Briefly outline the history of HSBC plc. How would you describe its business model?

How does wholesale banking differ from retail banking in terms of: (a) product range; (b) client coverage; (c) marketing; (4) risk management; (5) pricing.

Explain diversification and benefit of a diversified portfolio.

Suppose you want to have $700,000 for retirement in 25 years. Your account earns 7% interest compounded monthly. a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $

Briefly discuss the business of wholesale banking, including the main products and services, as well as the customer base. What are the key challenges in the wholesale banking market?

The post-crisis proposals included in the Vickers Report became law in 2013 (the “Banking Reform Act”) and will come into force in 2019. Discuss how the UK ring-fencing rules will affect universal banks.

Knotts, Inc., an all-equity firm, is considering an investment of $1.73 million that will be depreciated according to the straight-line method over its four-year life. The project is expected to generate earnings before taxes and depreciation of $599,000 per year for four years. The investment will not change the risk level of the firm. The company can obtain a four-year, 9.8 percent loan to finance the project from a local bank. All principal will be repaid in one balloon payment at the end of the fourth year. The bank will charge the firm $49,000 in flotation fees, which will be amortized over the four-year life of the loan. If the company financed the project entirely with equity, the firm’s cost of capital would be 14 percent. The corporate tax rate is 23 percent. Using the adjusted present value method, calculate the APV of the project. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89)

We are examining a new project. We expect to sell 6,700 units per year at $61 net cash flow apiece for the next 10 years. In other words, the annual operating cash flow is projected to be $61 × 6,700 = $408,700. The relevant discount rate is 15 percent and the initial investment required is $1,780,000.

a. What is the base-case NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. After the first year, the project can be dismantled and sold for $1,650,000. If expected sales are revised based on the first year’s performance, below what level of expected sales would it make sense to abandon the project? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Describe the differences between the Treaty of Rome and the Maastricht Treaty.

Acme Miracle projects good things for their new weight loss pill, LoseIt. Revenues this year are expected to be $1.1 million, and Acme believes they will increase 15% per year for the next 5 years. What is the present value of the anticipated revenues? Acme uses an interest rate of 20%.

Acme Miracle projects good things for their new weight loss pill, LoseIt. Revenues this year are expected to be $1.1 million, and Acme believes they will increase 15% per year for the next 5 years. What is the equivalent annual amount for the anticipated revenues? Acme uses an interest rate of 20%.

Assume the following information

Given the information in this question, the return from covered interest arbitrage by U.S. investors with $479,000 to invest is about ________.

Business risk is typically described as the exposure a company or organization has to a number of factors that may lower the company’s profits, which may trigger a business failure. Although there are many business risks, two major risk categories are systematic risks and unsystematic risks. Respond to the following in a minimum of 175 words: Explain the differences between systematic risks and unsystematic risks. Briefly discuss two sources of systematic risks and two sources of unsystematic risks.

Bond yields (LO16-2) An investor must choose between two bonds:

Bond A pays $72 annual interest and has a market value of $925. It has 10 years to maturity. Bond B pays $62 annual interest and has a market value of $910. It has two years to maturity. Assume the par value of the bonds is $1,000.

a. Compute the current yield on both bonds.

b. Which bond should she select based on your answer to part a?

c. A drawback of current yield is that it does not consider the total life of the bond. For example, the yield to maturity on Bond A is 8.33 percent. What is the yield to maturity on Bond B?

d. Has your answer changed between parts b and c of this question in terms of which bond to select?

Harry and Belinda have a substantial annual joint income—more than $125,000, in fact. Nevertheless, they expect to experience some cash-flow deficits during the months of November and December of the upcoming year. To resolve this difficulty, the couple is considering opening a credit card account and using it exclusively for those expenditures that will cause the deficits they face. They could also open a line of credit that would allow them to borrow money by simply going online and having money placed in their checking account.

(a) What are the advantages and disadvantages of the Johnsons opening these accounts?

(b) What financial calculations should Harry and Belinda undertake to see whether they could afford to borrow more money at this time?

(c) What might Harry and Belinda do before applying for credit to ensure that they will pay the lowest interest rate possible?

(d) Should they use credit to resolve their budget imbalances? Why or why not?