Question 2 A loan note is issued for P1,000,000. The loan note is redeemable at P1,250,000. The term of the loan is five years and interest is paid at 5.9% pa. The effective rate of interest is 10%. Show how the value of the loan note changes over its life.

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A: Internal Control:   Internal control refers to the policies, and plans of the business organization…

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A: Sarbanes-Oxley Act is formulated during 2002 under US federal law. The prime purpose of the act is…

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A:

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A: Definition:   Contingent liability: This is an uncertain obligation which might be incurred on a…

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Q: Not sure

A: Formulas: Minimum stock price = Face value / Convertible shares

Q: What are some types of divestitures?

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A: A sum of money that an individual or company owes is called liability. It is an obligation between…

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A: Preemptive Rights: It is a contractual clause that gives the shareholders right or allows them to…

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.