The cash flow of Person A, a shareholder of the company, having 100 shares as per the current capital structure and with an assumption that the company has a rate of dividend payment at 100%. Introduction: Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

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Answer 1

Question

Chapter 16, Problem 8QP

a)

Summary Introduction

To calculate: The cash flow of Person A, a shareholder of the company, having 100 shares as per the current capital structure and with an assumption that the company has a rate of dividend payment at 100%.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

b)

Summary Introduction

To calculate: The cash flow of Person A as per the proposed capital structure assuming that she has the same 100 shares.

Note: It is necessary to compute EPS (Earnings per share) under the planned capital structure to calculate the cash flow.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

c)

Summary Introduction

To calculate: How Person A would convert her shares to re-establish the original capital structure.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

d)

Summary Introduction

To explain: The reason for the irrelevance in the capital structure of the company.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

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Citibank is a US Bank which lost US$500 million due to human error in August 2020. Read the case noted in the link below, and answer the following questions: https://finopsinfo.com/investors/citis-900m-blunder-casts-light-on-poor-loan-ops/ Develop a risk management programme appropriate for this case (use attached template) Explain how compliance to this risk management programme can prevent the operation risk issue experienced by Citibank. Discuss the importance of an internal risk assessment and auditing process in relation to this case Step 1 Risks Brief description & how it relates to the case Step 2 List of possible risks Likelihood/Probability of occurrenceH/M/L or Nil Impact (if occurred)H/M/L or Nil What is being done about it now What more can be done about it Dept. where risk exposure exists Step 3 Risk identified Impact (if occurred)H/M/L Probability of occurrenceH/M/L Dept. where risk…

Citibank is a US Bank which lost US$500 million due to human error in August 2020. Read the case noted in the link below, and answer the following questions: https://finopsinfo.com/investors/citis-900m-blunder-casts-light-on-poor-loan-ops/ Develop a risk management programme appropriate for this case (use attached template) Explain how compliance to this risk management programme can prevent the operation risk issue experienced by Citibank. Discuss the importance of an internal risk assessment and auditing process in relation to this case Step 1 Risks Brief description & how it relates to the case Step 2 List of possible risks Likelihood/Probability of occurrenceH/M/L or Nil Impact (if occurred)H/M/L or Nil What is being done about it now What more can be done about it Dept. where risk exposure exists Step 3 Risk identified Impact (if occurred)H/M/L…

Citibank is a US Bank which lost US$500 million due to human error in August 2020. Read the case noted in the link below, and answer the following questions: https://finopsinfo.com/investors/citis-900m-blunder-casts-light-on-poor-loan-ops/ Develop a risk management programme appropriate for this case (use attached template) Explain how compliance to this risk management programme can prevent the operation risk issue experienced by Citibank. Discuss the importance of an internal risk assessment and auditing process in relation to this case

Answer 2

Question

Chapter 16, Problem 8QP

a)

Summary Introduction

To calculate: The cash flow of Person A, a shareholder of the company, having 100 shares as per the current capital structure and with an assumption that the company has a rate of dividend payment at 100%.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

b)

Summary Introduction

To calculate: The cash flow of Person A as per the proposed capital structure assuming that she has the same 100 shares.

Note: It is necessary to compute EPS (Earnings per share) under the planned capital structure to calculate the cash flow.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

c)

Summary Introduction

To calculate: How Person A would convert her shares to re-establish the original capital structure.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

d)

Summary Introduction

To explain: The reason for the irrelevance in the capital structure of the company.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

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Answer 3

Question

Chapter 16, Problem 8QP

a)

Summary Introduction

To calculate: The cash flow of Person A, a shareholder of the company, having 100 shares as per the current capital structure and with an assumption that the company has a rate of dividend payment at 100%.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

b)

Summary Introduction

To calculate: The cash flow of Person A as per the proposed capital structure assuming that she has the same 100 shares.

