Answer:
A Banker's Analysis of an Automotive Company for Loan
Most important consideration in determining grant of loan:
c. The company has a large amount of interest payments related to other outstanding loans.
Explanation:
The large amount of interest payments related to other outstanding loans means that the automotive company is highly leveraged. To grant a bank loan will have added leverage risk.
In analyzing the request for a loan, a bank should consider the borrowing company's credit history. With so much in interest payments, the company has already borrowed heavily. The banker should consider the application of the past debts. Were they used in investments or for working capital purposes or to repay liabilities and shareholders.
The banker also needs to review the cash flow history with line with the above, to know how the past debts have been applied, as already stated above. In reviewing the cash flow history, the projections of the company should be tested for sustainability. "Has the company been meeting its past projections?" is a relevant question to understand.#
Lastly, the banker should also consider the existence of collateral for the loan, especially given that the company is highly leveraged. Are there unencumbered assets that can serve as collateral in case of default?
Answer:
The correct answer is letter "D": multiple systematic risk factors.
Explanation:
The Arbitrage Pricing Theory or APT weights the influence of different macroeconomic factors on an asset return. If the asset's price is different than the model's projection an opportunistic investor can buy and sell the asset for a profit. Those macroeconomic factors can include economic output, unemployment, inflation, savings or investments-specific considerations and they capture systematic risk.
Teaming bc when she worked together, they got much more work done.
Answer:
No they just want to look rich
The current or checking account typically has very high liquidity, low or no interest, and low minimum balance. The current or checking account usually used for the daily transaction and they have a similar trait like the e-cash<span>. The current or checking account is one of three types of the bank deposit account.</span>
