Heritage Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, Heritage must inform potential borrowers of credit terms offered by other lenders. comparative prices for goods to be bought with the borrowed funds. Heritage's credit terms. Heritage's opinion of the borrower's ability to afford the goods to be bought with the borrowed funds
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- Crane Ltd issued $1,200,000 of 10years, 5% bonds on January 1,2024,when the market interest rate was 6%. crane received $1,110,740 when it issued these bonds. Interest is payable semi-annually on July 1 and January 1. crane has a December 31 year end. Assume that Crane has a December 31 year end. Calculate how much of the bond discount was amortized in 2024Michelle took out a $900,000, 30-year mortgage. After 30 years, Michelle paid a total of $1,330,000 to the lender. How much did Michelle pay in interest over the life of the loan? $430,000 $530,0 $490,000 $455,000Freida, who lives in Covington, Louisiana purchased three bonds from a company based in Brazil that were yielding 9.75% and paid a 12% coupon, semi-annually. The company went bankrupt and Freida never received her money. What type of risk caused Freida's loss? Interest rate risk. Default risk. Exchange rate risk. Executive risk.
- After researching Best Buy common stock, Sally Wang is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 550 shares of Best Buy. At the time of the sale, a share of common stock had a value of $148. Three months later, Best Buy is selling for $140 a share, and Sally instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $58. What is her profit for this short transaction?Which statement is true regarding the risk of Politically exposed persons (PEPs)? PEPs provides access to third parties on whom the financial institution has not conducted sufficient due diligence PEPs have significantly greater exposure to the politically corrupt funds,, including accepting bribes or misappropriating government funds PEPs are foreign customers who inherently present additional risk as they are engaged in cross border transctions PEPs generally do not pose enhance risks to an institution due to their political standing; rather, PEPs increase prestige of an institution4. Explain how the existence of a lender of last resort might prevent bank runs.
- demonstrate an understanding of accounting principles and practices; apply Generally Accepted Accounting Principles (GAAP) in the accounting cycle demonstrate the relationship between GAAP and accounting practices describe the roles of various agencies (e.g., CPA Ontario, Ontario Securities Commission, Canada Revenue Agency) and their effects on accounting practices.Juan collects the mail for XYZ Company. He doesn’t read anything. He only signs his name to all the required documents and sends them to the company. What type of beneficial ownership concealment does this describe?Read and analyze the following situation.Bernard J. Ebbers, chief executive officer and founder of the telecommunications giant, WorldCom, owed the corporation $375 million for a loan secured by shares he owned in the company. The value of the company's stock was declining, to the point that the value of its shares was less than the amount of the loan. On February 2, 2002, Mr. Ebbers engaged in a series of communications with leading Wall Street stock analysts, whose opinions helped drive up the stock price, to refute negative news about the company's financial condition. , which was frightening investors. That day, the company's shares increased by 12% in value. Four months later, the company filed for bankruptcy protection due to its precarious economic condition. Answer the following questions:Are the actions mentioned above illegal? Are they unethical? Support and explain your answer. What is the difference between an illegal action and an unethical one? Support and explain your…
- Hyde is a broker involved in a conflicting demands settlement procedure that has already begun. The escrow funds are held in an attorney's escrow account. Hyde seeks an EDO from the FREC. How will the FREC likely respond? The FREC will not issue an EDO because the funds are in an attorney's escrow account. The FREC will issue an EDO within ten business days. The FREC will issue an EDO if the other three settlement procedures don't work. The FREC will not issue an EDO because the dispute must be settledDiscuss the role of securities law in regulating the issuance and trading of stocks and bonds, as well as the legal obligations of companies in providing accurate and timely financial information to investors.It is illegal licensees to commingle operating fund with trust funds because