Note: It is necessary to compute EPS (Earnings per share) under the planned capital structure to calculate the cash flow.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

c)

Summary Introduction

To calculate: How Person A would convert her shares to re-establish the original capital structure.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

d)

Summary Introduction

To explain: The reason for the irrelevance in the capital structure of the company.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

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Answer 4

Question

Chapter 16, Problem 8QP

a)

Summary Introduction

To calculate: The cash flow of Person A, a shareholder of the company, having 100 shares as per the current capital structure and with an assumption that the company has a rate of dividend payment at 100%.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

b)

Summary Introduction

To calculate: The cash flow of Person A as per the proposed capital structure assuming that she has the same 100 shares.

Note: It is necessary to compute EPS (Earnings per share) under the planned capital structure to calculate the cash flow.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

c)

Summary Introduction

To calculate: How Person A would convert her shares to re-establish the original capital structure.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

d)

Summary Introduction

To explain: The reason for the irrelevance in the capital structure of the company.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

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Answer 5

Chapter 16, Problem 8QP

a)

Summary Introduction

To calculate: The cash flow of Person A, a shareholder of the company, having 100 shares as per the current capital structure and with an assumption that the company has a rate of dividend payment at 100%.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

b)

Summary Introduction

To calculate: The cash flow of Person A as per the proposed capital structure assuming that she has the same 100 shares.

Note: It is necessary to compute EPS (Earnings per share) under the planned capital structure to calculate the cash flow.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

c)

Summary Introduction

To calculate: How Person A would convert her shares to re-establish the original capital structure.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

d)

Summary Introduction

To explain: The reason for the irrelevance in the capital structure of the company.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

Answer 6

Chapter 16, Problem 8QP

a)

Summary Introduction

To calculate: The cash flow of Person A, a shareholder of the company, having 100 shares as per the current capital structure and with an assumption that the company has a rate of dividend payment at 100%.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

Answer 7

Chapter 16, Problem 8QP

a)

Summary Introduction

To calculate: The cash flow of Person A, a shareholder of the company, having 100 shares as per the current capital structure and with an assumption that the company has a rate of dividend payment at 100%.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

Answer 8

b)

Summary Introduction

To calculate: The cash flow of Person A as per the proposed capital structure assuming that she has the same 100 shares.

Note: It is necessary to compute EPS (Earnings per share) under the planned capital structure to calculate the cash flow.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

Answer 9

b)

Summary Introduction

To calculate: The cash flow of Person A as per the proposed capital structure assuming that she has the same 100 shares.

Note: It is necessary to compute EPS (Earnings per share) under the planned capital structure to calculate the cash flow.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

Answer 10

c)

Summary Introduction

To calculate: How Person A would convert her shares to re-establish the original capital structure.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

Answer 11

c)

Summary Introduction

To calculate: How Person A would convert her shares to re-establish the original capital structure.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

Answer 12

d)

Summary Introduction

To explain: The reason for the irrelevance in the capital structure of the company.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

Answer 13

d)

Summary Introduction

To explain: The reason for the irrelevance in the capital structure of the company.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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Solution Summary: The author calculates the cash flow of Person A, a shareholder of the company, having 100 shares as per the current capital structure.

To calculate: How Person A would convert her shares to re-establish the original capital structure.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

To explain: The reason for the irrelevance in the capital structure of the company.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

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Chapter 16 Solutions

Solution Summary: The author calculates the cash flow of Person A, a shareholder of the company, having 100 shares as per the current capital structure.

To calculate: How Person A would convert her shares to re-establish the original capital structure. Introduction: Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

To explain: The reason for the irrelevance in the capital structure of the company. Introduction: Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

Want to see the full answer?

Chapter 16 Solutions

To calculate: How Person A would convert her shares to re-establish the original capital structure.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.

To explain: The reason for the irrelevance in the capital structure of the company.

Introduction:

Leverage refers to the borrowing of amount or debt to utilize for a purchase of an equipment, inventory, and other assets of the company.