2. By use of examples, distinguish between: a. Debt and equity securities. b. Primary and secondary markets. c. Money markets and capital markets. d. Aggressive and conservative working capital management. (5 marks) (5 marks) (5 marks) (5 marks)

2. By use of examples, distinguish between: a. Debt and equity securities. b. Primary and secondary markets. c. Money markets and capital markets. d. Aggressive and conservative working capital management. (5 marks) (5 marks) (5 marks) (5 marks)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

2. By use of examples, distinguish between:
a. Debt and equity securities.
b. Primary and secondary markets.
c. Money markets and capital markets.
d. Aggressive and conservative working capital management.
(5 marks)
(5 marks)
(5 marks)
(5 marks)

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By use of examples, distinguish between: a. Debt and equity securities. (5 marks)b. Primary and secondary markets. (5 marks)c. Money markets and capital markets. (5 marks)d. Aggressive and conservative working capital management. (5 marks) .
5. Definitions: Pick 5 and define, describe why each matter, provide an example Define Describe why it matters Term Time value of money Passive income Net Worth Credit Score/Credit rating Risk Evaluation Stocks bonds Gross income v. Net income Mutual funds ETFs Index funds RRSP Consumer Debt OSAP Example(s)
1. More than one measurement bases apply to investments in debt securities and investment in equity under PFRS 9. What are these measurement bases?2. Identify critical questions to be asked in applying PFRS 9 in the measurement of financial assets.3. How would you distinguish an equity instrument from a debt instrument?
Need it in power point form typed out please. Need to be roughly 7 slides, quote on quote.
Please answer in CAPITAL LETTER IF IT IS AN INFLOW(I )OR AN OUTFLOW (O)COLUMN 1 , AND COLUMN 2 , IF IT CORRESPONDS TO OPERATINGCASHFLOW(OC),INVESTMENT ACTIVITY CASHFLOW(IC), FINANCING ACTIVITY CASHFLOW ( FC)Example: Reduce marketable securities : I OC ( "I" or "O") AND ("OC", "IC" o "FC" )Activity INFLOW " I" orOutflow "O" OPERATINGCASHFLOW(OC), INVESTMENTACTIVITY CASHFLOW(IC), FINANCINGACTIVITY CASHFLOW ( FC) 1. Purchase of treasurystock2. Purchase of availablefor sale investment 3. Sale of equipment at aloss 4. Increase in accountspayable 5. Retirement of bonds 6. Issuance of bonds 7. Decrease in accountspayable 8. Increase in inventory9. Loan from bank bysigning a note 10. Increase in accountsreceivable 11. Purchase of equipmentby issuing a note 12. Purchase of land andbuilding. 13. Decrease in accountsreceivable.14. Payment of dividends. 15.…
Which of the following would be an entry in the statement of changes in equity? Select one: a. Revaluation reserve b. Revaluation gain c. Taxation d. Long term loans
which of the following instrument are traded in capital market. check all that apply A. commercial paper b. treasury bills c. cooperate bonds d. bankers appectances e. common stock
(a. investment banking b. insurance firms c. commercial banking d. mutual fund e. pension fund) is a transformer of short term liabilities to long term assets. e d b c a
Define each of the following terms:a. Capital; capital structure; optimal capital structureb. Business risk; financial riskc. Financial leverage; operating leverage; operating breakevend. Hamada equation; unlevered betae. Symmetric information; asymmetric informationf. Modigliani-Miller theoriesg. Trade-off theory; signaling theoryh. Reserve borrowing capacity; pecking orderi. Windows of opportunity; net debt
3. Account classification. ASSETS a. Current assets b. Long-term investments c. Plant and equipment d. Intangibles e. Other assets LIABILITIES AND CAPITAL f. Current liabilities g. Long-term liabilities h. Preferred stock i. Common stock j. Additional paid-in capital k. Retained earnings 1. Items excluded from balance sheet Using the letters above, classify the following accounts according to the preferred and ordinary balance sheet presentation. 1. Bond sinking fund 2. Purchase 3. Accumulated Depreciation 4. Bonds payable (due 12/31/2021) 5. Premium on common stock 6. Trading debt investments 7. Inventory 8. Prepaid Insurance Expense 9. Patents 10. Unearned rent revenue
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