• Q : Determine general principles of kyc....
    Finance Basics :

    What are the general principles of KYC (Knowing your customer)? Who should be verified, and what is meant by low risk and high risk when it comes to customers and products?

  • Q : Calculate bank fee charges amount....
    Finance Basics :

    You take a loan on $500,000 for 30 years at the annual nominal interest rate of 6% compounded monthly. The loan installments also have to be paid monthly. The bank's APR is 6.7%.

  • Q : Calculate utilization rate for the packaging machine....
    Finance Basics :

    Carl's Custom Candles manufactures small batches of candles for local retail shops. Carl has established a relationship with 3 local shops, and needs to determine how many candle making machines to pu

  • Q : Difference in assurance services and attestation services....
    Finance Basics :

    AICPA and IIA have positioned the auditing professions to become assurance professions. What's difference between assurance services, attestation services, auditing services?

  • Q : Make a policy to investigate customers and prospects....
    Finance Basics :

    There are many data sources that can help with KYC (Know Your Customer) procedures. Discuss where the line is drawn between KYC and the invasion of privacy.

  • Q : Calculate the per capita cost....
    Finance Basics :

    The average cost of employing each police officer per year if $30,000 for a small twon. The current population of the town is 1,000. Calculate the per capita cost per police officer.

  • Q : Estimating annual rate of return....
    Finance Basics :

    Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby's sold a Edgar Degas' bronze sculpture at an auction for a price of $10,311

  • Q : Calculate interest and amortization expense....
    Finance Basics :

    DNA Corporation issued $4000000 in 10.5 percent, ten year bonds on February 1, 2010, at 104. Semiannual interest payment dates are January 31 and July 31. Use the straight - line method and ignore yea

  • Q : Discuss the role of risk assessment....
    Finance Basics :

    The financial news has been dominated recently by stories of financial institutions that have mis-measured the risk as part of the subprime mortgage crisis.

  • Q : General fraudulent practices and money laundering....
    Finance Basics :

    After you answer each question you must also explain whether your answer affects corporations and individuals positively or negatively. Please number your answer to match each question number.

  • Q : Describe the issue of related party transactions....
    Finance Basics :

    Explain the issue of related party transactions not being arm's length transactions and the risk that transactions with related parties might not be valued at the same amount as they would be with an

  • Q : Discuss financial highlights of the company....
    Finance Basics :

    Go to the Yahoo Stock Screener and use this page to find a publicly traded company that you find interesting and would like to study for this class. The company should not be a bank or a financial ins

  • Q : Calculate monthly mortgage payment....
    Finance Basics :

    Consider a GNMA mortgage pool with principal of $20 million. The maturity is 30 years with a monthly mortgage payment of 10 percent per annum. Assume no prepayments.

  • Q : Computing the expected value....
    Finance Basics :

    You need to decide how to invest a graduation gift of $1000. The annual rate of return is given in the next table for each of the three different types of investments and three different states of the

  • Q : Calculate dividends per share and total dividends paid....
    Finance Basics :

    The Rago Corporation had the following stock outstanding from 2009 through 2012, Determine the dividends per share and the total dividends paid to common stockholders and preferred stockholders in the

  • Q : Comparing a real estate investment....
    Finance Basics :

    An important aspect of the decision-making process is the consideration of risks associated with the options in an opportunity set. Measuring the risk of available options can drastically alter the de

  • Q : Prepare stockholders equity section of balance sheet....
    Finance Basics :

    On March 1, 2010, Dora Corporation began operations with a charter it received from the state that authorized 50,000 shares of $4 par value common stock. Over the next quarter, the firm engaged in the

  • Q : Preparing appropriate journal entries to record salaries....
    Finance Basics :

    Lee Financial Services pays employees monthly. Payroll information is listed below for January 2011, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage

  • Q : Probability of getting a green pea is approximately....
    Finance Basics :

    In a genetics experiment on peas, one sample of offspring contained 410 green peas and 121 yellow peas. Based on those results, estimate the probability of getting an offspring pea that is green.

  • Q : Determine the risk premium on common stock....
    Finance Basics :

    Here are stock market and Treasury bill percentage returns between 2006 and 2010, What was the risk premium on common stock in each year?

  • Q : Calculate initial labor cost and initial cost per macaron....
    Finance Basics :

    Pistachio, Inc. is thinking of building a bakery to introduce French cookies, so-called macarons, to the Newark market. A preliminary marketing study, which cost $75,000 and which was completed last y

  • Q : Prepare journal entries....
    Finance Basics :

    Maverick Inc. has outstanding 10,200 shares of $10 par value common stock. Prepare Maverick's journal entries to record these transactions using the cost method.

  • Q : Determine amount of cash under the lockbox system....
    Finance Basics :

    Qtime Products believes that use of a lockbox system can shorten its accounts receivable collection period by four days. The firm's annual sales, all on credit, are $65 million, billed on a continuous

  • Q : Compute the value of a share of common stock....
    Finance Basics :

    Determine the value of a share of common stock that has a $1 dividend, 8% growth rate, and a required rate of return of 12%

  • Q : Disclosures needed in various situations....
    Finance Basics :

    A 10-year loan agreement which the company entered into 3 years ago, provides that dividend payments may not exceed net income earned after taxes subsequent to the date of the agreement.

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