Required: a) Compute and explain your answers for both years using the following tools as follows i. Subsidy dependence ii. iii. Portfolio at risk b) Briefly identify and discuss four (4) factors to influence Bank's entry into the Microfinance market. Operational self-sufficiency c) Suppose NABCO Finance Ltd operates in the microfinance industry, identify any four (4) possible challenges that the company is likely to be confronted with?
Required: a) Compute and explain your answers for both years using the following tools as follows i. Subsidy dependence ii. iii. Portfolio at risk b) Briefly identify and discuss four (4) factors to influence Bank's entry into the Microfinance market. Operational self-sufficiency c) Suppose NABCO Finance Ltd operates in the microfinance industry, identify any four (4) possible challenges that the company is likely to be confronted with?
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
Transcribed Image Text:QUESTION 2:
You graduated with Masters in Corporate Governance and the best graduating student for that matter. As a
General Manager of your firm did request for the financials of your reputable firm to advise current
management on the Key Performing Indicators (KPIs) a Venture Capitalist would look out for before investing
in your business in the possible future.
The table below is an extract from the financials of NABCO Finance Ltd for the years ended 2020 and 2021
respectively.
Details
2020 (GHC)
2021 (GHC)
Operating Income
351,800
414,000
Financial expense
100,000
94,000
Net impairment loss, gross loan portfolio
45,000
68,000
Operating expense
97,500
171,000
Transcribed Image Text:Gross loan portfolio
290,000
283,000
Delinquency + 1 month
15,000
31,000
Net subsidy
50,000
30,000
Interest rate on loans
18%
22%
Despite the covid-19 pandemic, the interest rate on loans keeps increasing.
Required:
a) Compute and explain your answers for both years using the following tools as follows.
i. Subsidy dependence
ii. Operational self-sufficiency
iii. Portfolio at risk
b) Briefly identify and discuss four (4) factors to influence Bank's entry into the Microfinance market.
c) Suppose NABCO Finance Ltd operates in the microfinance industry, identify any four (4) possible challenges
that the company is likely to be confronted with?
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