis, and the need for bailouts.The granularity of pools of securitized assets can mitigate the credit risk of individual borrowers. Unlike general corporate debt, the credit quality of securitized debt is non-stationary due to changes in volatility that are time- and structure-dependent. If the transaction is properly structured and the pool performs as expected, the credit risk of all tranches of structured debt improves; if improperly structured, the affected tranches may experience dramatic credit deterioration and loss.Securitization has evolved from its beginnings in the late 18th century to an estimated outstanding of $10.24 trillion in the United States and $2.25 trillion in Europe as of the 2nd quarter of 2008. In 2007, ABS issuance amounted to $3.455 trillion in the US and $652 billion in Europe. WBS (Whole Business Securitization) arrangements first appeared in the United Kingdom in the 1990s, and became common in various Commonwealth legal systems where senior creditors of an insolvent business effectively gain the right to control the company.
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