Debt

securities and $30, 561 of debt securities. In addition, it has $9,203 billion in other financial assets, which include investments in joint ventures and partnership. In 2009, AMP issued more shares under the Dividend Reinvestment Plan, which pay shareholder dividend, by issuing new shares rather than paying by cash. Moreover, AMP invested $296 million in order to improve its capital mix efficiency, rally funding requirements as well as refinance its subordinated debt. Then, AMP Limited made acquisitions

Collateralized Debt Obligations Ylana Najwa Appolline Anne-gabrielle Collateralized Debt Obligations INTRODUCTION oI DEFINITION ET FONCTIONNEMENT • Définition/ typologie • Fonctionnement oII CARACTÉRISTIQUES • Les tranches • La notation oIII LES AVANTAGES ET LES LIMITES • Les avantages • Les risques CONCLUSION Définition d’un CDO: CDO: Produits de crédit structurés à revenu fixe ou variable. Fonctionnement d’un CDO Emetteur s • Portefeuille d’actifs: créances/ obligations Fonds Société

worth 400 million and the equity beta is 0.7. The debt is worth 100 million and the cost of debt is 8%. The risk free rate is 6% and the market risk premium is 10%. Ignore the effect of taxes. What is the company’s cost of capital? 100/(100+400)*8%+400/(100+400)*(6%+0.7*10%) =1/5*8%+4/5*13% =12% A. B. C. D. E. F. 8% 9% 12% 13% 15% 16% Sample exam #1 Answer: D QUESTION 18 A company’s cost of capital is 50% higher than its cost of debt, and its cost of equity is 50% higher than its

45 -0.45 i   0.45 i =0.1129 0.050805 to 0.1320   0.45i = 0.31705       I = 0.0704       I = 7.04% The leverage effect is positive when the economic return is greater than the cost of debt (i). In the case of Zara, Re> I, this means that the return on equity exceeds the economic return: the effect Debt to equity is positive. The economic profitability, caused by the activity of the company allows the latter to pay its creditors, it did not need to dip into its reserves or to use the loan

Woods Agreement $35/Ounce Investing FT data Research • 1971-Now: Floating exchange system Introduction Article & analysis Key Terms What do you think? Article & analysis • 2 major effects of last financial crisis • Budget deficit + debt increased in the U.S. • Emerging markets will grow faster than the others Investing FT data Research Introduction Article & analysis Key Terms What do you think? Article & analysis • Weakening of U.S. dollar is sad, but inevitable • The

prêts durée moyenne de prêt encours moyen de crédits audited financial statements auditing standards auditor automated clearinghouse automated clearinghouse (ACH) automatic teller machine Equivalent: ATM, automated teller machine. average cost of debt Equivalent: average cost of funds. average cost of funds average loan size average loan term average outstanding balance of loans 7 Glossaire anglais-français de la microfinance B back-office back-office transactions back-office, gestion

than 1, which means that their current assets are greater than their current liabilities. Kraft’s current ratio (1.1) is slightly lower than the standard industry (1.3), but the small difference indicates that the company is able to meet short-term debt obligations more easily than their competitors. Kraft Food’s quick ratio (0.8) is lower than 1 but since it is equal to the industry the company proves its ability to pay their short-term debts as well as other companies. Figure 2. Liquidity measures

the coming decade? Ever since the end of the cold war, America became the only superpower maintaining stability and peace. But with the recent economic trend, this leadership has been weakened. In fact, the Great Recession of 2008 put the USA into debt ; the 50 States in the USA are in a difficult financial situation, about ten American states are in a stoppage of payment, California which represents 8% of the world economy is broke. These are just the most obvious sign of the American economic decline

dividing the profit generated by business operations (EBIT or operating income) by the funds invested in the operations (CE or IC). Shareholders (equity: EQ) and financial creditors (net financial debt: D) finance the CE. CE = EQ + D The calculation of the EV is simply: EV = value of equity + net financial debt EV = market capitalization + D As EV is related with business operations, multiples confront EV with operating figures: Price-To-EBIT = EV / EBIT Price-To-EBITDA = EV / EBITDA Price-To-Sales =

delayed until May 2010 This follows the dissolution of the government and the Electoral Commission that led to unrest While a major setback for the electoral process, it does not mean the end of the peace process Election delays could lead to delayed debt restructuring and prevent an economic rebound; we cut our 2010 growth forecast to 3%, from 5% previously New government, new election delays Long-awaited elections in Côte d’Ivoire have suffered a serious setback as the process will be delayed